Document:

Unassociated Document

    
      EXHIBIT
        10.2

    

    
       

      EXECUTION
        COPY

    

     

    364
      DAY
      CREDIT AGREEMENT

     

    by
      and
      among

     

     

    CVS
      CORPORATION,

     

     

    THE
      LENDERS PARTY HERETO,

     

    

    LEHMAN
      COMMERCIAL PAPER INC. and

    WACHOVIA
      BANK, NATIONAL ASSOCIATION,

    as
      Co-Syndication Agents,

     

     

    and

     

    THE
      BANK
      OF NEW YORK,

    as
      Administrative Agent

     

     

    
      
        

      

       

    

    Dated
      as
      of March 12, 2007

     

    
      
 

    BNY
      CAPITAL MARKETS, INC. and BANC OF AMERICA SECURITIES LLC

    as
      Co-Lead Arrangers and Joint Bookrunners

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF
      CONTENTS

    

      
        	
                1.

              	
                DEFINITIONS
                  AND PRINCIPLES OF CONSTRUCTION

              	
                1

              
	 	
                1.1

              	
                Definitions

              	
                1

              
	 	
                1.2

              	
                Principles
                  of Construction

              	
                17

              

      

       

      
        	
                2.

              	
                AMOUNT
                  AND TERMS OF LOANS

              	
                18

              
	 	
                2.1

              	
                Revolving
                  Credit Loans

              	
                18

              
	 	
                2.2

              	
                Swing
                  Line Loans

              	
                18

              
	 	
                2.3

              	
                Notice
                  of Borrowing Revolving Credit Loans and Swing Line Loans

              	
                20

              
	 	
                2.4

              	
                Competitive
                  Bid Loans and Procedure

              	
                21

              
	 	
                2.5

              	
                Use
                  of Proceeds

              	
                23

              
	 	
                2.6

              	
                Termination
                  or Reduction of Commitments

              	
                24

              
	 	
                2.7

              	
                Prepayments
                  of Loans

              	
                24

              
	 	
                2.8

              	
                Letter
                  of Credit Sub-facility

              	
                25

              
	 	
                2.9

              	
                Letter
                  of Credit Participation

              	
                26

              
	 	
                2.10

              	
                Absolute
                  Obligation with respect to Letter of Credit Payments

              	
                27

              
	 	
                2.11

              	
                Notes

              	
                28

              

      

       

      
        	
                3.

              	
                PROCEEDS,
                  PAYMENTS, CONVERSIONS, INTEREST, YIELD PROTECTION AND
                  FEES

              	
                28

              
	 	
                3.1

              	
                Disbursement
                  of the Proceeds of the Loans

              	
                28

              
	 	
                3.2

              	
                Payments

              	
                29

              
	 	
                3.3

              	
                Conversions;
                  Other Matters

              	
                30

              
	 	
                3.4

              	
                Interest
                  Rates and Payment Dates

              	
                31

              
	 	
                3.5

              	
                Indemnification
                  for Loss

              	
                32

              
	 	
                3.6

              	
                Reimbursement
                  for Costs, Etc.

              	
                33

              
	 	
                3.7

              	
                Illegality
                  of Funding

              	
                34

              
	 	
                3.8

              	
                Option
                  to Fund; Substituted Interest Rate

              	
                34

              
	 	
                3.9

              	
                Certificates
                  of Payment and Reimbursement

              	
                35

              
	 	
                3.10

              	
                Taxes;
                  Net Payments

              	
                36

              
	 	
                3.11

              	
                Fees

              	
                37

              
	 	
                3.12

              	
                Letter
                  of Credit Participation Fee

              	
                38

              
	 	
                3.13

              	
                Replacement
                  of Lender

              	
                38

              

      

       

      
        	
                4.

              	
                REPRESENTATIONS
                  AND WARRANTIES

              	
                39

              
	 	
                4.1

              	
                Existence
                  and Power

              	
                39

              
	 	
                4.2

              	
                Authority

              	
                39

              
	 	
                4.3

              	
                Binding
                  Agreement

              	
                40

              
	 	
                4.4

              	
                Litigation

              	
                40

              
	 	
                4.5

              	
                No
                  Conflicting Agreements

              	
                40

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      
        	 	
                4.6

              	
                Taxes

              	
                40

              
	 	
                4.7

              	
                Compliance
                  with Applicable Laws; Filings

              	
                41

              
	 	
                4.8

              	
                Governmental
                  Regulations

              	
                41

              
	 	
                4.9

              	
                Federal
                  Reserve Regulations; Use of Proceeds

              	
                41

              
	 	
                4.10

              	
                No
                  Misrepresentation

              	
                42

              
	 	
                4.11

              	
                Plans

              	
                42

              
	 	
                4.12

              	
                Environmental
                  Matters

              	
                42

              
	 	
                4.13

              	
                Financial
                  Statements

              	
                43

              

      

       

      
        	
                5.

              	
                CONDITIONS
                  OF LENDING - FIRST LOANS AND LETTERS OF CREDIT ON THE FIRST BORROWING
                  DATE

              	
                43

              
	 	
                5.1

              	
                Evidence
                  of Corporate Action

              	
                43

              
	 	
                5.2

              	
                Notes

              	
                44

              
	 	
                5.3

              	
                Opinion
                  of Counsel to the Borrower

              	
                44

              

      

       

      
        	
                6.

              	
                CONDITIONS
                  OF LENDING - ALL LOANS AND LETTERS OF CREDIT

              	
                44

              
	 	
                6.1

              	
                Compliance

              	
                44

              
	 	
                6.2

              	
                Requests

              	
                44

              
	 	
                6.3

              	
                Loan
                  Closings

              	
                45

              

      

       

      
        	
                7.

              	
                AFFIRMATIVE
                  COVENANTS

              	
                45

              
	 	
                7.1

              	
                Legal
                  Existence

              	
                45

              
	 	
                7.2

              	
                Taxes

              	
                45

              
	 	
                7.3

              	
                Insurance

              	
                45

              
	 	
                7.4

              	
                Performance
                  of Obligations

              	
                45

              
	 	
                7.5

              	
                Condition
                  of Property

              	
                46

              
	 	
                7.6

              	
                Observance
                  of Legal Requirements

              	
                46

              
	 	
                7.7

              	
                Financial
                  Statements and Other Information

              	
                46

              
	 	
                7.8

              	
                Records

              	
                47

              
	 	
                7.9

              	
                Authorizations

              	
                48

              

      

       

      
        	
                8.

              	
                NEGATIVE
                  COVENANTS

              	
                48

              
	 	
                8.1

              	
                Subsidiary
                  Indebtedness

              	
                48

              
	 	
                8.2

              	
                Liens

              	
                48

              
	 	
                8.3

              	
                Dispositions

              	
                49

              
	 	
                8.4

              	
                Merger
                  or Consolidation, Etc.

              	
                49

              
	 	
                8.5

              	
                Acquisitions

              	
                49

              
	 	
                8.6

              	
                Restricted
                  Payments

              	
                49

              
	 	
                8.7

              	
                Limitation
                  on Upstream Dividends by Subsidiaries

              	
                50

              
	 	
                8.8

              	
                Limitation
                  on Negative Pledges

              	
                51

              
	 	
                8.9

              	
                Ratio
                  of Consolidated Indebtedness to Total Capitalization

              	
                51

              
	 	
                8.10

              	
                Caremark
                  Merger

              	
                51

              

      

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

       

      
        	
                9.

              	
                DEFAULT

              	
                51

              
	 	
                9.1

              	
                Events
                  of Default

              	
                51

              
	 	
                9.2

              	
                Remedies

              	
                53

              

      

       

      
        	
                10.

              	
                AGENT

              	
                54

              
	 	
                10.1

              	
                Appointment

              	
                54

              
	 	
                10.2

              	
                Delegation
                  of Duties

              	
                55

              
	 	
                10.3

              	
                Exculpatory
                  Provisions

              	
                55

              
	 	
                10.4

              	
                Reliance
                  by Administrative Agent

              	
                55

              
	 	
                10.5

              	
                Notice
                  of Default

              	
                56

              
	 	
                10.6

              	
                Non-Reliance

              	
                56

              
	 	
                10.7

              	
                Administrative
                  Agent in Its Individual Capacity

              	
                57

              
	 	
                10.8

              	
                Successor
                  Administrative Agent

              	
                57

              
	 	
                10.9

              	
                Co-Syndication
                  Agents

              	
                58

              

      

       

      
        	
                11.

              	
                OTHER
                  PROVISIONS

              	
                58

              
	 	
                11.1

              	
                Amendments,
                  Waivers, Etc.

              	
                58

              
	 	
                11.2

              	
                Notices

              	
                59

              
	 	
                11.3

              	
                No
                  Waiver; Cumulative Remedies

              	
                60

              
	 	
                11.4

              	
                Survival
                  of Representations and Warranties

              	
                60

              
	 	
                11.5

              	
                Payment
                  of Expenses and Taxes; Indemnified Liabilities

              	
                61

              
	 	
                11.6

              	
                Lending
                  Offices

              	
                61

              
	 	
                11.7

              	
                Successors
                  and Assigns

              	
                61

              
	 	
                11.8

              	
                Counterparts

              	
                65

              
	 	
                11.9

              	
                Set-off
                  and Sharing of Payments

              	
                65

              
	 	
                11.10

              	
                Indemnity

              	
                66

              
	 	
                11.11

              	
                Governing
                  Law

              	
                67

              
	 	
                11.12

              	
                Severability

              	
                67

              
	 	
                11.13

              	
                Integration

              	
                67

              
	 	
                11.14

              	
                Treatment
                  of Certain Information

              	
                67

              
	 	
                11.15

              	
                Acknowledgments

              	
                68

              
	 	
                11.16

              	
                Consent
                  to Jurisdiction

              	
                69

              
	 	
                11.17

              	
                Service
                  of Process

              	
                69

              
	 	
                11.18

              	
                No
                  Limitation on Service or Suit

              	
                69

              
	 	
                11.19

              	
                WAIVER
                  OF TRIAL BY JURY

              	
                69

              
	 	
                11.20

              	
                Effective
                  Date

              	
                70

              
	 	
                11.21

              	
                Patriot
                  Act Notice

              	
                70

              

      

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    EXHIBITS

     

    
      	
              Exhibit

            	
              A

            	
              List
                of Commitments

            
	
              Exhibit

            	
              B

            	
              Form
                of Note

            
	
              Exhibit

            	
              C

            	
              Form
                of Borrowing Request

            
	
              Exhibit

            	
              D-1

            	
              Form
                of Opinion of Counsel to the Borrower

            
	
              Exhibit

            	
              D-2

            	
              Form
                of Opinion of Special Counsel to the Borrower

            
	
              Exhibit

            	
              E

            	
              Form
                of Assignment and Acceptance Agreement

            
	
              Exhibit

            	
              F

            	
              Form
                of Competitive Bid Request

            
	
              Exhibit

            	
              G

            	
              Form
                of Invitation to Bid

            
	
              Exhibit

            	
              H

            	
              Form
                of Competitive Bid

            
	
              Exhibit

            	
              I

            	
              Form
                of Competitive Bid Accept/Reject Letter

            
	
              Exhibit

            	
              J

            	
              Form
                of Letter of Credit Request

            

    

    

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

     

    364
      DAY CREDIT AGREEMENT,
      dated
      as of March 12, 2007, by and among CVS
      CORPORATION,
      a
      Delaware corporation (the “Borrower”),
      the
      Lenders party hereto from time to time (each a “Lender”
      and,
      collectively, the “Lenders”),
      LEHMAN
      COMMERCIAL PAPER INC.
      and
WACHOVIA
      BANK, NATIONAL ASSOCIATION,
      as
      co-syndication agents (in such capacity, each a “Co-Syndication
      Agent”),
      and
THE
      BANK OF NEW YORK (“BNY”),
      as
      administrative agent for the Lenders (in such capacity, the “Administrative
      Agent”).

     

    
      	
              1.

            	
              DEFINITIONS
                AND PRINCIPLES OF CONSTRUCTION

            

    

     

    
      	 	
              1.1

            	
              Definitions

            

    

     

    When
      used
      in any Loan Document (as defined below), each of the following terms shall
      have
      the meaning ascribed thereto unless the context otherwise specifically
      requires:

     

    “ABR
      Advances”:
      the
      Revolving Credit Loans (or any portions thereof) at such time as they (or such
      portions) are made or are being maintained at a rate of interest based upon
      the
      Alternate Base Rate.

     

    “Accumulated
      Funding Deficiency”:
      as
      defined in Section 302 of ERISA.

     

    “Acquisition”:
      with
      respect to any Person, the purchase or other acquisition by such Person, by
      any
      means whatsoever (including by devise, bequest, gift, through a dividend or
      otherwise), of (a) stock of, or other equity securities of, any other Person
      if,
      immediately thereafter, such other Person would be either a consolidated
      subsidiary of such Person or otherwise under the control of such Person, (b)
      any
      business, going concern or division or segment thereof, or (c) the Property
      of
      any other Person other than in the ordinary course of business, provided
      that (i)
      no acquisition of substantially all of the assets, or any division or segment,
      of such other Person shall be deemed to be in the ordinary course of business
      and (ii) no redemption, retirement, purchase or acquisition by any Person of
      the
      stock or other equity securities of such Person shall be deemed to constitute
      an
      Acquisition.

     

    “Administrative
      Agent”:
      as
      defined in the preamble.

     

    “Administrative
      Questionnaire”:
      an
      Administrative Questionnaire in a form supplied by the Administrative
      Agent.

     

    “Affected
      Advance”:
      as
      defined in Section 3.8(b).

     

    “Affiliate”:
      with
      respect to any Person at any time and from time to time, any other Person (other
      than a wholly-owned subsidiary of such Person) which, at such time (a) controls
      such Person, (b) is controlled by such Person or (c) is under common control
      with such Person. The term “control”,
      as used
      in this definition with respect to any Person, means the power, whether direct
      or indirect through one or more intermediaries, to direct or cause the direction
      of the management and policies of such Person, whether through the ownership
      of
      voting securities or other interests, by contract or otherwise.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Aggregate
      Commitment Amount”:
      at any
      time, the sum of the Commitment Amounts of the Lenders at such time under this
      Agreement.

     

    “Aggregate
      Credit Exposure”:
      at any
      time, the sum at such time of (a) the aggregate Committed Credit Exposure of
      the
      Lenders at such time under this Agreement and (b) the aggregate outstanding
      principal balance of all Competitive Bid Loans at such time under this
      Agreement.

     

    “Agreement”:
      this
      Credit Agreement, as the same may be amended, supplemented or otherwise modified
      from time to time.

     

    “Alternate
      Base Rate”:
      for any
      day, a rate per annum equal to the greater of (a) the BNY Rate in effect on
      such
      day, or (b) 0.50% plus the Federal Funds Effective Rate (rounded, if necessary,
      to the nearest l/100th of 1% or, if there is no nearest 1/100 of 1%, then to
      the
      next higher 1/100 of 1%) in effect on such day.

     

    “Applicable
      Margin”:
      (i)
      with respect to the unpaid principal balance of ABR Advances, the applicable
      percentage set forth below in the column entitled “ABR Advances”, (ii) with
      respect to the unpaid principal balance of Eurodollar Advances, the applicable
      percentage set forth below in the column entitled “Eurodollar Advances”, (iii)
      with respect to the Facility Fee, the applicable percentage set forth below
      in
      the column entitled “Facility Fee”, (iv) with respect to the Letter of Credit
      Participation Fee, the applicable percentage set forth below in the column
      entitled “Participation Fee”, and (v) with respect to the Utilization Fee, the
      applicable percentage set forth below in the column entitled “Utilization Fee”,
      in each case opposite the applicable Pricing Level:

     

    
      	
              Pricing
                Level

            	
               

              ABR

              Advances

            	
               

              Eurodollar

              Advances

            	
               

              Facility

              Fee   

            	
               

              Participation
                

              Fee   

            	
               

              Utilization

              Fee   

            
	
              Pricing
                Level I

            	
              0%

            	
              0.170%

            	
              0.030%

            	
              0.170%

            	
              0.050%

            
	
              Pricing
                Level II

            	
              0%

            	
              0.210%

            	
              0.040%

            	
              0.210%

            	
              0.050%

            
	
              Pricing
                Level III

            	
              0%

            	
              0.250%

            	
              0.050%

            	
              0.250%

            	
              0.050%

            
	
              Pricing
                Level IV

            	
              0%

            	
              0.290%

            	
              0.060%

            	
              0.290%

            	
              0.100%

            
	
              Pricing
                Level V

            	
              0%

            	
              0.320%

            	
              0.080%

            	
              0.320%

            	
              0.100%

            
	
              Pricing
                Level VI

            	
              0%

            	
              0.445%

            	
              0.105%

            	
              0.445%

            	
              0.100%

            
	
              Pricing
                Level VII

            	
              0%

            	
              0.725%

            	
              0.150%

            	
              0.725%

            	
              0.100%

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Decreases
      in the Applicable Margin resulting from a change in Pricing Level shall become
      effective upon the delivery by the Borrower to the Administrative Agent of
      a
      notice pursuant to Section 7.7(d). Increases in the Applicable Margin resulting
      from a change in Pricing Level shall become effective on the effective date
      of
      any downgrade or withdrawal in the rating by Moody’s or S&P of the senior
      unsecured long term debt rating of the Borrower.

     

    “Approved
      Fund”:
      with
      respect to any Lender that is a fund that invests in commercial loans, any
      other
      fund that invests in commercial loans and is managed or advised by the same
      investment advisor as such Lender or by an Affiliate of such investment
      advisor.

     

    “Assignment
      and Acceptance Agreement”:
      an
      assignment and acceptance agreement executed by an assignor and an assignee
      pursuant to which, subject to the terms and conditions hereof and thereof,
      the
      assignor assigns to the assignee all or any portion of such assignor’s Loans,
      Notes and Commitment, substantially in the form of Exhibit E.

     

    “Benefited
      Lender”:
      as
      defined in Section 11.9(b).

     

    “BNY”:
      as
      defined in the preamble.

     

    “BNY
      Rate”:
      a rate
      of interest per annum equal to the rate of interest publicly announced in New
      York City by BNY from time to time as its prime commercial lending rate, such
      rate to be adjusted automatically (without notice) on the effective date of
      any
      change in such publicly announced rate.

     

    “Borrower”:
      as
      defined in the preamble.

     

    “Borrowing
      Date”:
      (i) in
      respect of Revolving Credit Loans, any Domestic Business Day or Eurodollar
      Business Day, as the case may be, on which the Lenders shall make Revolving
      Credit Loans pursuant to a Borrowing Request or pursuant to a Mandatory
      Borrowing, (ii) in respect of Competitive Bid Loans, any Domestic Business
      Day
      on which a Lender shall make a Competitive Bid Loan pursuant to a Competitive
      Bid Request, (iii) in respect of Swing Line Loans, any Domestic Business Day
      on
      which the Swing Line Lender shall make a Swing Line Loan pursuant to a Borrowing
      Request and (iv) in respect of Letters of Credit, any Domestic Business Day
      on
      which the Issuer shall issue a Letter of Credit pursuant to a Letter of Credit
      Request.

     

    “Borrowing
      Request”:
      a
      request for Revolving Credit Loans or Swing Line Loans in the form of Exhibit
      C.

     

    “Caremark”:
      Caremark Rx, Inc., a Delaware corporation.

     

    “Caremark
      Merger”:
      the
      merger of Caremark with and into Twain MergerSub Corp., with Twain MergerSub
      Corp. continuing as the surviving company and a wholly owned subsidiary of
      the
      Borrower, pursuant to the Caremark Merger Agreement.

     

    “Caremark
      Merger Agreement”:
      the
      Agreement and Plan of Merger, dated as of November 1, 2006, among the Borrower,
      Caremark and Twain MergerSub Corp., as amended as of January 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    16,
      2007
      (and as further amended, supplemented or otherwise modified from time to time
      in
      accordance with Section 8.10).

     

    “Caremark
      Merger Anticipatory Commercial Paper”:
      commercial paper issued by the Borrower under the Commercial Paper Increase
      prior to and in anticipation of the closing of the Caremark Merger to finance
      in
      part the consideration paid to the Caremark shareholders in connection with
      the
      Caremark Merger, including any dividends paid to the Caremark shareholders,
      provided
      that (a)
      such commercial paper shall mature no later than 60 days following the initial
      issuance thereof and (b) if the Caremark Merger has not been consummated prior
      to such maturity, the Borrower shall not have rolled over such commercial
      paper.

     

    “Caremark
      Merger Effective Date”: the
      date
      on which the Caremark Merger shall have become effective pursuant to the
      Caremark Merger Agreement.

     

    “Change
      of Control”:
      any of
      the following:

     

    (i) any
      Person or group (as such term is used in Section 13(d)(3) of the Securities
      Exchange Act of 1934, as amended), (a) shall have or acquire beneficial
      ownership of securities having 30% or more of the ordinary voting power of
      the
      Borrower or (b) shall possess, directly or indirectly, the power to direct
      or
      cause the direction of the management and policies of the Borrower, whether
      through the ownership of voting securities, by contract or otherwise;
      or

     

    (ii) the
      Continuing Directors shall cease for any reason to constitute a majority of
      the
      board of directors of the Borrower then in office.

     

    “Commercial
      Paper Increase”:
      the
      increase, to the extent in excess of $4.0 billion, in the Borrower’s commercial
      paper program for the purpose, among other things, of providing for the short
      term financing of the Caremark Merger.

     

    “Commitment”:
      in
      respect of any Lender, such Lender’s undertaking to make Revolving Credit Loans,
      subject to the terms and conditions hereof, in an aggregate outstanding
      principal amount not to exceed the Commitment Amount of such
      Lender.

     

    “Commitment
      Amount”:
      at any
      time and with respect to any Lender, the amount set forth adjacent to such
      Lender’s name under the heading “Commitment
      Amount”
      in
      Exhibit A at such time or, in the event that such Lender is not listed on
      Exhibit A, the “Commitment
      Amount”
      which
      such Lender shall have assumed from another Lender in accordance with Section
      11.7 on or prior to such time, as the same may be adjusted from time to time
      pursuant to Sections 2.6 and 11.7(c).

     

    “Commitment
      Percentage”:
      at any
      time and with respect to any Lender, a fraction the numerator of which is such
      Lender’s Commitment Amount at such time, and the denominator of which is the
      Aggregate Commitment Amount at such time.

     

    “Commitment
      Period”:
      the
      period commencing on the Effective Date and ending on the Commitment Termination
      Date, or on such earlier date as all of the Commitments shall have been
      terminated in accordance with the terms hereof.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “Commitment
      Termination Date”:
      the
      earliest of (i) November 1, 2007, in the event that the Caremark Merger
      Effective Date has not occurred on or before November 1, 2007, (ii) March 10,
      2008 and (iii) the date on which the Loans shall become due and payable, whether
      by acceleration, notice of intention to prepay or otherwise.

     

    “Committed
      Credit Exposure”:
      with
      respect to any Lender at any time, the sum at such time of (a) the outstanding
      principal balance of such Lender’s Revolving Credit Loans, (b) the Swing Line
      Exposure of such Lender and (c) the Letter of Credit Exposure of such
      Lender.

     

    “Compensatory
      Interest Payment”:
      as
      defined in Section 3.4(c).

     

    “Competitive
      Bid”:
      an
      offer by a Lender, in the form of Exhibit H, to make one or more Competitive
      Bid
      Loans.

     

    “Competitive
      Bid Accept/Reject Letter”:
      a
      notification made by the Borrower pursuant to Section 2.4(d) in the form of
      Exhibit I.

     

    “Competitive
      Bid Loan”:
      as
      defined in Section 2.4(a). 

     

    “Competitive
      Bid Rate”:
      as to
      any Competitive Bid made by a Lender pursuant to Section 2.4(b), the fixed
      rate
      of interest (which shall be expressed in the form of a decimal to no more than
      four decimal places) offered by such Lender and accepted by the
      Borrower.

     

    “Competitive
      Bid Request”:
      a
      request by the Borrower, in the form of Exhibit F, for Competitive
      Bids.

     

    “Competitive
      Interest Period”:
      as to
      any Competitive Bid Loan, the period commencing on the date of such Competitive
      Bid Loan and ending on the date requested in the Competitive Bid Request with
      respect thereto, which shall not be earlier than 3 days after the date of such
      Competitive Bid Loan or later than 180 days after the date of such Competitive
      Bid Loan, provided
      that
      if
      any Competitive Interest Period would end on a day other than a Domestic
      Business Day, such Interest Period shall be extended to the next succeeding
      Domestic Business Day, unless such next succeeding Domestic Business Day would
      be a date on or after the Commitment Termination Date, in which case such
      Competitive Interest Period shall end on the next preceding Domestic Business
      Day. Interest shall accrue from and including the first day of a Competitive
      Interest Period to but excluding the last day of such Competitive Interest
      Period.

     

    “Consolidated”:
      the
      Borrower and the Subsidiaries on a consolidated basis in accordance with
      GAAP.

     

    “Contingent
      Obligation”:
      as to
      any Person (the “secondary
      obligor”),
      any
      obligation of such secondary obligor (a) guaranteeing or in effect guaranteeing
      any return on any investment made by another Person, or (b) guaranteeing or
      in
      effect guaranteeing any Indebtedness, lease, dividend or other obligation
      (“primary
      obligation”)
      of any
      other Person (the “primary
      obligor”)
      in any
      manner, whether directly or indirectly, including any obligation of such
      secondary obligor, whether or not contingent, (i) to purchase any such primary
      obligation or any Property constituting direct or indirect security therefor,
      (ii) to advance or supply funds (A) for the purchase or payment 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    of
      any
      such primary obligation or (B) to maintain working capital or equity capital
      of
      the primary obligor or otherwise to maintain the net worth or solvency of the
      primary obligor, (iii) to purchase Property, securities or services primarily
      for the purpose of assuring the beneficiary of any such primary obligation
      of
      the ability of the primary obligor to make payment of such primary obligation,
      (iv) otherwise to assure or hold harmless the beneficiary of such primary
      obligation against loss in respect thereof, and (v) in respect of the
      Indebtedness of any partnership in which such secondary obligor is a general
      partner, except to the extent that such Indebtedness of such partnership is
      nonrecourse to such secondary obligor and its separate Property, provided
      that
      the
      term “Contingent
      Obligation”
      shall
      not include the indorsement of instruments for deposit or collection in the
      ordinary course of business.

     

    “Continuing
      Director”:
      any
      member of the board of directors of the Borrower who (i) is a member of that
      board of directors on the Effective Date or (ii) was nominated for election
      by
      the board of directors a majority of whom were directors on the Effective Date
      or whose election or nomination for election was previously approved by one
      or
      more of such directors.

     

    “Control
      Person”:
      as
      defined in Section 3.6.

     

    “Convert”,
      “Conversion”
      and
“Converted”:
      each, a
      reference to a conversion pursuant to Section 3.3 of one Type of Revolving
      Credit Loan into another Type of Revolving Credit Loan.

     

    “Costs”:
      as
      defined in Section 3.6.

     

    “Co-Syndication
      Agents”:
      as
      defined in the preamble.

     

    “Credit
      Exposure”:
      with
      respect to any Lender at any time, the sum at such time of (a) the Committed
      Credit Exposure of such Lender at such time under this Agreement and (b) the
      outstanding principal balance of all Competitive Bid Loans of such Lender at
      such time under this Agreement.

     

    “Credit
      Parties”
      means
      the Administrative Agent, the Co-Syndication Agents, the Swing Line Lender,
      the
      Issuer and the Lenders.

     

    “Default”:
      any of
      the events specified in Section 9.1, whether any requirement for the giving
      of
      notice, the lapse of time, or both, or any other condition, has been
      satisfied.

     

    “Disposition”:
      with
      respect to any Person, any sale, assignment, transfer or other disposition
      by
      such Person by any means, of:

     

    (a) the
      Stock
      of, or other equity interests of, any other Person,

     

    (b) any
      business, operating entity, division or segment thereof, or

     

    (c) any
      other
      Property of such Person, other than (i) the sale of inventory (other than in
      connection with bulk transfers), (ii) the disposition of equipment and (iii)
      the
      sale of cash investments.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    “Dividend
      Restrictions”:
      as
      defined in Section 8.7.

     

    “Dollar”
      or “$”:
      lawful
      currency of the United States of America.

     

    “Domestic
      Business Day”:
      any day
      (other than a Saturday, Sunday or legal holiday in the State of New York) on
      which banks are open for business in New York City. 

     

    “Effective
      Date”:
      as
      defined in Section 11.20.

     

    “Eligible
      Assignee”: (i)
      any
      commercial bank, investment bank, trust company, banking association, financial
      institution, mutual fund, pension fund or any Approved Fund or (ii) any Lender
      or any Affiliate or any Approved Fund of such Lender.

     

    “Eligible
      SPC”: a
      special
      purpose corporation that (i) is organized under the laws of the United States
      or
      any state thereof, (ii) is engaged in making, purchasing or otherwise investing
      in commercial loans in the ordinary course of its business and (iii) issues
      (or
      the parent of which issues) commercial paper rated at least A-1 or the
      equivalent thereof by S&P or at least P-1 or the equivalent thereof by
      Moody’s.

     

    “Employee
      Benefit Plan”:
      an
      employee benefit plan, within the meaning of Section 3(3) of ERISA,
      maintained, sponsored or contributed to by the Borrower, any Subsidiary or
      any
      ERISA Affiliate.

     

    “Environmental
      Laws”:
      all
      laws, rules, regulations, codes, ordinances, orders, decrees, judgments,
      injunctions, notices or binding agreements issued, promulgated or entered into
      by any Governmental Authority, relating in any way to the environment,
      preservation or reclamation of natural resources, the management, release or
      threatened release of any Hazardous Material or to health and safety
      matters.

     

    “Environmental
      Liability”:
      as to
      any Person, any liability, contingent or otherwise (including any liability
      for
      damages, costs of environmental remediation, fines, penalties or indemnities),
      of such Person directly or indirectly resulting from or based upon (i)
      violation of any Environmental Law, (ii)
      the
      generation, use, handling, transportation, storage, treatment or disposal of
      any
      Hazardous Materials, (iii)
      exposure
      to any Hazardous Materials, (iv)
      the
      release or threatened release of any Hazardous Materials into the environment
      or
(v)
      any
      contract, agreement or other consensual arrangement pursuant to which liability
      is assumed or imposed with respect to any of the foregoing.

     

    “ERISA”:
      the
      Employee Retirement Income Security Act of 1974, as amended from time to time,
      or any successor thereto, and the rules and regulations issued thereunder,
      as
      from time to time in effect.

     

    “ERISA
      Affiliate”:
      when
      used with respect to an Employee Benefit Plan, ERISA, the PBGC or a provision
      of
      the Internal Revenue Code pertaining to employee benefit plans, any Person
      that
      is a member of any group of organizations within the meaning of Sections 414(b)
      or (c) of the Internal Revenue Code or, solely with respect to the applicable
      provisions of the Internal Revenue Code, Sections 414(m) or (o) of the Internal
      Revenue Code, of which the Borrower or any Subsidiary is a member.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    “ESOP
      Guaranty”:
      the
      guaranty of the 8.52% ESOP Note maturing 2008 in the aggregate unpaid principal
      amount, as of December 30, 2006, of $82,100,000.

     

    “Eurodollar
      Advance”:
      a
      portion of the Revolving Credit Loans selected by the Borrower to bear interest
      during a Eurodollar Interest Period selected by the Borrower at a rate per
      annum
      based upon a Eurodollar Rate determined with reference to such Interest Period,
      all pursuant to and in accordance with Section 2.1 or 3.3.

     

    “Eurodollar
      Business Day”:
      any
      Domestic Business Day, other than a Domestic Business Day on which banks are
      not
      open for dealings in Dollar deposits in the interbank eurodollar
      market.

     

    “Eurodollar
      Interest Period”:
      the
      period commencing on any Eurodollar Business Day selected by the Borrower in
      accordance with Section 2.3 or Section 3.3 and ending one, two, three or six
      months thereafter, as selected by the Borrower in accordance with either such
      Sections, subject to the following:

     

    (i)
      if
      any Eurodollar Interest Period would otherwise end on a day which is not a
      Eurodollar Business Day, such Interest Period shall be extended to the
      immediately succeeding Eurodollar Business Day unless the result of such
      extension would be to carry the end of such Interest Period into another
      calendar month, in which event such Interest Period shall end on the Eurodollar
      Business Day immediately preceding such day; and

     

    (ii)
      if
      any Eurodollar Interest Period shall begin on the last Eurodollar Business
      Day
      of a calendar month (or on a day for which there is no numerically corresponding
      day in the calendar month at the end of such Interest Period), such Interest
      Period shall end on the last Eurodollar Business Day of such latter calendar
      month.

     

    “Eurodollar
      Rate”:
      with
      respect to each Eurodollar Advance and as determined by the Administrative
      Agent, the rate of interest per annum (rounded, if necessary, to the nearest
      1/100 of 1% or, if there is no nearest 1/100 of 1%, then to the next higher
      1/100 of 1%) equal to a fraction, the numerator of which is the rate per annum
      quoted by BNY at approximately 11:00 A.M. (or as soon thereafter as practicable)
      two Eurodollar Business Days prior to the first day of such Interest Period
      to
      leading banks in the interbank eurodollar market as the rate at which BNY is
      offering Dollar deposits in an amount approximately equal to its Commitment
      Percentage of such Eurodollar Advance and having a period to maturity
      approximately equal to the Interest Period applicable to such Eurodollar
      Advance, and the denominator of which is an amount equal to 1.00 minus
      the
      aggregate of the then stated maximum rates during such Interest Period of all
      reserve requirements (including marginal, emergency, supplemental and special
      reserves), expressed as a decimal, established by the Board of Governors of
      the
      Federal Reserve System and any other banking authority to which BNY and other
      major United States money center banks are subject, in respect of eurocurrency
      liabilities.

     

    “Event
      of Default”:
      any of
      the events specified in Section 9.1, provided
      that any
      requirement for the giving of notice, the lapse of time, or both, or any other
      condition has been satisfied.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    “Existing
      2004 Five Year Credit Agreement”: the
      Five
      Year Credit Agreement, dated as of June 11, 2004, by and among the Borrower,
      the
      lenders party thereto, Bank of America, N.A., Credit Suisse First Boston, and
      Wachovia Securities, Inc., as co-syndication agents, ABN AMRO Bank N.V., as
      documentation agent, and BNY, as administrative agent, as the same may be
      amended, supplemented, replaced or otherwise modified from time to
      time.

     

    “Existing
      2005 Five Year Credit Agreement”:
      the
      Five Year Credit Agreement, dated as of June 3, 2005, by and among the Borrower,
      the lenders party thereto, Bank of America, N.A., Credit Suisse First Boston,
      and Wachovia Bank, National Association, as co-syndication agents, SunTrust
      Bank, as documentation agent, and BNY, as administrative agent, as the same
      may
      be amended, supplemented, replaced or otherwise modified from time to
      time.

    

    “Existing
      2006 Five Year Credit Agreement”:
      the
      Five Year Credit Agreement, dated as of May 12, 2006, by and among the Borrower,
      the lenders party thereto, Bank of America, N.A., Lehman Brothers Inc. and
      Wachovia Bank, National Association, as co-syndication agents, KeyBank National
      Association, as documentation agent, and BNY, as administrative agent, as the
      same may be amended, supplemented, replaced or otherwise modified from time
      to
      time.

    

    “Expiration
      Date”:
      the
      first date, occurring on or after the date the Commitments shall have terminated
      or been terminated in accordance herewith, upon which there shall be no Loans
      or
      Letters of Credit outstanding.

     

    “Facility
      Fee”:
      as
      defined in Section 3.11(a).

     

    “Federal
      Funds Effective Rate”:
      for any
      period, a fluctuating interest rate per annum equal for each day during such
      period to the weighted average of the rates on overnight Federal funds
      transactions with members of the Federal Reserve System arranged by Federal
      funds brokers, as published for such day (or, if such day is not a Domestic
      Business Day, for the next preceding Domestic Business Day) by the Federal
      Reserve Bank of New York, or, if such rate is not so published for any day
      which
      is a Domestic Business Day, the average (rounded, if necessary, to the nearest
      1/100 of 1% or, if there is no nearest 1/100 of 1%, then to the next higher
      1/100 of 1%) of the quotations for such day on such transactions received by
      the
      Administrative Agent from three Federal funds brokers of recognized standing
      selected by the Administrative Agent.

     

    “Fees”:
      as
      defined in Section 3.2(a).

     

    “Financial
      Statements”:
      as
      defined in Section 4.13.

     

    “Foreign
      Lender”:
      any
      Lender that is organized under the laws of a jurisdiction other than the United
      States of America, any State thereof or the District of Columbia.

     

    “GAAP”:
      generally accepted accounting principles set forth in the opinions and
      pronouncements of the Accounting Principles Board and the American Institute
      of
      Certified Public Accountants and statements and pronouncements of the Financial
      Accounting Standards Board or such other principles as may be approved by a
      significant segment of the accounting profession, which are applicable to the
      circumstances as of the date of determination, consistently
      applied.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    “Governmental
      Authority”:
      any
      foreign, federal, state, municipal or other government, or any department,
      commission, board, bureau, agency, public authority or instrumentality thereof,
      or any court or arbitrator.

     

    “Granting
      Lender”: 
      as
      defined in Section 11.7(h).

     

    “Hazardous
      Materials”:
      all
      explosive or radioactive substances or wastes and all hazardous or toxic
      substances, wastes or other pollutants, including petroleum or petroleum
      distillates, asbestos or asbestos containing materials, polychlorinated
      biphenyls, radon gas, infectious or medical wastes and all other substances
      or
      wastes of any nature regulated pursuant to any Environmental Law.

     

    “Highest
      Lawful Rate”:
      as to
      any Lender, the maximum rate of interest, if any, which at any time or from
      time
      to time may be contracted for, taken, charged or received on the Loans or the
      Notes or which may be owing to such Lender pursuant to this Agreement under
      the
      laws applicable to such Lender and this Agreement.

     

    “Indebtedness”:
      as to
      any Person at a particular time, all items of such Person which constitute,
      without duplication, (a) indebtedness for borrowed money or the deferred
      purchase price of Property (other than trade payables and accrued expenses
      incurred in the ordinary course of business), (b) indebtedness evidenced by
      notes, bonds, debentures or similar instruments, (c) indebtedness with respect
      to any conditional sale or other title retention agreement, (d) indebtedness
      arising under acceptance facilities and the amount available to be drawn under
      all letters of credit (excluding for purposes of Sections 8.1 and 8.9 letters
      of
      credit obtained in the ordinary course of business by the Borrower or any
      Subsidiary) issued for the account of such Person and, without duplication,
      all
      drafts drawn thereunder to the extent such Person shall not have reimbursed
      the
      issuer in respect of the issuer’s payment of such drafts, (e) that portion of
      any obligation of such Person, as lessee, which in accordance with GAAP is
      required to be capitalized on a balance sheet of such Person, (f) all
      indebtedness described in (a) - (e) above secured by any Lien on any Property
      owned by such Person even though such Person shall not have assumed or otherwise
      become liable for the payment thereof (other than carriers’, warehousemen’s,
      mechanics’, repairmen’s or other like non-consensual Liens arising in the
      ordinary course of business), and (g) Contingent Obligations in respect of
      any
      indebtedness described in items (a) - (f) above, provided
      that,
      for
      purposes of this definition, Indebtedness shall not include Intercompany Debt
      and obligations in respect of interest rate caps, collars, exchanges, swaps
      or
      other, similar agreements.

     

    “Indemnified
      Liabilities”:
      as
      defined in Section 11.5.

     

    “Indemnified
      Person”:
      as
      defined in Section 11.10.

     

    “Intercompany
      Debt”:
      (i)
      Indebtedness of the Borrower to one or more of the Subsidiaries of the Borrower
      and (ii) demand Indebtedness of one or more of the Subsidiaries of the Borrower
      to the Borrower or any one or more of the other Subsidiaries of the
      Borrower.

     

    “Intercompany
      Disposition”:
      a
      Disposition by the Borrower or any of the Subsidiaries of the Borrower to the
      Borrower or to any of the other Subsidiaries of the Borrower.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    “Interest
      Payment Date”:
      (i) as
      to any ABR Advance, the last day of each March, June, September and December,
      commencing on the first of such days to occur after such ABR Advance is made
      or
      any Eurodollar Advance is converted to an ABR Advance, (ii) as to any Swing
      Line
      Loan, the day on which the outstanding principal balance of such Swing Line
      Loan
      shall become due and payable in accordance with Section 2.2(a), (iii) as to
      any
      Eurodollar Advance in respect of which the Borrower has selected a Eurodollar
      Interest Period of one, two or three months, the last day of such Eurodollar
      Interest Period, (iv) as to any Competitive Bid Loan in respect of which the
      Borrower has selected a Competitive Interest Period of 90 days or less the
      last
      day of such Competitive Interest Period and (v) as to any Eurodollar Advance
      or
      Competitive Bid Loan in respect of which the Borrower has selected an Interest
      Period greater than three months or 90 days, as the case may be, the last day
      of
      the third month or the 90th day, as the case may be, of such Interest Period
      and
      the last day of such Interest Period.

     

    “Interest
      Period”:
      a
      Eurodollar Interest Period, a Swing Line Interest Period or a Competitive
      Interest Period, as the case may be.

     

    “Internal
      Revenue Code”:
      the
      Internal Revenue Code of 1986, as amended from time to time, or any successor
      thereto, and the rules and regulations issued thereunder, as from time to time
      in effect.

     

    “Invitation
      to Bid”:
      an
      invitation by the Administrative Agent to the Lenders to make Competitive Bids
      in the form of Exhibit G.

     

    “issue”
      or “issuance”:
      when
      used with respect to a Letter of Credit, shall be deemed to include any increase
      in the amount of such Letter of Credit.

     

    “Issuer”:
      BNY.

     

    “Lender”:
      as
      defined in the preamble; such term to also include the Swing Line Lender and
      the
      Issuer where the context hereof requires or permits such inclusion.

     

    “Letter
      of Credit”:
      as
      defined in Section 2.8.

     

    “Letter
      of Credit Commitment”:
      the
      commitment of the Issuer to issue Letters of Credit in accordance with the
      terms
      hereof in an aggregate outstanding face amount not exceeding $150,000,000 (or,
      if less, the Aggregate Commitment Amount) at any time, as the same may be
      reduced pursuant to Section 2.6.

     

    “Letter
      of Credit Exposure”:
      at any
      time, (a) in respect of all Lenders, the sum, without duplication, of (i) the
      maximum aggregate amount which may be drawn under all unexpired Letters of
      Credit at such time (whether the conditions for drawing thereunder have or
      may
      be satisfied), (ii) the aggregate amount, at such time, of all unpaid drafts
      (which have not been dishonored) drawn under all Letters of Credit, and (iii)
      the aggregate unpaid principal amount of the Reimbursement Obligations at such
      time, and (b) in respect of any Lender, an amount equal to such Lender’s
      Commitment Percentage at such time multiplied by the amount determined under
      clause (a) of this definition.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    “Letter
      of Credit Participation”:
      with
      respect to each Lender, its obligations to the Issuer under Section
      2.9.

     

    “Letter
      of Credit Participation Fee”:
      as
      defined in Section 3.12.

     

    “Letter
      of Credit Request”:
      a
      request in the form of Exhibit J.

     

    “Lien”:
      any
      mortgage, pledge, hypothecation, assignment, lien, deposit arrangement, charge,
      encumbrance or other security arrangement or security interest of any kind,
      or
      the interest of a vendor or lessor under any conditional sale agreement, capital
      lease or other title retention agreement.

     

    “Loan”:
      a
      Revolving Credit Loan, a Competitive Bid Loan or a Swing Line Loan, as the
      case
      may be.

     

    “Loan
      Documents”:
      this
      Agreement and, upon the execution and delivery thereof, the Notes, if any,
      and
      the Reimbursement Agreements.

     

    “Loans”:
      the
      Revolving Credit Loans, the Competitive Bid Loans and the Swing Line
      Loans.

     

    “Mandatory
      Borrowing”:
      as
      defined in Section 2.2(b).

     

    “Margin
      Stock”:
      any
“margin
      stock”,
      as said
      term is defined in Regulation U of the Board of Governors of the Federal Reserve
      System, as the same may be amended or supplemented from time to
      time.

     

    “Material
      Adverse”:
      with
      respect to any change or effect, a material adverse change in, or effect on,
      as
      the case may be, (i) the financial condition, operations, business, or Property
      of the Borrower and the Subsidiaries taken as a whole, (ii) the ability of
      the
      Borrower to perform its obligations under the Loan Documents, or (iii) the
      ability of the Administrative Agent, the Issuer or any Lender to enforce the
      Loan Documents.

     

    “Moody’s”:
      Moody’s
      Investors Service, Inc.

     

    “Multiemployer
      Plan”:
      a
      Pension Plan which is a multiemployer plan as defined in Section 4001(a)(3)
      of
      ERISA.

     

    “Negotiated
      Rate”:
      with
      respect to each Swing Line Loan, the rate per annum agreed to in writing by
      the
      Borrower and the Swing Line Lender as the interest rate which such Swing Line
      Loan shall bear.

     

    “Net
      Worth”:
      at any
      date of determination, the sum of all amounts which would be included under
      shareholders’ equity on a Consolidated balance sheet of the Borrower and the
      Subsidiaries determined in accordance with GAAP as at such date.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    “Note”:
      with
      respect to each Lender that has requested one, a promissory note evidencing
      such
      Lender’s Loans payable to the order of such Lender (or, if required by such
      Lender, to such Lender and its registered assigns), substantially in the form
      of
      Exhibit B.

     

    “Participant”:
      as
      defined in Section 11.7(e).

     

    “Patriot
      Act”:
      as
      defined in Section 11.22.

     

    “PBGC”:
      the
      Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
      Title
      IV of ERISA, or any Governmental Authority succeeding to the functions
      thereof.

     

    “Pension
      Plan”:
      at any
      time, any Employee Benefit Plan (including a Multiemployer Plan) subject to
      Section 302 of ERISA or Section 412 of the Internal Revenue Code, the funding
      requirements of which are, or at any time within the six years immediately
      preceding the time in question, were in whole or in part, the responsibility
      of
      the Borrower, any Subsidiary or an ERISA Affiliate.

     

    “Person”:
      any
      individual, firm, partnership, limited liability company, joint venture,
      corporation, association, business trust, joint stock company, unincorporated
      association, trust, Governmental Authority or any other entity, whether acting
      in an individual, fiduciary, or other capacity, and for the purpose of the
      definition of “ERISA
      Affiliate”,
      a trade
      or business.

     

    “Pricing
      Level”:
      Pricing
      Level I, Pricing Level II, Pricing Level III, Pricing Level IV, Pricing Level
      V
      or Pricing Level VI, as the case may be.

     

    “Pricing
      Level I”:
      any
      time when the senior unsecured long term debt rating of the Borrower by (x)
      S&P is A+ or higher or (y) Moody’s is A1 or higher.

     

    “Pricing
      Level II”:
      any
      time when (i) the senior unsecured long term debt rating of the Borrower by
      (x)
      S&P is A or higher or (y) Moody’s is A2 or higher and (ii) Pricing Level I
      does not apply.

     

    “Pricing
      Level III”:
      any
      time when (i) the senior unsecured long term debt rating of the Borrower by
      (x)
      S&P is A- or higher or (y) Moody’s is A3 or higher and (ii) neither Pricing
      Level I nor II applies.

     

    “Pricing
      Level IV”:
      any
      time when (i) the senior unsecured long term debt rating of the Borrower by
      (x)
      S&P is BBB+ or higher or (y) Moody’s is Baa1 or higher and (ii) none of
      Pricing Level I, II or III applies.

     

    “Pricing
      Level V”:
      any
      time when (i) the senior unsecured long term debt rating of the Borrower by
      (x)
      S&P is BBB or higher or (y) Moody’s is Baa2 or higher and (ii) none of
      Pricing Level I, II, III or IV applies.

     

    “Pricing
      Level VI”:
      any
      time when (i) the senior unsecured long term debt rating of the Borrower by
      (x)
      S&P is BBB- or higher or (y) Moody’s is Baa3 or higher and (ii) none of
      Pricing Level I, II, III, IV or V applies.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    “Pricing
      Level VII”:
      any
      time when none of Pricing Level I, II, III, IV, V or VI applies.

     

    Notwithstanding
      each definition of Pricing Level set forth above, if at any time the senior
      unsecured long term debt ratings of the Borrower by S&P and Moody’s differ
      by more than one equivalent rating level, then the applicable Pricing Level
      shall be determined based upon the lower such rating adjusted upwards to the
      next higher rating level.

     

    “Principal
      Office”:
      from
      time to time, the principal office of BNY, located on the date hereof in New
      York, New York.

     

    “Prohibited
      Transaction”:
      a
      transaction that is prohibited under Section 4975 of the Internal Revenue Code
      or Section 406 of ERISA and not exempt under Section 4975 of the Internal
      Revenue Code or Section 408 of ERISA.

     

    “Property”:
      in
      respect of any Person, all types of real, personal or mixed property and all
      types of tangible or intangible property owned or leased by such
      Person.

     

    “Regulatory
      Change”:
      (a) the
      introduction or phasing in of any law, rule or regulation after the date hereof,
      (b) the issuance or promulgation after the date hereof of any directive,
      guideline or request from any central bank or United States or foreign
      Governmental Authority (whether or not having the force of law), or (c) any
      change after the date hereof in the interpretation of any existing law, rule,
      regulation, directive, guideline or request by any central bank or United States
      or foreign Governmental Authority charged with the administration thereof,
      in
      each case applicable to the transactions contemplated by this
      Agreement.

     

    “Reimbursement
      Agreement”:
      as
      defined in Section 2.8(b).

     

    “Reimbursement
      Obligations”:
      all
      obligations and liabilities of the Borrower due and to become due (a) under
      the
      Reimbursement Agreements and (b) hereunder in respect of Letters of
      Credit.

     

    “Related
      Parties”:
      with
      respect to any specified Person, such Person’s Affiliates and the respective
      directors, officers, employees, agents and advisors of such Person and such
      Person’s Affiliates.

     

    “Replaced
      Lender”:
      as
      defined in Section 3.13.

     

    “Replacement
      Lender”:
      as
      defined in Section 3.13.

     

    “Reportable
      Event”:
      with
      respect to any Pension Plan, (a) any event set forth in Sections 4043(c) (other
      than a Reportable Event as to which the 30 day notice requirement is waived
      by
      the PBGC under applicable regulations), 4062(e) or 4063(a) of ERISA, or the
      regulations thereunder, (b) an event requiring the Borrower, any Subsidiary
      or
      any ERISA Affiliate to provide security to a Pension Plan under Section
      401(a)(29) of the Internal Revenue Code, or (c) the failure to make any payment
      required by Section 412(m) of the Internal Revenue Code.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    “Required
      Lenders”:
      (a) at
      any time prior to the Commitment Termination Date or such earlier date as all
      of
      the Commitments shall have terminated or been terminated in accordance herewith,
      Lenders having Commitment Amounts equal to or more than 51% of the Aggregate
      Commitment Amount, and (b) at all other times, Lenders having Credit Exposure
      equal to or more than 51% of the Aggregate Credit Exposure. 

     

    “Restricted
      Payment”:
      with
      respect to any Person, any of the following, whether direct or indirect: (a)
      the
      declaration or payment by such Person of any dividend or distribution on any
      class of Stock of such Person, other than a dividend payable solely in shares
      of
      that class of Stock to the holders of such class, (b) the declaration or payment
      by such Person of any distribution on any other type or class of equity interest
      or equity investment in such Person, and (c) any redemption, retirement,
      purchase or acquisition of, or sinking fund or other similar payment in respect
      of, any class of Stock of, or other type or class of equity interest or equity
      investment in, such Person.

     

    “Restrictive
      Agreement”:
      as
      defined in Section 8.7.

     

    “Revolving
      Credit Loans”: as
      defined in Section 2.1(a).

     

    “S&P”:
      Standard & Poor’s, a division of The McGraw-Hill Companies,
      Inc.

     

    “Solvent”:
      with
      respect to any Person on a particular date, the condition that on such date,
      (i)
      the fair value of the Property of such Person is greater than the total amount
      of liabilities, including, without limitation, contingent liabilities, of such
      Person, (ii) the present fair salable value of the assets of such Person is
      not
      less than the amount that will be required to pay the probable liability of
      such
      Person on its debts as they become absolute and matured, (iii) such Person
      does
      not intend to, and does not believe that it will, incur debts or liabilities
      beyond such Person’s ability to pay as such debts and liabilities mature, and
      (iv) such Person is not engaged in business or a transaction, and is not about
      to engage in business or a transaction, for which such Person’s Property would
      constitute an unreasonably small amount of capital. For purposes of this
      definition, the amount of any contingent liability at any time shall be computed
      as the amount that, in light of all the facts and circumstances existing at
      such
      time, represents the amount that can reasonably be expected to become an actual
      or matured liability after taking into account probable payments by
      co-obligors.

     

    “Special
      Counsel”:
      such
      counsel as the Administrative Agent may engage from time to time.

     

    “Subsidiary”:
      at any
      time and from time to time, any corporation, association, partnership, limited
      liability company, joint venture or other business entity of which the Borrower
      and/or any Subsidiary of the Borrower, directly or indirectly at such time,
      either (a) in respect of a corporation, owns or controls more than 50% of the
      outstanding stock having ordinary voting power to elect a majority of the board
      of directors or similar managing body, irrespective of whether a class or
      classes shall or might have voting power by reason of the happening of any
      contingency, or (b) in respect of an association, partnership, limited liability
      company, joint venture or other business entity, is entitled to share in more
      than 50% of the profits and losses, however determined.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    “Swing
      Line Commitment”:
      the
      commitment of the Swing Line Lender to make Swing Line Loans in accordance
      with
      the terms hereof in an aggregate outstanding principal amount not exceeding
      $100,000,000 (or, if less, the Aggregate Commitment Amount) at any time, as
      the
      same may be reduced pursuant to Section 2.6.

     

    “Swing
      Line Commitment Period”:
      the
      period from the Effective Date to, but excluding, the Swing Line Termination
      Date.

     

    “Swing
      Line Exposure”:
      at any
      time, in respect of any Lender, an amount equal to the aggregate principal
      balance of Swing Line Loans at such time multiplied by such Lender’s Commitment
      Percentage at such time.

     

    “Swing
      Line Interest Period”:
      as to
      any Swing Line Loan, the period commencing on the date of such Swing Line loan
      and ending on the date set forth by the Borrower in the Borrowing Request with
      respect to such Swing Line Loan, provided
      that
      the
      last day of any Swing Line Interest Period shall not be earlier than one day
      after the date of such Swing Line Loan or later than 7 days after the date
      of
      such Swing Line Loan and in no event later than the Swing Line Termination
      Date,
      and provided
      further that
      if
      any Swing Line Interest Period would end on a day other than a Domestic Business
      Day, such Interest Period shall be extended to the next succeeding Domestic
      Business Day.

     

    “Swing
      Line Lender”:
      BNY.

     

    “Swing
      Line Loan”
      and
“Swing
      Line Loans”:
      as
      defined in Section 2.2(a).

     

    “Swing
      Line Maturity Date”:
      as
      defined in Section 2.2(a).

     

    “Swing
      Line Participation Amount”:
      as
      defined in Section 2.2(c).

     

    “Swing
      Line Termination Date”:
      the
      date which is 7 Domestic Business Days prior to the Commitment Termination
      Date.

     

    “Tangible
      Net Worth”:
      at any
      date of determination, Net Worth less all assets of the Borrower and its
      Subsidiaries included in such Net Worth, determined on a Consolidated basis
      at
      such date, that would be classified as intangible assets in accordance with
      GAAP.

     

    “Termination
      Event”:
      with
      respect to any Pension Plan, (a) a Reportable Event, (b) the termination of
      a
      Pension Plan under Section 4041(c) of ERISA, or the filing of a notice of intent
      to terminate a Pension Plan under Section 4041(c) of ERISA, or the treatment
      of
      a Pension Plan amendment as a termination under Section 4041(e) of ERISA (except
      an amendment made after such Pension Plan satisfies the requirement for a
      standard termination under Section 4041(b) of ERISA), (c) the institution of
      proceedings by the PBGC to terminate a Pension Plan under Section 4042 of ERISA,
      or (d) the appointment of a trustee to administer any Pension Plan under Section
      4042 of ERISA.

     

    “Total
      Capitalization”:
      at any
      date, the sum of the Borrower’s Consolidated Indebtedness and shareholders’
equity on such date, determined in accordance with GAAP.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    “2007
      Bridge Credit Agreement”:
      the 364
      Day Credit Agreement, dated as of March, 2007, by and among the Borrower, the
      lenders party thereto, Morgan Stanley Senior Funding, Inc., as syndication
      agent, and Lehman Commercial Paper Inc., as administrative agent, as the same
      may be amended, supplemented, replaced or otherwise modified from time to
      time.

     

    “2007
      Five Year Credit Agreement”:
      the
      Five Year Credit Agreement, dated as of March 12, 2007, by and among the
      Borrower, the lenders party thereto, Lehman Commercial Paper Inc. and Wachovia
      Bank, National Association, as co-syndication agents, Morgan Stanley Senior
      Funding, Inc., as documentation agent, and The Bank of New York, as
      administrative agent, as the same may be amended, supplemented, replaced or
      otherwise modified from time to time.

     

    “Type”:
      with
      respect to any Revolving Credit Loan, the characteristic of such Loan as an
      ABR
      Advance or a Eurodollar Advance, each of which constitutes a Type of Revolving
      Credit Loan.

     

    “Unqualified
      Amount”:
      as
      defined in Section 3.4(c).

     

    “Upstream
      Dividends”:
      as
      defined in Section 8.7.

     

    “Utilization
      Fee”:
      as
      defined in Section 3.11(b).

     

    
      	 	
              1.2

            	
              Principles
                of Construction

            

    

     

    (a) All
      capitalized terms defined in this Agreement shall have the meanings given such
      capitalized terms herein when used in the other Loan Documents or in any
      certificate, opinion or other document made or delivered pursuant hereto or
      thereto, unless otherwise expressly provided therein.

     

    (b) Unless
      otherwise expressly provided herein, the word “fiscal”
      when
      used herein shall refer to the relevant fiscal period of the Borrower. As used
      in the Loan Documents and in any certificate, opinion or other document made
      or
      delivered pursuant thereto, accounting terms not defined in Section 1.1, and
      accounting terms partly defined in Section 1.1, to the extent not defined,
      shall
      have the respective meanings given to them under GAAP.

     

    (c) The
      words
“hereof”,
      “herein”,
      “hereto”
      and
“hereunder”
      and
      similar words when used in each Loan Document shall refer to such Loan Document
      as a whole and not to any particular provision of such Loan Document, and
      Section, schedule and exhibit references contained therein shall refer to
      Sections thereof or schedules or exhibits thereto unless otherwise expressly
      provided therein.

     

    (d) All
      references herein to a time of day shall mean the then applicable time in New
      York, New York, unless otherwise expressly provided herein.

     

    (e) Section
      headings have been inserted in the Loan Documents for convenience only and
      shall
      not be construed to be a part thereof. Unless the context otherwise requires,
      words in the singular number include the plural, and words in the plural include
      the singular.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (f) Whenever
      in any Loan Document or in any certificate or other document made or delivered
      pursuant thereto, the terms thereof require that a Person sign or execute the
      same or refer to the same as having been so signed or executed, such terms
      shall
      mean that the same shall be, or was, duly signed or executed by (i) in respect
      of any Person that is a corporation, any duly authorized officer thereof, and
      (ii) in respect of any other Person (other than an individual), any analogous
      counterpart thereof.

     

    (g) The
      words
“include”
      and
“including”,
      when
      used in each Loan Document, shall mean that the same shall be included
“without
      limitation”,
      unless
      otherwise specifically provided.

     

    
      	
              2.

            	
              AMOUNT
                AND TERMS OF LOANS

            

    

     

    
      	 	
              2.1

            	
              Revolving
                Credit Loans

            

    

     

    (a) Subject
      to the terms and conditions hereof, each Lender severally (and not jointly)
      agrees to make loans under this Agreement (each a “Revolving
      Credit Loan”
      and,
      collectively with each other Revolving Credit Loan of such Lender and/or with
      each Revolving Credit Loan of each other Lender, the “Revolving
      Credit Loans”)
      to the
      Borrower from time to time during the Commitment Period, during which period
      the
      Borrower may borrow, prepay and reborrow in accordance with the provisions
      hereof. Immediately after making each Revolving Credit Loan and after giving
      effect to all Swing Line Loans and Competitive Bid Loans repaid and all
      Reimbursement Obligations paid on the same date, the Aggregate Credit Exposure
      will not exceed the Aggregate Commitment Amount. With respect to each Lender,
      at
      the time of the making of any Revolving Credit Loan, the sum of (I) the
      principal amount of such Lender’s Revolving Credit Loan constituting a part of
      the Revolving Credit Loans to be made, (II) the aggregate principal balance
      of
      all other Revolving Credit Loans (exclusive of Revolving Credit Loans which
      are
      repaid with the proceeds of, and simultaneously with the incidence of, the
      Revolving Credit Loans to be made) then outstanding from such Lender and (III)
      the product of (A) such Lender’s Commitment Percentage and (B) the sum of (1)
      the aggregate principal balance of all Swing Line Loans (exclusive of Swing
      Line
      Loans which are repaid with the proceeds of, and simultaneously with the
      incurrence of, the Revolving Credit Loans to be made) then outstanding and
      (2)
      the Letter of Credit Exposure of all Lenders, will not exceed the Commitment
      of
      such Lender at such time. At the option of the Borrower, indicated in a
      Borrowing Request, Revolving Credit Loans may be made as ABR Advances or
      Eurodollar Advances.

     

    (b) The
      aggregate outstanding principal balance of all Revolving Credit Loans shall
      be
      due and payable on the Commitment Termination Date or on such earlier date
      upon
      which all of the Commitments shall have been terminated in accordance with
      Section 2.6.

     

    
      	 	
              2.2

            	
              Swing
                Line Loans

            

    

     

    (a) Subject
      to the terms and conditions hereof, the Swing Line Lender agrees to make loans
      under this Agreement (each a “Swing
      Line Loan”
      and,
      collectively, the “Swing
      Line Loans”)
      to the
      Borrower from time to time during the Swing Line Commitment Period.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Swing
      Line Loans (i) may be repaid and reborrowed in accordance with the provisions
      hereof, (ii) shall not, immediately after giving effect thereto, result in
      the
      Aggregate Credit Exposure exceeding the Aggregate Commitment Amount, and (iii)
      shall not, immediately after giving effect thereto, result in the aggregate
      outstanding principal balance of all Swing Line Loans exceeding the Swing Line
      Commitment. The Swing Line Lender shall not be obligated to make any Swing
      Line
      Loan at a time when any Lender shall be in default of its obligations under
      this
      Agreement unless the Swing Line Lender has entered into arrangements
      satisfactory to it and the Borrower to eliminate the Swing Line Lender’s risk
      with respect to such defaulting Lender’s participation in such Swing Line Loan.
      The Swing Line Lender will not make a Swing Line Loan if the Administrative
      Agent, or any Lender by notice to the Swing Line Lender and the Borrower no
      later than one Domestic Business Day prior to the Borrowing Date with respect
      to
      such Swing Line Loan, shall have determined that the conditions set forth in
      Sections 5 and/or 6, as applicable, have not been satisfied and such conditions
      remain unsatisfied as of the requested time of the making of such Loan. Each
      Swing Line Loan shall be due and payable on the day (the “Swing
      Line Maturity Date”)
      being
      the earliest of the last day of the Swing Line Interest Period applicable
      thereto, the date on which the Swing Line Commitment shall have been terminated
      in accordance with Section 2.6, and the date on which the Loans shall become
      due
      and payable pursuant to the provisions hereof, whether by acceleration or
      otherwise. Each Swing Line Loan shall bear interest at the Negotiated Rate
      applicable thereto. The Swing Line Lender shall disburse the proceeds of Swing
      Line Loans at its office designated in Section 11.2 by crediting such proceeds
      to an account of the Borrower maintained with the Swing Line
      Lender.

     

    (b) On
      any
      Domestic Business Day, the Swing Line Lender may, in its sole discretion, give
      notice to the Lenders and the Borrower that such outstanding Swing Line Loan
      shall be funded with a borrowing of Revolving Credit Loans (provided
      that
      such notice shall be deemed to have been automatically given upon the occurrence
      of a Default or an Event of Default under Sections 9.1(h), (i) or (j)), in
      which
      case a borrowing of Revolving Credit Loans made as ABR Advances (each such
      borrowing, a “Mandatory
      Borrowing”),
      shall
      be made by all Lenders pro
      rata
      based on
      each such Lender’s Commitment Percentage on the Domestic Business Day
      immediately succeeding the giving of such notice. The proceeds of each Mandatory
      Borrowing shall be remitted directly to the Swing Line Lender to repay such
      outstanding Swing Line Loan. Each Lender irrevocably agrees to make a Revolving
      Credit Loan pursuant to each Mandatory Borrowing in the amount and in the manner
      specified in the preceding sentence and on the date specified in writing by
      the
      Swing Line Lender notwithstanding: (i) whether the amount of such Mandatory
      Borrowing complies with the minimum amount for Loans otherwise required
      hereunder, (ii) whether any condition specified in Section 6 is then
      unsatisfied, (iii) whether a Default or an Event of Default then exists, (iv)
      the Borrowing Date of such Mandatory Borrowing, (v) the aggregate principal
      amount of all Loans then outstanding, (vi) the Aggregate Credit Exposure at
      such
      time and (vii) the amount of the Commitments at such time.

     

    (c) Upon
      each
      receipt by a Lender of notice from the Administrative Agent, such Lender shall
      purchase unconditionally, irrevocably, and severally (and not jointly) from
      the
      Swing Line Lender a participation in the outstanding Swing Line Loans (including
      accrued interest thereon) in an amount equal to the product of its Commitment
      Percentage and the outstanding balance of the Swing Line Loans (each, a
“Swing
      Line Participation Amount”).
      

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Each
      Lender shall also be liable for an amount equal to the product of its Commitment
      Percentage and any amounts paid by the Borrower pursuant to this Section that
      are subsequently rescinded or avoided, or must otherwise be restored or
      returned. Such liabilities shall be unconditional and without regard to the
      occurrence of any Default or Event of Default or the compliance by the Borrower
      with any of its obligations under the Loan Documents.

     

    (d) In
      furtherance of Section 2.2(c), upon each receipt by a Lender of notice from
      the
      Administrative Agent, such Lender shall promptly make available to the
      Administrative Agent for the account of the Swing Line Lender its Swing Line
      Participation Amount at the office of the Administrative Agent specified in
      Section 11.2, in lawful money of the United States and in immediately available
      funds. The Administrative Agent shall deliver the payments made by each Lender
      pursuant to the immediately preceding sentence to the Swing Line Lender promptly
      upon receipt thereof in like funds as received. Each Lender hereby indemnifies
      and agrees to hold harmless the Administrative Agent and the Swing Line Lender
      from and against any and all losses, liabilities (including liabilities for
      penalties), actions, suits, judgments, demands, costs and expenses resulting
      from any failure on the part of such Lender to pay, or from any delay in paying,
      the Administrative Agent any amount such Lender is required by notice from
      the
      Administrative Agent to pay in accordance with this Section (except in respect
      of losses, liabilities or other obligations suffered by the Administrative
      Agent
      or the Swing Line Lender, as the case may be, resulting from the gross
      negligence or willful misconduct of the Administrative Agent or the Swing Line
      Lender, as the case may be), and such Lender shall pay interest to the
      Administrative Agent for the account of the Swing Line Lender from the date
      such
      amount was due until paid in full, on the unpaid portion thereof, at a rate
      of
      interest per annum, whether before or after judgment, equal to (i) from the
      date
      such amount was due until the third day therefrom, the Federal Funds Effective
      Rate, and (ii) thereafter, the Federal Funds Effective Rate plus
      2%,
      payable upon demand by the Swing Line Lender. The Administrative Agent shall
      distribute such interest payments to the Swing Line Lender upon receipt thereof
      in like funds as received.

     

    (e) Whenever
      the Administrative Agent is reimbursed by the Borrower for the account of the
      Swing Line Lender for any payment in connection with Swing Line Loans and such
      payment relates to an amount previously paid by a Lender pursuant to this
      Section, the Administrative Agent will promptly remit such payment to such
      Lender.

     

    
      	 	
              2.3

            	
              Notice
                of Borrowing Revolving Credit Loans and Swing Line
                Loans

            

    

     

    The
      Borrower agrees to notify the Administrative Agent (and with respect to a Swing
      Line Loan, the Swing Line Lender), which notification shall be irrevocable,
      no
      later than (a) 12:00 Noon on the proposed Borrowing Date in the case of Swing
      Line Loans, (b) 10:00 A.M. on the proposed Borrowing Date in the case of
      Revolving Credit Loans to consist of ABR Advances and (c) 10:00 A.M. at least
      two Eurodollar Business Days prior to the proposed Borrowing Date in the case
      of
      Revolving Credit Loans to consist of Eurodollar Advances. Each such notice
      shall
      specify (i) the aggregate amount requested to be borrowed under the Commitments
      or the Swing Line Commitment, (ii) the proposed Borrowing Date, (iii) whether
      a
      borrowing of Revolving Credit Loans is to be of ABR Advances or Eurodollar
      Advances, and the amount of each thereof (iv) the Eurodollar Interest Period
      for
      such Eurodollar Advances and (v) 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    the
      Swing
      Line Interest Period for, and the amount of, each Swing Line Loan. Each such
      notice shall be promptly confirmed by delivery to the Administrative Agent
      (and,
      with respect to a Swing Line Loan, the Swing Line Lender) of a Borrowing
      Request. Each Eurodollar Advance to be made on a Borrowing Date, when aggregated
      with all amounts to be Converted to Eurodollar Advances on such date and having
      the same Interest Period as such Eurodollar Advance, shall equal no less than
      $10,000,000, or an integral multiple of $1,000,000 in excess thereof. Each
      ABR
      Advance made on each Borrowing Date shall equal no less than $5,000,000 or
      an
      integral multiple of $500,000 in excess thereof. Each Swing Line Loan made
      on
      each Borrowing Date shall equal no less than $1,000,000 or an integral multiple
      of $500,000 in excess thereof. The Administrative Agent shall promptly notify
      each Lender (by telephone or otherwise, such notification to be confirmed by
      fax
      or other writing) of each such Borrowing Request. Subject to its receipt of
      each
      such notice from the Administrative Agent and subject to the terms and
      conditions hereof, (A) each Lender shall make immediately available funds
      available to the Administrative Agent at the address therefor set forth in
      Section 11.2 not later than 1:00 P.M. on each Borrowing Date in an amount equal
      to such Lender’s Commitment Percentage of the Revolving Credit Loans requested
      by the Borrower on such Borrowing Date and/or (B) the Swing Line Lender shall
      make immediately available funds available to the Borrower on such Borrowing
      Date in an amount equal to the Swing Line Loan requested by the
      Borrower.

     

    
      	 	
              2.4

            	
              Competitive
                Bid Loans and Procedure

            

    

     

    (a) Subject
      to the terms and conditions hereof, the Borrower may request competitive bid
      loans under this Agreement (each a “Competitive
      Bid Loan”)
      during
      the Commitment Period. In order to request Competitive Bids, the Borrower shall
      deliver by hand or fax to the Administrative Agent a duly completed Competitive
      Bid Request not later than 11:00 A.M., one Domestic Business Day before the
      proposed Borrowing Date therefor. A Competitive Bid Request that does not
      conform substantially to the format of Exhibit F may be rejected by the
      Administrative Agent in the Administrative Agent’s reasonable discretion, and
      the Administrative Agent shall promptly notify the Borrower of such rejection
      by
      fax and telephone. Each Competitive Bid Request shall specify (x) the proposed
      Borrowing Date for the Competitive Bid Loans then being requested (which shall
      be a Domestic Business Day) and the aggregate principal amount thereof and
      (y)
      the Competitive Interest Period or Interest Periods (which shall not exceed
      ten
      different Interest Periods in a single Competitive Bid Request), with respect
      thereto (which may not end after the Domestic Business Day immediately preceding
      the Commitment Termination Date). Promptly after its receipt of each Competitive
      Bid Request that is not rejected as aforesaid, the Administrative Agent shall
      invite by fax (in the form of Exhibit G) the Lenders to bid, on the terms and
      conditions of this Agreement, to make Competitive Bid Loans pursuant to such
      Competitive Bid Request.

     

    (b) Each
      Lender, in its sole and absolute discretion, may make one or more Competitive
      Bids to the Borrower responsive to a Competitive Bid Request. Each Competitive
      Bid by a Lender must be received by the Administrative Agent not later than
      10:00 A.M. on the proposed Borrowing Date for the relevant Competitive Bid
      Loan.
      Multiple bids will be accepted by the Administrative Agent. Bids to make
      Competitive Bid Loans that do not conform substantially to the format of Exhibit
      H may be rejected by the Administrative Agent after conferring with, and upon
      the instruction of, the Borrower, and the Administrative Agent shall

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    notify
      the Lender making such nonconforming bid of such rejection as soon as
      practicable. Each Competitive Bid shall be irrevocable and shall specify (x)
      the
      principal amount (which (1) shall be in a minimum principal amount of $5,000,000
      or an integral multiple of $1,000,000 in excess thereof, and (2) may equal
      the
      entire principal amount requested by the Borrower) of the Competitive Bid Loan
      or Competitive Bid Loans that the Lender is willing to make to the Borrower,
      (y)
      the Competitive Bid Rate or Rates at which the Lender is prepared to make such
      Competitive Bid Loan or Competitive Bid Loans, and (z) the Competitive Interest
      Period with respect to each such Competitive Bid Loan and the last day thereof.
      If any Lender shall elect not to make a Competitive Bid, such Lender shall
      so
      notify the Administrative Agent by fax not later than 10:00 A.M. on the proposed
      Borrowing Date therefor, provided
      that
      the
      failure by any Lender to give any such notice shall not obligate such Lender
      to
      make any Competitive Bid Loan in connection with the relevant Competitive Bid
      Request.

     

    (c) With
      respect to each Competitive Bid Request, the Administrative Agent shall (i)
      notify the Borrower by fax by 11:00 A.M. on the proposed Borrowing Date with
      respect thereto of each Competitive Bid made, the Competitive Bid Rate
      applicable thereto and the identity of the Lender that made such Competitive
      Bid, and (ii) send a list of all Competitive Bids to the Borrower for its
      records as soon as practicable after completion of the bidding process. Each
      notice and list sent by the Administrative Agent pursuant to this Section 2.4(c)
      shall list the Competitive Bids in ascending yield order.

     

    (d) The
      Borrower may in its sole and absolute discretion, subject only to the provisions
      of this Section 2.4(d), accept or reject any Competitive Bid made in accordance
      with the procedures set forth in this Section 2.4, and the Borrower shall notify
      the Administrative Agent by telephone, confirmed by fax in the form of a
      Competitive Bid Accept/Reject Letter, whether and to what extent it has decided
      to accept or reject any or all of such Competitive Bids not later than 12:00
      Noon on the proposed Borrowing Date therefor, provided
      that the
      failure by the Borrower to give such notice shall be deemed to be a rejection
      of
      all such Competitive Bids. In connection with each acceptance of one or more
      Competitive Bids by the Borrower:

     

    (1) the
      Borrower shall not accept a Competitive Bid made at a particular Competitive
      Bid
      Rate if the Borrower has decided to reject a Competitive Bid made at a lower
      Competitive Bid Rate unless the acceptance of such lower Competitive Bid would
      subject the Borrower to any requirement to withhold any taxes or deduct any
      amount from any amounts payable under the Loan Documents, in which case the
      Borrower may reject such lower Competitive Bid,

     

    (2) the
      aggregate amount of the Competitive Bids accepted by the Borrower shall not
      exceed the principal amount specified in the Competitive Bid Request
      therefor,

     

    (3) if
      the
      Borrower shall desire to accept a Competitive Bid made at a particular
      Competitive Bid Rate, it must accept all other Competitive Bids at such
      Competitive Bid Rate, except for any such Competitive Bid the acceptance of
      which would subject the Borrower to any requirement to withhold any taxes or
      deduct any amount from any amounts payable under the Loan Documents,
provided
      that if
      the acceptance of all such other Competitive 

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Bids
      would cause the aggregate amount of all such accepted Competitive Bids to exceed
      the amount requested, then such acceptance shall be made pro rata in accordance
      with the amount of each such Competitive Bid at such Competitive Bid
      Rate,

     

    (4) except
      pursuant to clause (3) above, no Competitive Bid shall be accepted unless the
      Competitive Bid Loan with respect thereto shall be in a minimum principal amount
      of $5,000,000 or an integral multiple of $1,000,000 in excess thereof,
      and

     

    (5) no
      Competitive Bid shall be accepted and no Competitive Bid Loan shall be made,
      if
      immediately after giving effect thereto, the Aggregate Credit Exposure would
      exceed the Aggregate Commitment Amount.

     

    (e) The
      Administrative Agent shall promptly fax to each bidding Lender (with a copy
      to
      the Borrower) a Competitive Bid Accept/Reject Letter advising such Lender
      whether its Competitive Bid has been accepted (and if accepted, in what amount
      and at what Competitive Bid Rate), and each successful bidder so notified will
      thereupon become bound, subject to the other applicable conditions hereof,
      to
      make the Competitive Bid Loan in respect of which each of its Competitive Bids
      has been accepted by making immediately available funds available to the
      Administrative Agent at its address set forth in Section 11.2 not later than
      1:00 P.M. on the Borrowing Date for such Competitive Bid Loan in the amount
      thereof.

     

    (f) Anything
      herein to the contrary notwithstanding, if the Administrative Agent shall elect
      to submit a Competitive Bid in its capacity as a Lender, it shall submit such
      bid directly to the Borrower not later than 9:30 A.M. on the relevant proposed
      Borrowing Date.

     

    (g) All
      notices required by this Section shall be given in accordance with Section
      11.2.

     

    (h) Each
      Competitive Bid Loan shall be due and payable on the last day of the Interest
      Period applicable thereto or on such earlier date upon which the Loans shall
      become due and payable pursuant to the provisions hereof, whether by
      acceleration or otherwise.

     

    
      	 	
              2.5

            	
              Use
                of Proceeds

            

    

     

    The
      Borrower agrees that the proceeds of the Loans and Letters of Credit shall
      be
      used solely for its general corporate purposes not inconsistent with the
      provisions hereof, including as a backup for commercial paper issued by the
      Borrower and to finance in part the consideration paid to the Caremark
      shareholders in connection with the Caremark Merger, including any dividends
      paid to the Caremark shareholders, provided
      that
      prior to the consummation of the Caremark Merger, the Borrower shall not be
      permitted to borrow hereunder except in anticipation of the proposed direct
      or
      indirect financing in part of the consideration paid or to be paid to the
      Caremark shareholders in connection with the Caremark Merger, including any
      dividends paid or to be paid to the Caremark shareholders (which may include
      a
      borrowing for the purpose of refunding Caremark Merger Anticipatory Commercial
      Paper). Notwithstanding anything to the contrary contained in any Loan Document,
      the Borrower further agrees that no part of the proceeds of any Loan or Letter
      of Credit will be used, directly or 

     

    
      
        
        

      

      
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    indirectly,
      and whether immediately, incidentally or ultimately (i) for a purpose which
      violates any law, rule or regulation of any Governmental Authority, including
      the provisions of Regulations U or X of the Board of Governors of the Federal
      Reserve System, as amended or any provision of this Agreement, including,
      without limitation, the provisions of Section 4.9 and (ii) to make a loan to
      any
      director or executive officer of the Borrower or any Subsidiary.

     

    
      	 	
              2.6

            	
              Termination
                or Reduction of Commitments

            

    

     

    (a) Voluntary
      Termination or Reductions.
      At the
      Borrower’s option and upon at least three Domestic Business Days’ prior
      irrevocable notice to the Administrative Agent, the Borrower may (i) terminate
      the Commitments, the Swing Line Commitment and the Letter of Credit Commitment,
      at any time, or (ii) permanently reduce the Aggregate Commitment Amount, the
      Swing Line Commitment or the Letter of Credit Commitment, in part at any time
      and from time to time, provided
      that (1)
      each such partial reduction shall be in an amount equal to at least (A) in
      the
      case of the Aggregate Commitment Amount $10,000,000 or an integral multiple
      of
      $1,000,000 in excess thereof, (B) in the case of the Swing Line Commitment,
      $1,000,000, or an integral multiple of $1,000,000 in excess thereof, and (C)
      in
      the case of the Letter of Credit Commitment, $1,000,000, or an integral multiple
      of $1,000,000 in excess thereof, and (2) immediately after giving effect to
      each
      such reduction, (A) the Aggregate Commitment Amount shall equal or exceed the
      Aggregate Credit Exposure, (B) the Swing Line Commitment shall equal or exceed
      the aggregate outstanding principal balance of all Swing Line Loans and (C)
      the
      Letter of Credit Commitment shall equal or exceed the Letter of Credit Exposure
      of all Lenders, and provided
      further
      that a
      notice of termination of the Commitments, the Swing Line Commitment and the
      Letter of Credit Commitment delivered by the Borrower may state that such notice
      is conditioned upon the effectiveness of other credit facilities or the
      consummation of the issuance of long term Indebtedness or equity securities
      (such notice to specify the proposed effective date), in which case such notice
      may be revoked by the Borrower (by notice to the Administrative Agent on or
      prior to such specified effective date) if such condition is not satisfied
      and
      the Borrower shall indemnify the Lenders in accordance with Section
      3.5.

     

    (b) Mandatory
      Termination or Reductions.
      If for
      any reason the Caremark Merger Effective Date has not occurred on or before
      November 1, 2007, the Commitments, the Swing Line Commitment and the Letter
      of
      Credit Commitment shall be automatically terminated and the Aggregate Commitment
      Amount shall be reduced to zero on November 1, 2007.

     

    (c) In
      General.
      Each
      reduction of the Aggregate Commitment Amount shall be made by reducing each
      Lender’s Commitment Amount by a sum equal to such Lender’s Commitment Percentage
      of the amount of such reduction.

     

    
      	 	
              2.7

            	
              Prepayments
                of Loans

            

    

     

    (a) Voluntary
      Prepayments.
      The
      Borrower may prepay Revolving Credit Loans, Competitive Bid Loans and Swing
      Line
      Loans, in whole or in part, without premium or penalty, but subject to Section
      3.5 at any time and from time to time, by notifying the Administrative Agent,
      which notification shall be irrevocable, at least two Eurodollar Business

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    Days,
      in
      the case of a prepayment of Eurodollar Advances, two Domestic Business Days,
      in
      the case of Competitive Bid Loans, or one Domestic Business Day, in the case
      of
      a prepayment of Swing Line Loans and ABR Advances, prior to the proposed
      prepayment date specifying (i) the Loans to be prepaid, (ii) the amount to
      be
      prepaid, and (iii) the date of prepayment. Upon receipt of each such notice,
      the
      Administrative Agent shall promptly notify each Lender thereof. Each such notice
      given by the Borrower pursuant to this Section shall be irrevocable,
provided
      that, if
      a notice of prepayment is given in connection with a conditional notice of
      termination of the Commitments, the Swing Line Commitment and the Letter of
      Credit Commitment as contemplated by Section 2.6, then such notice of prepayment
      may be revoked if such notice of termination is revoked in accordance with
      Section 2.6, and the Borrower shall indemnify the Lenders in accordance with
      Section 3.5. Each partial prepayment under this Section shall be in a minimum
      amount of $1,000,000 ($500,000 in the case of ABR Advances and Swing Line Loans)
      or an integral multiple of $1,000,000 ($100,000 in the case of ABR Advances
      and
      Swing Line Loans) in excess thereof.

     

    (b) Caremark
      Merger Prepayment.
      In the
      event that the Borrower borrows Loans hereunder in anticipation of the proposed
      direct or indirect financing in part of the consideration paid or to be paid
      to
      the Caremark shareholders in connection with the Caremark Merger, including
      any
      dividends paid or to be paid to the Caremark shareholders (which may include
      a
      borrowing for the purpose of refunding Caremark Merger Anticipatory Commercial
      Paper),
      and the
      closing of the Caremark Merger does not occur within four Business Days after
      such borrowing, then the Borrower shall prepay such Loans in full no later
      than
      the fifth Business Day following such borrowing.

     

    (c) In
      General.
      Simultaneously with each prepayment hereunder, the Borrower shall prepay all
      accrued interest on the amount prepaid through the date of prepayment and
      indemnify the Lenders in accordance with Section 3.5.

     

    
      	 	
              2.8

            	
              Letter
                of Credit Sub-facility

            

    

     

    (a) Subject
      to the terms and conditions hereof and the payment by the Borrower to the Issuer
      of such fees as the Borrower and the Issuer shall have agreed in writing, the
      Issuer agrees, in reliance on the agreement of the other Lenders set forth
      in
      Section 2.9, to issue standby letters of credit (each a “Letter
      of Credit”
      and,
      collectively, the “Letters
      of Credit”)
      during
      the Commitment Period for the account of the Borrower, provided
      that
      immediately after the issuance of each Letter of Credit (i) the Letter of Credit
      Exposure of all Lenders shall not exceed the Letter of Credit Commitment, and
      (ii) the Aggregate Credit Exposure shall not exceed the Aggregate Commitment
      Amount. Each Letter of Credit shall have an expiration date which shall be
      not
      later than the earlier to occur of one year from the date of issuance thereof
      or
      5 days prior to the Commitment Termination Date. No Letter of Credit shall
      be
      issued if the Administrative Agent, or any Lender by notice to the
      Administrative Agent and the Issuer no later than 3:00 P.M. one Domestic
      Business Day prior to the requested date of issuance of such Letter of Credit,
      shall have determined that the conditions set forth in Sections 5 and/or 6,
      as
      applicable have not been satisfied.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    (b) Each
      Letter of Credit shall be issued for the account of the Borrower in support
      of
      an obligation of the Borrower in favor of a beneficiary who has requested the
      Issuance of such Letter of Credit as a condition to a transaction entered into
      in connection with the Borrower’s ordinary course of business. The Borrower
      shall give the Administrative Agent a Letter of Credit Request for the issuance
      of each Letter of Credit by 12:00 Noon at least two Domestic Business Days
      prior
      to the requested date of issuance. Such Letter of Credit Request shall be
      accompanied by the Issuer’s standard Application and Agreement for Standby
      Letter of Credit (each a “Reimbursement
      Agreement”)
      executed by the Borrower, and shall specify (i) the beneficiary of such Letter
      of Credit and the obligations of the Borrower in respect of which such Letter
      of
      Credit is to be issued, (ii) the Borrower’s proposal as to the conditions under
      which a drawing may be made under such Letter of Credit and the documentation
      to
      be required in respect thereof, (iii) the maximum amount to be available under
      such Letter of Credit, and (iv) the requested date of issuance. Upon receipt
      of
      such Letter of Credit Request from the Borrower, the Administrative Agent shall
      promptly notify the Issuer and each other Lender thereof. The Issuer shall,
      on
      the proposed date of issuance and subject to the other terms and conditions
      of
      this Agreement, issue the requested Letter of Credit. Each Letter of Credit
      shall be in form and substance reasonably satisfactory to the Issuer, with
      such
      provisions with respect to the conditions under which a drawing may be made
      thereunder and the documentation required in respect of such drawing as the
      Issuer shall reasonably require. Each Letter of Credit shall be used solely
      for
      the purposes described therein.

     

    (c) Each
      payment by the Issuer of a draft drawn under a Letter of Credit shall give
      rise
      to the obligation of the Borrower to immediately reimburse the Issuer for the
      amount thereof. The Issuer shall promptly notify the Borrower of such payment
      by
      the Issuer of a draft drawn under a Letter of Credit, but any failure to so
      notify shall not in any manner affect the obligation of the Borrower to make
      reimbursement when due. In lieu of such notice, if the Borrower has not made
      reimbursement prior to the end of the Domestic Business Day when due, the
      Borrower hereby authorizes the Issuer to deduct the amount of any such
      reimbursement from such account(s) as the Borrower may from time to time
      designate in writing to the Issuer, upon which the Issuer shall apply the amount
      of such deduction to such reimbursement. If all or any portion of any
      reimbursement obligation in respect of a Letter of Credit shall not be paid
      when
      due (whether at the stated maturity thereof, by acceleration or otherwise),
      such
      overdue amount shall bear interest, payable upon demand, at a rate per annum
      equal to the Alternate Base Rate plus
      the
      Applicable Margin applicable to ABR Advances plus
      2%, from
      the date of such nonpayment until paid in full (whether before or after the
      entry of a judgment thereon).

     

    
      	 	
              2.9

            	
              Letter
                of Credit Participation

            

    

     

    (a) Each
      Lender hereby unconditionally and irrevocably, severally (and not jointly)
      takes
      an undivided participating interest in the obligations of the Issuer under
      and
      in connection with each Letter of Credit in an amount equal to such Lender’s
      Commitment Percentage of the amount of such Letter of Credit. Each Lender shall
      be liable to the Issuer for its Commitment Percentage of the unreimbursed amount
      of any draft drawn and honored under each Letter of Credit. Each Lender shall
      also be liable for an amount equal to the product of its Commitment Percentage
      and any amounts paid by the Borrower pursuant to Sections 2.8 and 2.10 that
      are
      subsequently rescinded or avoided, or must otherwise be restored or returned.
      Such 

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    liabilities
      shall be unconditional and without regard to the occurrence of any Default
      or
      Event of Default or the compliance by the Borrower with any of its obligations
      under the Loan Documents.

     

    (b) The
      Issuer shall promptly notify the Administrative Agent, and the Administrative
      Agent shall promptly notify each Lender (which notice shall be promptly
      confirmed in writing), of the date and the amount of each draft paid under
      each
      Letter of Credit with respect to which full reimbursement payment shall not
      have
      been made by the Borrower as provided in Section 2.8(c), and forthwith upon
      receipt of such notice, such Lender shall promptly make available to the
      Administrative Agent for the account of the Issuer its Commitment Percentage
      of
      the amount of such unreimbursed draft at the office of the Administrative Agent
      specified in Section 11.2 in lawful money of the United States and in
      immediately available funds. The Administrative Agent shall distribute the
      payments made by each Lender pursuant to the immediately preceding sentence
      to
      the Issuer promptly upon receipt thereof in like funds as received. Each Lender
      shall indemnify and hold harmless the Administrative Agent and the Issuer from
      and against any and all losses, liabilities (including liabilities for
      penalties), actions, suits, judgments, demands, costs and expenses (including,
      without limitation, reasonable attorneys’ fees and expenses) resulting from any
      failure on the part of such Lender to provide, or from any delay in providing,
      the Administrative Agent with such Lender’s Commitment Percentage of the amount
      of any payment made by the Issuer under a Letter of Credit in accordance with
      this clause (b) above (except in respect of losses, liabilities or other
      obligations suffered by the Administrative Agent or the Issuer, as the case
      may
      be, resulting from the gross negligence or willful misconduct of the
      Administrative Agent or the Issuer, as the case may be). If a Lender does not
      make available to the Administrative Agent when due such Lender’s Commitment
      Percentage of any unreimbursed payment made by the Issuer under a Letter of
      Credit, such Lender shall be required to pay interest to the Administrative
      Agent for the account of the Issuer on such Lender’s Commitment Percentage of
      such payment at a rate of interest per annum equal to (i) from the date such
      Lender should have made such amount available until the third day therefrom,
      the
      Federal Funds Effective Rate, and (ii) thereafter, the Federal Funds Effective
      Rate plus
      2%, in
      each case payable upon demand by the Issuer. The Administrative Agent shall
      distribute such interest payments to the Issuer upon receipt thereof in like
      funds as received.

     

    (c) Whenever
      the Administrative Agent is reimbursed by the Borrower, for the account of
      the
      Issuer, for any payment under a Letter of Credit and such payment relates to
      an
      amount previously paid by a Lender in respect of its Commitment Percentage
      of
      the amount of such payment under such Letter of Credit, the Administrative
      Agent
      (or the Issuer, if such payment by a Lender was paid by the Administrative
      Agent
      to the Issuer) will promptly pay over such payment to such Lender.

     

    
      	 	
              2.10

            	
              Absolute
                Obligation with respect to Letter of Credit
                Payments

            

    

     

    The
      Borrower’s obligation to reimburse the Administrative Agent for the account of
      the Issuer for each payment under or in respect of each Letter of Credit shall
      be absolute and unconditional under any and all circumstances and irrespective
      of any set-off, counterclaim or defense to payment which the Borrower may have
      or have had against the beneficiary of such Letter 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    of
      Credit, the Administrative Agent, the Issuer, the Swing Line Lender, any Lender
      or any other Person, including, without limitation, any defense based on the
      failure of any drawing to conform to the terms of such Letter of Credit, any
      drawing document proving to be forged, fraudulent or invalid, or the legality,
      validity, regularity or enforceability of such Letter of Credit, provided
      that,
      with respect to any Letter of Credit, the foregoing shall not relieve the Issuer
      of any liability it may have to the Borrower for any actual damages sustained
      by
      the Borrower arising from a wrongful payment (or failure to pay) under such
      Letter of Credit made as a result of the Issuer’s gross negligence or willful
      misconduct.

     

    
      	 	
              2.11

            	
              Notes

            

    

     

    Any
      Lender may request that the Loans made by it be evidenced by a Note. In such
      event, the Borrower shall prepare, execute and deliver to such Lender a Note
      payable to the order of such Person or, if requested by such Person, such Person
      and its registered assigns. Thereafter, all Loans evidenced by such Note and
      interest thereon shall at all times (including after assignment pursuant to
      Section 11.7) be represented by a Note in like form payable to the order of
      the
      payee named therein and its registered assigns.

    

    
      	
              3.

            	
              PROCEEDS,
                PAYMENTS, CONVERSIONS, INTEREST, YIELD PROTECTION AND
                FEES

            

    

     

    
      	 	
              3.1

            	
              Disbursement
                of the Proceeds of the Loans

            

    

     

    The
      Administrative Agent shall disburse the proceeds of the Loans (other than the
      Swing Line Loans) at its office specified in Section 11.2 by crediting to the
      Borrower’s general deposit account with the Administrative Agent the funds
      received from each Lender. Unless the Administrative Agent shall have received
      prior notice from a Lender (by telephone or otherwise, such notice to be
      confirmed by fax or other writing) that such Lender will not make available
      to
      the Administrative Agent such Lender’s Commitment Percentage of the Revolving
      Credit Loans, or the amount of any Competitive Bid Loan, to be made by it on
      a
      Borrowing Date, the Administrative Agent may assume that such Lender has made
      such amount available to the Administrative Agent on such Borrowing Date in
      accordance with this Section, provided
      that, in
      the case of a Revolving Credit Loan, such Lender received notice thereof from
      the Administrative Agent in accordance with the terms hereof, and the
      Administrative Agent may, in reliance upon such assumption, make available
      to
      the Borrower on such Borrowing Date a corresponding amount. If and to the extent
      such Lender shall not have so made such amount available to the Administrative
      Agent, such Lender and the Borrower severally agree to pay to the Administrative
      Agent, forthwith on demand, such corresponding amount (to the extent not
      previously paid by the other), together with interest thereon for each day
      from
      the date such amount is made available to the Borrower until the date such
      amount is paid to the Administrative Agent, at a rate per annum equal to, in
      the
      case of the Borrower, the applicable interest rate set forth in Section 3.4(a)
      and, in the case of such Lender, the Federal Funds Effective Rate from the
      date
      such payment is due until the third day after such date and, thereafter, at
      the
      Federal Funds Effective Rate plus
      2%. Any
      such payment by the Borrower shall be without prejudice to its rights against
      such Lender. If such Lender shall pay to the Administrative Agent such
      corresponding amount, such amount so paid shall constitute such 

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    Lender’s
      Loan as part of such Loans for purposes of this Agreement, which Loan shall
      be
      deemed to have been made by such Lender on the Borrowing Date applicable to
      such
      Loans.

     

    
      	 	
              3.2

            	
              Payments

            

    

     

    (a) Each
      payment, including each prepayment, of principal and interest on the Loans
      and
      of the Facility Fee, the Utilization Fee and the Letter of Credit Participation
      Fee (collectively, together with all of the other fees to be paid to the
      Administrative Agent, the Lenders, the Issuer and the Swing Line Lender in
      connection with the Loan Documents, the “Fees”),
      and of
      all of the other amounts to be paid to the Administrative Agent and the Lenders
      in connection with the Loan Documents shall be made by the Borrower to the
      Administrative Agent at its office specified in Section 11.2 without setoff,
      deduction or counterclaim in funds immediately available in New York by 3:00
      P.M. on the due date for such payment. The failure of the Borrower to make
      any
      such payment by such time shall not constitute a default hereunder, provided
      that
      such payment is made on such due date, but any such payment made after 3:00
      P.M.
      on such due date shall be deemed to have been made on the next Domestic Business
      Day or Eurodollar Business Day, as the case may be, for the purpose of
      calculating interest on amounts outstanding on the Loans. If the Borrower has
      not made any such payment prior to 3:00 P.M., the Borrower hereby authorizes
      the
      Administrative Agent to deduct the amount of any such payment from such
      account(s) as the Borrower may from time to time designate in writing to the
      Administrative Agent, upon which the Administrative Agent shall apply the amount
      of such deduction to such payment. Promptly upon receipt thereof by the
      Administrative Agent, each payment of principal and interest on the: (i)
      Revolving Credit Loans shall be remitted by the Administrative Agent in like
      funds as received to each Lender (a) first, pro rata according to the amount
      of
      interest which is then due and payable to the Lenders, and (b) second, pro
      rata
      according to the amount of principal which is then due and payable to the
      Lenders, (ii) Competitive Bid Loans shall be remitted by the Administrative
      Agent in like funds as received to each applicable Lender and (iii) Swing Line
      Loans shall be remitted by the Administrative Agent in like funds as received
      to
      the Swing Line Lender. Each payment of the Facility Fee and the Letter of Credit
      Participation Fee payable to the Lenders shall be promptly transmitted by the
      Administrative Agent in like funds as received to each Lender pro rata according
      to such Lender’s Commitment Amount or, if the Commitments shall have terminated
      or been terminated, according to the outstanding principal amount of such
      Lender’s Revolving Credit Loans. Each payment of the Utilization Fee payable to
      the Lenders shall be promptly transmitted by the Administrative Agent in like
      funds as received to each Lender in accordance with Section
      3.11(b).

     

    (b) If
      any
      payment hereunder or under the Loans shall be due and payable on a day which
      is
      not a Domestic Business Day or Eurodollar Business Day, as the case may be,
      the
      due date thereof (except as otherwise provided in the definition of Eurodollar
      Interest Period or Competitive Interest Period) shall be extended to the next
      Domestic Business Day or Eurodollar Business Day, as the case may be, and
      (except with respect to payments in respect of the Facility Fee, the Utilization
      Fee and the Letter of Credit Participation Fee) interest shall be payable at
      the
      applicable rate specified herein during such extension.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    
      	 	
              3.3

            	
              Conversions;
                Other Matters

            

    

     

    (a) The
      Borrower may elect at any time and from time to time to Convert one or more
      Eurodollar Advances to an ABR Advance by giving the Administrative Agent at
      least one Domestic Business Day’s prior irrevocable notice of such election,
      specifying the amount to be so Converted. In addition, the Borrower may elect
      at
      any time and from time to time to Convert an ABR Advance to any one or more
      new
      Eurodollar Advances or to Convert any one or more existing Eurodollar Advances
      to any one or more new Eurodollar Advances by giving the Administrative Agent
      no
      later than 10:00 a.m. at least two Eurodollar Business Days’ prior irrevocable
      notice, in the case of a Conversion to Eurodollar Advances, of such election,
      specifying the amount to be so Converted and the initial Interest Period
      relating thereto, provided
      that any
      Conversion of an ABR Advance to Eurodollar Advances shall only be made on a
      Eurodollar Business Day. The Administrative Agent shall promptly provide the
      Lenders with notice of each such election. Each Conversion of Loans from one
      Type to another shall be made pro rata according to the outstanding principal
      amount of the Loans of each Lender. ABR Advances and Eurodollar Advances may
      be
      Converted pursuant to this Section in whole or in part, provided
      that the
      amount to be Converted to each Eurodollar Advance, when aggregated with any
      Eurodollar Advance to be made on such date in accordance with Section 2.1 and
      having the same Interest Period as such first Eurodollar Advance, shall equal
      no
      less than $10,000,000 or an integral multiple of $1,000,000 in excess
      thereof.

     

    (b) Notwithstanding
      anything in this Agreement to the contrary, upon the occurrence and during
      the
      continuance of a Default or an Event of Default, the Borrower shall have no
      right to elect to Convert any existing ABR Advance to a new Eurodollar Advance
      or to Convert any existing Eurodollar Advance to a new Eurodollar Advance.
      In
      such event, such ABR Advance shall be automatically continued as an ABR Advance
      or such Eurodollar Advance shall be automatically Converted to an ABR Advance
      on
      the last day of the Interest Period applicable to such Eurodollar Advance.
      The
      foregoing shall not affect any other rights or remedies that the Administrative
      Agent or any Lender may have under this Agreement or any other Loan
      Document.

     

    (c) Each
      Conversion shall be effected by each Lender by applying the proceeds of each
      new
      ABR Advance or Eurodollar Advance, as the case may be, to the existing Advance
      (or portion thereof) being Converted (it being understood that such Conversion
      shall not constitute a borrowing for purposes of Sections 4, 5 or
      6).

     

    (d) Notwithstanding
      any other provision of any Loan Document:

     

    (i) if
      the
      Borrower shall have failed to elect a Eurodollar Advance under Section 2.3
      or
      this Section 3.3, as the case may be, in connection with any borrowing of new
      Revolving Credit Loans or expiration of an Interest Period with respect to
      any
      existing Eurodollar Advance, the amount of the Revolving Credit Loans subject
      to
      such borrowing or such existing Eurodollar Advance shall thereafter be an ABR
      Advance until such time, if any, as the Borrower shall elect a new Eurodollar
      Advance pursuant to this Section 3.3,

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    (ii) the
      Borrower shall not be permitted to select a Eurodollar Advance the Interest
      Period in respect of which ends later than the Commitment Termination Date
      or
      such earlier date upon which all of the Commitments shall have been terminated
      in accordance with Section 2.6, and

     

    (iii) the
      Borrower shall not be permitted to have more than 15 Eurodollar Advances and
      Competitive Bid Loans, in the aggregate, outstanding at any one time, it being
      understood and agreed that each borrowing of Eurodollar Advances or Competitive
      Bid Loans pursuant to a single Borrowing Request or Competitive Bid Request,
      as
      the case may be, shall constitute the making of one Eurodollar Advance or
      Competitive Bid Loan for the purpose of calculating such
      limitation.

     

    
      	 	
              3.4

            	
              Interest
                Rates and Payment Dates

            

    

     

    (a) Prior
      to Maturity.
      Except
      as otherwise provided in Sections 3.4(b) and 3.4(c), the Loans shall bear
      interest on the unpaid principal balance thereof at the applicable interest
      rate
      or rates per annum set forth below:

     

    
      	
              LOANS

            	
              RATE

            
	
              Revolving
                Credit Loans constituting ABR Advances

            	
              Alternate
                Base Rate applicable thereto plus
                the Applicable Margin.

            
	
              Revolving
                Credit Loans constituting Eurodollar Advances

            	
              Eurodollar
                Rate applicable thereto plus
                the Applicable Margin.

            
	
              Competitive
                Bid Loans

            	
              Fixed
                rate of interest applicable thereto accepted by the Borrower pursuant
                to
                Section 2.4(d).

            
	
              Swing
                Line Loans

            	
              Negotiated
                Rate applicable thereto as provided in Section
                2.2(a).

            

    

    

    (b) After
      Maturity, Late Payment Rate.
      After
      maturity, whether by acceleration, notice of intention to prepay or otherwise,
      the outstanding principal balance of the Loans shall bear interest at the
      Alternate Base Rate plus
      2% per
      annum until paid (whether before or after the entry of any judgment thereon).
      Any payment of principal, interest or any Fees not paid on the date when due
      and
      payable shall bear interest at the Alternate Base Rate plus
      2% per
      annum from the due date thereof until the date such payment is made (whether
      before or after the entry of any judgment thereon).

     

    (c) Highest
      Lawful Rate.
      Notwithstanding anything to the contrary contained in this Agreement, at no
      time
      shall the interest rate payable to any Lender on any of its Loans, together
      with
      the Fees and all other amounts payable hereunder to such Lender to the extent
      the same constitute or are deemed to constitute interest, exceed the Highest
      Lawful Rate. If in respect of any period during the term of this Agreement,
      any
      amount paid to any Lender 

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    hereunder,
      to the extent the same shall (but for the provisions of this Section 3.4)
      constitute or be deemed to constitute interest, would exceed the maximum amount
      of interest permitted by the Highest Lawful Rate during such period (such amount
      being hereinafter referred to as an “Unqualified
      Amount”),
      then
      (i) such Unqualified Amount shall be applied or shall be deemed to have been
      applied as a prepayment of the Loans of such Lender, and (ii) if, in any
      subsequent period during the term of this Agreement, all amounts payable
      hereunder to such Lender in respect of such period which constitute or shall
      be
      deemed to constitute interest shall be less than the maximum amount of interest
      permitted by the Highest Lawful Rate during such period, then the Borrower
      shall
      pay to such Lender in respect of such period an amount (each a “Compensatory
      Interest Payment”)
      equal
      to the lesser of (x) a sum which, when added to all such amounts, would equal
      the maximum amount of interest permitted by the Highest Lawful Rate during
      such
      period, and (y) an amount equal to the aggregate sum of all Unqualified Amounts
      less
      all
      other Compensatory Interest Payments.

     

    (d) General.
      Interest shall be payable in arrears on each Interest Payment Date, on the
      Commitment Termination Date and, to the extent provided in Section 2.7(c),
      upon
      each prepayment of the Loans. Any change in the interest rate on the Loans
      resulting from an increase or a decrease in the Alternate Base Rate or any
      reserve requirement shall become effective as of the opening of business on
      the
      day on which such change shall become effective. The Administrative Agent shall,
      as soon as practicable, notify the Borrower and the Lenders of the effective
      date and the amount of each change in the BNY Rate, but any failure to so notify
      shall not in any manner affect the obligation of the Borrower to pay interest
      on
      the Loans in the amounts and on the dates set forth herein. Each determination
      by the Administrative Agent of the Alternate Base Rate, the Eurodollar Rate and
      the Competitive Rate pursuant to this Agreement shall be conclusive and binding
      on the Borrower absent manifest error. The Borrower acknowledges that to the
      extent interest payable on the Loans is based on the Alternate Base Rate, such
      rate is only one of the bases for computing interest on loans made by the
      Lenders, and by basing interest payable on ABR Advances on the Alternate Base
      Rate, the Lenders have not committed to charge, and the Borrower has not in
      any
      way bargained for, interest based on a lower or the lowest rate at which the
      Lenders may now or in the future make extensions of credit to other Persons.
      All
      interest (other than interest calculated with reference to the BNY Rate) shall
      be calculated on the basis of a 360-day year for the actual number of days
      elapsed, and all interest determined with reference to the BNY Rate shall be
      calculated on the basis of a 365/366-day year for the actual number of days
      elapsed.

     

    
      	 	
              3.5

            	
              Indemnification
                for Loss

            

    

     

    Notwithstanding
      anything contained herein to the contrary, if: (i) the Borrower shall fail
      to
      borrow a Eurodollar Advance or if the Borrower shall fail to Convert a
      Eurodollar Advance after it shall have given notice to do so in which it shall
      have requested a Eurodollar Advance pursuant to Section 2.3 or 3.3, as the
      case
      may be, (ii) the Borrower shall fail to borrow a Competitive Bid Loan after
      it
      shall have accepted any offer with respect thereto in accordance with Section
      2.4 or a Swing Line Loan after it shall have agreed to a Negotiated Rate with
      respect thereto in accordance with Section 2.2(a), (iii) a Eurodollar Advance,
      Competitive Bid Loan or Swing Line Loan shall be terminated for any reason
      prior
      to the last day of the Interest Period applicable thereto (other than the
      termination of a Swing Line Loan resulting from a Mandatory Borrowing at a
      time
      when no Default or Event of Default shall exist), (iv) any repayment or
      prepayment of the principal amount of a Eurodollar Advance, Competitive Bid
      Loan
      or Swing Line Loan is made for any reason on a date which is prior to the last
      day of the Interest Period applicable thereto (other than the repayment or
      prepayment of a Swing Line Loan resulting from a Mandatory Borrowing at a time
      

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    when
      no
      Default or Event of Default shall exist), or (v) the Borrower shall have revoked
      a notice of prepayment or notice of termination of the Commitments, the Swing
      Line Commitment and the Letter of Credit Commitment that was conditioned upon
      the effectiveness of other credit facilities or the consummation of the issuance
      of long term Indebtedness or equity securities pursuant to Section 2.6 or 2.7,
      the Borrower agrees to indemnify each Lender against, and to pay on demand
      directly to such Lender the amount (calculated by such Lender using any method
      chosen by such Lender which is customarily used by such Lender for such purpose)
      equal to any loss or expense suffered by such Lender as a result of such failure
      to borrow or Convert, or such termination, repayment, prepayment or revocation,
      including any loss, cost or expense suffered by such Lender in liquidating
      or
      employing deposits acquired to fund or maintain the funding of such Eurodollar
      Advance, Competitive Bid Loan or Swing Line Loan, as the case may be, or
      redeploying funds prepaid or repaid, in amounts which correspond to such
      Eurodollar Advance, Competitive Bid Loan or Swing Line Loan, as the case may
      be,
      and any reasonable internal processing charge customarily charged by such Lender
      in connection therewith.

     

    
      	 	
              3.6

            	
              Reimbursement
                for Costs, Etc.

            

    

     

    If
      at any
      time or from time to time there shall occur a Regulatory Change and the Issuer
      or any Lender shall have reasonably determined that such Regulatory Change
      (i)
      shall have had or will thereafter have the effect of reducing (A) the rate
      of
      return on the Issuer’s or such Lender’s capital or the capital of any Person
      directly or indirectly owning or controlling the Issuer or such Lender (each
      a
“Control
      Person”),
      or (B)
      the asset value (for capital purposes) to the Issuer, such Lender or such
      Control Person, as applicable, of the Reimbursement Obligations, or any
      participation therein, or the Loans, or any participation therein, in any case
      to a level below that which the Issuer, such Lender or such Control Person
      could
      have achieved or would thereafter be able to achieve but for such Regulatory
      Change (after taking into account the Issuer’s, such Lender’s or such Control
      Person’s policies regarding capital), (ii) will impose, modify or deem
      applicable any reserve, asset, special deposit or special assessment
      requirements on deposits obtained in the interbank eurodollar market in
      connection with the Loan Documents (excluding, with respect to any Eurodollar
      Advance, any such requirement which is included in the determination of the
      rate
      applicable thereto), (iii) will subject the Issuer, such Lender or such Control
      Person, as applicable, to any tax (documentary, stamp or otherwise) with respect
      to this Agreement, any Note, or any Reimbursement Agreement, or (iv) will change
      the basis of taxation of payments to the Issuer, such Lender or such Control
      Person, as applicable, of principal, interest or fees payable under the Loan
      Documents (except, in the case of clauses (iii) and (iv) above, for any tax
      or
      changes in the rate of tax on the Issuer’s, such Lender’s or such Control
      Person’s net income) then, in each such case, within ten days after demand by
      the Issuer or such Lender, as applicable, the Borrower shall pay to the Issuer,
      such Lender or such Control Person, as the case may be, such additional amount
      or amounts as shall be sufficient to compensate the Issuer, such Lender or
      such
      Control Person, as the case may be, for any such reduction, reserve or other
      requirement, tax, loss, cost or expense (excluding general administrative and
      overhead costs) (collectively, “Costs”)
      attributable to the Issuer’s, such Lender’s or such Control Person’s

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    compliance
      during the term hereof with such Regulatory Change. The Issuer and each Lender
      may make multiple requests for compensation under this Section.

     

    Notwithstanding
      the foregoing, the Borrower will not be required to compensate any Lender for
      any Costs under this Section 3.6 arising prior to 45 days preceding the date
      of
      demand, unless the applicable Regulatory Change giving rise to such Costs is
      imposed retroactively. In the case of retroactivity, such notice shall be
      provided to the Borrower not later than 45 days from the date that such Lender
      learned of such Regulatory Change. The Borrower’s obligation to compensate such
      Lender shall be contingent upon the provision of such timely notice (but any
      failure by such Lender to provide such timely notice shall not affect the
      Borrower’s obligations with respect to (i) Costs incurred from the date as of
      which such Regulatory Change became effective to the date that is 45 days after
      the date such Lender reasonably should have learned of such Regulatory Change
      and (ii) Costs incurred following the provision of such notice).

     

    
      	 	
              3.7

            	
              Illegality
                of Funding

            

    

     

    Notwithstanding
      any other provision hereof, if any Lender shall reasonably determine that any
      law, regulation, treaty or directive, or any change therein or in the
      interpretation or application thereof, shall make it unlawful for such Lender
      to
      make or maintain any Eurodollar Advance as contemplated by this Agreement,
      such
      Lender shall promptly notify the Borrower and the Administrative Agent thereof,
      and (a) the commitment of such Lender to make such Eurodollar Advances or
      Convert ABR Advances to such Eurodollar Advances shall forthwith be suspended,
      (b) such Lender shall fund its portion of each requested Eurodollar Advance
      as
      an ABR Advance and (c) such Lender’s Loans then outstanding as such Eurodollar
      Advances, if any, shall be Converted automatically to an ABR Advance on the
      last
      day of the then current Interest Period applicable thereto or at such earlier
      time as may be required. If the commitment of any Lender with respect to
      Eurodollar Advances is suspended pursuant to this Section and such Lender shall
      have obtained actual knowledge that it is once again legal for such Lender
      to
      make or maintain Eurodollar Advances, such Lender shall promptly notify the
      Administrative Agent and the Borrower thereof and, upon receipt of such notice
      by each of the Administrative Agent and the Borrower, such Lender’s commitment
      to make or maintain Eurodollar Advances shall be reinstated. If the commitment
      of any Lender with respect to Eurodollar Advances is suspended pursuant to
      this
      Section, such suspension shall not otherwise affect such Lender’s
      Commitment.

     

    
      	 	
              3.8

            	
              Option
                to Fund; Substituted Interest
                Rate

            

    

     

    (a) Each
      Lender has indicated that, if the Borrower requests a Swing Line Loan, a
      Eurodollar Advance or a Competitive Bid Loan, such Lender may wish to purchase
      one or more deposits in order to fund or maintain its funding of its Commitment
      Percentage of such Eurodollar Advance or its Swing Line Loan or Competitive
      Bid
      Loan during the Interest Period with respect thereto; it being understood that
      the provisions of this Agreement relating to such funding are included only
      for
      the purpose of determining the rate of interest to be paid in respect of such
      Swing Line Loan, Eurodollar Advance or Competitive Bid Loan and any amounts
      owing under Sections 3.5 and 3.6. The Swing Line Lender and each Lender shall
      be
      entitled to fund and maintain its funding of all or any part of each Swing
      Line
      Loan, Eurodollar Advance and Competitive Bid Loan in any manner it sees fit,
      but
      all such determinations hereunder shall be 

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    made
      as
      if such Lender had actually funded and maintained its Commitment Percentage
      of
      each Eurodollar Advance or its Swing Line Loan or Competitive Bid Loan, as
      the
      case may be, during the applicable Interest Period through the purchase of
      deposits in an amount equal to the amount of its Commitment Percentage of such
      Eurodollar Advance or the amount of such Swing Line Loan or Competitive Bid
      Loan, as the case may be, and having a maturity corresponding to such Interest
      Period. Each Lender may fund its Loans from or for the account of any branch
      or
      office of such Lender as such Lender may choose from time to time, subject
      to
      Section 3.10.

     

    (b) In
      the
      event that (i) the Administrative Agent shall have determined in good faith
      (which determination shall be conclusive and binding upon the Borrower) that
      by
      reason of circumstances affecting the interbank eurodollar market either
      adequate and reasonable means do not exist for ascertaining the Eurodollar
      Rate
      applicable pursuant to Section 2.3 or Section 3.3, or (ii) the Required Lenders
      shall have notified the Administrative Agent that they have in good faith
      determined (which determination shall be conclusive and binding on the Borrower)
      that the applicable Eurodollar Rate will not adequately and fairly reflect
      the
      cost to such Lenders of maintaining or funding loans bearing interest based
      on
      such Eurodollar Rate with respect to any portion of the Loans that the Borrower
      has requested be made as Eurodollar Advances or any Eurodollar Advance that
      will
      result from the requested conversion of any portion of the Loans into Eurodollar
      Advances (each, an “Affected
      Advance”),
      the
      Administrative Agent shall promptly notify the Borrower and the Lenders (by
      telephone or otherwise, to be promptly confirmed in writing) of such
      determination on or, to the extent practicable, prior to the requested Borrowing
      Date or conversion date for such Affected Advances. If the Administrative Agent
      shall give such notice, (A) any Affected Advances shall be made as ABR Advances
      (or, subject to the terms and conditions hereof, Competitive Bid Loans), (B)
      the
      Loans (or any portion thereof) that were to have been Converted to Affected
      Advances shall be Converted to or continued as ABR Advances (or, subject to
      the
      terms and conditions hereof, Competitive Bid Loans), and (C) any outstanding
      Affected Advances shall be Converted, on the last day of the then current
      Interest Period with respect thereto, to ABR Advances (or, subject to the terms
      and conditions hereof, Competitive Bid Loans). Until any notice under clauses
      (i) or (ii), as the case may be, of this Section 3.8(b) has been withdrawn
      by
      the Administrative Agent (by notice to the Borrower) promptly upon either (x)
      the Administrative Agent having determined that such circumstances affecting
      the
      relevant market no longer exist and that adequate and reasonable means do exist
      for determining the Eurodollar Rate pursuant to Section 2.3 or Section 3.3,
      or
      (y) the Administrative Agent having been notified by such Required Lenders
      that
      circumstances no longer render the Loans (or any portion thereof) Affected
      Advances, no further Eurodollar Advances shall be required to be made by the
      Lenders nor shall the Borrower have the right to Convert all or any portion
      of
      the Loans to Eurodollar Advances.

     

    
      	 	
              3.9

            	
              Certificates
                of Payment and Reimbursement

            

    

     

    Each
      Issuer and each Lender agrees, in connection with any request by it for payment
      or reimbursement pursuant to Section 3.5 or 3.6, to provide the Borrower with
      a
      certificate, signed by an officer of the Issuer or such Lender, as the case
      may
      be, setting forth a description in reasonable detail of any such payment or
      reimbursement. Each determination by the 

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    Issuer
      and each Lender of such payment or reimbursement shall be conclusive absent
      manifest error.

     

    
      	 	
              3.10

            	
              Taxes;
                Net Payments

            

    

     

    (a) All
      payments made by the Borrower under the Loan Documents shall be made free and
      clear of, and without reduction for or on account of, any taxes required by
      law
      to be withheld from any amounts payable under the Loan Documents. In the event
      that the Borrower is prohibited by law from making such payments free of
      deductions or withholdings, then the Borrower shall pay such additional amounts
      to the Administrative Agent, for the benefit of the Issuer and the Lenders,
      as
      may be necessary in order that the actual amounts received by the Issuer and
      the
      Lenders in respect of interest and any other amounts payable under the Loan
      Documents after deduction or withholding (and after payment of any additional
      taxes or other charges due as a consequence of the payment of such additional
      amounts) shall equal the amount that would have been received if such deduction
      or withholding were not required. In the event that any such deduction or
      withholding can be reduced or nullified as a result of the application of any
      relevant double taxation convention, the Lenders, the Issuer and the
      Administrative Agent will, at the expense of the Borrower, cooperate with the
      Borrower in making application to the relevant taxing authorities seeking to
      obtain such reduction or nullification, provided
      that the
      Lenders, the Issuer and the Administrative Agent shall have no obligation to
      (i)
      engage in any litigation, hearing or proceeding with respect thereto or (ii)
      disclose any tax return or other confidential information. If the Borrower
      shall
      make any payment under this Section or shall make any deduction or withholding
      from amounts paid under any Loan Document, the Borrower shall forthwith forward
      to the Administrative Agent original or certified copies of official receipts
      or
      other evidence acceptable to the Administrative Agent establishing each such
      payment, deduction or withholding, as the case may be, and the Administrative
      Agent in turn shall distribute copies thereof to the Issuer and each Lender.
      If
      any payment to the Issuer or any Lender under any Loan Document is or becomes
      subject to any withholding, the Issuer or such Lender, as the case may be,
      shall
      (unless otherwise required by a Governmental Authority or as a result of any
      law, rule, regulation, order or similar directive applicable to the Issuer
      or
      such Lender, as the case may be) designate a different office or branch to
      which
      such payment is to be made from that initially selected thereby, if such
      designation would avoid such withholding and would not be otherwise
      disadvantageous to the Issuer or such Lender, as the case may be, in any
      respect. In the event that the Issuer or any Lender determines that it received
      a refund or credit for taxes paid by the Borrower under this Section, the Issuer
      or such Lender, as the case may be, shall promptly notify the Administrative
      Agent and the Borrower of such fact and shall remit to the Borrower the amount
      of such refund or credit applicable to the payments made by the Borrower in
      respect of the Issuer or such Lender, as the case may be, under this
      Section.

     

    (b) Any
      Foreign Lender that is entitled to an exemption from or reduction of withholding
      tax under the law of the jurisdiction in which the Borrower is located, or
      any
      treaty to which such jurisdiction is a party, with respect to payments under
      the
      Loan Documents shall deliver to the Borrower (with a copy to the Administrative
      Agent), at the time or times prescribed by applicable law, such properly
      completed and executed documentation prescribed by applicable law or reasonably
      requested by the Borrower as will permit such payments to be made without
      withholding or at a reduced rate. Notwithstanding any provision herein to the
      contrary, the 

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    Borrower
      shall have no obligation to pay to any Lender any amount which the Borrower
      is
      liable to withhold due to the failure of such Lender to file any statement
      of
      exemption required by the Internal Revenue Code. 

     

    
      	 	
              3.11

            	
              Fees

            

    

     

    (a) Facility
      Fee. The
      Borrower agrees to pay to the Administrative Agent for the pro rata account
      of
      each Lender a fee (the “Facility
      Fee”)
      during
      the period commencing on the earlier to occur of the Caremark Merger Effective
      Date and July 31, 2007 and ending on the Expiration Date, payable quarterly
      in
      arrears on the last day of each March, June, September and December of each
      year, commencing on the last day of the calendar quarter during which the
      Facility Fee shall commence to accrue, and on the Expiration Date, at a rate
      per
      annum equal to the Applicable Margin of (a) prior to the Commitment Termination
      Date or such earlier date upon which all of the Commitments shall have been
      terminated in accordance with Section 2.6, the Commitment Amount of such Lender
      (whether used or unused), and (b) thereafter, the sum of (i) the outstanding
      principal balance of all Revolving Credit Loans of such Lender, (ii) such
      Lender’s Swing Line Exposure and (iii) such Lender’s Letter of Credit Exposure.
      Notwithstanding anything to the contrary contained in this Section, on and
      after
      the Commitment Termination Date, the Facility Fee shall be payable upon demand.
      In addition, upon each reduction of the Aggregate Commitment Amount, the
      Borrower shall pay the Facility Fee accrued on the amount of such reduction
      through the date of such reduction. The Facility Fee shall be computed on the
      basis of a 360-day year for the actual number of days elapsed.

     

    (b) Utilization
      Fee.
      The
      Borrower agrees to pay to the Administrative Agent for the account of each
      Lender a fee (the “Utilization
      Fee”)
      for
      each day during the period commencing on the Effective Date and ending on the
      Expiration Date (or, if later, the date when the Committed Credit Exposure
      of
      such Lender is $0) that the sum of (i) the Aggregate Credit Exposure, (ii)
      the
      Aggregate Credit Exposure (as defined in the Existing
      2004 Five Year Credit
      Agreement), (iii) the Aggregate Credit Exposure (as defined in the Existing
      2005
      Five Year Credit Agreement), (iv) the Aggregate Credit Exposure (as defined
      in
      the Existing 2006 Five Year Credit Agreement) and (v) the Aggregate Credit
      Exposure (as defined in the 2007 Five Year Credit Agreement) on such date
      exceeds 50% of the sum of (i) the Aggregate Commitment Amount, (ii) the
      Aggregate Commitment Amount (as defined in the Existing 2004 Five Year Credit
      Agreement), (iii) the Aggregate Commitment Amount (as defined in the Existing
      2005 Five Year Credit Agreement), (iv) the Aggregate Commitment Amount (as
      defined in the Existing 2006 Five Year Credit Agreement) and (v) the Aggregate
      Commitment Amount (as defined in the 2007 Five Year Credit Agreement) on such
      date, payable on each Interest Payment Date (other than an Interest Payment
      Date
      applicable solely to Competitive Bid Loans) or if Letters of Credit are
      outstanding, but no Revolving Credit Loans or Swing Line Loans are outstanding,
      payable on each date that the Letter of Credit Participation Fee is payable,
      at
      a rate per annum equal to the Applicable Margin of the sum of (i) the Committed
      Credit Exposure of such Lender, (ii) the Committed Credit Exposure (as defined
      in the Existing 2004 Five Year Credit Agreement) of such Lender, (iii) the
      Committed Credit Exposure (as defined in the Existing 2005 Five Year Credit
      Agreement) of such Lender, (iv) the Committed Credit Exposure (as defined in
      the
      Existing 2006 Five Year Credit Agreement) and (v) the Committed Credit Exposure
      (as defined in the 2007 Five Year Credit Agreement) of such Lender on such
      date,
less

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    the
      sum
      of (i) the Utilization Fee (as defined in the Existing 2004 Five Year Credit
      Agreement), (ii) the Utilization Fee (as defined in the Existing 2005 Five
      Year
      Credit Agreement), (iii) the Utilization Fee (as defined in the Existing 2006
      Five Year Credit Agreement) and (iv) the Utilization Fee (as defined in the
      2007
      Five Year Credit Agreement), in each case payable to such Lender for such day.
      Notwithstanding anything to the contrary contained in this Section, on and
      after
      the Commitment Termination Date, the Utilization Fee shall be payable upon
      demand. The Utilization Fee shall be computed on the basis of a 360-day year
      for
      the actual number of days elapsed.

     

    
      	 	
              3.12

            	
              Letter
                of Credit Participation Fee

            

    

     

    The
      Borrower agrees to pay to the Administrative Agent for the pro rata account
      of
      each Lender a fee (the “Letter
      of Credit Participation Fee”)
      with
      respect to the Letters of Credit during the period commencing on the Effective
      Date and ending on the Commitment Termination Date or, if later, the date when
      the Letter of Credit Exposure of all Lenders is $0, payable quarterly in arrears
      on the last day of each March, June, September and December of each year,
      commencing on the last day of the calendar quarter in which the Effective Date
      shall have occurred, and on the last date of such period, at a rate per annum
      equal to the Applicable Margin of the average daily aggregate amount which
      may
      be drawn under the Letters of Credit during such period (whether or not the
      conditions for drawing thereunder have or may be satisfied) multiplied by such
      Lender’s Commitment Percentage. The Letter of Credit Participation Fee shall be
      computed on the basis of a 360-day year for the actual number of days
      elapsed.

     

    
      	 	
              3.13

            	
              Replacement
                of Lender

            

    

     

    If
      the
      Borrower is obligated to pay to any Lender any amount under Section 3.6 or
      3.10,
      the Borrower shall have the right within 90 days thereafter, in accordance
      with
      the requirements of Section 11.7(b), if no Default or Event of Default shall
      exist, to replace such Lender (the “Replaced
      Lender”)
      with
      one or more other assignees (each a “Replacement
      Lender”),
      reasonably acceptable to the Swing Line Lender and the Issuer, provided
      that (i)
      at the time of any replacement pursuant to this Section, the Replacement Lender
      shall enter into one or more Assignment and Acceptance Agreements pursuant
      to
      Section 11.7(b) (with the processing and recordation fee referred to in Section
      11.7(b) payable pursuant to said Section 11.7(b) to be paid by the Replacement
      Lender) pursuant to which the Replacement Lender shall acquire the Commitment,
      the outstanding Loans, the Swing Line Exposure and the Letter of Credit Exposure
      of the Replaced Lender and, in connection therewith, shall pay the following:
      (a) to the Replaced Lender, an amount equal to the sum of (A) an amount equal
      to
      the principal of, and all accrued interest on, all outstanding Loans and Swing
      Line Participation Amounts of the Replaced Lender, (B) an amount equal to all
      drawings on all Letters of Credit that have been funded by (and not reimbursed
      to) such Replaced Lender, together with all then unpaid interest with respect
      thereto at such time, and (C) an amount equal to all accrued, but unpaid, fees
      owing to the Replaced Lender, (b) to the Issuer, an amount equal to such
      Replaced Lender’s Commitment Percentage of all drawings (which at such time
      remain unpaid drawings) to the extent such amount was not funded by such
      Replaced Lender, (c) to the Swing Line Lender, an amount equal to such Replaced
      Lender’s Commitment Percentage of any Mandatory Borrowing to the extent such
      amount was not funded by such Replaced Lender, and (d) to the Administrative
      Agent an amount equal to all 

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    amounts
      owed by such Replaced Lender to the Administrative Agent under this Agreement,
      including, without limitation, an amount equal to the principal of, and all
      accrued interest on, all outstanding Loans of the Replaced Lender, a
      corresponding amount of which was made available by the Administrative Agent
      to
      the Borrower pursuant to Section 3.1 and which has not been repaid to the
      Administrative Agent by such Replaced Lender or the Borrower, and (ii) all
      obligations of the Borrower owing to the Replaced Lender (other than those
      specifically described in clause (i) above in respect of which the assignment
      purchase price has been, or is concurrently being, paid) shall be paid in full
      to such Replaced Lender concurrently with such replacement. Upon the execution
      of the respective Assignment and Acceptance Agreements and the payment of
      amounts referred to in clauses (i) and (ii) of this Section 3.13, the
      Replacement Lender shall become a Lender hereunder and the Replaced Lender
      shall
      cease to constitute a Lender hereunder, except with respect to indemnification
      provisions under this Agreement that are intended to survive the termination
      of
      the Commitments and the repayment of the Loans.

     

    
      	
              4.

            	
              REPRESENTATIONS
                AND WARRANTIES

            

    

     

    In
      order
      to induce the Administrative Agent, the Lenders and the Issuer to enter into
      this Agreement, the Lenders to make the Loans and the Issuer to issue Letters
      of
      Credit, the Borrower hereby makes the following representations and warranties
      to the Administrative Agent, the Lenders and the Issuer:

     

    
      	 	
              4.1

            	
              Existence
                and Power

            

    

     

    Each
      of
      the Borrower and the Subsidiaries is duly organized, validly existing and in
      good standing under the laws of the jurisdiction of its incorporation or
      formation (except, in the case of the Subsidiaries, where the failure to be
      in
      such good standing could not reasonably be expected to have a Material Adverse
      effect), has all requisite corporate power and authority to own its Property
      and
      to carry on its business as now conducted, and is qualified to do business
      as a
      foreign corporation and is in good standing in each jurisdiction in which it
      owns or leases real Property or in which the nature of its business requires
      it
      to be so qualified (except those jurisdictions where the failure to be so
      qualified or to be in good standing could not reasonably be expected to have
      a
      Material Adverse effect).

     

    
      	 	
              4.2

            	
              Authority

            

    

     

    The
      Borrower has full corporate power and authority to enter into, execute, deliver
      and perform the terms of the Loan Documents, all of which have been duly
      authorized by all proper and necessary corporate action and are not in
      contravention of any applicable law or the terms of its Certificate of
      Incorporation and By-Laws. No consent or approval of, or other action by,
      shareholders of the Borrower, any Governmental Authority, or any other Person
      (which has not already been obtained) is required to authorize in respect of
      the
      Borrower, or is required in connection with the execution, delivery, and
      performance by the Borrower of the Loan Documents or is required as a condition
      to the enforceability of the Loan Documents against the Borrower.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    
      	 	
              4.3

            	
              Binding
                Agreement

            

    

     

    The
      Loan
      Documents constitute the valid and legally binding obligations of the Borrower,
      enforceable in accordance with their respective terms, except as such
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or similar laws affecting the enforcement of
      creditors’ rights generally and by equitable principles relating to the
      availability of specific performance as a remedy.

     

    
      	 	
              4.4

            	
              Litigation

            

    

     

    As
      at
      February 2, 2007, there were no actions, suits, arbitration proceedings or
      claims (whether purportedly on behalf of the Borrower, any Subsidiary or
      otherwise) pending or, to the knowledge of the Borrower, threatened against
      the
      Borrower or any Subsidiary or any of their respective Properties, or maintained
      by the Borrower or any Subsidiary, at law or in equity, before any Governmental
      Authority which could reasonably be expected to have a Material Adverse effect.
      There are no proceedings pending or, to the knowledge of the Borrower,
      threatened against the Borrower or any Subsidiary (a) which call into question
      the validity or enforceability of any Loan Document, or otherwise seek to
      invalidate, any Loan Document, or (b) which might, individually or in the
      aggregate, materially and adversely affect any of the transactions contemplated
      by any Loan Document (it being understood that the Caremark Merger is not a
      transaction contemplated by any Loan Document for purposes of this clause
      (b)).

     

    
      	 	
              4.5

            	
              No
                Conflicting Agreements

            

    

     

    (a) Neither
      the Borrower nor any Subsidiary is in default under any agreement to which
      it is
      a party or by which it or any of its Property is bound the effect of which
      could
      reasonably be expected to have a Material Adverse effect. No notice to, or
      filing with, any Governmental Authority is required for the due execution,
      delivery and performance by the Borrower of the Loan Documents.

     

    (b) No
      provision of any existing material mortgage, material indenture, material
      contract or material agreement or of any existing statute, rule, regulation,
      judgment, decree or order binding on the Borrower or any Subsidiary or affecting
      the Property of the Borrower or any Subsidiary conflicts with, or requires
      any
      consent which has not already been obtained under, or would in any way prevent
      the execution, delivery or performance by the Borrower of the terms of, any
      Loan
      Document. The execution, delivery or performance by the Borrower of the terms
      of
      each Loan Document will not constitute a default under, or result in the
      creation or imposition of, or obligation to create, any Lien upon the Property
      of the Borrower or any Subsidiary pursuant to the terms of any such mortgage,
      indenture, contract or agreement.

     

    
      	 	
              4.6

            	
              Taxes

            

    

     

    The
      Borrower and each Subsidiary has filed or caused to be filed all tax returns,
      and has paid, or has made adequate provision for the payment of, all taxes
      shown
      to be due and payable on said returns or in any assessments made against them,
      the failure of which to file or pay could reasonably be expected to have a
      Material Adverse effect, and no tax Liens (other than Liens 

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    permitted
      under Section 8.2) have been filed against the Borrower or any Subsidiary and
      no
      claims are being asserted with respect to such taxes which are required by
      GAAP
      to be reflected in the Financial Statements and are not so reflected, except
      for
      taxes which have been assessed but which are not yet due and payable. The
      charges, accruals and reserves on the books of the Borrower and each Subsidiary
      with respect to all federal, state, local and other taxes are considered by
      the
      management of the Borrower to be adequate, and the Borrower knows of no unpaid
      assessment which (a) could reasonably be expected to have a Material Adverse
      effect, or (b) is or might be due and payable against it or any Subsidiary
      or
      any Property of the Borrower or any Subsidiary, except such thereof as are
      being
      contested in good faith and by appropriate proceedings diligently conducted,
      and
      for which adequate reserves have been set aside in accordance with GAAP or
      which
      have been assessed but are not yet due and payable.

     

    
      	 	
              4.7

            	
              Compliance
                with Applicable Laws; Filings

            

    

     

    Neither
      the Borrower nor any Subsidiary is in default with respect to any judgment,
      order, writ, injunction, decree or decision of any Governmental Authority which
      default could reasonably be expected to have a Material Adverse effect. The
      Borrower and each Subsidiary is complying with all applicable statutes, rules
      and regulations of all Governmental Authorities, a violation of which could
      reasonably be expected to have a Material Adverse effect. The Borrower and
      each
      Subsidiary has filed or caused to be filed with all Governmental Authorities
      all
      reports, applications, documents, instruments and information required to be
      filed pursuant to all applicable laws, rules, regulations and requests which,
      if
      not so filed, could reasonably be expected to have a Material Adverse
      effect.

     

    
      	 	
              4.8

            	
              Governmental
                Regulations

            

    

     

    Neither
      the Borrower nor any Subsidiary nor any corporation controlling the Borrower
      or
      any Subsidiary or under common control with the Borrower or any Subsidiary
      is
      subject to regulation under the Investment Company Act of 1940, as amended,
      or
      is subject to any statute or regulation which regulates the incurrence of
      Indebtedness.

     

    
      	 	
              4.9

            	
              Federal
                Reserve Regulations; Use of
                Proceeds

            

    

     

    The
      Borrower is not engaged principally, or as one of its important activities,
      in
      the business of extending credit for the purpose of purchasing or carrying
      any
      margin stock within the meaning of Regulation U of the Board of Governors of
      the
      Federal Reserve System, as amended. No part of the proceeds of the Loans or
      the
      Letters of Credit has been or will be used, directly or indirectly, and whether
      immediately, incidentally or ultimately, for a purpose which violates any law,
      rule or regulation of any Governmental Authority, including, without limitation,
      the provisions of Regulations T, U or X of the Board of Governors of the Federal
      Reserve System, as amended. Anything in this Agreement to the contrary
      notwithstanding, neither the Issuer nor any Lender shall be obligated to extend
      credit to or on behalf of the Borrower in violation of any limitation or
      prohibition provided by any applicable law, regulation or statute, including
      said Regulation U. Following application of the proceeds of each Loan and the
      issuance of each Letter of Credit, not more than 25% (or such greater or lesser
      percentage as is provided in the exclusions from the definition of “Indirectly
      Secured”
      contained in said Regulation U as in effect at the time of the 

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    making
      of
      such Loan or issuance of such Letter of Credit) of the value of the assets
      of
      the Borrower and the Subsidiaries on a Consolidated basis that are subject
      to
      Section 8.2 will be Margin Stock. In addition, no part of the proceeds of any
      Loan or Letter of Credit will be used, whether directly or indirectly, and
      whether immediately, incidentally or ultimately, to make a loan to any director
      or executive officer of the Borrower or any Subsidiary.

     

    
      	 	
              4.10

            	
              No
                Misrepresentation

            

    

     

    No
      representation or warranty contained in any Loan Document and no certificate
      or
      written report furnished by the Borrower to the Administrative Agent or any
      Lender pursuant to any Loan Document contains or will contain, as of its date,
      a
      misstatement of material fact, or omits or will omit to state, as of its date,
      a
      material fact required to be stated in order to make the statements therein
      contained not misleading in the light of the circumstances under which made
      (it
      being understood that the Borrower makes no representation or warranty hereunder
      with respect to any projections or other forward looking
      information).

     

    
      	 	
              4.11

            	
              Plans

            

    

     

    Each
      Employee Benefit Plan of the Borrower, each Subsidiary and each ERISA Affiliate
      is in compliance with ERISA and the Internal Revenue Code, where applicable,
      except where the failure to so comply would not be material. The Borrower,
      each
      Subsidiary and each ERISA Affiliate have complied with the material requirements
      of Section 515 of ERISA with respect to each Pension Plan which is a
      Multiemployer Plan, except where the failure to so comply would not be material.
      The Borrower, each Subsidiary and each ERISA Affiliate has, as of the date
      hereof, made all contributions or payments to or under each Pension Plan
      required by law or the terms of such Pension Plan or any contract or agreement.
      No liability to the PBGC has been, or is reasonably expected by the Borrower,
      any Subsidiary or any ERISA Affiliate to be, incurred by the Borrower, any
      Subsidiary or any ERISA Affiliate. Liability, as referred to in this Section
      4.11, includes any joint and several liability, but excludes any current or,
      to
      the extent it represents future liability in the ordinary course, any future
      liability for premiums under Section 4007 of ERISA. Each Employee Benefit Plan
      which is a group health plan within the meaning of Section 5000(b)(1) of the
      Internal Revenue Code is in material compliance with the continuation of health
      care coverage requirements of Section 4980B of the Internal Revenue Code and
      with the portability, nondiscrimination and other requirements of Sections
      9801,
      9802, 9803, 9811 and 9812 of the Internal Revenue Code.

     

    
      	 	
              4.12

            	
              Environmental
                Matters

            

    

     

    Neither
      the Borrower nor any Subsidiary (a) has received written notice or otherwise
      learned of any claim, demand, action, event, condition, report or investigation
      indicating or concerning any potential or actual liability which individually
      or
      in the aggregate could reasonably be expected to have a Material Adverse effect,
      arising in connection with (i) any non-compliance with or violation of the
      requirements of any applicable federal, state or local environmental health
      or
      safety statute or regulation, or (ii) the release or threatened release of
      any
      toxic or hazardous waste, substance or constituent, or other substance into
      the
      environment, (b) to the best knowledge of the Borrower, has any threatened
      or
      actual liability in connection with the release or threatened 

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    release
      of any toxic or hazardous waste, substance or constituent, or other substance
      into the environment which individually or in the aggregate could reasonably
      be
      expected to have a Material Adverse effect, (c) has received notice of any
      federal or state investigation evaluating whether any remedial action is needed
      to respond to a release or threatened release of any toxic or hazardous waste,
      substance or constituent or other substance into the environment for which
      the
      Borrower or any Subsidiary is or would be liable, which liability would
      reasonably be expected to have a Material Adverse effect, or (d) has received
      notice that the Borrower or any Subsidiary is or may be liable to any Person
      under the Comprehensive Environmental Response, Compensation and Liability
      Act,
      as amended, 42 U.S.C. Section 9601 et seq.,
      or any
      analogous state law, which liability would reasonably be expected to have a
      Material Adverse effect. The Borrower and each Subsidiary is in compliance
      with
      the financial responsibility requirements of federal and state environmental
      laws to the extent applicable, including those contained in 40 C.F.R., parts
      264
      and 265, subpart H, and any analogous state law, except in those cases in which
      the failure so to comply would not reasonably be expected to have a Material
      Adverse effect.

     

    4.13 Financial
      Statements

     

    The
      Borrower has heretofore delivered to the Lenders through the Administrative
      Agent copies of the audited Consolidated Balance Sheet of the Borrower and
      its
      Subsidiaries as of December 30, 2006, and the related Consolidated Statements
      of
      Operations, Shareholders’ Equity and Cash Flows for the fiscal year then ended.
      The financial statements referred to immediately above, including all related
      notes and schedules, are herein referred to collectively as the “Financial
      Statements”.
      The
      Financial Statements fairly present the Consolidated financial condition and
      results of the operations of the Borrower and the Subsidiaries as of the dates
      and for the periods indicated therein and, except as noted therein, have been
      prepared in conformity with GAAP as then in effect. Neither the Borrower nor
      any
      of the Subsidiaries has any obligation or liability of any kind (whether fixed,
      accrued, contingent, unmatured or otherwise) which, in accordance with GAAP
      as
      then in effect, should have been disclosed in the Financial Statements and
      was
      not. During the period from December 30, 2006 to and including February 2,
      2007
      there was no Material Adverse change, including as a result of any change in
      law, in the consolidated financial condition, operations, business or Property
      of the Borrower and the Subsidiaries taken as a whole.

     

    
      	
              5.

            	
              CONDITIONS
                OF LENDING - FIRST LOANS AND LETTERS OF CREDIT ON THE FIRST BORROWING
                DATE

            

    

     

    In
      addition to the requirements set forth in Section 6, the obligation of each
      Lender on the first Borrowing Date to make one or more Revolving Credit Loans,
      the Swing Line Lender to make one or more Swing Line Loans, the Issuer to issue
      one or more Letters of Credit and any Lender to make a Competitive Bid Loan
      are
      subject to the fulfillment of the following conditions precedent prior to or
      simultaneously with the Effective Date:

     

    5.1 Evidence
      of Corporate Action

     

    The
      Administrative Agent shall have received a certificate, dated the Effective
      Date, of the Secretary or an Assistant Secretary of the Borrower (i) attaching
      a
      true and complete copy of 

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    the
      resolutions of its Board of Directors and of all documents evidencing all other
      necessary corporate action (in form and substance reasonably satisfactory to
      the
      Administrative Agent) taken by the Borrower to authorize the Loan Documents
      and
      the transactions contemplated thereby, (ii) attaching a true and complete copy
      of its Certificate of Incorporation and By-Laws, (iii) setting forth the
      incumbency of the officer or officers of the Borrower who may sign the Loan
      Documents and any other certificates, requests, notices or other documents
      now
      or in the future required thereunder, and (iv) attaching a certificate of good
      standing of the Secretary of State of the State of Delaware.

     

    5.2 Notes

     

    The
      Administrative Agent shall have received a Note for each Lender that shall
      have
      requested one, executed by the Borrower.

     

    5.3 Opinion
      of Counsel to the Borrower

     

    The
      Administrative Agent shall have received:

     

    (a) 
      an
      opinion of Zenon Lankowsky,
      counsel
      to the Borrower, dated the Effective Date, and in the form of Exhibit D-1;
      and

     

    (b) an
      opinion of Davis Polk & Wardwell, special counsel to the Borrower, dated the
      Effective Date, and in the form of Exhibit D-2.

     

    
      	
              6.

            	
              CONDITIONS
                OF LENDING - ALL LOANS AND LETTERS OF
                CREDIT

            

    

     

    The
      obligation of each Lender on any Borrowing Date to make each Revolving Credit
      Loan (other than a Revolving Credit Loan constituting a Mandatory Borrowing),
      the Swing Line Lender to make each Swing Line Loan, the Issuer to issue each
      Letter of Credit and any Lender to make a Competitive Bid Loan are subject
      to
      the fulfillment of the following conditions precedent:

     

    6.1 Compliance

     

    On
      each
      Borrowing Date, and after giving effect to the Loans to be made or the Letters
      of Credit to be issued on such Borrowing Date, (a) there shall exist no Default
      or Event of Default, and (b) the representations and warranties contained in
      this Agreement shall be true and correct with the same effect as though such
      representations and warranties had been made on such Borrowing Date, except
      those which are expressly specified to be made as of an earlier
      date.

     

    6.2 Requests

     

    The
      Administrative Agent shall have received either or both, as applicable, of
      a
      Borrowing Request or a Letter of Credit Request from the Borrower.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    6.3 Loan
      Closings

     

    All
      documents required by the provisions of this Agreement to have been executed
      or
      delivered by the Borrower to the Administrative Agent, any Lender or the Issuer
      on or before the applicable Borrowing Date shall have been so executed or
      delivered on or before such Borrowing Date.

     

    
      	
              7.

            	
              AFFIRMATIVE
                COVENANTS

            

    

     

    The
      Borrower covenants and agrees that on and after the Effective Date and until
      the
      later to occur of (a) the Commitment Termination Date and (b) the payment in
      full of the Loans, the Reimbursement Obligations, the Fees and all other sums
      payable under the Loan Documents, the Borrower will:

     

    7.1 Legal
      Existence

     

    Except
      as
      may otherwise be permitted by Sections 8.3 and 8.4, maintain, and cause each
      Subsidiary to maintain, its corporate existence in good standing in the
      jurisdiction of its incorporation or formation and in each other jurisdiction
      in
      which the failure so to do could reasonably be expected to have a Material
      Adverse effect, except that the corporate existence of Subsidiaries operating
      closing or discontinued operations may be terminated.

     

    7.2 Taxes

     

    Pay
      and
      discharge when due, and cause each Subsidiary so to do, all taxes, assessments,
      governmental charges, license fees and levies upon or with respect to the
      Borrower and such Subsidiary, and upon the income, profits and Property thereof
      unless, and only to the extent, that either (i)(a) such taxes, assessments,
      governmental charges, license fees and levies shall be contested in good faith
      and by appropriate proceedings diligently conducted by the Borrower or such
      Subsidiary, and (b) such reserve or other appropriate provision as shall be
      required by GAAP shall have been made therefor, or (ii) the failure to pay
      or
      discharge such taxes, assessments, governmental charges, license fees and levies
      could not reasonably be expected to have a Material Adverse effect.

     

    7.3 Insurance

     

    Keep,
      and
      cause each Subsidiary to keep, insurance with responsible insurance companies
      in
      such amounts and against such risks as is usually carried by the Borrower or
      such Subsidiary.

     

    7.4 Performance
      of Obligations

     

    Pay
      and
      discharge promptly when due, and cause each Subsidiary so to do, all lawful
      Indebtedness, obligations and claims for labor, materials and supplies or
      otherwise which, if unpaid, could reasonably be expected to (a) have a Material
      Adverse effect, or (b) become a Lien on the Property of the Borrower or any
      Subsidiary, except those Liens permitted under Section 8.2, provided
      that
      neither the Borrower nor such Subsidiary shall be required to pay or discharge
      or 

     

    
      
        
        

      

      
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    cause
      to
      be paid or discharged any such Indebtedness, obligation or claim so long as
      (i)
      the validity thereof shall be contested in good faith and by appropriate
      proceedings diligently conducted by the Borrower or such Subsidiary, and (ii)
      such reserve or other appropriate provision as shall be required by GAAP shall
      have been made therefor.

     

    7.5 Condition
      of Property

     

    Except
      for ordinary wear and tear, at all times, maintain, protect and keep in good
      repair, working order and condition, all material Property necessary for the
      operation of its business (other than Property which is replaced with similar
      Property) as then being operated, and cause each Subsidiary so to
      do.

     

    7.6 Observance
      of Legal Requirements

     

    Observe
      and comply in all material respects, and cause each Subsidiary so to do, with
      all laws, ordinances, orders, judgments, rules, regulations, certifications,
      franchises, permits, licenses, directions and requirements of all Governmental
      Authorities, which now or at any time hereafter may be applicable to it or
      to
      such Subsidiary, a violation of which could reasonably be expected to have
      a
      Material Adverse effect.

     

    7.7 Financial
      Statements and Other Information

     

    Maintain,
      and cause each Subsidiary to maintain, a standard system of accounting in
      accordance with GAAP, and furnish to each Lender:

     

    (a) As
      soon
      as available and, in any event, within 120 days after the close of each fiscal
      year, a copy of (x) the Borrower’s 10-K in respect of such fiscal year, and (y)
      (i) the Borrower’s Consolidated Balance Sheet as of the end of such fiscal year,
      and (ii) the related Consolidated Statements of Operations, Shareholders’ Equity
      and Cash Flows, as of and through the end of such fiscal year, setting forth
      in
      each case in comparative form the corresponding figures in respect of the
      previous fiscal year, all in reasonable detail, and accompanied by a report
      of
      the Borrower’s auditors, which report shall state that (A) such auditors audited
      such financial statements, (B) such audit was made in accordance with generally
      accepted auditing standards in effect at the time and provides a reasonable
      basis for such opinion, and (C) said financial statements have been prepared
      in
      accordance with GAAP;

     

    (b) As
      soon
      as available, and in any event within 60 days after the end of each of the
      first
      three fiscal quarters of each fiscal year, a copy of (x) the Borrower’s 10-Q in
      respect of such fiscal quarter, and (y) (i) the Borrower’s Consolidated Balance
      Sheet as of the end of such quarter and (ii) the related Consolidated Statements
      of Operations, Shareholders’ Equity and Cash Flows for (A) such quarter and (B)
      the period from the beginning of the then current fiscal year to the end of
      such
      quarter, in each case in comparable form with the prior fiscal year, all in
      reasonable detail and prepared in accordance with GAAP (without footnotes and
      subject to year-end adjustments);

     

    (c) Simultaneously
      with the delivery of the financial statements required by clauses (a) and (b)
      above, a certificate of the chief financial officer or treasurer of the Borrower
      

     

    
      
        
        

      

      
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    certifying
      that no Default or Event of Default shall have occurred or be continuing or,
      if
      so, specifying in such certificate all such Defaults and Events of Default,
      and
      setting forth computations in reasonable detail demonstrating compliance with
      Sections 8.1 and 8.9.

     

    (d) Prompt
      notice upon the Borrower becoming aware of any change in a Pricing
      Level;

     

    (e) Promptly
      upon becoming available, copies of all regular or periodic reports (including
      current reports on Form 8-K) which the Borrower or any Subsidiary may now or
      hereafter be required to file with or deliver to the Securities and Exchange
      Commission, or any other Governmental Authority succeeding to the functions
      thereof, and copies of all material news releases sent to all
      stockholders;

     

    (f) Prompt
      written notice of: (i) any citation, summons, subpoena, order to show cause
      or
      other order naming the Borrower or any Subsidiary a party to any proceeding
      before any Governmental Authority which could reasonably be expected to have
      a
      Material Adverse effect, and include with such notice a copy of such citation,
      summons, subpoena, order to show cause or other order, (ii) any lapse or other
      termination of any license, permit, franchise or other authorization issued
      to
      the Borrower or any Subsidiary by any Governmental Authority, (iii) any refusal
      by any Governmental Authority to renew or extend any license, permit, franchise
      or other authorization, and (iv) any dispute between the Borrower or any
      Subsidiary and any Governmental Authority, which lapse, termination, refusal
      or
      dispute, referred to in clause (ii), (iii) or (iv) above, could reasonably
      be
      expected to have a Material Adverse effect;

     

    (g) Prompt
      written notice of the occurrence of (i) each Default, (ii) each Event of Default
      and (iii) each Material Adverse change;

     

    (h) Promptly
      upon receipt thereof, copies of any audit reports delivered in connection with
      the statements referred to in Section 7.7(a);

     

    (i) From
      time
      to time, such other information regarding the financial position or business
      of
      the Borrower and the Subsidiaries as the Administrative Agent, at the request
      of
      any Lender, may reasonably request; and

     

    (j) Prompt
      written notice of such other information with documentation required by bank
      regulatory authorities under applicable “know your customer” and Anti-Money
      Laundering rules and regulations (including, without limitation, the Patriot
      Act), as from time to time may be reasonably requested by the Administrative
      Agent or any Lender.

     

    7.8 Records

     

    Upon
      reasonable notice and during normal business hours, permit representatives
      of
      the Administrative Agent and each Lender to visit the offices of the Borrower
      and each Subsidiary, to examine the books and records (other than tax returns
      and work papers related to tax returns) thereof and auditors’ reports relating
      thereto, to discuss the affairs of the Borrower and each Subsidiary with the
      respective officers thereof, and to meet and discuss the affairs of the Borrower
      and each Subsidiary with the Borrower’s auditors.

     

    
      
        
        

      

      
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    7.9 Authorizations

     

    Maintain
      and cause each Subsidiary to maintain, in full force and effect, all copyrights,
      patents, trademarks, trade names, franchises, licenses, permits, applications,
      reports, and other authorizations and rights, which, if not so maintained,
      would
      individually or in the aggregate have a Material Adverse effect.

     

    
      	
              8.

            	
              NEGATIVE
                COVENANTS

            

    

     

    The
      Borrower covenants and agrees that on and after the Effective Date and until
      the
      later to occur of (a) the Commitment Termination Date and (b) the payment in
      full of the Loans, the Reimbursement Obligations, the Fees and all other sums
      which are payable under the Loan Documents, the Borrower will not:

     

    8.1 Subsidiary
      Indebtedness

     

    Permit
      the Indebtedness of all Subsidiaries (excluding the ESOP Guaranty) to exceed
      (on
      a combined basis) 10% of Tangible Net Worth.

     

    8.2 Liens

     

    Create,
      incur, assume or suffer to exist any Lien against or on any Property now owned
      or hereafter acquired by the Borrower or any of the Subsidiaries, or permit
      any
      of the Subsidiaries so to do, except any one or more of the following types
      of
      Liens: (a) Liens in connection with workers’ compensation, unemployment
      insurance or other social security obligations (which phrase shall not be
      construed to refer to ERISA or the minimum funding obligations under Section
      412
      of the Code), (b) Liens to secure the performance of bids, tenders, letters
      of
      credit, contracts (other than contracts for the payment of Indebtedness),
      leases, statutory obligations, surety, customs, appeal, performance and payment
      bonds and other obligations of like nature, in each such case arising in the
      ordinary course of business, (c) mechanics’, workmen’s, carriers’,
      warehousemen’s, materialmen’s, landlords’ or other like Liens arising in the
      ordinary course of business with respect to obligations which are not due or
      which are being contested in good faith and by appropriate proceedings
      diligently conducted, (d) Liens for taxes, assessments, fees or governmental
      charges the payment of which is not required by Section 7.2, (e) easements,
      rights of way, restrictions, leases of Property to others, easements for
      installations of public utilities, title imperfections and restrictions, zoning
      ordinances and other similar encumbrances affecting Property which in the
      aggregate do not materially impair its use for the operation of the business
      of
      the Borrower or such Subsidiary, (f) Liens on Property of the Subsidiaries
      under
      capital leases and Liens on Property of the Subsidiaries acquired (whether
      as a
      result of purchase, capital lease, merger or other acquisition) and either
      existing on such Property when acquired, or created contemporaneously with
      or
      within 12 months of such acquisition to secure the payment or financing of
      the
      purchase price of such Property (including the construction, development,
      substantial repair, alteration or improvement thereof), and any renewals
      thereof, provided
      that
      such Liens attach only to the Property so purchased or acquired (including
      any
      such construction, development, substantial repair, alteration or improvement
      thereof) and provided
      further
      that the
      Indebtedness secured by such Liens is permitted by Section 8.1, (g) statutory
      Liens in favor of 

     

    
      
        
        

      

      
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    lessors
      arising in connection with Property leased to the Borrower or any of the
      Subsidiaries, (h) Liens of attachments, judgments or awards against the Borrower
      or any of the Subsidiaries with respect to which an appeal or proceeding for
      review shall be pending or a stay of execution or bond shall have been obtained,
      or which are otherwise being contested in good faith and by appropriate
      proceedings diligently conducted, and in respect of which adequate reserves
      shall have been established in accordance with GAAP on the books of the Borrower
      or such Subsidiary, (i) Liens securing Indebtedness of a Subsidiary to the
      Borrower or another Subsidiary, (j) Liens (other than Liens permitted by any
      of
      the foregoing clauses) arising in the ordinary course of its business which
      do
      not secure Indebtedness and do not, in the aggregate, materially detract from
      the value of the business of the Borrower and its Subsidiaries, taken as a
      whole, and (k) additional Liens securing Indebtedness of the Borrower and the
      Subsidiaries in an aggregate outstanding Consolidated principal amount not
      exceeding 10% of Tangible Net Worth.

     

    8.3 Dispositions

     

    Make
      any
      Disposition, or permit any of its Subsidiaries so to do, of all or substantially
      all of the assets of the Borrower and the Subsidiaries on a Consolidated
      basis.

     

    8.4 Merger
      or Consolidation, Etc.

     

    The
      Borrower will not consolidate with, be acquired by, or merge into or with any
      Person unless (x) immediately after giving effect thereto no Default or Event
      of
      Default shall or would exist and (y) either (i) the Borrower or (ii) a
      corporation organized and existing under the laws of one of the States of the
      United States of America shall be the survivor of such consolidation or merger,
      provided
      that if
      the Borrower is not the survivor, the corporation which is the survivor shall
      expressly assume, pursuant to an instrument executed and delivered to the
      Administrative Agent, and in form and substance satisfactory to the
      Administrative Agent, all obligations of the Borrower under the Loan Documents
      and the Administrative Agent shall have received such documents, opinions and
      certificates as it shall have reasonable requested in connection therewith.
      

     

    8.5 Acquisitions

     

    Make
      any
      Acquisition, or permit any of the Subsidiaries so to do, except any one or
      more
      of the following: (a) Intercompany Dispositions permitted by Section 8.3 and
      (b)
      Acquisitions by the Borrower or any of the Subsidiaries (including the Caremark
      Merger), provided
      that
      immediately before and after giving effect to each such Acquisition no Default
      or Event of Default shall or would exist.

     

    8.6 Restricted
      Payments

     

    Make
      any
      Restricted Payment or permit any of the Subsidiaries so to do, except any one
      or
      more of the following Restricted Payments: (a) any direct or indirect Subsidiary
      may make dividends or other distributions to the Borrower or to any other direct
      or indirect Subsidiary, and (b) the Borrower may make Restricted Payments,
      provided
      that, in
      the case of this clause (b), immediately before and after giving effect thereto,
      no Event of Default shall or would exist. 

     

    
      
        
        

      

      
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    Nothing
      in this Section 8.6 shall prohibit or restrict the declaration or payment of
      dividends in respect of the Series One ESOP Convertible Preferred Stock of
      the
      Borrower.

     

    8.7 Limitation
      on Upstream Dividends by Subsidiaries

     

    Permit
      or
      cause any of the Subsidiaries to enter into or agree, or otherwise be or become
      subject, to any agreement, contract or other arrangement (other than this
      Agreement) with any Person (each a “Restrictive
      Agreement”)
      pursuant to the terms of which (a) such Subsidiary is or would be prohibited
      from declaring or paying any cash dividends on any class of its stock owned
      directly or indirectly by the Borrower or any of the other Subsidiaries or
      from
      making any other distribution on account of any class of any such stock (herein
      referred to as “Upstream
      Dividends”),
      or (b)
      the declaration or payment of Upstream Dividends by a Subsidiary to the Borrower
      or another Subsidiary, on an annual or cumulative basis, is or would be
      otherwise limited or restricted (“Dividend
      Restrictions”).
      Notwithstanding the foregoing, nothing in this Section 8.7 shall
      prohibit:

     

    (i) Dividend
      Restrictions set forth in any Restrictive Agreement in effect on the date hereof
      and any extensions, refinancings, renewals or replacements thereof, provided
      that
      the
      Dividend Restrictions in any such extensions, refinancings, renewals or
      replacements are no less favorable in any material respect to the Lenders than
      those Dividend Restrictions that are then in effect and that are being extended,
      refinanced, renewed or replaced;

     

    (ii) Dividend
      Restrictions existing with respect to any Person acquired by the Borrower or
      any
      Subsidiary and existing at the time of such acquisition, which Dividend
      Restrictions are not applicable to any Person or the property or assets of
      any
      Person other than such Person or its property or assets acquired, and any
      extensions, refinancings, renewals or replacements of any of the foregoing,
      provided
      that the
      Dividend Restrictions in any such extensions, refinancings, renewals or
      replacements are no less favorable in any material respect to the Lenders than
      those Dividend Restrictions that are then in effect and that are being extended,
      refinanced, renewed or replaced;

     

    (iii) Dividend
      Restrictions consisting of customary net worth, leverage and other financial
      covenants, customary covenants regarding the merger of or sale of assets of
      a
      Subsidiary, customary restrictions on transactions with affiliates, and
      customary subordination provisions governing Indebtedness owed to the Borrower
      or any Subsidiary, in each case contained in, or required by, any agreement
      governing Indebtedness incurred by a Subsidiary in accordance with Section
      8.1;
      or

     

    (iv) Dividend
      Restrictions contained in any other credit agreement so long as such Dividend
      Restrictions are no more restrictive than those contained in this Agreement
      (including Dividend Restrictions contained in the Existing 2004 Five Year Credit
      Agreement, the Existing 2005 Five Year Credit Agreement, the Existing 2006
      Five
      Year Credit Agreement, the 2007 Bridge Credit Agreement and the 2007 Five Year
      Credit Agreement).

     

    
      
        
        

      

      
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    8.8 Limitation
      on Negative Pledges

     

    Enter
      into any agreement, other than (i) this Agreement, (ii) the 2007 Bridge Credit
      Agreement, (iii) the 2007 Five Year Credit Agreement, (iv) any other credit
      agreement that is substantially similar to this Agreement, and (v) purchase
      money mortgages or capital leases permitted by this Agreement (in which cases,
      any prohibition or limitation shall only be effective against the assets
      financed thereby), or permit any Subsidiary so to do, which prohibits or limits
      the ability of the Borrower or such Subsidiary to create, incur, assume or
      suffer to exist any Lien upon any of its Property or revenues, whether now
      owned
      or hereafter acquired to secure the obligations of the Borrower
      hereunder.

     

    8.9 Ratio
      of Consolidated Indebtedness to Total Capitalization

     

    Permit
      its ratio of Consolidated Indebtedness to Total Capitalization at the end of
      any
      fiscal quarter to exceed 0.6 : 1.0.

     

    8.10 Caremark
      Merger

     

    (a) Amend
      the Caremark Merger Agreement if such amendment has the effect of (i) increasing
      the purchase price to be paid by the Borrower thereunder by a material amount,
      (ii) increasing the liabilities of the Borrower thereunder by a material amount,
      or (iii) decreasing the assets being acquired thereunder by the Borrower by
      a
      material amount, in each case, without the consent of the Administrative
      Agent.

     

    (b) Waive
      any material condition to the obligations of the sellers under the Caremark
      Merger Agreement to consummate the transactions contemplated by the Caremark
      Merger Agreement without the consent of the Administrative Agent.

     

    
      	
              9.

            	
              DEFAULT

            

    

     

    9.1 Events
      of Default

     

    The
      following shall each constitute an “Event
      of Default”
      hereunder:

     

    (a) The
      failure of the Borrower to make any payment of principal on any Loan or any
      reimbursement payment in respect of any Letter of Credit when due and payable;
      or

     

    (b) The
      failure of the Borrower to make any payment of interest on any Loan or of any
      Fee on any date when due and payable and such default shall continue unremedied
      for a period of 5 Domestic Business Days after the same shall be due and
      payable; or

     

    (c) The
      failure of the Borrower to observe or perform any covenant or agreement
      contained in Sections 2.5, 7.1 or in Section 8; or

     

    (d) The
      failure of the Borrower to observe or perform any other covenant or agreement
      contained in this Agreement, and such failure shall have continued unremedied
      for a period of 30 days after the Borrower shall have become aware of such
      failure; or

     

    
      
        
        

      

      
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    (e) An
      Event
      of Default (as defined in any Reimbursement Agreement) shall occur under any
      Reimbursement Agreement; or

     

    (f) Any
      representation or warranty of the Borrower (or of any of its officers on its
      behalf) made in any Loan Document, or made in any certificate, report, opinion
      (other than an opinion of counsel) or other document delivered on or after
      the
      date hereof shall in any such case prove to have been incorrect or misleading
      (whether because of misstatement or omission) in any material respect when
      made;
      or

     

    (g) (i)
      Obligations in an aggregate Consolidated amount in excess of $25,000,000 of
      the
      Borrower (other than its obligations hereunder and under the Notes) and the
      Subsidiaries, whether as principal, guarantor, surety or other obligor, for
      the
      payment of any Indebtedness or any net liability under interest rate swap,
      collar, exchange or cap agreements, (A) shall become or shall be declared to
      be
      due and payable prior to the expressed maturity thereof, or (B) shall not be
      paid when due or within any grace period for the payment thereof, or (ii) any
      holder of any such obligations shall have the right to declare the Indebtedness
      evidenced thereby due and payable prior to its stated maturity; or

     

    (h) An
      involuntary proceeding shall be commenced or an involuntary petition shall
      be
      filed seeking (i) liquidation, reorganization or other relief in respect of
      the
      Borrower or any Subsidiary or its debts, or of a substantial part of its assets,
      under any federal, state or foreign bankruptcy, insolvency, receivership or
      similar law now or hereafter in effect or (ii) the appointment of a receiver,
      trustee, custodian, sequestrator, conservator or similar official for the
      Borrower or any Subsidiary or for a substantial part of its assets, and, in
      any
      such case, such proceeding or petition shall continue undismissed for 60 days
      or
      an order or decree approving or ordering any of the foregoing shall be entered;
      or

     

    (i) The
      Borrower or any Subsidiary shall (i)
      voluntarily commence any proceeding or file any petition seeking liquidation,
      reorganization or other relief under any federal, state or foreign bankruptcy,
      insolvency, receivership or similar law now or hereafter in effect, (ii)
      consent
      to the institution of, or fail to contest in a timely and appropriate manner,
      any proceeding or petition described in clause (h) of this Article, (iii)
      apply
      for or consent to the appointment of a receiver, trustee, custodian,
      sequestrator, conservator or similar official for the Borrower or any Subsidiary
      or for a substantial part of its assets, (iv)
      file an
      answer admitting the material allegations of a petition filed against it in
      any
      such proceeding, (v)
      make a
      general assignment for the benefit of creditors or (vi)
      take any
      action for the purpose of effecting any of the foregoing; or

     

    (j) The
      Borrower or any Subsidiary shall (i) suspend or discontinue its business (except
      for store closings in the ordinary course of business and except in connection
      with a permitted Disposition under Section 8.3 and as may otherwise be expressly
      permitted herein), or (ii) generally not be paying its debts as such debts
      become due, or (iii) admit in writing its inability to pay its debts as they
      become due; or

     

    (k) Judgments
      or decrees in an aggregate Consolidated amount in excess of $25,000,000 against
      the Borrower and the Subsidiaries shall remain unpaid, unstayed on appeal,
      

     

    
      
        
        

      

      
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    undischarged,
      unbonded or undismissed for a period of 60 days during which execution shall
      not
      be effectively stayed, or any action shall be legally taken by a judgment
      creditor to attach or levy upon any assets of the Borrower or any Subsidiary
      to
      enforce any such judgment; or

     

    (l) After
      the
      Effective Date a Change of Control shall occur; or

     

    (m) (i)
      Any
      Termination Event shall occur (x) with respect to any Pension Plan (other than
      a
      Multiemployer Plan) or (y) with respect to any other retirement plan subject
      to
      Section 302 of ERISA or Section 412 of the Internal Revenue Code, which plan,
      during the five year period prior to such Termination Event, was the
      responsibility in whole or in part of the Borrower, any Subsidiary or any ERISA
      Affiliate, provided
      that
      this clause (y) shall only apply if, in connection with such Termination Event,
      it is reasonably likely that liability in an aggregate Consolidated amount
      in
      excess of $25,000,000 will be imposed upon the Borrower, any Subsidiary or
      any
      ERISA Affiliate; (ii) any Accumulated Funding Deficiency, whether or not waived,
      in an aggregate Consolidated amount in excess of $25,000,000 shall exist with
      respect to any Pension Plan (other than that portion of a Multiemployer Plan’s
      Accumulated Funding Deficiency to the extent such Accumulated Funding Deficiency
      is attributable to employers other than Borrower, any Subsidiary or any ERISA
      Affiliate); (iii) any Person shall engage in any Prohibited Transaction
      involving any Employee Benefit Plan; (iv) the Borrower, any Subsidiary or any
      ERISA Affiliate shall fail to pay when due an amount which is payable by it
      to
      the PBGC or to a Pension Plan (including a Multiemployer Plan) under Title
      IV of
      ERISA; (v) the imposition of any tax under Section 4980(B)(a) of the Internal
      Revenue Code; or (vi) the assessment of a civil penalty with respect to any
      Employee Benefit Plan under Section 502(c) of ERISA; in each case, to the extent
      such event or condition would have a Material Adverse effect.

     

    9.2 Remedies

     

    (a) Upon
      the
      occurrence of an Event of Default or at any time thereafter during the
      continuance of an Event of Default, the Administrative Agent, at the written
      request of the Required Lenders, shall notify the Borrower that the Commitments,
      the Swing Line Commitment and the Letter of Credit Commitment have been
      terminated and/or that all of the Loans, the Notes and the Reimbursement
      Obligations and all accrued and unpaid interest on any thereof and all other
      amounts owing under the Loan Documents have been declared immediately due and
      payable, provided
      that
      upon the occurrence of an Event of Default under Section 9.1(h), (i) or (j)
      with
      respect to the Borrower, the Commitments, the Swing Line Commitment and the
      Letter of Credit Commitment shall automatically terminate and all of the Loans,
      the Notes and the Reimbursement Obligations and all accrued and unpaid interest
      on any thereof and all other amounts owing under the Loan Documents shall become
      immediately due and payable without declaration or notice to the Borrower.
      To
      the fullest extent not prohibited by law, except for the notice provided for
      in
      the preceding sentence, the Borrower expressly waives any presentment, demand,
      protest, notice of protest or other notice of any kind in connection with the
      Loan Documents and its obligations thereunder. To the fullest extent not
      prohibited by law, the Borrower further expressly waives and covenants not
      to
      assert any appraisement, valuation, stay, extension, redemption or similar
      law,
      now or at any time hereafter in force which might delay, prevent or otherwise
      impede the performance or enforcement of the Loan Documents. 

     

    
      
        
        

      

      
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    (b) In
      the
      event that the Commitments, the Swing Line Commitment and the Letter of Credit
      Commitment shall have been terminated or all of the Loans, the Notes and the
      Reimbursement Obligations shall have been declared due and payable pursuant
      to
      the provisions of this Section, (i) the Borrower shall forthwith deposit an
      amount equal to the Letter of Credit Exposure in a cash collateral account
      with
      and under the exclusive control of the Administrative Agent, and (ii) the
      Administrative Agent, the Issuer and the Lenders agree, among themselves, that
      any funds received from or on behalf of the Borrower under any Loan Document
      by
      the Issuer or any Lender (except funds received by the Issuer or any Lender
      as a
      result of a purchase from the Issuer or such Lender, as the case may be,
      pursuant to the provisions of Section 11.9(b)) shall be remitted to the
      Administrative Agent, and shall be applied by the Administrative Agent in
      payment of the Loans, the Reimbursement Obligations and the other obligations
      of
      the Borrower under the Loan Documents in the following manner and order: (1)
      first, to reimburse the Administrative Agent, the Issuer and the Lenders, in
      that order, for any expenses due from the Borrower pursuant to the provisions
      of
      Section 11.5 and the Reimbursement Agreements, (2) second, to the payment of
      the
      Fees, (3) third, to the payment of any expenses or amounts (other than the
      principal of and interest on the Loans and the Notes and the Reimbursement
      Obligations) payable by the Borrower to the Administrative Agent, the Issuer
      or
      any of the Lenders under the Loan Documents, (4) fourth, to the payment, pro
      rata according to the outstanding principal balance of the Loans and the Letter
      of Credit Exposure of each Lender, of interest due on the Loans and the
      Reimbursement Obligations, (5) fifth, to the payment, pro rata according to
      the
      sum of (A) the aggregate outstanding principal balance of the Loans of each
      Lender plus
      (B) the
      aggregate outstanding balance of the Reimbursement Obligations of each Lender,
      of the aggregate outstanding principal balance of the Loans and the aggregate
      outstanding balance of the Reimbursement Obligations, and (6) sixth, any
      remaining funds shall be paid to whosoever shall be entitled thereto or as
      a
      court of competent jurisdiction shall direct.

     

    (c) In
      the
      event that the Loans and the Notes and the Reimbursement Obligations shall
      have
      been declared due and payable pursuant to the provisions of this Section 9.2,
      the Administrative Agent upon the written request of the Required Lenders,
      shall
      proceed to enforce the Reimbursement Obligations and the rights of the holders
      of the Loans and the Notes by suit in equity, action at law and/or other
      appropriate proceedings, whether for payment or the specific performance of
      any
      covenant or agreement contained in the Loan Documents. In the event that the
      Administrative Agent shall fail or refuse so to proceed, the Issuer and each
      Lender shall be entitled to take such action as the Required Lenders shall
      deem
      appropriate to enforce its rights under the Loan Documents.

     

    
      	
              10.

            	
              AGENT

            

    

     

    10.1 Appointment

     

    Each
      Lender hereby irrevocably designates and appoints BNY as the Administrative
      Agent of such Lender under the Loan Documents and each Lender irrevocably
      authorizes the Administrative Agent to take such action on its behalf under
      the
      provisions of the Loan Documents and to exercise such powers and perform such
      duties as are expressly delegated to the Administrative Agent by the terms
      of
      the Loan Documents, together with such other powers as are reasonably incidental
      thereto. Notwithstanding any provision to the contrary contained in the Loan
      

     

    
      
        
        

      

      
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    Documents,
      the Administrative Agent shall not have any duties or responsibilities except
      those expressly set forth in the Loan Documents, or any fiduciary relationship
      with any Lender, and no implied covenants, functions, responsibilities, duties,
      obligations or liabilities shall be read into the Loan Documents or otherwise
      exist against the Administrative Agent.

     

    10.2 Delegation
      of Duties

     

    The
      Administrative Agent may execute any of its duties under the Loan Documents
      by
      or through agents or attorneys-in-fact and shall be entitled to rely upon the
      advice of counsel concerning all matters pertaining to such duties, and shall
      not be liable for any action taken or omitted to be taken in good faith upon
      the
      advice of such counsel.

     

    10.3 Exculpatory
      Provisions

     

    None
      of
      the Administrative Agent or any of its officers, directors, employees, agents,
      attorneys-in-fact or Affiliates shall be (i) liable for any action lawfully
      taken or omitted to be taken by the Administrative Agent or such Person under
      or
      in connection with the Loan Documents (except the Administrative Agent for
      its
      own gross negligence or willful misconduct), or (ii) responsible in any manner
      to any of the Lenders for any recitals, statements, representations or
      warranties made by any party contained in the Loan Documents or in any
      certificate, report, statement or other document referred to or provided for
      in,
      or received by the Administrative Agent under or in connection with, the Loan
      Documents or for the value, validity, effectiveness, genuineness, enforceability
      or sufficiency of any of the Loan Documents or for any failure of the Borrower
      or any other Person to perform its obligations thereunder. The Administrative
      Agent shall not be under any obligation to any Lender to ascertain or to inquire
      into the observance or performance of any of the covenants or agreements
      contained in, or conditions of, the Loan Documents, or to inspect the Property,
      books or records of the Borrower or any Subsidiary. The Administrative Agent
      shall not be under any liability or responsibility to the Borrower or any other
      Person as a consequence of any failure or delay in performance, or any breach,
      by any Lender of any of its obligations under any of the Loan Documents. The
      Lenders acknowledge that the Administrative Agent shall not be under any duty
      to
      take any discretionary action permitted under the Loan Documents unless the
      Administrative Agent shall be requested in writing to do so by the Required
      Lenders.

     

    10.4 Reliance
      by Administrative Agent

     

    The
      Administrative Agent shall be entitled to rely, and shall be fully protected
      in
      relying, upon any writing, resolution, notice, request, consent, certificate,
      affidavit, opinion, letter, cablegram, telegram, fax, telex or teletype message,
      statement, order or other document or conversation reasonably believed by it
      to
      be genuine and correct and to have been signed, sent or made by the proper
      Person or Persons and upon advice and statements of legal counsel (including
      counsel to the Borrower), independent accountants and other experts selected
      by
      the Administrative Agent. The Administrative Agent shall not be under any duty
      to examine or pass upon the validity, effectiveness or genuineness of the Loan
      Documents or any instrument, document or communication furnished pursuant
      thereto or in connection therewith, and the Administrative Agent shall be
      entitled to assume that the same are valid, effective and genuine, have been
      signed or 

     

    
      
        
        

      

      
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    sent
      by
      the proper parties and are what they purport to be. The Administrative Agent
      shall be fully justified in failing or refusing to take any action not expressly
      required under the Loan Documents unless it shall first receive such advice
      or
      concurrence of the Required Lenders as it deems appropriate. The Administrative
      Agent shall in all cases be fully protected in acting, or in refraining from
      acting, under the Loan Documents in accordance with a request of the Required
      Lenders or, if required by Section 11.1, all Lenders, and such request and
      any
      action taken or failure to act pursuant thereto shall be binding upon the
      Borrower, all the Lenders and all future holders of the Notes.

     

    10.5 Notice
      of Default

     

    The
      Administrative Agent shall not be deemed to have knowledge or notice of the
      occurrence of any Default or Event of Default unless the Administrative Agent
      shall have received written notice thereof from a Lender or the Borrower
      referring to this Agreement, describing such Default or Event of Default and
      stating such notice is a “Notice
      of
      Default.”
      In the
      event that the Administrative Agent receives such a notice, the Administrative
      Agent shall promptly give notice thereof to the Lenders. The Administrative
      Agent shall take such action with respect to such Default or Event of Default
      as
      shall be reasonably directed by the Required Lenders, provided
      that
      unless and until the Administrative Agent shall have received such directions,
      the Administrative Agent may (but shall not be obligated to) take such action
      or
      give such directions, or refrain from taking such action or giving such
      directions, with respect to such Default or Event of Default as it shall deem
      to
      be in the best interests of the Lenders.

     

    10.6 Non-Reliance

     

    Each
      Lender expressly acknowledges that neither the Administrative Agent nor any
      of
      its officers, directors, employees, agents, attorneys-in-fact or Affiliates
      has
      made any representations or warranties to such Lender and that no act by the
      Administrative Agent hereafter, including any review of the affairs of the
      Borrower or the Subsidiaries, shall be deemed to constitute any representation
      or warranty by the Administrative Agent to any Lender. Each Lender represents
      to
      the Administrative Agent that such Lender has, independently and without
      reliance upon the Administrative Agent or any other Lender, and based on such
      documents and information as it has deemed appropriate, made its own evaluation
      of and investigation into the business, operations, Property, financial and
      other condition and creditworthiness of the Borrower and the Subsidiaries and
      has made its own decision to enter into this Agreement. Each Lender also
      represents that it will, independently and without reliance upon the
      Administrative Agent or any other Lender, and based on such documents and
      information as it shall deem appropriate at the time, continue to make its
      own
      credit analysis, evaluations and decisions in taking or not taking action under
      the Loan Documents, and to make such investigation as it deems necessary to
      inform itself as to the business, operations, Property, financial and other
      condition and creditworthiness of the Borrower and the Subsidiaries. Each Lender
      acknowledges that a copy of this Agreement and all exhibits and schedules hereto
      have been made available to it and its individual counsel for review, and each
      Lender acknowledges that it is satisfied with the form and substance thereof.
      Except for notices, reports and other documents expressly required to be
      furnished to the Lenders by the Administrative Agent hereunder, the
      Administrative Agent shall have no duty or responsibility to provide any Lender
      with any credit or other information concerning the business, 

     

    
      
        
        

      

      
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    operations,
      Property, financial and other condition or creditworthiness of the Borrower
      or
      the Subsidiaries which may come into the possession of the Administrative Agent
      or any of its officers, directors, employees, agents, attorneys-in-fact or
      Affiliates.

     

    10.7 Administrative
      Agent in Its Individual Capacity

     

    BNY
      and
      each Affiliate thereof, may make loans to, accept deposits from, issue letters
      of credit for the account of and generally engage in any kind of business with
      the Borrower and the Subsidiaries as though it were not the Administrative
      Agent. With respect to the Commitment made or renewed by BNY and each Note
      issued to BNY (if any), BNY shall have the same rights and powers under the
      Loan
      Documents as any Lender and may exercise the same as though it were not the
      Administrative Agent, the Issuer and the Swing Line Lender, and the term
“Lender”
      shall
      include BNY.

     

    10.8 Successor
      Administrative Agent

     

    If
      at any
      time the Administrative Agent deems it advisable, in its sole discretion, it
      may
      submit to each Lender a written notification of its resignation as
      Administrative Agent under the Loan Documents, such resignation to be effective
      on the earlier to occur of (a) the thirtieth day after the date of such notice,
      and (b) the date upon which any successor to the Administrative Agent, in
      accordance with the provisions of this Section, shall have accepted in writing
      its appointment as successor Administrative Agent. Upon any such resignation,
      the Required Lenders shall have the right to appoint from among the Lenders
      a
      successor Administrative Agent, which successor Administrative Agent,
provided
      that no
      Default or Event of Default shall then exist, shall be reasonably satisfactory
      to the Borrower. If no such successor Administrative Agent shall have been
      so
      appointed by the Required Lenders and accepted such appointment within 30 days
      after the retiring Administrative Agent’s giving of notice of resignation, then
      the retiring Administrative Agent may, on behalf of the Lenders, appoint a
      successor Administrative Agent, which successor Administrative Agent shall
      be a
      commercial bank organized or licensed under the laws of the United States of
      America or of any State thereof and having a combined capital and surplus of
      at
      least $500,000,000. Upon the written acceptance of any appointment as
      Administrative Agent hereunder by a successor Administrative Agent, such
      successor Administrative Agent shall automatically become a party to this
      Agreement and shall thereupon succeed to and become vested with all the rights,
      powers, privileges and duties of the retiring Administrative Agent, and the
      retiring Administrative Agent’s rights, powers, privileges and duties as
      Administrative Agent under the Loan Documents shall be terminated. The Borrower
      and the Lenders shall execute such documents as shall be necessary to effect
      such appointment. After any retiring Administrative Agent’s resignation as
      Administrative Agent, the provisions of this Section 10 shall inure to its
      benefit as to any actions taken or omitted to be taken by it while it was the
      Administrative Agent. If at any time there shall not be a duly appointed and
      acting Administrative Agent, upon notice duly given, the Borrower agrees to
      make
      each payment when due under the Loan Documents directly to the Lenders entitled
      thereto during such time.

     

    
      
        
        

      

      
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    10.9 Co-Syndication
      Agents

     

    The
      Co-Syndication Agents shall have no duties or obligations under the Loan
      Documents in their capacities as Co-Syndication Agents.

     

    
      	
              11.

            	
              OTHER
                PROVISIONS

            

    

     

    11.1 Amendments,
      Waivers, Etc.

     

    With
      the
      written consent of the Required Lenders, the Administrative Agent and the
      Borrower may, from time to time, enter into written amendments, supplements
      or
      modifications of the Loan Documents and, with the written consent of the
      Required Lenders, the Administrative Agent on behalf of the Lenders may execute
      and deliver to any such parties a written instrument waiving or consenting
      to
      the departure from, on such terms and conditions as the Administrative Agent
      may
      specify in such instrument, any of the requirements of the Loan Documents or
      any
      Default or Event of Default and its consequences, provided
      that
      no
      such amendment, supplement, modification, waiver or consent shall (i) increase
      the Commitment Amount of any Lender without the consent of such Lender
      (provided
      that no
      waiver of a Default or Event of Default shall be deemed to constitute such
      an
      increase), (ii) extend the Commitment Period without the consent of each Lender
      directly affected thereby, (iii) reduce the amount, or extend the time of
      payment, of the Fees without the consent of each Lender directly affected
      thereby, (iv) reduce the rate, or extend the time of payment of, interest on
      any
      Revolving Credit Loan, any Note or any Reimbursement Obligation (other than
      the
      applicability of any post-default increase in such rate of interest) without
      the
      consent of each Lender directly affected thereby, (v) reduce the amount, or
      extend the time of payment of any payment of any Reimbursement Obligation or
      principal on any Revolving Credit Loan or any Note without the consent of each
      Lender directly affected thereby, (vi) decrease or forgive the principal amount
      of any Revolving Credit Loan, any Note or any Reimbursement Obligation without
      the consent of each Lender directly affected thereby, (vii) consent to any
      assignment or delegation by the Borrower of any of its rights or obligations
      under any Loan Document without the consent of each Lender, (viii) change the
      provisions of this Section 11.1 without the consent of each Lender, (ix) change
      the definition of Required Lenders without the consent of each Lender, (x)
      change the several nature of the obligations of the Lenders without the consent
      of each Lender, (xi) change the sharing provisions among Lenders without the
      consent of each Lender, or (xii) extend the expiration date of a Letter of
      Credit beyond the Commitment Termination Date without the consent of each
      Lender. Notwithstanding the foregoing, no such amendment, supplement,
      modification, waiver or consent shall (A) amend, modify or waive any provision
      of Section 10 or otherwise change any of the rights or obligations of the
      Administrative Agent, the Issuer or the Swing Line Lender under any Loan
      Document without the written consent of the Administrative Agent, the Issuer
      or
      the Swing Line Lender, as the case may be, (B) change the Letter of Credit
      Commitment, change the amount or the time of payment of the Letter of Credit
      Commissions, or change any other term or provision which relates to the Letter
      of Credit Commitment or the Letters of Credit without the written consent of
      the
      Issuer, (C) change the Swing Line Commitment, change the amount or the time
      of
      payment of the Swing Line Loans or interest thereon or change any other term
      or
      provision which relates to the Swing Line Commitment or the Swing Line Loans
      without the written consent of the Swing Line Lender or (D) change the amount
      or
      the time of payment of any Competitive Bid Loan or interest thereon without
      the
      written 

     

    
      
        
        

      

      
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    consent
      of the Lender holding such Competitive Bid Loan. Any such amendment, supplement,
      modification, waiver or consent shall apply equally to each of the Lenders
      and
      shall be binding upon the parties to the applicable Loan Document, the Lenders,
      the Administrative Agent and all future holders of the Loans and the Notes
      and
      the Reimbursement Obligations. In the case of any waiver, the Borrower, the
      Lenders and the Administrative Agent shall be restored to their former position
      and rights under the Loan Documents, but any Default or Event of Default waived
      shall not extend to any subsequent or other Default or Event of Default, or
      impair any right consequent thereon.

     

    11.2 Notices

     

    Except
      in
      the case of notices and other communications expressly permitted to be given
      by
      telephone, all notices and other communications provided for herein shall be
      in
      writing and shall be delivered by hand or overnight courier service, mailed
      by
      certified or registered mail or sent by facsimile, as follows:

     

    If
      to
      the Borrower:

     

    CVS
      Corporation

    1
      CVS
      Drive

    Woonsocket,
      Rhode Island 02895

    Attention: Carol
      A.
      DeNale

    Treasury
      Department

    Facsimile: (401)
      770-5768

    Telephone: (401)
      770-4407

     

    with
      a
      copy, in the case of a notice of Default or Event of Default, to:

     

    CVS
      Corporation

    1
      CVS
      Drive

    Woonsocket,
      Rhode Island 02895

    Attention: Legal
      Department

    Facsimile: (401)
      765-7887

    Telephone: (401)
      765-1500

     

    If
      to
      the Administrative Agent, the Swing Line Lender and the Issuer:

     

    in
      the
      case of each Borrowing Request, each notice of prepayment under
      Section 2.7, each Letter of Credit Request, each Competitive Bid Request,
      each Competitive Bid, and each Competitive Bid Accept/Reject
      Letter:

     

    
      
        
        

      

      
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    The
      Bank
      of New York

    One
      Wall
      Street

    New
      York,
      New York 10286

    Attention: Kareen
      Sinclair,

    Agency
      Function Administration

    Facsimile: (212)
      635-6365, 6366 or 6367

    Telephone: (212)
      635-4696,

     

    and
      in
      all other cases:

     

    The
      Bank
      of New York

    Retailing
      Industry Division

    19th
      Floor

    One
      Wall
      Street

    New
      York,
      New York 10286

    Attention: William
      M. Barnum,

    Managing
      Director

    Facsimile: (212)
      635-1481

    Telephone: (212)
      635-1019

     

    If
      to
      any Lender:
      to it
      at its address (or facsimile number) set forth in its Administrative
      Questionnaire.

     

    Any
      party
      hereto may change its address or facsimile number for notices and other
      communications hereunder by notice to the other parties hereto (or, in the
      case
      of any Lender, by notice to the Administrative Agent and the Borrower). All
      notices and other communications given to any party hereto in accordance with
      the provisions of this Agreement shall be deemed to have been given on the
      date
      of receipt. Any party to a Loan Document may rely on signatures of the parties
      thereto which are transmitted by fax or other electronic means as fully as
      if
      originally signed.

     

    11.3 No
      Waiver; Cumulative Remedies

     

    No
      failure to exercise and no delay in exercising, on the part of the
      Administrative Agent, any Lender or the Issuer, any right, remedy, power or
      privilege under any Loan Document shall operate as a waiver thereof, nor shall
      any single or partial exercise of any right, remedy, power or privilege under
      any Loan Document preclude any other or further exercise thereof or the exercise
      of any other right, remedy, power or privilege. The rights, remedies, powers
      and
      privileges under the Loan Documents are cumulative and not exclusive of any
      rights, remedies, powers and privileges provided by law.

     

    11.4 Survival
      of Representations and Warranties

     

    All
      representations and warranties made in the Loan Documents and in any document,
      certificate or statement delivered pursuant thereto or in connection therewith
      shall survive the execution and delivery of the Loan Documents.

     

    
      
        
        

      

      
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    11.5 Payment
      of Expenses and Taxes; Indemnified Liabilities

     

    The
      Borrower agrees, promptly upon presentation of a statement or invoice therefor
      setting forth in reasonable detail the items thereof, and whether any Loan
      is
      made or Letter of Credit is issued, (a) to pay or reimburse the Administrative
      Agent and its Affiliates for all its reasonable costs and expenses actually
      incurred in connection with the development, syndication, preparation and
      execution of, and any amendment, waiver, consent, supplement or modification
      to,
      the Loan Documents, any documents prepared in connection therewith and the
      consummation of the transactions contemplated thereby, whether such Loan
      Documents or any such amendment, waiver, consent, supplement or modification
      to
      the Loan Documents or any documents prepared in connection therewith are
      executed and whether the transactions contemplated thereby are consummated,
      including the reasonable fees and disbursements of Special Counsel, (b) to
      pay,
      indemnify, and hold the Administrative Agent, the Lenders and the Issuer
      harmless from any and all recording and filing fees and any and all liabilities
      and penalties with respect to, or resulting from any delay (other than penalties
      to the extent attributable to the negligence of the Administrative Agent, the
      Lenders or the Issuer, as the case may be, in failing to pay such fees or other
      liabilities when due) in paying, stamp, excise and other similar taxes, if
      any,
      which may be payable or determined to be payable in connection with the
      execution and delivery of, or consummation of any of the transactions
      contemplated by, or any amendment, supplement or modification of, or any waiver
      or consent under or in respect of, the Loan Documents and any such other
      documents, and (c) to pay, reimburse, indemnify and hold each Indemnified Person
      harmless from and against any and all other liabilities, obligations, claims,
      losses, damages, penalties, actions, judgments, suits, costs, expenses and
      disbursements of any kind or nature whatsoever (including reasonable counsel
      fees and disbursements of counsel (including the allocated costs of internal
      counsel) and such local counsel as may be required) actually incurred with
      respect to the enforcement, performance of, and preservation of rights under,
      the Loan Documents (all the foregoing, collectively, the “Indemnified
      Liabilities”)
      and, if
      and to the extent that the foregoing indemnity may be unenforceable for any
      reason, the Borrower agrees to make the maximum payment permitted under
      applicable law, provided
      that the
      Borrower shall have no obligation hereunder to pay Indemnified Liabilities
      to an
      Indemnified Person to the extent arising from its gross negligence or willful
      misconduct. The agreements in this Section shall survive the termination of
      the
      Commitments and the payment of the Loans and the Notes and all other amounts
      payable under the Loan Documents.

     

    11.6 Lending
      Offices

     

    Each
      Lender shall have the right at any time and from time to time to transfer any
      Loan to a different office of such Lender, subject to Section 3.10.

     

    11.7 Successors
      and Assigns

     

    (a) The
      provisions of the Loan Documents shall be binding upon and inure to the benefit
      of the parties hereto and their respective successors and assigns permitted
      hereby, except that the Borrower may not assign or otherwise transfer any of
      its
      rights or obligations hereunder without the prior written consent of each Lender
      (and any attempted assignment or transfer by the Borrower without such consent
      shall be null and void). Nothing in the Loan Documents, expressed or implied,
      shall be construed to confer upon any Person (other than the 

     

    
      
        
        

      

      
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    parties
      hereto, their respective successors and assigns permitted hereby and, to the
      extent expressly contemplated hereby, the Related Parties of each Credit Party)
      any legal or equitable right, remedy or claim under or by reason of any Loan
      Document.

     

    (b) Any
      Lender may assign all or a portion of its rights and obligations under the
      Loan
      Documents (including all or a portion of its Commitment or obligations in
      respect of its Letter of Credit Exposure or Swing Line Exposure and
      the
      applicable Loans at the time owing to it), to an Eligible Assignee, provided
      that
(i)
      except
      in the case of an assignment to a Lender or an Affiliate of a Lender, each
      of
      the Borrower and the Administrative Agent (and, in the case of an assignment
      of
      all or any portion of its Commitment or obligations in respect of its Letter
      of
      Credit Exposure or Swing Line Exposure, the Issuing Bank and/or the Swing Line
      Lender, as the case may be) must give its prior written consent to such
      assignment (which consent shall not be unreasonably withheld or delayed),
(ii)
      except
      in the case of an assignment to a Lender or an Affiliate or an Approved Fund
      of
      a Lender or an assignment of the entire remaining amount of the assigning
      Lender’s Commitment, the amount of the Commitment of the assigning Lender
      subject to each such assignment (determined as of the date the Assignment and
      Acceptance Agreement with respect to such assignment is delivered to the
      Administrative Agent) shall not be less than $5,000,000, unless the Borrower
      and
      the Administrative Agent otherwise consent (which consent shall not be
      unreasonably withheld or delayed) and shall be for a pro rata portion of such
      Lender’s Commitment and such Lender’s then outstanding Revolving Credit Loans,
(iii)
      no
      assignments to the Borrower or any of its Affiliates shall be permitted (and
      any
      attempted assignment or transfer to the Borrower or any of its Affiliates shall
      be null and void), (iv)
      the
      parties to each assignment shall execute and deliver to the Administrative
      Agent
      an Assignment and Acceptance Agreement together with, unless otherwise agreed
      by
      the Administrative Agent, a processing and recordation fee of $3,500, and
(v)
      the
      assignee, if it shall not be a Lender, shall deliver to the Administrative
      Agent
      an Administrative Questionnaire, and provided further
      that any
      consent of the Borrower otherwise required under this subsection shall not
      be
      required if an Event of Default has occurred and is continuing. Subject to
      acceptance and recording thereof pursuant to subsection (d) of this Section,
      from and after the effective date specified in each Assignment and Acceptance
      Agreement, the assignee thereunder shall be a party hereto and, to the extent
      of
      the interest assigned by such Assignment and Acceptance Agreement, have the
      rights and obligations of a Lender under the Loan Documents, and the assigning
      Lender thereunder shall, to the extent of the interest assigned by such
      Assignment and Acceptance Agreement, be released from its obligations under
      the
      Loan Documents (and, in the case of an Assignment and Acceptance Agreement
      covering all of the assigning Lender’s rights and obligations under the Loan
      Documents, such Lender shall cease to be a party hereto but shall continue
      to be
      entitled to the benefits of Sections 3.5, 3.6, 3.7, 3.10 and 11.10). Except
      as
      otherwise provided under clause (iii) of this subsection, any assignment or
      transfer by a Lender of rights or obligations under the Loan Documents that
      does
      not comply with this subsection shall be treated for purposes of the Loan
      Documents as a sale by such Lender of a participation in such rights and
      obligations in accordance with subsection (e) of this Section.

     

    (c) The
      Administrative Agent, acting for this purpose as an agent of the Borrower,
      shall
      maintain a copy of each Assignment and Acceptance Agreement delivered to it
      and
      a register for the recordation of the names and addresses of the Lenders, and
      the Commitments of, and principal amount of the Loans owing to, each Lender
      pursuant to the terms 

     

    
      
        
        

      

      
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    hereof
      from time to time (the “Register”).
      The
      entries in the Register shall be conclusive absent clearly demonstrable error,
      and the Borrower and each Credit Party may treat each Person whose name is
      recorded in the Register pursuant to the terms hereof as a Lender hereunder
      for
      all purposes of this Agreement, notwithstanding notice to the contrary. The
      Register shall be available for inspection by the Borrower and any Credit Party,
      at any reasonable time and from time to time upon reasonable prior
      notice.

     

    (d) Upon
      its
      receipt of a duly completed Assignment and Acceptance Agreement executed by
      an
      assigning Lender and an assignee, the assignee’s completed Administrative
      Questionnaire (unless the assignee shall already be a Lender hereunder), the
      processing and recordation fee referred to in subsection (b) of this Section
      and
      any written consent to such assignment required by subsection (b) of this
      Section, the Administrative Agent shall accept such Assignment and Acceptance
      Agreement and record the information contained therein in the Register. No
      assignment shall be effective for purposes of this Agreement unless it has
      been
      recorded in the Register as provided in this subsection.

     

    (e) Any
      Lender may, without the consent of the Borrower or any Credit Party, sell
      participations to Eligible Assignees (each a “Participant”)
      in all
      or a portion of such Lender’s rights and obligations under the Loan Documents
      (including all or a portion of its Commitments, Letter of Credit Exposure,
      Swing
      Line Exposure and outstanding Loans owing to it), provided
      that
(i)
      such
      Lender’s obligations under the Loan Documents shall remain unchanged,
(ii)
      such
      Lender shall remain solely responsible to the other parties hereto for the
      performance of such obligations, (iii)
      the
      Borrower and the Credit Parties shall continue to deal solely and directly
      with
      such Lender in connection with such Lender’s rights and obligations under the
      Loan Documents and (iv)
      no
      participations to the Borrower or any of its Affiliates shall be permitted
      (and
      any attempted participation to the Borrower or any of its Affiliates shall
      be
      null and void). Any agreement or instrument pursuant to which a Lender sells
      such a participation shall provide that such Lender shall retain the sole right
      to enforce the Loan Documents and to approve any amendment, modification or
      waiver of any provision of any Loan Documents, provided
      that
      such agreement or instrument may provide that such Lender will not, without
      the
      consent of the Participant, agree to any amendment, modification or waiver
      described in the proviso to Section 11.1 that affects such Participant. Subject
      to subsection (f) of this Section, the Borrower agrees that each Participant
      shall be entitled to the benefits of Sections 3.5, 3.6, 3.7 and 3.10 to the
      same
      extent as if it were a Lender and had acquired its interest by assignment
      pursuant to subsection (b) of this Section. To the extent permitted by law,
      each
      Participant also shall be entitled to the benefits of Section 11.9(a) as though
      it were a Lender, provided
      that
      such Participant agrees to be subject to Section 11.9(b) as though it were
      a
      Lender.

     

    (f) A
      Participant shall not be entitled to receive any greater payment under Section
      3.6, 3.7 or 3.10 than the Lender that sold the participation to such Participant
      would have been entitled to receive with respect to the interest in the Loan
      Documents subject to the participation sold to such Participant, unless the
      sale
      of the participation to such Participant is made with the Borrower’s prior
      written consent. A Participant that would be a Foreign Lender if it were a
      Lender shall not be entitled to the benefits of Section 3.10 unless the Borrower
      is notified of the participation sold to such Participant and such Participant
      agrees, for the benefit of the Borrower, to comply with Section 3.10(b) as
      though it were a Lender.

     

    
      
        
        

      

      
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    (g) Any
      Lender may at any time pledge or assign a security interest in all or any
      portion of its rights under the Loan Documents to secure obligations of such
      Lender, including any pledge or assignment to secure obligations to a Federal
      Reserve Bank, and this Section shall not apply to any such pledge or assignment
      of a security interest, provided
      that no
      such pledge or assignment of a security interest shall release a Lender from
      any
      of its obligations under the Loan Documents or substitute any such pledgee
      or
      assignee for such Lender as a party hereto.

     

    (h) Notwithstanding
      anything to the contrary contained herein, any Lender (a “Granting
      Lender”)
      may
      grant to an Eligible SPC the option to fund all or any part of any Loan that
      such Granting Lender would otherwise be obligated to fund pursuant to this
      Agreement, provided
      that
      (i)
      such designation shall not be effective unless the Borrower consents thereto
      (which consent shall not be unreasonably withheld), (ii) nothing herein shall
      constitute a commitment by any Eligible SPC to fund any Loan, and (iii) if
      an
      Eligible SPC elects not to exercise such option or otherwise fails to fund
      all
      or any part of such Loan, the Granting Lender shall be obligated to fund such
      Loan pursuant to the terms hereof. The funding of a Loan by an Eligible SPC
      hereunder shall utilize the Commitment of the Granting Lender to the same
      extent, and as if, such Loan were funded by such Granting Lender. As to any
      Loans or portion thereof made by it, each Eligible SPC shall have all the rights
      that a Lender making such Loans or portion thereof would have had under this
      Agreement and otherwise, provided
      that (x)
      its voting rights under this Agreement shall be exercised solely by its Granting
      Lender and (y) its Granting Lender shall remain solely responsible to the other
      parties hereto for the performance of such Granting Lender’s obligations under
      this Agreement, including its obligations in respect of the Loans or portion
      thereof made by it. Each Granting Lender shall act as administrative agent
      for
      its Eligible SPC and give and receive notices and other communications on its
      behalf. Any payments for the account of any Eligible SPC shall be paid to its
      Granting Lender as administrative agent for such Eligible SPC and neither the
      Borrower nor the Administrative Agent shall be responsible for any Granting
      Lender’s application of such payments. Each party hereto hereby agrees that no
      Eligible SPC shall be liable for any indemnity or payment under this Agreement
      for which a Lender would otherwise be liable for so long as, and to the extent,
      the Granting Lender provides such indemnity or makes such payment.
      Notwithstanding anything to the contrary contained in this Agreement, any
      Eligible SPC may (i) at any time, subject to payment of the processing and
      recordation fee referred to in Section 11.7(b), assign all or a portion of
      its
      interests in any Loans to its Granting Lender (but nothing contained herein
      shall be construed in derogation of the obligation of the Granting Lender to
      make Loans hereunder) or to any financial institutions providing liquidity
      and/or credit support to or for the account of such Eligible SPC to support
      the
      funding or maintenance of Loans, and (ii) disclose on a confidential basis
      any
      non-public information relating to its funding of Loans to any rating agency,
      commercial paper dealer or provider of any surety or guarantee or credit or
      liquidity enhancements to such Eligible SPC. This Section may not be amended
      without the prior written consent of each Granting Lender, all or any part
      of
      whose Loans is being funded by an Eligible SPC at the time of such
      amendment.

     

    
      
        
        

      

      
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    11.8 Counterparts

     

    Each
      of
      the Loan Documents (other than the Notes) may be executed on any number of
      separate counterparts and all of said counterparts taken together shall be
      deemed to constitute one and the same agreement. It shall not be necessary
      in
      making proof of any Loan Document to produce or account for more than one
      counterpart signed by the party to be charged. A set of the copies of this
      Agreement signed by all of the parties hereto shall be lodged with each of
      the
      Borrower and the Administrative Agent. Any party to a Loan Document may rely
      upon the signatures of any other party thereto which are transmitted by fax
      or
      other electronic means to the same extent as if originally signed.

     

    11.9 Set-off
      and Sharing of Payments

     

    (a) In
      addition to any rights and remedies of the Lenders and the Issuer provided
      by
      law, upon the occurrence of an Event of Default under Section 9.1(a) or (b)
      or
      upon the acceleration of the Loans, each Lender and the Issuer shall have the
      right, without prior notice to the Borrower, any such notice being expressly
      waived by the Borrower, to set-off and apply against any indebtedness or other
      liability, whether matured or unmatured, of the Borrower to such Lender or
      the
      Issuer arising under the Loan Documents, any amount owing from such Lender
      or
      the Issuer to the Borrower. To the extent permitted by applicable law, the
      aforesaid right of set-off may be exercised by such Lender or the Issuer against
      the Borrower or against any trustee in bankruptcy, custodian, debtor in
      possession, assignee for the benefit of creditors, receiver, or execution,
      judgment or attachment creditor of the Borrower, or against anyone else claiming
      through or against the Borrower or such trustee in bankruptcy, custodian, debtor
      in possession, assignee for the benefit of creditors, receivers, or execution,
      judgment or attachment creditor, notwithstanding the fact that such right of
      set-off shall not have been exercised by such Lender or the Issuer prior to
      the
      making, filing or issuance of, service upon such Lender or the Issuer of, or
      notice to such Lender or the Issuer of, any petition, assignment for the benefit
      of creditors, appointment or application for the appointment of a receiver,
      or
      issuance of execution, subpoena, order or warrant. Each Lender and the Issuer
      agree promptly to notify the Borrower and the Administrative Agent after each
      such set-off and application made by such Lender or the Issuer, provided
      that the
      failure to give such notice shall not affect the validity of such set-off and
      application.

     

    (b) If
      any
      Lender or the Issuer (each a “Benefited
      Lender”)
      shall
      obtain any payment (whether voluntary, involuntary, through the exercise of
      any
      right of set-off, or otherwise) on account of its Loans or its Notes or the
      Reimbursement Obligations in excess of its pro rata share (in accordance with
      the outstanding principal balance of all Loans or the Reimbursement Obligations)
      of payments then due and payable on account of the Loans and Notes received
      by
      all the Lenders or the Reimbursement Obligations, such Lender or the Issuer,
      as
      the case may be, shall forthwith purchase, without recourse, for cash, from
      the
      other Lenders such participations in their Loans and Notes or the Reimbursement
      Obligations as shall be necessary to cause such purchasing Lender or the Issuer
      to share the excess payment with each of them according to their pro rata share
      (in accordance with the outstanding principal balance of all Loans or the
      Reimbursement Obligations), provided
      that if
      all or any portion of such excess payment is thereafter recovered from such
      purchasing Lender or the Issuer, such purchase from 

     

    
      
        
        

      

      
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    each
      Lender shall be rescinded and each such Lender shall repay to the purchasing
      Lender or the Issuer the purchase price to the extent of such recovery, together
      with an amount equal to such Lender’s pro rata share (according to the
      proportion of (i) the amount of such Lender’s required repayment to (ii) the
      total amount so recovered from the purchasing Lender or the Issuer) of any
      interest or other amount paid or payable by the purchasing Lender in respect
      of
      the total amount so recovered. The Borrower agrees, to the fullest extent
      permitted by law, that any Lender or the Issuer so purchasing a participation
      from another Lender pursuant to this Section may exercise such rights to payment
      (including the right of set-off) with respect to such participation as fully
      as
      if such Lender or the Issuer were the direct creditor of the Borrower in the
      amount of such participation.

     

    11.10 Indemnity

     

    (a) The
      Borrower shall indemnify each Credit Party and each Related Party thereof (each
      such Person being called an “Indemnified
      Person”)
      against, and hold each Indemnified Person harmless from, any and all losses,
      claims, damages, liabilities and related expenses, including the reasonable
      fees, charges and disbursements of any counsel for any Indemnified Person,
      incurred by or asserted against any Indemnified Person arising out of, in
      connection with, or as a result of (i)
      the
      execution or delivery of any Loan Document or any agreement or instrument
      contemplated thereby, the performance by the parties to the Loan Documents
      of
      their respective obligations thereunder or the consummation of the transactions
      contemplated hereby or any other transactions contemplated thereby (including
      the Caremark Merger), (ii)
      any Loan
      or Letter of Credit or the use of the proceeds thereof, (iii)
      any
      actual or alleged presence or release of Hazardous Materials on or from any
      property owned or operated by the Borrower or any of the Subsidiaries, or any
      Environmental Liability related in any way to the Borrower or any of the
      Subsidiaries or (iv)
      any
      actual or prospective claim, litigation, investigation or proceeding relating
      to
      any of the foregoing, whether based on contract, tort or any other theory and
      regardless of whether any Indemnified Person is a party thereto, provided
      that
      such indemnity shall not, as to any Indemnified Person, be available to the
      extent that such losses, claims, damages, liabilities or related expenses are
      determined by a court of competent jurisdiction by final and nonappealable
      judgment to have resulted primarily from the gross negligence or willful
      misconduct of such Indemnified Person. Notwithstanding the above, the Borrower
      shall have no liability under clause (i) of this Section to indemnify or hold
      harmless any Indemnified Person for any losses, claims, damages, liabilities
      and
      related expenses relating to income or withholding taxes or any tax in lieu
      of
      such taxes.

     

    (b) To
      the
      extent that the Borrower fails to promptly pay any amount required to be paid
      by
      it to the Administrative Agent under
      subsection (a) of this Section, each Lender severally agrees to pay to the
      Administrative Agent an amount equal to the product of such unpaid amount
multiplied
      by
      (i) at
      any time when no Loans are outstanding, its Commitment Percentage, or if no
      Commitments then exist, its Commitment Percentage on the last day on which
      Commitments did exist, and (ii) at any time when Loans are outstanding (x)
      if
      the Commitments then exist, its Commitment Percentage or (y) if the Commitments
      have been terminated or otherwise no longer exist, the percentage equal to
      the
      fraction, (A) the numerator of which is the sum of such Lender’s Credit Exposure
      and (B) the denominator of which is the sum of the Aggregate Credit Exposure
      (in
      each case determined as of the time that the applicable 

     

    
      
        
        

      

      
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    unreimbursed
      expense or indemnity payment is sought), provided
      that the
      unreimbursed expense or indemnified loss, claim, damage, liability or related
      expense, as applicable, was incurred by or asserted against the Administrative
      Agent in its capacity as such.

     

    (c) The
      obligations of the Borrower and the Lenders under this Section 11.10 shall
      survive the termination of the Commitments and the payment of the Loans and
      the
      Notes and all other amounts payable under the Loan Documents.

     

    (d) To
      the
      extent permitted by applicable law, the Borrower shall not assert, and hereby
      waives, any claim against any Indemnified Person, on any theory of liability,
      for special, indirect, consequential or punitive damages (as opposed to direct
      and actual damages) arising out of, in connection with, or as a result of,
      any
      Loan Document or any agreement, instrument or other document contemplated
      thereby, the transactions contemplated hereby or any Loan or any Letter of
      Credit or the use of the proceeds thereof.

     

    11.11 Governing
      Law

     

    The
      Loan
      Documents and the rights and obligations of the parties thereto shall be
      governed by, and construed and interpreted in accordance with, the laws of
      the
      State of New York.

     

    11.12 Severability

     

    Every
      provision of the Loan Documents is intended to be severable, and if any term
      or
      provision thereof shall be invalid, illegal or unenforceable for any reason,
      the
      validity, legality and enforceability of the remaining provisions thereof shall
      not be affected or impaired thereby, and any invalidity, illegality or
      unenforceability in any jurisdiction shall not affect the validity, legality
      or
      enforceability of any such term or provision in any other
      jurisdiction.

     

    11.13 Integration

     

    All
      exhibits to the Loan Documents shall be deemed to be a part thereof. Each Loan
      Document embodies the entire agreement and understanding between or among the
      parties thereto with respect to the subject matter thereof and supersedes all
      prior agreements and understandings between or among the parties thereto with
      respect to the subject matter thereof.

     

    11.14 Treatment
      of Certain Information

     

    Each
      Lender, the Issuer and the Administrative Agent agrees to maintain as
      confidential and not to disclose, publish or disseminate to any third parties
      any financial or other information relating to the business, operations and
      condition, financial or otherwise, of the Borrower provided to it, except if
      and
      to the extent that:

     

    (a) such
      information is in the public domain at the time of disclosure;

     

    (b) such
      information is required to be disclosed by subpoena or similar process or
      applicable law or regulations;

     

    
      
        
        

      

      
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    (c) such
      information is required or requested to be disclosed to any regulatory or
      administrative body or commission to whose jurisdiction it may be
      subject;

     

    (d) such
      information is disclosed to its counsel, auditors or other professional
      advisors;

     

    (e) such
      information is disclosed to (and, unless and until it receives written objection
      from the Borrower, the Borrower shall be deemed to have consented to disclosure
      of such information to) its affiliates (and its affiliates’ officers, directors
      and employees), provided
      that
      such information shall be used in connection with this Agreement and the
      transactions contemplated hereby;

     

    (f) such
      information is disclosed to its officers, directors and employees;

     

    (g) such
      information is disclosed with the prior written consent of the party furnishing
      the information;

     

    (h) such
      information is disclosed in connection with any litigation or dispute involving
      the Borrower and/or it;

     

    (i) such
      information is disclosed in connection with the sale of a participation or
      other
      disposition by it of any of its interest in this Agreement, provided
      that
      such information shall not be disclosed unless and until the party to whom
      it
      shall be disclosed shall have agreed to keep such information confidential
      as
      set forth herein;

     

    (j) such
      information was in its possession or in its affiliate’s possession as shown by
      clear and convincing evidence prior to any of the Borrower and/or any or the
      Borrower’s representatives or agents furnishing such information to it;
      or

     

    (k) such
      information is received by it, without restriction as to its disclosure or
      use,
      from a Person who, to its knowledge or reasonable belief, was not prohibited
      from disclosing such information by any duty of confidentiality.

     

    Except
      to
      the extent prohibited or restricted by law or Governmental Authority, each
      Lender shall notify the Borrower promptly of any disclosures of information
      made
      by it as permitted pursuant to (h) above.

     

    11.15 Acknowledgments

     

    The
      Borrower acknowledges that (a) it has been advised by counsel in the
      negotiation, execution and delivery of the Loan Documents, (b) by virtue of
      the
      Loan Documents, none of the Administrative Agent, the Issuer, or any Lender
      has
      any fiduciary relationship to the Borrower, and the relationship between the
      Administrative Agent, the Issuer, and the Lenders, on the one hand, and the
      Borrower, on the other hand, is solely that of debtor and creditor, and (c)
      by
      virtue of the Loan Documents, no joint venture exists among the Lenders or
      among
      the Borrower and the Lenders.

     

    
      
        
        

      

      
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    11.16 Consent
      to Jurisdiction

     

    The
      Borrower irrevocably submits to the non-exclusive jurisdiction of any New York
      State or Federal Court sitting in the City of New York over any suit, action
      or
      proceeding arising out of or relating to the Loan Documents. The Borrower
      irrevocably waives, to the fullest extent permitted by law, any objection which
      it may now or hereafter have to the laying of the venue of any such suit, action
      or proceeding brought in such a court and any claim that any such suit, action
      or proceeding brought in such a court has been brought in an inconvenient forum.
      The Borrower agrees that a final judgment in any such suit, action or proceeding
      brought in such a court, after all appropriate appeals, shall be conclusive
      and
      binding upon it.

     

    11.17 Service
      of Process

     

    The
      Borrower agrees that process may be served against it in any suit, action or
      proceeding referred to in Section 11.16 by sending the same by first class
      mail,
      return receipt requested or by overnight courier service, with receipt
      acknowledged, to the address of the Borrower set forth in Section 11.2. The
      Borrower agrees that any such service (i) shall be deemed in every respect
      effective service of process upon it in any such suit, action, or proceeding,
      and (ii) shall to the fullest extent enforceable by law, be taken and held
      to be
      valid personal service upon and personal delivery to it.

     

    11.18 No
      Limitation on Service or Suit

     

    Nothing
      in the Loan Documents or any modification, waiver, or amendment thereto shall
      affect the right of the Administrative Agent, the Issuer or any Lender to serve
      process in any manner permitted by law or limit the right of the Administrative
      Agent, the Issuer or any Lender to bring proceedings against the Borrower in
      the
      courts of any jurisdiction or jurisdictions.

     

    11.19 WAIVER
      OF TRIAL BY JURY

     

    THE
      ADMINISTRATIVE AGENT, THE ISSUER, THE LENDERS AND THE BORROWER KNOWINGLY,
      VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY
      IN RESPECT OF ANY LITIGATION ARISING OUT OF, UNDER OR IN CONNECTION WITH THE
      LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY. FURTHER, THE BORROWER
      HEREBY CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF THE ADMINISTRATIVE AGENT,
      THE ISSUER, OR THE LENDERS, OR COUNSEL TO THE ADMINISTRATIVE AGENT, THE ISSUER,
      OR THE LENDERS, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE ADMINISTRATIVE
      AGENT, THE ISSUER, OR THE LENDERS WOULD NOT, IN THE EVENT OF SUCH LITIGATION,
      SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION. THE BORROWER
      ACKNOWLEDGES THAT THE ADMINISTRATIVE AGENT, THE ISSUER, AND THE LENDERS HAVE
      BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, INTER
      ALIA,
      THE
      PROVISIONS OF THIS SECTION.

     

    
      
        
        

      

      
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    11.20 Effective
      Date

     

    This
      Agreement shall be effective at such time (the “Effective
      Date”)
      as the
      Administrative Agent shall have received executed counterparts hereof by the
      Borrower, the Administrative Agent, the Issuer, and each Lender and the
      conditions set forth in Sections 5.1 through 5.3 have been or simultaneously
      will be satisfied, provided
      that
      this Agreement shall not become effective or be binding on any party hereto
      unless all of such conditions are satisfied not later than April 30,
      2007.

     

    11.21 Patriot
      Act Notice

     

    Each
      Lender and the Administrative Agent (for itself and not on behalf of any Lender)
      hereby notifies the Borrower that pursuant to the requirements of the USA
      PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001),
      as
      amended from time to time) (the “Patriot
      Act”),
      it is
      required to obtain, verify and record information that identifies the Borrower,
      which information includes the name and address of the Borrower and other
      information that will allow such Lender or the Administrative Agent, as
      applicable, to identify the Borrower in accordance with the Patriot
      Act.

    

    
      
        
        

      

      
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    AS
      EVIDENCE of
      the
      agreement by the parties hereto to the terms and conditions herein contained,
      each such party has caused this 364 Day Credit Agreement to be executed on
      its
      behalf.

     

    
      	 	 	 
	 	CVS
              CORPORATION
	 
 	 
 	 
 
	 	By:  	/s/ Carol
              A.
              DeNale  
	 	
              
Name:   Carol
              A. DeNale
	 	Title:   Vice
              President and Treasurer

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	 	 
	 	THE
              BANK OF NEW YORK, in its capacity as a Lender and in its capacity as
              the
              Administrative Agent
	 
 	 
 	 
 
	 	By:  	/s/ Erin
              Morrissey  
	 	
              
Name:  
Erin
              Morrissey 
	 	Title:  
              Assistant
              Vice President 

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      

      
        	 	 	 
	 	LEHMAN
                COMMERCIAL PAPER INC., in its capacity as a Co-Syndication
                Agent
	 
 	 
 	 
 
	 	By:  	/s/ Janine
                M. Shugan  
	 	
                
Name:  
Janine
                M. Shugan  
	 	Title:  
                Authorized
                Signatory  

      

    

    
      
        	 	 	 
	 	 	 
	 	LEHMAN
                BROTHERS BANK, FSB, in its capacity as a Lender
	 
 	 
 	 
 
	 	By:  	/s/ Gary
                T. Taylor  
	 	
                
Name:  
Gary
                T. Taylor
	 	Title:  
                Senior
                Vice President  

      

      
         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

      

    

    
      
        	 	 	 
	 	BANK
                OF AMERICA, N.A
	 
 	 
 	 
 
	 	By:  	/s/ John
                Pocalyko  
	 	
                
Name:  
John
                Pocalyko
	 	Title:  
                Senior
                Vice President  

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	 
	 	WACHOVIA
                BANK, NATIONAL ASSOCIATION, in its capacity as a Lender and in its
                capacity as a Co-Syndication Agent
	 
 	 
 	 
 
	 	By:  	/s/ Denis
                Waltrich  
	 	
                
Name:  
Denis
                Waltrich   
	 	Title:  
                Vice
                President   

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	 
	 	MORGAN
                STANLEY BANK
	 
 	 
 	 
 
	 	By:  	/s/ Dawn
                M. Dawson  
	 	
                
Name:  
Dawn
                M. Dawson  
	 	Title:  
                Authorized
                Signatory 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    2007
      364 DAY
      CREDIT AGREEMENT

    EXHIBIT
      A

    LIST
      OF COMMITMENTS

     

    

      
        	
                Lender

              	 	
                Commitment
                  Amount

              
	
                The
                  Bank of New York

              	 	
                $
                  100,000,000 

              
	
                Bank
                  of America, N.A.

              	 	
                $
                  100,000,000 

              
	
                Lehman
                  Brothers Bank, FSB

              	 	
                $
                  100,000,000 

              
	
                Morgan
                  Stanley Bank

              	 	
                $
                  100,000,000 

              
	
                Wachovia
                  Bank, National Association

              	 	
                $
                  100,000,000 

              
	 	
                TOTAL

              	
                $
                  500,000,000

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

    

    2007
      364 DAY CREDIT AGREEMENT

    EXHIBIT
      B

    FORM
      OF NOTE

    

    

     [____],
      2007

    New
      York, New York

    

    FOR
      VALUE RECEIVED, the undersigned, CVS CORPORATION, a Delaware corporation (the
      “Borrower”),
      hereby promises to pay to the order of _________________________ (the
“Lender”)
      the outstanding principal balance of the Lender’s Loans, together with interest
      thereon, at the rate or rates, in the amounts and at the time or times set
      forth
      in the 364 Day Credit Agreement (as the same may be amended, supplemented or
      otherwise modified from time to time, the “Credit
      Agreement”),
      dated as of March 12, 2007, by and among the Borrower, the Lenders party
      thereto, the co-syndication agents named therein, and The Bank of New York,
      as
      administrative agent (in such capacity, the “Administrative
      Agent”),
      in each case at the office of the Administrative Agent located at One Wall
      Street, New York, New York, or at such other place as the Administrative Agent
      may specify from time to time, in lawful money of the United States of America
      in immediately available funds.

    

    Capitalized
      terms used herein that are not otherwise defined herein shall have the
      respective meanings ascribed thereto in the Credit Agreement.

    

    The
      Loans evidenced by this Note are prepayable in the amounts, and on the dates,
      set forth in the Credit Agreement. This Note is one of the Notes under the
      Credit Agreement, and is subject to, and shall be construed in accordance with,
      the provisions thereof, and is entitled to the benefits set forth in the Loan
      Documents.

    

    The
      Lender is hereby authorized to record on the schedule annexed hereto, and any
      continuation sheets which the Lender may attach thereto (a) the date and amount
      of each Revolving Credit Loan, Competitive Bid Loan and Swing Line Loan made
      by
      the Lender, (b) the Interest Period for each Revolving Credit Loan (Eurodollar
      Advance only), Competitive Bid Loan and Swing Line Loan made by the Lender,
      (c)
      the Type of each Revolving Credit Loan made by the Lender as one or more ABR
      Advances, one or more Eurodollar Advances, or a combination thereof, (d) the
      Eurodollar Rate applicable to each Revolving Credit Loan (Eurodollar Advance
      only), the Competitive Bid Rate applicable to each Competitive Bid Loan and
      the
      Negotiated Rate applicable to each Swing Line Loan made by the Lender and (e)
      the date and amount of each Conversion of each Revolving Credit Loan made by
      the
      Lender, and each payment or prepayment of principal of, each Loan made by the
      Lender. The failure to so record or any error in so recording shall not affect
      the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    obligation
      of the Borrower to repay the Loans, together with interest thereon, as provided
      in the Credit Agreement.

    

    Except
      as specifically otherwise provided in the Credit Agreement, the Borrower hereby
      waives presentment, demand, notice of dishonor, protest, notice of protest
      and
      all other demands, protests and notices in connection with the execution,
      delivery, performance, collection and enforcement of this Note.

    

    This
      Note is being delivered in, is intended to be performed in, shall be construed
      and interpreted in accordance with, and be governed by the laws of, the State
      of
      New York.

    

    This
      Note may only be amended by an instrument in writing executed pursuant to the
      provisions of Section 11.1 of the Credit Agreement.

    

    CVS
      CORPORATION 

     

    By:______________________________     

    Name:____________________________      

    Title:_____________________________     

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      CVS
        CORPORATION

      364
        DAY CREDIT AGREEMENT

    

     

    SCHEDULE
      TO NOTE

    

     

    
      	
              Date
                of Loan

            	
              Type
                and Amount of Loan

            	
              Interest
                Period

              (If
                other than an 

              ABR
                Advance)

            	
              Type
                of Revolving Credit Loan (ABR or Eurodollar)

            	
              Interest
                Rate

              (If
                other than an ABR Advance)

            	
              Date
                and Amount of Conversion of Revolving Credit Loan

            	
              Date
                and Amount of Principal Payment or Prepayment

            	
              Notation
                Made by

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

                   EXHIBIT
      C

    

    2007
      364 DAY CREDIT AGREEMENT

    EXHIBIT
      C

    FORM
      OF BORROWING REQUEST

    

    

    [Date]

    

    The
      Bank of New York, as Administrative Agent

    One
      Wall Street

    New
      York, New York 10286

    Attention:
      ______________,

    ______________

     

    
      	 	Re:	364
              Day Credit Agreement, dated as of March 12, 2007, by and among CVS
              Corporation, the Lenders party thereto, the co-syndication agents named
              therein, and The Bank of New York, as Administrative Agent (as amended,
              supplemented or otherwise modified from time to time, the "Credit
              Agreement")

    

        

    Capitalized
      terms
      used herein that are not otherwise defined herein shall have the
      respective meanings ascribed thereto in the Credit Agreement.

    

    Pursuant
      to Section 2.3 of the Credit Agreement, the Borrower hereby gives notice of
      its
      intention to borrow Revolving Credit Loans in the aggregate sum of $____________
      on ____________, and/or a Swing Line Loan in the sum of $____________ on
      ____________, which borrowing shall consist of the following:

     

    
      
        	 	
                Revolving
                  Credit Loans

              	 	 
	 	
                (ABR
                  Advance or Eurodollar

              	 	
                Interest
                  Period

              
	 	
                Advance)
                  or Swing Line Loan

              	
                Amount

              	
                (Other
                  than ABR)

              

      

    

    The
      Borrower hereby certifies that on the Borrowing Date set forth above, and after
      giving effect to the Loans requested hereby:

    

    (a)
      There shall exist no Default or Event of Default.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)
      The representations and warranties contained in the Credit Agreement shall
      be
true
      and
      correct, except those which are expressly specified to be made as of an earlier
      date.

    

    IN
      EVIDENCE of the foregoing, the undersigned has caused this Borrowing Request
      to
      be duly executed on its behalf.

     

    
      
        CVS
          CORPORATION 

         

        By:______________________________     

        Name:____________________________      

        Title:_____________________________ 

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D-1

    

    

    [Date]

     

    
       
2007
      364 DAY CREDIT AGREEMENT

    EXHIBIT
      D-1

    FORM
      OF
      OPINION OF COUNSEL TO THE BORROWER

    
 

    The
      Lenders, the Co-Syndication Agents,

    and
      the Administrative Agent Referred to Below

    c/o
      The Bank of New York,

    as
      Administrative Agent

    One
      Wall Street

    New
      York, New York 10286

     

     

    Ladies
      and Gentlemen:

     

    I
      am
      general counsel of CVS Corporation, a Delaware corporation (the "Borrower"),
      and
      have acted as such in connection with the 364 Day Credit Agreement, dated as
      of
      March 12, 2007, by and among the Borrower, the lenders party thereto,
Lehman
      Commercial Paper Inc. and Wachovia Bank, National Association, as Co-Syndication
      Agents, and
      The
      Bank of New York, as Administrative Agent (the "364
      Day Credit Agreement").
      Capitalized terms not otherwise defined herein shall have the meanings assigned
      to them in the 364 Day Credit Agreement.

     

    I
      have
      examined originals or copies, certified or otherwise identified to my
      satisfaction, of such documents, corporate records, certificates of public
      officials and other instruments and have conducted such other investigations
      of
      fact and law as I have deemed necessary or advisable for purposes of this
      opinion. In rendering my opinions set forth below, I have assumed (i) the due
      authorization, execution and delivery by all parties thereto (other than the
      Borrower) of the 364 Day Credit Agreement, (ii) the authenticity of all
      documents submitted to me as originals and (iii) the conformity to original
      documents of all documents submitted to me as copies.

     

    Based
      upon the foregoing, I am of the opinion that:

     

    1. The
      Borrower is a corporation duly incorporated, validly existing and in good
      standing under the laws of the State of Delaware. The Borrower has all requisite
      corporate power and authority to own its Property and to carry on its business
      as now conducted.

     

    2. The
      Borrower is qualified to do business as a foreign corporation and is in good
      standing in each jurisdiction in which it owns or leases real Property or in
      which the nature of its business requires it to be so qualified (except those
      jurisdictions where the failure to be so 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    qualified
      or to be in good standing could not reasonably be expected to have a Material
      Adverse effect).

     

    3. The
      execution, delivery and performance by the Borrower of the Five Year Credit
      Agreement and the Notes are within the Borrower's corporate powers and have
      been
      duly authorized by all necessary corporate action on the part of the
      Borrower.

     

    4. The
      execution, delivery and performance by the Borrower of the Five Year Credit
      Agreement and Notes do not require any action or approval on the part of the
      shareholders of the Borrower or any action by or in respect of, or filing with,
      any governmental body, agency or official under United States federal law or
      the
      Delaware General Corporation Law, and do not contravene, or constitute a default
      under, any provision of (i) United States federal law or the Delaware General
      Corporation Law, (ii) the Certificate of Incorporation or bylaws of the Borrower
      or (iii) any existing material mortgage, material indenture, material contract
      or material agreement, in each case binding on the Borrower or any Subsidiary
      or
      affecting the Property of the Borrower or any Subsidiary.

     

    5. The
      Five
      Year Credit Agreement and the Notes delivered by the Borrower on or prior to
      the
      date hereof have been duly executed and delivered by the Borrower and each
      constitutes the valid and binding agreement of the Borrower, in each case
      enforceable in accordance with their respective terms, subject to applicable
      bankruptcy, insolvency, reorganization, moratorium or similar laws from time
      to
      time in effect affecting the enforcement of creditors' rights generally and
      to
      general principles of equity.

     

    6. The
      Borrower is not an "investment company" (as such term is defined in the United
      States Investment Company Act of 1940, as amended).

     

    7. To
      the
      best of my knowledge, as at February 2, 2007, there were no actions, suits,
      arbitration proceedings or claims (whether purportedly on behalf of the
      Borrower, any Subsidiary or otherwise) pending or threatened against the
      Borrower or any Subsidiary or any of their respective Properties, or maintained
      by the Borrower or any Subsidiary, at law or in equity, before any Governmental
      Authority which could reasonably be expected to have a Material Adverse effect.
      To the best of my knowledge, there are no proceedings pending or threatened
      against the Borrower or any Subsidiary (a) which call into question the validity
      or enforceability of, or otherwise seek to invalidate, any Loan Document or
      (b)
      which could reasonably be expected to, individually or in the aggregate,
      materially and adversely affect any of the transactions contemplated by any
      Loan
      Document (it being understood that the Caremark Merger is not a transaction
      contemplated by any Loan Document for purposes of this clause (b)).

     

    8. To
      the
      best of my knowledge, the Borrower is not in default under any agreement to
      which it is a party or by which it or any of its Property is bound the effect
      of
      which could reasonably be expected to have a Material Adverse
      effect.

     

    9. To
      the
      best of my knowledge, no provision of any judgment, decree or order, in each
      case binding on the Borrower or any Subsidiary or affecting the Property of
      the
      Borrower or any Subsidiary conflicts with, or requires any consent which has
      not
      already been obtained under, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    or
      would
      in any way prevent the execution, delivery or performance by the Borrower of
      the
      terms of, any Loan Document.

     

    The
      foregoing opinion is subject to the following qualifications:

     

    (a)  I
      express
      no opinion as to the effect (if any) of any law of any jurisdiction (except
      the
      Commonwealth of Massachusetts) in which any Lender is located which may limit
      the rate of interest that such Lender may charge or collect.

     

    (b)  I
      express
      no opinion as to provisions in the Five Year Credit Agreement which purport
      to
      create rights of set-off in favor of participants or which provide for set-off
      to be made otherwise than in accordance with applicable laws.

     

    (c)  I
      note
      that public policy considerations or court decisions may limit the rights of
      any
      party to obtain indemnification under the Five Year Credit
      Agreement.

     

    I
      am a
      member of the bar of the Commonwealth of Massachusetts and the foregoing opinion
      is limited to the laws of the Commonwealth of Massachusetts, the federal law
      of
      the United States of America and the Delaware General Corporation Law. For
      purposes of paragraph 5 of this opinion, I have assumed that, with your
      permission and without any research or investigation, the laws of the State
      of
      New York are identical to the law of the Commonwealth of
      Massachusetts.

     

    This
      opinion is rendered solely to you in connection with the above matter. This
      opinion may not be relied upon by you for any other purpose or relied upon
      by
      any other person without my prior written consent, except that any person that
      becomes a Lender in accordance with the provisions of the Five Year Credit
      Agreement may rely upon this opinion as if it were specifically addressed and
      delivered to such person on the date hereof.

     

    Very
      truly yours,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D-2

    

     

    [Date]

     

     

    2007
      364 DAY CREDIT AGREEMENT

    EXHIBIT
      D-2

    FORM
      OF
      OPINION OF SPECIAL COUNSEL TO THE BORROWER

     

    

    The
      Co-Syndication Agents,

       
      the Administrative Agent

       
      and the lenders party

       
      to the 364 Day Credit Agreement referred to below

    c/o
      The
      Bank of New York,

    as
      Administrative Agent

    

    

    
      	
              Re:

            	
              CVS
                Corporation

            

    

    

    Ladies
      and Gentlemen:

    

    We
      have
      acted as special New York counsel to CVS Corporation, a Delaware corporation
      (the “Company”),
      in
      connection with the 364 Day Credit Agreement dated as of March 12, 2007 among
      the Company, the lenders listed on the signature pages thereof (the
“Lenders”),
      Lehman Commercial Paper Inc. and Wachovia Bank, National Association, as
      Co-Syndication Agents, and The Bank of New York, as Administrative Agent (in
      such capacity, the “Administrative
      Agent”)
      (as in
      effect on the date hereof, the “364
      Day Credit Agreement”).
      Capitalized terms defined in the 364 Day Credit Agreement and not otherwise
      defined herein are used herein as therein defined.

     

    We
      have
      reviewed an executed copy of the 364 Day Credit Agreement. In addition, we
      have
      examined originals or copies, certified or otherwise identified to our
      satisfaction, of such documents, corporate records, certificates of public
      officials and other instruments, and have conducted such other investigations
      of
      fact and law, as we have deemed necessary or advisable for purposes of this
      opinion.

     

    Based
      upon the foregoing, and subject to the qualifications and assumptions set forth
      herein, we are of the opinion that (i) the 364 Day Credit Agreement constitutes
      a valid and binding agreement of the Company, enforceable against the Company
      in
      accordance with its 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    terms,
      and (ii) the execution, delivery and performance by the Company of the 364
      Day
      Credit Agreement (x) require no consent or other action by or in respect of,
      or
      filing with, any governmental body, agency or official under New York State
      law,
      and (y) do not contravene, or constitute a default under, any provision of
      New
      York State law or regulation that in our experience is normally applicable
      to
      general business corporations in relation to transactions of the type
      contemplated by the 364 Day Credit Agreement.

     

    The
      foregoing opinions are subject to the following qualifications and
      assumptions:

     

    (a) 
      Our
      opinions are subject to the effects of applicable bankruptcy, insolvency and
      similar laws affecting creditors’ rights generally and equitable principles of
      general applicability, and the enforceability of indemnification provisions
      may
      be limited by Federal or State laws or policies underlying such
      laws.

     

    (b) 
      We
      express no opinion as to the effect (if any) of any law of any jurisdiction
      (except the State of New York) in which any Lender is located that may limit
      the
      rate of interest that such Lender may charge or collect. 

     

    (c) 
      We
      express no opinion as to the effect of Section 548 of the United States
      Bankruptcy Code or any similar provisions of State law. 

     

    (d) 
      We have
      assumed, with your permission and without independent investigation, that (i)
      the Company is a corporation duly incorporated, validly existing and in good
      standing under the laws of the State of Delaware, (ii) the execution, delivery
      and performance by the Company of the 364 Day Credit Agreement are within its
      corporate powers and have been duly authorized by all necessary corporate and
      other action, and (iii) the execution, delivery and performance by the Company
      of the 364 Day Credit Agreement (x) require no consent or other action by or
      in
      respect of, or filing with, any governmental body, agency or official under
      United States federal law or the Delaware General Corporation Law and (y) do
      not
      contravene, or constitute a default under, any provision of (a) United States
      federal law or regulation or the Delaware General Corporation Law, or (b) the
      certificate of incorporation or bylaws of the Company.

     

    We
      are
      members of the bar of the State of New York and the foregoing opinion is limited
      to the laws of the State of New York.

     

    This
      opinion is rendered solely to you in connection with the above matter. This
      opinion may not be relied upon by you for any other purpose or relied upon
      by
      any other person (other than an assignee permitted under Section 11.7 of the
      364
      Day Credit Agreement) without our prior written consent.

     

    Very
      truly yours,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

     

    2007
      364 DAY CREDIT AGREEMENT

    EXHIBIT
      E

    FORM
      OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

     

    

    Reference
      is made to the 364 Day Credit Agreement, dated as of March 12, 2007 (as amended
      and in effect on the date hereof, the “Credit
      Agreement”),
      by and among CVS Corporation, the Lenders party thereto, the co-syndication
      agents named therein, and The Bank of New York, as Administrative
      Agent.
      Capitalized terms used herein that are not otherwise defined herein shall have
      the respective meanings ascribed thereto in the Credit Agreement.

     

    The
      Assignor named below hereby sells and assigns, without recourse, to the Assignee
      named below, and the Assignee hereby purchases and assumes, without recourse,
      from the Assignor, effective as of the Assignment Date (defined below), the
      interests set forth below in the Assignor’s rights and obligations under the
      Credit Agreement, including, without limitation, the interests set forth below
      in the Commitment and the Revolving Credit Loans and Competitive Bid Loans
      owing
      to the Assignor that are outstanding on the Assignment Date, together with,
      in
      the case of such Commitment, all of the related participations held by the
      Assignor in respect of the Letters of Credit (including its LC Exposure) and
      Swingline Loans (including its Swingline Exposure), but excluding accrued
      interest and fees to and excluding the Assignment Date (collectively, the
“Assigned
      Interest”).
      The
      Assignee hereby acknowledges receipt of a copy of the Credit Agreement. From
      and
      after the Assignment Date, (i) the Assignee shall be a party to and be bound
      by
      the provisions of the Credit Agreement and, to the extent of the Assigned
      Interest, have the rights and obligations of a Lender under the Loan Documents
      and (ii) the Assignor shall, to the extent of the Assigned Interest, relinquish
      its rights and be released from its obligations under the Loan
      Documents.

     

    This
      Assignment and Acceptance is being delivered to the Administrative Agent,
      together with (i) if the Assignee is a Foreign Lender, any documentation
      required to be delivered by the Assignee pursuant to Section 3.10(b) of the
      Credit Agreement, duly completed and executed by the Assignee, and (ii) if
      the
      Assignee is not already a Lender under the Credit Agreement, an Administrative
      Questionnaire in the form supplied by the Administrative Agent, duly completed
      by the Assignee. The [Assignee/Assignor]1 shall
      pay
      the fee payable to the Administrative Agent pursuant to Section 11.7(b) of
      the
      Credit Agreement.

     

    THIS
      ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
      WITH, THE LAWS OF THE STATE OF NEW YORK.

     

    Date
      of
      Assignment:

     

    ______________________________

    1Delete
      inapplicable term.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Legal
      Name of Assignor:

     

    Legal
      Name of Assignee:

     

    Assignee’s
      Address for Notices:

     

    Effective
      Date of 

    Assignment
      (the “Assignment
      Date”):

     

    Commitment
      Assigned:

     

    Principal
      Amount of Revolving Credit Loans Assigned: 

     

    Principal
      Amount of each Competitive Bid Loan Assigned:

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      terms
      set forth above are hereby agreed to:

     

    [Name
      of Assignor],
      as
      Assignor

    
      

      By:
        ___________________________

      Name:
        _________________________

      Title:
        __________________________

       

    

     

    [Name
      of Assignee],
      as
      Assignee

    
      

      By:
        ___________________________

      Name:
        _________________________

      Title:
        __________________________

      

    The
      undersigned hereby consent to the within assignment: 

     

    CVS
      CORPORATION

    

    By:
      ___________________________

    Name:
      _________________________

    Title:
      __________________________

    

    

    THE
      BANK
      OF NEW YORK,

    as
      Administrative Agent 

    

    By:
      ___________________________

    Name:
      _________________________

    Title:
      __________________________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      F

     

    2007
      364 DAY CREDIT AGREEMENT 

    EXHIBIT
      F

    FORM
      OF COMPETITIVE BID REQUEST

     

     

    [Date]

     

    The
      Bank of New York, as Administrative Agent

    One
      Wall Street

    New
      York, New York 10286

    Attention:
      ______________,

          
    ______________

    

     

    
      	 	Re:	364
              Day Credit Agreement, dated as of March 12, 2007, by and among CVS
              Corporation, the Lenders party thereto, the co-syndication agents named
              therein, and The Bank of New York, as Administrative Agent (as amended,
              supplemented or otherwise modified from time to time, the "Credit
              Agreement")   

    

      

    Capitalized
      terms used herein that are not otherwise defined herein shall have the
      respective meanings ascribed thereto in the Credit Agreement.

     

    Pursuant
      to Section 2.4 of the Credit Agreement, the Borrower hereby gives notice of
      its
      request to borrow Competitive Bid Loans in the aggregate sum of $____________
      on
      ____________, which borrowing shall consist of the following:

     

     

    
      	 	 	Competitive
	 	Amount	Interest Period
	 	 	 

    

     

    The
      Borrower hereby certifies that on the Borrowing Date set forth above, and after
      giving effect to the Competitive Bid Loans requested hereby:

     

    (a)
      There shall exist no Default or Event of Default.

     

    (b)
      The representations and warranties contained in the Credit Agreement shall
      be
      true and correct, except those which are expressly specified to be made as
      of an
      earlier date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      EVIDENCE of the foregoing, the undersigned has caused this Competitive Bid
      Request to be duly executed on its behalf.

     

    CVS
      CORPORATION 

    
      

      By:
        ___________________________

      Name:
        _________________________

      Title:
        __________________________

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      G

     

    2007
      364 DAY YEAR CREDIT AGREEMENT

    EXHIBIT
      G

    FORM
      OF INVITATION TO BID

    

    [Date]

    

    To
      the Lenders party

    from
      time to time to the

    captioned
      Credit Agreement

     

    
      	 	Re:	364
              Day Credit Agreement, dated as of March 12, 2007, by and among CVS
              Corporation, the Lenders party thereto, the co-syndication agents named
              therein, and The Bank of New York, as Administrative Agent (as amended,
              supplemented or otherwise modified from time to time, the "Credit
              Agreement")

    

     

    Capitalized
      terms used herein that are not otherwise defined herein shall have the
      respective meanings ascribed thereto in the Credit Agreement.

    

    Pursuant
      to a Competitive Bid Request, the Borrower gave notice of its request to borrow
      Competitive Bid Loans in the aggregate sum of $____________ on ____________,
      which borrowing would consist of the following:

    
       

      
        	 	 	Competitive
	 	Amount	Interest Period
	 	 	 

      
The
        Lenders are hereby invited to bid, pursuant to the terms and conditions of
        the
        Credit Agreement, on such requested Competitive Bid Loans.

    

    

    THE
      BANK OF NEW YORK,

    as
      Administrative Agent

    

    

    
      By:
        ___________________________

      Name:
        _________________________

      Title:
        __________________________
    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      H

     

    2007
      364 DAY CREDIT AGREEMENT 

    EXHIBIT
      H

    FORM
      OF COMPETITIVE BID

    

    [Date]

    

    The
      Bank of New York, as Administrative Agent

    One
      Wall Street

    New
      York, New York 10286

    Attention: 
      _________________, 

    _________________

     

    
       

      
        	 	Re:	364
                Day Credit Agreement, dated as of March 12, 2007, by and among CVS
                Corporation, the Lenders party thereto, the co-syndication agents
                named
                therein, and The Bank of New York, as Administrative Agent (as amended,
                supplemented or otherwise modified from time to time, the "Credit
                Agreement")

      

    

    

    Capitalized
      terms used herein that are not otherwise defined herein shall have the
      respective meanings ascribed thereto in the Credit Agreement.

    

    In
      response to a Competitive Bid Request, the undersigned Lender hereby offers
      to
      make Competitive Bid Loan(s) in the aggregate sum of $____________ on
      ____________, which borrowing would consist of the following:

     

    
      
        
          	 	
                	Competitive	 
	 	
                   

                	Interest 	
                  Competitive

                
	 	
                  Amount

                	
                  Period

                	
                  Bid
                    Rate

                
	 	 	 	 
	 	 	 	
                  [fixed
                    rate]

                

        

      

    

    

    [LENDER]

     

     
      
      By:
        ___________________________

      Name:
        _________________________

      Title:
        __________________________
   

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      I

     

    2007
      364 DAY CREDIT AGREEMENT 

    EXHIBIT
      I

    FORM
      OF COMPETITIVE BID ACCEPT/REJECT LETTER

    

    [Date]

    

    The
      Bank of New York, as Administrative Agent

    One
      Wall Street

    New
      York, New York 10286

    Attention:
      ______________,

    ______________

    
      
         

        
          	 	Re:	
                  364
                    Day Credit Agreement, dated as of March 12, 2007, by and among
                    CVS
                    Corporation, the Lenders party thereto, the co-syndication agents
                    named
                    therein, and The Bank of New York, as Administrative Agent (as
                    amended,
                    supplemented or otherwise modified from time to time, the "Credit
                    Agreement") 

                

        

      

       

    

    Capitalized
      terms used herein that are not otherwise defined herein shall have the
      respective meanings ascribed thereto in the Credit Agreement.

    

    Pursuant
      to Section 2.4(d) of the Credit Agreement, the Borrower hereby gives notice
      of
      its acceptance of the following Competitive Bids:

    

    _____________    
      _______________

    

    _____________                                   
                      _______________,

    

    and
      its rejection of all other Competitive Bids, in each case made pursuant to
      the
      Competitive Bid Request, dated _______________.

    

    IN
      EVIDENCE of the foregoing, the undersigned has caused this Competitive Bid
      Accept/Reject Letter to be duly executed on its behalf.

    

    

    CVS
      CORPORATION

    

    
      By:
        ___________________________

      Name:
        _________________________

      Title:
        __________________________    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      J

    

    
       
2007
      364 DAY CREDIT AGREEMENT 

    EXHIBIT J

    FORM
      OF LETTER OF CREDIT REQUEST

     

    [Date]

     

     

    The
      Bank
      of New York, as Administrative Agent

    One
      Wall
      Street

    New
      York,
      New York 10286

    Attention: _____________,

    _____________

    
      
        
           

          
            	 	Re:	364
                    Day Credit Agreement, dated as of March 12, 2007,
                    by and among CVS Corporation, the Lenders party thereto, the
                    co-syndication agents named therein, and The Bank of New York,
                    as
                    Administrative Agent (as amended, supplemented or otherwise modified
                    from
                    time to time, the “Credit Agreement”)

          

        

          

      

    

    Capitalized
      terms used herein that are not otherwise defined herein shall have the
      respective meanings ascribed thereto in the Credit Agreement.

     

    Pursuant
      to Section 2.8(b) of the Credit Agreement, the Borrower hereby gives notice
      of its request for the issuance by the Issuer of a Letter of Credit for the
      account of the Borrower and for the benefit of ____________________ on
      _______________ in connection with ___________________ in the maximum amount
      of
      $_____________. A drawing may be made under such Letter of Credit under the
      following conditions: _______________________________________.

     

    The
      Borrower hereby certifies that on the above requested date of issuance of such
      Letter of Credit, and after giving effect to the issuance of such Letter of
      Credit:

     

    (a) There
      shall exist no Default or Event of Default.

     

    (b) The
      representations and warranties contained in the Credit Agreement shall be true
      and correct, except those which are expressly specified to be made as of an
      earlier date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      EVIDENCE of the foregoing, the undersigned has caused this Letter of Credit
      Request to be duly executed on its behalf.

     

    CVS
      CORPORATION

     
      
      By:
        ___________________________

      Name:
        _________________________

      Title:
        __________________________Unassociated Document

    
      
        EXHIBIT
          10.3

      

      CONFORMED
        COPY

      $5,750,000,000
BRIDGE
        CREDIT AGREEMENT

       

      by and
        among

       

      CVS
        CORPORATION,

       

      THE LENDERS
        PARTY
        HERETO,

       

      LEHMAN COMMERCIAL
        PAPER INC., 

      as Administrative Agent,

       

      MORGAN STANLEY
        SENIOR
        FUNDING, INC., 

      as Syndication Agent, 

       

      and

       

      THE BANK OF
        NEW YORK,

BANK OF AMERICA, N.A., and

      WACHOVIA BANK,
        NATIONAL ASSOCIATION, 
as Co-Documentation Agents 

       

       

      
        	
                

              
	
                Dated
                  as of
                  March 15, 2007

              
	
                

              

      

       

      LEHMAN BROTHERS
        INC.,

and 

      MORGAN STANLEY
        SENIOR
        FUNDING, INC., 
as Joint Lead Arrangers and Joint Bookrunners, 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      TABLE OF CONTENTS
        

       

      Page

       

      Article 1

       

      DEFINITIONS AND PRINCIPLES OF
        CONSTRUCTION

      
        	 	 	 	 	 
	Section
                1.1	 	Definitions	 	1
	Section
                1.2	 	Principles
                of Construction	 	16

      

       

      Article 2

       

      AMOUNT AND
        TERMS OF
        LOANS 

       

      
        	Section
                2.1	 	Loans	 	17
	Section
                2.2	 	Notice
                of Borrowing Loans	 	18
	Section
                2.3	 	[Intentionally
                Omitted]	 	18
	Section
                2.4	 	Use
                of
                Proceeds	 	18
	Section
                2.5	 	Termination
                or Reduction of Commitments	 	19
	Section
                2.6	 	Prepayments
                of Loans	 	19
	Section
                2.7	 	Notes	 	20

      

       

      Article 3

       

      PROCEEDS, PAYMENTS,
        CONVERSIONS, 
INTEREST, YIELD PROTECTION AND FEES 

       

      
        	Section
                3.1	 	Disbursement
                of the Proceeds of the Loans	 	20
	Section
                3.2	 	Payments	 	21
	Section
                3.3	 	Conversions;
                Other Matters	 	22
	Section
                3.4	 	Interest
                Rates and Payment Dates	 	23
	Section
                3.5	 	Indemnification
                for Loss	 	24
	Section
                3.6	 	Reimbursement
                for Costs, Etc.	 	25

      

       

      
        
          
          

        

        
          -i-

          
            

          

        

        
          
          

        

      

       

      
        	Section
                3.7	 	Illegality
                of Funding	 	25
	Section
                3.8	 	Option
                to Fund; Substituted Interest Rate	 	26
	Section
                3.9	 	Certificates
                of Payment and Reimbursement	 	27
	Section
                3.10	 	Taxes;
                Net Payments	 	27
	Section
                3.11	 	Facility
                Fee	 	28
	Section
                3.12	 	[Intentionally
                Omitted]	 	28
	Section
                3.13	 	Replacement
                of Lender	 	28

      

      Article 4

       

      REPRESENTATIONS
        AND
        WARRANTIES 

       

      
        	Section
                4.1	 	Existence
                and Power	 	29
	Section
                4.2	 	Authority	 	29
	Section
                4.3	 	Binding
                Agreement	 	30
	Section
                4.4	 	Litigation	 	30
	Section
                4.5	 	No
                Conflicting Agreements	 	30
	Section
                4.6	 	Taxes	 	31
	Section
                4.7	 	Compliance
                with Applicable Laws; Filings	 	31
	Section
                4.8	 	Governmental
                Regulations	 	31
	Section
                4.9	 	Federal
                Reserve Regulations; Use of Proceeds	 	31
	Section
                4.10	 	No
                Misrepresentation	 	32
	Section
                4.11	 	Plans	 	32
	Section
                4.12	 	Environmental
                Matters	 	32
	Section
                4.13	 	Financial
                Statements	 	33

      

       

      
        
          
          

        

        
          -ii-

          
            

          

        

        
          
          

        

      

       

      Article 5

       

           CONDITIONS
        OF LENDING — 
LOANS ON THE FIRST BORROWING DATE

       

      
        	Section
                5.1	 	Evidence
                of Corporate Action	 	34
	Section
                5.2	 	Notes	 	34
	Section
                5.3	 	Opinion
                of Counsel to the Borrower	 	34
	Section
                5.4	 	Caremark
                Acquisition	 	34

      

      Article 6

       

           CONDITIONS
        TO LENDING — 
LOANS ON EACH BORROWING DATE 

       

      
        	Section
                6.1	 	Compliance	 	35
	Section
                6.2	 	Requests	 	35
	Section
                6.3	 	Loan
                Closings	 	35

      

       

      Article 7

       

      AFFIRMATIVE
        COVENANTS

       

      
        	Section
                7.1	 	Legal
                Existence	 	35
	Section
                7.2	 	Taxes	 	36
	Section
                7.3	 	Insurance	 	36
	Section
                7.4	 	Performance
                of Obligations	 	36
	Section
                7.5	 	Condition
                of Property	 	36
	Section
                7.6	 	Observance
                of Legal Requirements	 	36
	Section
                7.7	 	Financial
                Statements and Other Information	 	37
	Section
                7.8	 	Records	 	38
	Section
                7.9	 	Authorizations	 	38

      

       

      
        
          
          

        

        
          -iii-

          
            

          

        

        
          
          

        

      

       

      Article 8

       

      NEGATIVE COVENANTS
        

       

      
        	Section
                8.1	 	Subsidiary
                Indebtedness	 	38
	Section
                8.2	 	Liens	 	39
	Section
                8.3	 	Dispositions	 	39
	Section
                8.4	 	Merger
                or Consolidation, Etc.	 	40
	Section
                8.5	 	Acquisitions	 	40
	Section
                8.6	 	Restricted
                Payments	 	40
	Section
                8.7	 	Limitation
                on Upstream Dividends by Subsidiaries	 	40
	Section
                8.8	 	Limitation
                on Negative Pledges	 	41
	Section
                8.9	 	Ratio
                of Consolidated Indebtedness to Total Capitalization	 	41
	Section
                8.10	 	Caremark
                Acquisition	 	41

      

      Article 9

       

      DEFAULT 

       

      
        	Section
                9.1	 	Events
                of Default	 	42
	Section
                9.2	 	Remedies	 	44

      

      Article 10
        

       

      AGENT 

       

      
        	Section
                10.1	 	Appointment	 	45
	Section
                10.2	 	Delegation
                of Duties	 	45
	Section
                10.3	 	Exculpatory
                Provisions	 	45
	Section
                10.4	 	Reliance
                by Administrative Agent	 	46
	Section
                10.5	 	Notice
                of Default	 	46
	Section
                10.6	 	Non-Reliance	 	47

      

       

      
        
          
          

        

        
          -iv-

          
            

          

        

        
          
          

        

         

      

      
        	Section
                10.7	 	The
                Administrative Agent in Its Individual Capacity	 	47
	Section
                10.8	 	Successor
                Administrative Agent	 	47
	Section
                10.9	 	Arrangers,
                Co-Documentation Agents and Syndication Agent	 	48

      

      Article 11
        

       

      OTHER PROVISIONS
        

       

      
        	Section
                11.1	 	Amendments,
                Waivers, Etc.	 	48
	Section
                11.2	 	Notices	 	49
	Section
                11.3	 	No
                Waiver; Cumulative Remedies	 	51
	Section
                11.4	 	Survival
                of Representations and Warranties	 	51
	Section
                11.5	 	Payment
                of Expenses and Taxes; Indemnified Liabilities	 	51
	Section
                11.6	 	Lending
                Offices	 	52
	Section
                11.7	 	Successors
                and Assigns	 	52
	Section
                11.8	 	Counterparts	 	55
	Section
                11.9	 	Set-off
                and Sharing of Payments	 	56
	Section
                11.10	 	Indemnity	 	56
	Section
                11.11	 	Governing
                Law	 	57
	Section
                11.12	 	Severability	 	58
	Section
                11.13	 	Integration	 	58
	Section
                11.14	 	Treatment
                of Certain Information	 	58
	Section
                11.15	 	Acknowledgments	 	59
	Section
                11.16	 	Consent
                to Jurisdiction	 	59
	Section
                11.17	 	Service
                of Process	 	59
	Section
                11.18	 	No
                Limitation on Service or Suit	 	60
	Section
                11.19	 	WAIVER
                OF TRIAL BY JURY	 	60

      

       

      
        
          
          

        

        
          -v-

          
            

          

        

        
          
          

        

         

      

      
        	Section
                11.20	 	Effective
                Date	 	60
	Section
                11.21	 	PATRIOT
                Act Notice	 	60

      

      
        	EXHIBITS	 	 	 	 
	 	 	 	 	 
	Exhibit	 	A	 	List
                of
                Commitments
	 	 	 	 	 
	Exhibit	 	B	 	Form
                of
                Note
	 	 	 	 	 
	Exhibit	 	C	 	Form
                of
                Borrowing Request
	 	 	 	 	 
	Exhibit	 	D-1	 	Form
                of
                Opinion of Counsel to the Borrower
	 	 	 	 	 
	Exhibit	 	D-2	 	Form
                of
                Opinion of Special Counsel to the Borrower
	 	 	 	 	 
	Exhibit	 	E	 	Form
                of
                Assignment and Acceptance Agreement

      

       

      
        
          
          

        

        
          -vi-

          
            

          

        

        
          
          

        

      

       

      BRIDGE
        CREDIT AGREEMENT,
        dated as
        of March 15, 2007, by and among CVS
        CORPORATION,
        a
        Delaware corporation (the “Borrower”),
        the
        banks and other financial institutions party hereto from time to time (each
        a
“Lender”
and,
        collectively, the “Lenders”),
        LEHMAN
        BROTHERS INC.
        and
MORGAN
        STANLEY SENIOR FUNDING, INC.,
        as joint
        lead arrangers and joint bookrunners (in such capacity, the “Arrangers”),
        LEHMAN
        COMMERCIAL PAPER INC.,
        as
        administrative agent for the Lenders (in such capacity, the “Administrative
        Agent”),
        MORGAN
        STANLEY SENIOR FUNDING, INC.,
        as
        syndication agent (in such capacity, the “Syndication
        Agent”),
        and
THE
        BANK OF NEW YORK,
        BANK
        OF AMERICA, N.A.,
        and
WACHOVIA
        BANK, NATIONAL ASSOCIATION,
        as
        co-documentation agents (in such capacity, the “Co-Documentation
        Agents”).

    

     

    ARTICLE 1

     

    DEFINITIONS
      AND PRINCIPLES OF CONSTRUCTION

     

    SECTION 1.1 Definitions

     

    When
      used
      in any Loan Document (as defined below), each of the following terms shall
      have
      the meaning ascribed thereto unless the context otherwise specifically
      requires:

     

    “ABR
      Advances”:
      the
      Loans (or any portions thereof) at such time as they (or such portions) are
      made
      or are being maintained at a rate of interest based upon the Alternate Base
      Rate.

     

    “Accumulated
      Funding Deficiency”:
      as
      defined in Section 302 of ERISA.

     

    “Acquisition”:
      with
      respect to any Person, the purchase or other acquisition by such Person, by
      any
      means whatsoever (including by devise, bequest, gift, through a dividend or
      otherwise), of (a) stock of, or other equity securities of, any other
      Person if, immediately thereafter, such other Person would be either a
      consolidated subsidiary of such Person or otherwise under the control of such
      Person, (b) any business, going concern or division or segment thereof, or
      (c) the Property of any other Person other than in the ordinary course of
      business, provided
      that
      (i) no acquisition of substantially all of the assets, or any division or
      segment, of such other Person shall be deemed to be in the ordinary course
      of
      business and (ii) no redemption, retirement, purchase or acquisition by any
      Person of the stock or other equity securities of such Person shall be deemed
      to
      constitute an Acquisition.

     

    “Administrative
      Agent”:
      as
      defined in the preamble.

     

    “Administrative
      Questionnaire”:
      an
      Administrative Questionnaire in a form supplied by the Administrative
      Agent.

     

    “Affected
      Advance”:
      as
      defined in Section
      3.8(b).

     

    “Affiliate”:
      with
      respect to any Person at any time and from time to time, any other Person (other
      than a wholly-owned subsidiary of such Person) which, at such
      time

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a) controls
      such Person, (b) is controlled by such Person or (c) is under common
      control with such Person. The term “control”, as used in this definition with
      respect to any Person, means the power, whether direct or indirect through
      one
      or more intermediaries, to direct or cause the direction of the management
      and
      policies of such Person, whether through the ownership of voting securities
      or
      other interests, by contract or otherwise.

     

    “Agents”:
      the
      collective reference to the Co-Documentation Agents, the Syndication Agent
      and
      the Administrative Agent. 

     

    “Aggregate
      Commitment Amount”:
      at any
      time, the sum of the Commitment Amounts of the Lenders at such time under this
      Agreement.

     

    “Aggregate
      Available Commitments”:
      at any
      time, the sum of the Available Commitments of the Lenders at such time under
      this Agreement. 

     

    “Aggregate
      Credit Exposure”:
      at any
      time, the sum at such time of the aggregate Credit Exposure of the Lenders
      at
      such time under this Agreement.

     

    “Agreement”:
      this
      Bridge Credit Agreement, as the same may be amended, supplemented or otherwise
      modified from time to time.

     

    “Alternate
      Base Rate”:
      for any
      day, a rate per annum (rounded, if necessary, to the nearest l/100th of 1%
      or,
      if there is no nearest 1/100 of 1%, then to the next higher 1/100 of 1%) equal
      to the greater of (a) the Prime Rate in effect on such day, and (b) 1⁄2
of 1% plus
      the
      Federal Funds Effective Rate in effect on such day. Any change in the Prime
      Rate
      due to a change in the Prime Rate or the Federal Funds Effective Rate shall
      be
      effective as of the opening of business on the effective day of such change
      in
      the Prime Rate or the Federal Funds Effective Rate, respectively.

     

    “Applicable
      Margin”:
      (i) with respect to the unpaid principal balance of ABR Advances, the
      applicable percentage set forth below in the column entitled “ABR Advances”,
      (ii) with respect to the unpaid principal balance of Eurodollar Advances,
      the applicable percentage set forth below in the column entitled “Eurodollar
      Advances” and (iii) with respect to the Facility Fee, the applicable
      percentage set forth below in the column entitled “Facility Fee
      Rate”:

     

    
      	
              Pricing
                Level

            	
              ABR

              Advances

            	
              Eurodollar

              Advances

            	
              Facility
                Fee

              Rate

            
	
              Pricing
                Level I

            	
              0%

            	
              0.170%

            	
              0.030%

            
	
              Pricing
                Level II

            	
              0%

            	
              0.210%

            	
              0.040%

            
	
              Pricing
                Level III

            	
              0%

            	
              0.250%

            	
              0.050%

            
	
              Pricing
                Level IV

            	
              0%

            	
              0.290%

            	
              0.060%

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Pricing
                  Level

              	
                ABR

                Advances

              	
                Eurodollar

                Advances

              	
                Facility
                  Fee

                Rate

              
	
                Pricing
                  Level V

              	
                0%

              	
                0.320%

              	
                0.080%

              
	
                Pricing
                  Level VI

              	
                0%

              	
                0.445%

              	
                0.105%

              
	
                Pricing
                  Level VII

              	
                0%

              	
                0.725%

              	
                0.150%

              

      

       

    

    
      Decreases
        in the Applicable Margin resulting from a change in Pricing Level shall become
        effective upon the delivery by the Borrower to the Administrative Agent of
        a
        notice pursuant to Section 7.7(d).
        Increases in the Applicable Margin resulting from a change in Pricing Level
        shall become effective on the effective date of any downgrade or withdrawal
        in
        the rating by Moody’s or S&P of the senior unsecured long term debt rating
        of the Borrower.

       

      “Approved
        Fund”:
        with
        respect to any Lender that is a fund that invests in commercial loans, any
        other
        fund that invests in commercial loans and is managed or advised by the same
        investment advisor as such Lender or by an Affiliate of such investment
        advisor.

       

      “Arrangers”:
        as
        defined in the preamble.

       

      “Assignment
        and Acceptance Agreement”:
        an
        assignment and acceptance agreement executed by an assignor and an assignee
        pursuant to which, subject to the terms and conditions hereof and thereof,
        the
        assignor assigns to the assignee all or any portion of such assignor’s Loans,
        Notes and Commitment, substantially in the form of Exhibit E.

       

      “Available
        Commitment”:
        with
        respect to any Lender at any time, an amount equal to the excess, if any,
        of (a)
        such Lender’s Commitment then in effect over (b) such Lender’s Credit Exposure
        at such time. 

       

      “Benefited
        Lender”:
        as
        defined in Section 11.9(b).

       

      “Borrower”:
        as
        defined in the preamble.

       

      “Borrowing
        Date”:
        each
        Domestic Business Day or Eurodollar Business Day, as the case may be, during
        the
        Commitment Period on which the Lenders shall make Loans pursuant to Section 2.1(a)
        and a
        Borrowing Request; provided,
        however,
        that for
        avoidance of doubt, there shall be no more than three Borrowing
        Dates.

       

      “Borrowing
        Request”:
        a
        request for Loans in the form of Exhibit C.

       

      “Caremark”:
        Caremark RX Inc., a Delaware corporation.

       

      “Caremark
        Acquisition”:
        the
        acquisition by the Borrower of all outstanding capital stock of Caremark
        pursuant to the Caremark Merger Agreement.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      “Caremark
        Merger Agreement”:
        the
        Agreement and Plan of Merger, dated as of November 1, 2006 among the
        Borrower, Caremark and Twain MergerSub Corp. (as amended by Amendment No. 1
        to the Agreement and Plan of Merger, dated as of January 16, 2007 and as
        further amended, supplemented or otherwise modified from time to time in
        accordance with Section 8.10).

       

      “Caremark
        Special Dividend”:
        a
        special dividend made by the Borrower to the holders of Caremark’s outstanding
        common stock in connection with the Caremark Acquisition.

       

      “Change
        of Control”:
        any of
        the following:

       

      (i) any
        Person
        or group (as such term is used in Section 13(d)(3) of the Securities
        Exchange Act of 1934, as amended), (a) shall have or acquire beneficial
        ownership of securities having 30% or more of the ordinary voting power of
        the
        Borrower or (b) shall possess, directly or indirectly, the power to direct
        or cause the direction of the management and policies of the Borrower, whether
        through the ownership of voting securities, by contract or otherwise;
        or

       

      (ii) the
        Continuing Directors shall cease for any reason to constitute a majority
        of the
        board of directors of the Borrower then in office.

       

      “Co-Documentation
        Agents”:
        as
        defined in the preamble.

       

      “Commitment”:
        in
        respect of any Lender, such Lender’s obligation, if any, to make a Loan to the
        Borrower on each Borrowing Date, subject to the terms and conditions hereof,
        in
        an aggregate outstanding principal amount not to exceed the Commitment Amount
        of
        such Lender.

       

      “Commitment
        Amount”:
        at any
        time and with respect to any Lender, the amount set forth adjacent to such
        Lender’s name under the heading “Commitment Amount” in Exhibit A at such
        time or, in the event that such Lender is not listed on Exhibit A, the
“Commitment Amount” which such Lender shall have assumed from another Lender in
        accordance with Section 11.7
        on or
        prior to such time, as the same may be adjusted from time to time pursuant
        to
Section 2.5
        and
Section 11.7(c).
        The
        aggregate amount of the Lenders’ Commitment Amounts on the Effective Date is
        $5,750,000,000.

       

      “Commitment
        Percentage”:
        at any
        time and with respect to any Lender, a fraction the numerator of which is
        such
        Lender’s Commitment Amount at such time, and the denominator of which is the
        Aggregate Commitment Amount at such time.

       

      “Commitment
        Period”:
        the
        period from and including the Effective Date to the date that is 60 Domestic
        Business Days after the first Borrowing Date, or on such earlier date as
        all of
        the Commitments shall have been terminated in accordance with the terms
        hereof.

       

      “Compensatory
        Interest Payment”:
        as
        defined in Section 3.4(c).

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      “Consolidated”:
        the
        Borrower and the Subsidiaries on a consolidated basis in accordance with
        GAAP.

       

      “Contingent
        Obligation”:
        as to
        any Person (the “secondary
        obligor”),
        any
        obligation of such secondary obligor (a) guaranteeing or in effect
        guaranteeing any return on any investment made by another Person, or
        (b) guaranteeing or in effect guaranteeing any Indebtedness, lease,
        dividend or other obligation (“primary
        obligation”)
        of any
        other Person (the “primary
        obligor”)
        in any
        manner, whether directly or indirectly, including any obligation of such
        secondary obligor, whether or not contingent, (i) to purchase any such
        primary obligation or any Property constituting direct or indirect security
        therefor, (ii) to advance or supply funds (A) for the purchase or
        payment of any such primary obligation or (B) to maintain working capital
        or equity capital of the primary obligor or otherwise to maintain the net
        worth
        or solvency of the primary obligor, (iii) to purchase Property, securities
        or services primarily for the purpose of assuring the beneficiary of any
        such
        primary obligation of the ability of the primary obligor to make payment
        of such
        primary obligation, (iv) otherwise to assure or hold harmless the
        beneficiary of such primary obligation against loss in respect thereof, and
        (v) in respect of the Indebtedness of any partnership in which such
        secondary obligor is a general partner, except to the extent that such
        Indebtedness of such partnership is nonrecourse to such secondary obligor
        and
        its separate Property, provided
        that
        the
        term “Contingent Obligation” shall not include the indorsement of instruments
        for deposit or collection in the ordinary course of business.

       

      “Continuing
        Director”:
        any
        member of the board of directors of the Borrower who (i) is a member of
        that board of directors on the Effective Date or (ii) was nominated for
        election by the board of directors a majority of whom were directors on the
        Effective Date or whose election or nomination for election was previously
        approved by one or more of such directors.

       

      “Control
        Person”:
        as
        defined in Section 3.6.

       

      “Convert”,
        “Conversion”
and
        “Converted”:
        each, a
        reference to a conversion pursuant to Section 3.3
        of one
        Type of Loan into another Type of Loan.

       

      “Costs”:
        as
        defined in Section 3.6.

       

      “Credit
        Exposure”:
        with
        respect to any Lender at any time, the outstanding principal balance of all
        Loans of such Lender at such time under this Agreement.

       

      “Credit
        Parties”:
        a
        collective reference to the Agents, the Arrangers and the Lenders.

       

      “CVS
        Share Repurchase”:
        as
        defined in Section 2.4.

       

      “Default”:
        any of
        the events specified in Section 9.1,
        whether
        any requirement for the giving of notice, the lapse of time, or both, or
        any
        other condition, has been satisfied.

       

      “Disposition”:
        with
        respect to any Person, any sale, assignment, transfer or other disposition
        by
        such Person by any means, of:

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      (a) the
        Stock
        of, or other equity interests of, any other Person,

       

      (b) any
        business, operating entity, division or segment thereof, or

       

      (c) any
        other
        Property of such Person, other than (i) the sale of inventory (other than
        in connection with bulk transfers), (ii) the disposition of equipment and
        (iii) the sale of cash investments.

       

      “Dividend
        Restrictions”:
        as
        defined in Section 8.7.

       

      “Dollar”
        or
“$”:
        lawful
        currency of the United States of America.

       

      “Domestic
        Business Day”:
        any day
        (other than a Saturday, Sunday or legal holiday in the State of New York)
        on
        which banks are open for business in New York City.

       

      “Effective
        Date”:
        as
        defined in Section 11.20.

       

      “Eligible
        Assignee”:
        (i) any commercial bank, investment bank, trust company, banking
        association, financial institution, mutual fund, pension fund or any Approved
        Fund or (ii) any Lender or any Affiliate or any Approved Fund of such
        Lender.

       

      “Eligible
        SPC”:
        a
        special purpose corporation that (i) is organized under the laws of the
        United States or any state thereof, (ii) is engaged in making, purchasing
        or otherwise investing in commercial loans in the ordinary course of its
        business and (iii) issues (or the parent of which issues) commercial paper
        rated at least A-1 or the equivalent thereof by S&P or at least P-1 or the
        equivalent thereof by Moody’s.

       

      “Employee
        Benefit Plan”:
        an
        employee benefit plan, within the meaning of Section 3(3) of ERISA,
        maintained, sponsored or contributed to by the Borrower, any Subsidiary or
        any
        ERISA Affiliate.

       

      “Environmental
        Laws”:
        all
        laws, rules, regulations, codes, ordinances, orders, decrees, judgments,
        injunctions, notices or binding agreements issued, promulgated or entered
        into
        by any Governmental Authority, relating in any way to the environment,
        preservation or reclamation of natural resources, the management, release
        or
        threatened release of any Hazardous Material or to health and safety
        matters.

       

      “Environmental
        Liability”:
        as to
        any Person, any liability, contingent or otherwise (including any liability
        for
        damages, costs of environmental remediation, fines, penalties or indemnities),
        of such Person directly or indirectly resulting from or based upon
        (i) violation of any Environmental Law, (ii) the generation, use,
        handling, transportation, storage, treatment or disposal of any Hazardous
        Materials, (iii) exposure to any Hazardous Materials, (iv) the release
        or threatened release of any Hazardous Materials into the environment or
        (v) any contract, agreement or other consensual arrangement pursuant to
        which liability is assumed or imposed with respect to any of the
        foregoing.

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      “ERISA”:
        the
        Employee Retirement Income Security Act of 1974, as amended from time to
        time,
        or any successor thereto, and the rules and regulations issued thereunder,
        as
        from time to time in effect.

       

      “ERISA
        Affiliate”:
        when
        used with respect to an Employee Benefit Plan, ERISA, the PBGC or a provision
        of
        the Internal Revenue Code pertaining to employee benefit plans, any Person
        that
        is a member of any group of organizations within the meaning of
        Sections 414(b) or (c) of the Internal Revenue Code or, solely with respect
        to the applicable provisions of the Internal Revenue Code, Sections 414(m)
        or (o) of the Internal Revenue Code, of which the Borrower or any Subsidiary
        is
        a member.

       

      “ESOP
        Guaranty”:
        the
        guaranty of the 8.52% ESOP Note maturing 2008 in the aggregate unpaid principal
        amount, as of December 30, 2006, of $82,100,000.

       

      “Eurodollar
        Advance”:
        a
        portion of the Loans selected by the Borrower to bear interest during a
        Eurodollar Interest Period selected by the Borrower at a rate per annum based
        upon a Eurodollar Rate determined with reference to such Eurodollar Interest
        Period, all pursuant to and in accordance with Section 2.2
        or
Section 3.3.

       

      “Eurodollar
        Base Rate”:
        with
        respect to each day during each Eurodollar Interest Period in effect for
        each
        Eurodollar Advance and as determined by the Administrative Agent, the rate
        per
        annum
        determined on the basis of the rate for deposits in Dollars for a period
        equal
        to such Eurodollar Interest Period commencing on the first day of such
        Eurodollar Interest Period appearing the Reuters Screen LIBORO1 Page as of
        11:00 A.M., London time, two Business Days prior to the beginning of such
        Eurodollar Interest Period. In the event that such rate does not appear on
        the
        Reuters Screen LIBORO1 Page (or otherwise on such screen), the “Eurodollar Base
        Rate” for purposes of this definition shall be determined by reference to such
        other comparable publicly available service for displaying eurodollar rates
        as
        may be selected by the Administrative Agent.

       

      “Eurodollar
        Business Day”:
        any
        Domestic Business Day, other than a Domestic Business Day on which banks
        are not
        open for dealings in Dollar deposits in the interbank eurodollar
        market.

       

      “Eurodollar
        Interest Period”:
        the
        period commencing on any Eurodollar Business Day selected by the Borrower
        in
        accordance with Section 2.2
        or
Section 3.3
        and
        ending (A) one, two, three or six months or (B) a certain number of
        days (such number of days referred to in this clause (B) referred to herein
        as the “Shorter
        Period”)
        in each
        case thereafter, as selected by the Borrower in accordance with either such
        Sections, subject to the following:

       

      (i) if
        any
        Eurodollar Interest Period would otherwise end on a day which is not a
        Eurodollar Business Day, such Eurodollar Interest Period shall be extended
        to
        the immediately succeeding Eurodollar Business Day unless the result of such
        extension would be to carry the end of such Eurodollar Interest Period into
        another calendar month, in which event such Eurodollar Interest Period shall
        end
        on the Eurodollar Business Day immediately preceding such day; 

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

       

      (ii) if
        any
        Eurodollar Interest Period shall begin on the last Eurodollar Business Day
        of a
        calendar month (or on a day for which there is no numerically corresponding
        day
        in the calendar month at the end of such Eurodollar Interest Period), such
        Eurodollar Interest Period shall end on the last Eurodollar Business Day
        of such
        latter calendar month, except as otherwise provided in clause (iii) below;
        and

       

      (iii) notwithstanding
        anything contained in the foregoing to the contrary, in the case of
        clause (B) above in this definition only, the number of days selected may
        only be (x) seven days, in the case of a Borrowing Request delivered on the
        Effective Date for Loans, the proceeds of which will be used to finance a
        portion of the Special Dividend, or (y) that number of days to (and
        including) the Maturity Date; provided
        that the
        number of days selected shall not exceed 30 days, and to the extent that
        the Borrower has selected a Eurodollar Interest Period under such
        clause (B) in accordance with the provisions of this definition, then such
        Eurodollar Interest Period shall end on the Maturity Date.

       

      “Eurodollar
        Rate”:
        with
        respect to each day during each Eurodollar Interest Period in effect for
        each
        Eurodollar Advance and as determined by the Administrative Agent, a rate
        per
        annum determined for such day in accordance with the following formula (rounded,
        if necessary, to the nearest l/100 of 1% or, if there is no nearest 1/100
        of 1%,
        then to the next higher 1/100 of 1%):

       

      
        	
                Eurodollar
                  Base Rate

              
	
                1.00
                  minus Eurocurrency Reserve
                  Requirements

              

      

       

      “Eurocurrency
        Reserve Requirements”:
        for any
        day, the aggregate (without duplication) of the maximum rates (expressed
        as a
        decimal or a fraction) of reserve requirements in effect on such day (including,
        without limitation, basic, supplemental, marginal and emergency reserves)
        under
        any regulations of the Board of Governors of the Federal Reserve System,
        or
        other Governmental Authority having jurisdiction with respect thereto dealing
        with reserve requirements prescribed for eurocurrency funding (currently
        referred to as “Eurocurrency Liabilities” in Regulation D of the Board of
        Governors of the Federal Reserve System, as amended) maintained by a member
        bank
        of the Federal Reserve System with deposits exceeding $1,000,000,000 with
        respect to liabilities or assets consisting of or including Eurocurrency
        Liabilities having a term equal to such Eurodollar Interest Period.

       

      “Event
        of Default”:
        any of
        the events specified in Section 9.1,
        provided
        that any
        requirement for the giving of notice, the lapse of time, or both, or any
        other
        condition has been satisfied.

       

      “Excluded
        Debt”:
        any
        Indebtedness of the Borrower under (x) the Existing Credit Agreements and
        (y) any indebtedness under any bank credit facility of the Borrower to the
        extent the proceeds thereof are used to repay Indebtedness under (i) any
        bank
        credit facility of the Borrower existing on the Effective Date or (ii) the
        Existing Credit Agreements.

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      “Existing
        2004 Five Year Credit Agreement”:
        the
        Five Year Credit Agreement, dated as of June 11, 2004, by and among the
        Borrower, the lenders party thereto, Bank of America, N.A., Credit Suisse
        First
        Boston, and Wachovia Securities, Inc., as co-syndication agents, ABN AMRO
        Bank
        N.V., as documentation agent, and The Bank of New York, as administrative
        agent,
        as the same may be amended, supplemented, replaced or otherwise modified
        from
        time to time.

       

      “Existing
        2005 Five Year Credit Agreement”:
        the
        Five Year Credit Agreement, dated as of June 3, 2005, by and among the
        Borrower, the lenders party thereto, Bank of America, N.A., Credit Suisse
        First
        Boston, and Wachovia Bank, National Association, as co-syndication agents,
        SunTrust Bank, as documentation agent, and The Bank of New York, as
        administrative agent, as the same may be amended, supplemented, replaced
        or
        otherwise modified from time to time.

       

      “Existing
        2006 Five Year Credit Agreement”:
        the
        Five Year Credit Agreement, dated as of May 12, 2006, by and among the Borrower,
        the lenders party thereto, Bank of America, N.A., Lehman Brothers Inc. and
        Wachovia Bank, National Association, as co-syndication agents, KeyBank National
        Association, as documentation agent, and The Bank of New York, as administrative
        agent, as the same may be amended, supplemented, replaced or otherwise modified
        from time to time.

       

      “Existing
        2007 Five Year Credit Agreement”:
        the
        Five Year Credit Agreement, dated as of March 12, 2007, by and among the
        Borrower, the lenders party thereto, Lehman Commercial Paper Inc. and Wachovia
        Bank, National Association, as co-syndication agents, Morgan Stanley Senior
        Funding, Inc., as documentation agent, and The Bank of New York, as
        administrative agent, as the same may be amended, supplemented, replaced
        or
        otherwise modified from time to time. 

       

      “Existing
        2007 364-Day Credit Agreement”:
        the
        364-Day Credit Agreement, dated as of March 12, 2007, by and among the Borrower,
        the lenders party thereto, Lehman Commercial Paper Inc. and Wachovia Bank,
        National Association, as co-syndication agents, and The Bank of New York,
        as
        administrative agent, as the same may be amended, supplemented, replaced
        or
        otherwise modified from time to time.

       

      “Existing
        Credit Agreements”:
        collectively, the Existing 2004 Five Year Credit Agreement, the Existing
        2005
        Five Year Credit Agreement, the Existing 2006 Five Year Credit Agreement,
        the
        Existing 2007 Five Year Credit Agreement and the Existing 2007 364-Day Credit
        Agreement.

       

      “Expiration
        Date”:
        the
        earlier of (a) the Maturity Date and (b) the date on which the Loans
        shall become due and payable, whether by acceleration, notice of intention
        to
        prepay or otherwise.

       

      “Facility
        Fee”:
        as
        defined in Section 3.11.

       

      “Facility
        Fee Termination Date”:
        the
        first date, occurring on or after the date the Commitments have been terminated,
        upon which there shall be no Loans outstanding.

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      “Federal
        Funds Effective Rate”:
        for any
        period, a fluctuating interest rate per annum equal for each day during such
        period to the weighted average of the rates on overnight Federal funds
        transactions with members of the Federal Reserve System arranged by Federal
        funds brokers, as published for such day (or, if such day is not a Domestic
        Business Day, for the next preceding Domestic Business Day) by the Federal
        Reserve Bank of New York, or, if such rate is not so published for any day
        which
        is a Domestic Business Day, the average (rounded, if necessary, to the nearest
        1/100 of 1% or, if there is no nearest 1/100 of 1%, then to the next higher
        1/100 of 1%) of the quotations for such day on such transactions received
        by the
        Administrative Agent from three Federal funds brokers of recognized standing
        selected by the Administrative Agent.

       

      “Fees”:
        as
        defined in Section 3.2(a).

       

      “Financial
        Statements”:
        as
        defined in Section 4.13.

       

      “Foreign
        Lender”:
        any
        Lender that is organized under the laws of a jurisdiction other than the
        United
        States of America, any State thereof or the District of Columbia.

       

      “GAAP”:
        generally accepted accounting principles set forth in the opinions and
        pronouncements of the Accounting Principles Board and the American Institute
        of
        Certified Public Accountants and statements and pronouncements of the Financial
        Accounting Standards Board or such other principles as may be approved by
        a
        significant segment of the accounting profession, which are applicable to
        the
        circumstances as of the date of determination, consistently
        applied.

       

      “Governmental
        Authority”:
        any
        foreign, federal, state, municipal or other government, or any department,
        commission, board, bureau, agency, public authority or instrumentality thereof,
        or any court or arbitrator.

       

      “Granting
        Lender”:
        as
        defined in Section 11.7(h).

       

      “Hazardous
        Materials”:
        all
        explosive or radioactive substances or wastes and all hazardous or toxic
        substances, wastes or other pollutants, including petroleum or petroleum
        distillates, asbestos or asbestos containing materials, polychlorinated
        biphenyls, radon gas, infectious or medical wastes and all other substances
        or
        wastes of any nature regulated pursuant to any Environmental Law.

       

      “Highest
        Lawful Rate”:
        as to
        any Lender, the maximum rate of interest, if any, which at any time or from
        time
        to time may be contracted for, taken, charged or received on the Loans or
        the
        Notes or which may be owing to such Lender pursuant to this Agreement under
        the
        laws applicable to such Lender and this Agreement.

       

      “Indebtedness”:
        as to
        any Person at a particular time, all items of such Person which constitute,
        without duplication, (a) indebtedness for borrowed money or the deferred
        purchase price of Property (other than trade payables and accrued expenses
        incurred in the ordinary course of business), (b) indebtedness evidenced by
        notes, bonds, debentures or similar instruments, (c) indebtedness with
        respect to any conditional sale or other title retention 

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      agreement,
        (d) indebtedness arising under acceptance facilities and the amount
        available to be drawn under all letters of credit (excluding for purposes
        of
Section 8.1
        and
Section 8.9
        letters
        of credit obtained in the ordinary course of business by the Borrower or
        any
        Subsidiary) issued for the account of such Person and, without duplication,
        all
        drafts drawn thereunder to the extent such Person shall not have reimbursed
        the
        issuer in respect of the issuer’s payment of such drafts, (e) that portion
        of any obligation of such Person, as lessee, which in accordance with GAAP
        is
        required to be capitalized on a balance sheet of such Person, (f) all
        indebtedness described in clauses (a) through and including (e) above
        secured by any Lien on any Property owned by such Person even though such
        Person
        shall not have assumed or otherwise become liable for the payment thereof
        (other
        than carriers’, warehousemen’s, mechanics’, repairmen’s or other like
        non-consensual Liens arising in the ordinary course of business), and
        (g) Contingent Obligations in respect of any indebtedness described in
        clauses (a) through and including (f) above; provided
        that,
        for
        purposes of this definition, Indebtedness shall not include Intercompany
        Debt
        and obligations in respect of interest rate caps, collars, exchanges, swaps
        or
        other, similar agreements.

       

      “Indemnified
        Liabilities”:
        as
        defined in Section 11.5.

       

      “Indemnified
        Person”:
        as
        defined in Section 11.10.

       

      “Intercompany
        Debt”:
        (i) Indebtedness of the Borrower to one or more of the Subsidiaries of the
        Borrower and (ii) Indebtedness of one or more of the Subsidiaries of the
        Borrower to the Borrower or any one or more of the other Subsidiaries of
        the
        Borrower.

       

      “Intercompany
        Disposition”:
        a
        Disposition by the Borrower or any of the Subsidiaries of the Borrower to
        the
        Borrower or to any of the other Subsidiaries of the Borrower.

       

      “Interest
        Payment Date”:
        (i) as to any ABR Advance, the last day of each March, June, September and
        December, commencing on the first of such days to occur after such ABR Advance
        is made or any Eurodollar Advance is converted to an ABR Advance, (ii) as
        to any Eurodollar Advance in respect of which the Borrower has selected a
        Eurodollar Interest Period of the Shorter Period, the last day of such
        Eurodollar Interest Period, (iii) as to any Eurodollar Advance in respect
        of which the Borrower has selected a Eurodollar Interest Period of one, two
        or
        three months, the last day of such Eurodollar Interest Period, and (iv) as
        to any Eurodollar Advance in respect of which the Borrower has selected a
        Eurodollar Interest Period greater than three months, the last day of the
        third
        month of such Eurodollar Interest Period and the last day of such Eurodollar
        Interest Period.

       

      “Internal
        Revenue Code”:
        the
        Internal Revenue Code of 1986, as amended from time to time, or any successor
        thereto, and the rules and regulations issued thereunder, as from time to
        time
        in effect.

       

      “LCPI”:
        Lehman
        Commercial Paper Inc.

       

      “Lender”:
        as
        defined in the preamble.

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      “Lien”:
        any
        mortgage, pledge, hypothecation, assignment, lien, deposit arrangement, charge,
        encumbrance or other security arrangement or security interest of any kind,
        or
        the interest of a vendor or lessor under any conditional sale agreement,
        capital
        lease or other title retention agreement.

       

      “Loan”
        or
“Loans”:
        as
        defined in Section 2.1(a).

       

      “Loan
        Documents”:
        this
        Agreement and, upon the execution and delivery thereof, the Notes, if
        any.

       

      “Margin
        Stock”:
        any
“margin stock”, as said term is defined in Regulation U of the Board of
        Governors of the Federal Reserve System, as the same may be amended or
        supplemented from time to time.

       

      “Material
        Adverse”:
        with
        respect to any change or effect, a material adverse change in, or effect
        on, as
        the case may be, (i) the financial condition, operations, business, or
        Property of the Borrower and the Subsidiaries taken as a whole, (ii) the
        ability of the Borrower to perform its obligations under the Loan Documents,
        or
        (iii) the ability of the Administrative Agent or any Lender to enforce the
        Loan Documents.

       

      “Maturity
        Date”:
        the
        date that is the earlier of (x) 364 days after the Effective Date, and
        (y) June 30, 2008.

       

      “Moody’s”:
        Moody’s
        Investors Service, Inc.

       

      “Multiemployer
        Plan”:
        a
        Pension Plan which is a multiemployer plan as defined in Section 4001(a)(3)
        of ERISA.

       

      “Net
        Proceeds”:
        with
        respect to (a) the issuance of any equity securities or hybrid securities
        by the Borrower or any of its Subsidiaries in a registered public offering
        or
        private placement or (b) the issuance of long term Indebtedness by the
        Borrower or any of its Subsidiaries in a registered public offering or a
        private
        placement or under any new bank credit facility (excluding any Excluded
        Debt).

       

      “Net
        Worth”:
        at any
        date of determination, the sum of all amounts which would be included under
        shareholders’ equity on a Consolidated balance sheet of the Borrower and the
        Subsidiaries determined in accordance with GAAP as at such date.

       

      “Note”:
        with
        respect to each Lender that has requested one, a promissory note evidencing
        such
        Lender’s Loans payable to the order of such Lender (or, if required by such
        Lender, to such Lender and its registered assigns), substantially in the
        form of
        Exhibit B.

       

      “Participant”:
        as
        defined in Section 11.7(e).

       

      “PATRIOT
        Act”:
        as
        defined in Section 11.21.

       

      
        
          
          

        

        
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      “PBGC”:
        the
        Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
        Title IV of ERISA, or any Governmental Authority succeeding to the
        functions thereof.

       

      “Pension
        Plan”:
        at any
        time, any Employee Benefit Plan (including a Multiemployer Plan) subject
        to
        Section 302 of ERISA or Section 412 of the Internal Revenue Code, the
        funding requirements of which are, or at any time within the six years
        immediately preceding the time in question, were in whole or in part, the
        responsibility of the Borrower, any Subsidiary or an ERISA
        Affiliate.

       

      “Person”:
        any
        individual, firm, partnership, limited liability company, joint venture,
        corporation, association, business trust, joint stock company, unincorporated
        association, trust, Governmental Authority or any other entity, whether acting
        in an individual, fiduciary, or other capacity, and for the purpose of the
        definition of “ERISA Affiliate”, a trade or business.

       

      “Pricing
        Level”:
        Pricing
        Level I, Pricing Level II, Pricing Level III, Pricing
        Level IV, Pricing Level V, Pricing Level VI or Pricing
        Level VII, as the case may be.

       

      “Pricing
        Level I”:
        any
        time when the senior unsecured long term debt rating of the Borrower by
        (x) S&P is A+ or higher or (y) Moody’s is A1 or
        higher.

       

      “Pricing
        Level II”:
        any
        time when (i) the senior unsecured long term debt rating of the Borrower by
        (x) S&P is A or higher or (y) Moody’s is A2 or higher and (ii)
        Pricing Level I does not apply.

       

      “Pricing
        Level III”:
        any
        time when (i) the senior unsecured long term debt rating of the Borrower by
        (x) S&P is A- or higher or (y) Moody’s is A3 or higher and
        (ii) neither Pricing Level I nor II applies.

       

      “Pricing
        Level IV”:
        any
        time when (i) the senior unsecured long term debt rating of the Borrower by
        (x) S&P is BBB+ or higher or (y) Moody’s is Baa1 or higher and
        (ii) none of Pricing Level I, II or III applies.

       

      “Pricing
        Level V”:
        any
        time when (i) the senior unsecured long term debt rating of the Borrower by
        (x) S&P is BBB or higher or (y) Moody’s is Baa2 or higher and
        (ii) none of Pricing Level I, II, III or IV applies.

       

      “Pricing
        Level VI”:
        any
        time when (i) the senior unsecured long term debt rating of the Borrower by
        (x) S&P is BBB- or higher or (y) Moody’s is Baa3 or higher and
        (ii) none of Pricing Level I, II, III, IV or V applies.

       

      “Pricing
        Level VII”:
        any
        time when none of Pricing Level I, II, III, IV, V or VI
        applies.

       

      Notwithstanding
        each definition of Pricing Level set forth above, if at any time the senior
        unsecured long term debt ratings of the Borrower by S&P and Moody’s differ
        by more 

       

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

       

      than
        one
        equivalent rating level, then the applicable Pricing Level shall be determined
        based upon the lower such rating adjusted upwards to the next higher rating
        level.

       

      “Prime
        Rate”:
        the
        prime lending rate as set forth on the British Banking Association Telerate
        Page 5 (or such other comparable page as may, in the opinion of the
        Administrative Agent, replace such page for the purpose of displaying such
        rate), as in effect from time to time.

       

      “Pro
        Rata Percentage”:
        with
        respect to any Lender, at any time of determination (a) at any time prior
        to the earlier of (x) the third Borrowing Date or (y) the last day of
        the Commitment Period, such Lender’s Commitment Percentage, and (b) at any
        time thereafter, a fraction (expressed as a percentage), the numerator of
        which
        shall be the amount of such Lender’s Credit Exposure at such time and the
        denominator of which shall be the Aggregate Credit Exposure of all
        Lenders.

       

      “Prohibited
        Transaction”:
        a
        transaction that is prohibited under Section 4975 of the Internal Revenue
        Code or Section 406 of ERISA and not exempt under Section 4975 of the
        Internal Revenue Code or Section 408 of ERISA.

       

      “Property”:
        in
        respect of any Person, all types of real, personal or mixed property and
        all
        types of tangible or intangible property owned or leased by such
        Person.

       

      “Regulatory
        Change”:
        (a) the introduction or phasing in of any law, rule or regulation after the
        date hereof, (b) the issuance or promulgation after the date hereof of any
        directive, guideline or request from any central bank or United States or
        foreign Governmental Authority (whether or not having the force of law),
        or
        (c) any change after the date hereof in the interpretation of any existing
        law, rule, regulation, directive, guideline or request by any central bank
        or
        United States or foreign Governmental Authority charged with the administration
        thereof, in each case applicable to the transactions contemplated by this
        Agreement.

       

      “Related
        Parties”:
        with
        respect to any specified Person, such Person’s Affiliates and the respective
        directors, officers, employees, agents and advisors of such Person and such
        Person’s Affiliates.

       

      “Replaced
        Lender”:
        as
        defined in Section 3.13.

       

      “Replacement
        Lender”:
        as
        defined in Section 3.13.

       

      “Reportable
        Event”:
        with
        respect to any Pension Plan, (a) any event set forth in
        Sections 4043(c) (other than a Reportable Event as to which the 30 day
        notice requirement is waived by the PBGC under applicable regulations), 4062(e)
        or 4063(a) of ERISA, or the regulations thereunder, (b) an event requiring
        the Borrower, any Subsidiary or any ERISA Affiliate to provide security to
        a
        Pension Plan under Section 401(a)(29) of the Internal Revenue Code, or
        (c) the failure to make any payment required by Section 412(m) of the
        Internal Revenue Code.

       

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

       

      “Required
        Lenders”:
        (a) at any time during the Commitment Period, Lenders having Commitments
        and Credit Exposure equal to or more than 51% of the Aggregate Available
        Commitments plus
        the
        Aggregate Credit Exposure, and (b) at all other times, Lenders having
        Credit Exposure equal to or more than 51% of the Aggregate Credit
        Exposure.

       

      “Restricted
        Payment”:
        with
        respect to any Person, any of the following, whether direct or indirect:
        (a) the declaration or payment by such Person of any dividend or
        distribution on any class of Stock of such Person, other than a dividend
        payable
        solely in shares of that class of Stock to the holders of such class,
        (b) the declaration or payment by such Person of any distribution on any
        other type or class of equity interest or equity investment in such Person,
        and
        (c) any redemption, retirement, purchase or acquisition of, or sinking fund
        or other similar payment in respect of, any class of Stock of, or other type
        or
        class of equity interest or equity investment in, such Person.

       

      “Restrictive
        Agreement”:
        as
        defined in Section 8.7.

       

      “S&P”:
        Standard & Poor’s, a division of The McGraw-Hill Companies,
        Inc.

       

      “Shorter
        Period”:
        as
        defined in the definition of Eurodollar Interest Period.

       

      “Solvent”:
        with
        respect to any Person on a particular date, the condition that on such date,
        (i) the fair value of the Property of such Person is greater than the total
        amount of liabilities, including, without limitation, contingent liabilities,
        of
        such Person, (ii) the present fair salable value of the assets of such
        Person is not less than the amount that will be required to pay the probable
        liability of such Person on its debts as they become absolute and matured,
        (iii) such Person does not intend to, and does not believe that it will,
        incur debts or liabilities beyond such Person’s ability to pay as such debts and
        liabilities mature, and (iv) such Person is not engaged in business or a
        transaction, and is not about to engage in business or a transaction, for
        which
        such Person’s Property would constitute an unreasonably small amount of capital.
        For purposes of this definition, the amount of any contingent liability at
        any
        time shall be computed as the amount that, in light of all the facts and
        circumstances existing at such time, represents the amount that can reasonably
        be expected to become an actual or matured liability after taking into account
        probable payments by co-obligors.

       

      “Special
        Counsel”:
        such
        counsel as the Administrative Agent may engage from time to time.

       

      “Stock”:
        any and
        all shares, interests, participations or other equivalents (however designated)
        of capital stock of a corporation, any and all equivalent ownership interests
        in
        a Person (other than a corporation) and any and all warrants, rights or options
        to purchase any of the foregoing.

       

      “Subsidiary”:
        at any
        time and from time to time, any corporation, association, partnership, limited
        liability company, joint venture or other business entity of which the Borrower
        and/or any Subsidiary of the Borrower, directly or indirectly at such time,
        either (a) in respect of a corporation, owns or controls more than 50% of
        the outstanding stock having ordinary voting power to elect a majority of
        the
        board of directors or similar managing body,

       

      
        
          
          

        

        
          -15-

          
            

          

        

        
          
          

        

      

       

      irrespective
        of whether a class or classes shall or might have voting power by reason
        of the
        happening of any contingency, or (b) in respect of an association,
        partnership, limited liability company, joint venture or other business entity,
        is entitled to share in more than 50% of the profits and losses, however
        determined.

       

      “Tangible
        Net Worth”:
        at any
        date of determination, Net Worth less
        all
        assets of the Borrower and its Subsidiaries included in such Net Worth,
        determined on a Consolidated basis at such date, that would be classified
        as
        intangible assets in accordance with GAAP.

       

      “Termination
        Event”:
        with
        respect to any Pension Plan, (a) a Reportable Event, (b) the
        termination of a Pension Plan under Section 4041(c) of ERISA, or the filing
        of a notice of intent to terminate a Pension Plan under Section 4041(c) of
        ERISA, or the treatment of a Pension Plan amendment as a termination under
        Section 4041(e) of ERISA (except an amendment made after such Pension Plan
        satisfies the requirement for a standard termination under Section 4041(b)
        of ERISA), (c) the institution of proceedings by the PBGC to terminate a
        Pension Plan under Section 4042 of ERISA, or (d) the appointment of a
        trustee to administer any Pension Plan under Section 4042 of
        ERISA.

       

      “Total
        Capitalization”:
        at any
        date, the sum of the Borrower’s Consolidated Indebtedness and shareholders’
equity on such date, determined in accordance with GAAP.

       

      “Type”:
        with
        respect to any Loan, the characteristic of such Loan as an ABR Advance or
        a
        Eurodollar Advance, each of which constitutes a Type of Loan.

       

      “Unqualified
        Amount”:
        as
        defined in Section 3.4(c).

       

      “Upstream
        Dividends”:
        as
        defined in Section 8.7.

       

      “Waiver
        Agreement”:
        the
        Waiver Agreement, dated as of January 16, 2007 between the Borrower and
        Caremark with respect to the Caremark Merger Agreement (as amended by that
        certain amendment to Waiver Agreement, dated as of February 12, 2007, and
        that
        certain amendment to Waiver Agreement, dated as of March 8, 2007). 

       

      SECTION 1.2 Principles
        of Construction

       

      (a) All
        capitalized terms defined in this Agreement shall have the meanings given
        such
        capitalized terms herein when used in the other Loan Documents or in any
        certificate, opinion or other document made or delivered pursuant hereto
        or
        thereto, unless otherwise expressly provided therein.

       

      (b) Unless
        otherwise expressly provided herein, the word “fiscal”
when
        used herein shall refer to the relevant fiscal period of the Borrower. As
        used
        in the Loan Documents and in any certificate, opinion or other document made
        or
        delivered pursuant thereto, accounting terms not defined in Section 1.1,
        and
        accounting terms partly defined in Section 1.1,
        to the
        extent not defined, shall have the respective meanings given to them under
        GAAP.

       

      
        
          
          

        

        
          -16-

          
            

          

        

        
          
          

        

      

       

      (c) The
        words
“hereof”,
        “herein”,
        “hereto”
and
        “hereunder”
and
        similar words when used in each Loan Document shall refer to such Loan Document
        as a whole and not to any particular provision of such Loan Document, and
        Section, schedule and exhibit references contained therein shall refer to
        Sections thereof or schedules or exhibits thereto unless otherwise expressly
        provided therein.

       

      (d) All
        references herein to a time of day shall mean the then applicable time in
        New
        York, New York, unless otherwise expressly provided herein.

       

      (e) Section
        headings have been inserted in the Loan Documents for convenience only and
        shall
        not be construed to be a part thereof. Unless the context otherwise requires,
        words in the singular number include the plural, and words in the plural
        include
        the singular.

       

      (f) Whenever
        in any Loan Document or in any certificate or other document made or delivered
        pursuant thereto, the terms thereof require that a Person sign or execute
        the
        same or refer to the same as having been so signed or executed, such terms
        shall
        mean that the same shall be, or was, duly signed or executed by (i) in
        respect of any Person that is a corporation, any duly authorized officer
        thereof, and (ii) in respect of any other Person (other than an
        individual), any analogous counterpart thereof.

       

      (g) The
        words
“include”
and
        “including”,
        when
        used in each Loan Document, shall mean that the same shall be included “without
        limitation”, unless otherwise specifically provided.

       

      ARTICLE 2

       

      AMOUNT
        AND
        TERMS OF LOANS

       

      SECTION 2.1 Loans

       

      (a) Subject
        to
        the terms and conditions hereof (including the satisfaction of the conditions
        set forth in Article 5),
        each
        Lender severally (and not jointly) agrees to make loans under this Agreement
        (each a “Loan”
and,
        collectively with each other Loan of such Lender and/or with each Loan of
        each
        other Lender, the “Loans”)
        at any
        time and from time to time during the Commitment Period to the Borrower in
        an
        aggregate amount which does not exceed the amount of such Lender’s Commitment,
provided
        that,
        (i) the aggregate amount of Loans made to finance the CVS Share Repurchase
        shall not exceed $5,250,000,000 and there shall not be more than two Borrowing
        Dates with respect thereto, (ii) the aggregate amount of Loans made to
        finance the Caremark Special Dividend shall not exceed $500,000,000 and there
        shall not be more than one Borrowing Date with respect thereto and
        (iii) any remaining Commitment that is not borrowed shall automatically
        expire on the date that is the earlier of (x) the third Borrowing Date and
        (y)
        the last day of the Commitment Period. Once repaid, no Loan may be reborrowed.
        At the option of the Borrower, indicated in a Borrowing Request, Loans may
        be
        made as ABR Advances or Eurodollar Advances.

       

      
        
          
          

        

        
          -17-

          
            

          

        

        
          
          

        

      

       

      (b) The
        aggregate outstanding principal balance of all Loans shall be due and payable
        on
        the Expiration Date.

       

      (c) The
        Borrower hereby unconditionally promises to pay to the Administrative Agent
        for
        the account of each Lender holding a Loan or Loans the then unpaid principal
        amount of such Loan or Loans on the Expiration Date, together with all accrued
        and unpaid interest, if any, and any and all amounts payable pursuant to
        Section 3.5.

       

      SECTION 2.2 Notice
        of Borrowing Loans

       

      The
        Borrower agrees to notify the Administrative Agent in writing, which
        notification shall be irrevocable, no later than (a) 9:00 A.M. on the
        proposed Borrowing Date if the Loans made on such Borrowing Date will consist
        of
        ABR Advances and (b) 10:00 A.M. at least two Eurodollar Business Days
        prior to the proposed Borrowing Date if the Loans made on such Borrowing
        Date
        will consist of Eurodollar Advances. Each such notice shall specify (i) the
        aggregate amount requested to be borrowed under the Commitments, (ii) the
        proposed Borrowing Date, (iii) whether the borrowing of Loans is to be of
        ABR Advances or Eurodollar Advances, and the amount of each thereof and
        (iv) if applicable, the Eurodollar Interest Period for such Eurodollar
        Advances. Each such notice shall be made by delivery to the Administrative
        Agent
        of a Borrowing Request. Any Eurodollar Advance made on a Borrowing Date shall
        equal no less than $10,000,000, or an integral multiple of $1,000,000 in
        excess
        thereof. Any ABR Advance made on a Borrowing Date shall equal no less than
        $1,000,000 or an integral multiple of $500,000 in excess thereof. The
        Administrative Agent shall promptly notify each Lender (by fax or other writing)
        of such Borrowing Request. Subject to its receipt of each such notice from
        the
        Administrative Agent and subject to the terms and conditions hereof, each
        Lender
        shall make immediately available funds available to the Administrative Agent
        at
        the address therefor set forth in Section 11.2
        not later
        than 1:00 P.M. on each Borrowing Date in an amount equal to such Lender’s
        Commitment Percentage of Loans requested by the Borrower on such Borrowing
        Date.

       

      SECTION 2.3 [Intentionally
        Omitted]

       

      SECTION 2.4 Use
        of
        Proceeds

       

      The
        Borrower agrees that the proceeds of the Loans shall be used solely to finance
        (i) the repurchase (the “CVS
        Share Repurchase”)
        of up
        to $5,250,000,000 of the Borrower’s outstanding common stock after the
        consummation of the Caremark Acquisition through a tender offer, an accelerated
        share repurchase program and/or open market repurchases and (ii) up to
        $500,000,000 of the Caremark Special Dividend in connection with the Caremark
        Acquisition. Notwithstanding anything to the contrary contained in any Loan
        Document, the Borrower further agrees that no part of the proceeds of any
        Loan
        will be used, directly or indirectly, and whether immediately, incidentally
        or
        ultimately (i) for a purpose which violates any law, rule or regulation of
        any Governmental Authority, including the provisions of Regulations U or X
        of the Board of Governors of the Federal Reserve System, as amended, or any
        provision of this Agreement, including, without limitation, the provisions
        of
Section 4.9
        or
        (ii) to make a loan to any director or executive officer of the Borrower or
        any Subsidiary.

       

      
        
          
          

        

        
          -18-

          
            

          

        

        
          
          

        

      

       

      SECTION 2.5 Termination
        or Reduction of Commitments

       

      (a) Voluntary
        Termination or Reductions.
        At the
        Borrower’s option and upon at least three Domestic Business Days’ prior
        irrevocable notice to the Administrative Agent, the Borrower may
        (i) terminate the Commitments at any time, or (ii) permanently reduce
        the Aggregate Commitment Amount in part at any time and from time to time,
        provided
        that each
        such partial reduction shall be in an amount equal to at least $10,000,000
        or an
        integral multiple of $1,000,000 in excess thereof, and provided
        further that
        a
        notice of termination of the Commitments delivered by the Borrower may state
        that such notice is conditioned upon the effectiveness of other credit
        facilities or the consummation of the issuance of long term Indebtedness,
        equity
        securities or hybrid securities (such notice to specify the proposed effective
        date), in which case such notice may be revoked by the Borrower (by notice
        to
        the Administrative Agent on or prior to such specified effective date) if
        such
        condition is not satisfied, and the Borrower shall indemnify the Lenders
        in
        accordance with Section 3.5.

       

      (b) Mandatory
        Reductions.
        The
        Aggregate Commitment Amount shall be automatically and permanently reduced
        by an
        amount equal to the Net Proceeds (if any) received by or on behalf of the
        Borrower or any Subsidiary; and such reduction shall be effective upon receipt
        by the Borrower or any Subsidiary of such Net Proceeds. 

       

      (c) In
        General.
        Each
        reduction of the Aggregate Commitment Amount shall be made by reducing each
        Lender’s Commitment Amount by a sum equal to such Lender’s Commitment Percentage
        of the amount of such reduction.

       

      (d) Termination. 
        In
        addition to any termination or reduction of the Commitments as otherwise
        provided herein, the Commitments shall terminate immediately on the date
        that is
        the earlier of (x) the third Borrowing Date and (y) the last day of
        the Commitment Period; provided,
        however,
        that if
        no Loans shall have been made pursuant to Section 2.1(a)
        on or
        before 1:00 P.M. on November 1, 2007, then the Commitments shall be
        automatically terminated and the Aggregate Commitment Amount shall be reduced
        to
        zero at such time on such date.

       

      SECTION 2.6 Prepayments
        of Loans

       

      (a) Voluntary
        Prepayments.
        The
        Borrower may prepay Loans, in whole or in part, without premium or penalty,
        but
        subject to Section 3.5
        at any
        time and from time to time, by notifying the Administrative Agent, which
        notification shall be irrevocable, at least two Eurodollar Business Days,
        in the
        case of a prepayment of Eurodollar Advances, or one Domestic Business Day,
        in
        the case of a prepayment of ABR Advances, prior to the proposed prepayment
        date
        specifying (i) the Loans to be prepaid, (ii) the amount to be prepaid,
        and (iii) the date of prepayment. Upon receipt of each such notice, the
        Administrative Agent shall promptly notify each Lender thereof. Each such
        notice
        given by the Borrower pursuant to this Section shall be irrevocable;
provided
        that, a
        notice of prepayment delivered by the Borrower may state that such notice
        is
        conditioned upon the effectiveness of other credit facilities or the
        consummation of the issuance of long term Indebtedness, equity securities
        or
        hybrid securities (such notice to specify the proposed effective date), in
        which
        case such notice of prepayment may be revoked by the Borrower (by notice
        to the
        Administrative Agent on or prior to such specified effective date) if

       

      
        
          
          

        

        
          -19-

          
            

          

        

        
          
          

        

      

       

      such
        condition is not satisfied, and the Borrower shall indemnify the Lenders
        in
        accordance with Section 3.5.
        Each
        partial prepayment under this Section shall be in a minimum amount of $1,000,000
        ($500,000 in the case of ABR Advances) or an integral multiple of $1,000,000
        ($100,000 in the case of ABR Advances) in excess thereof.

       

      (b) Mandatory
        Prepayments. In
        the
        event and on each occasion that any Net Proceeds are received by or on behalf
        of
        the Borrower or any Subsidiary, then, after such Net Proceeds are received
        (but
        no later than one Business Day thereafter), the Borrower shall prepay the
        Loans
        in an aggregate amount equal to such Net Proceeds.

       

      (c) Caremark
        Acquisition Prepayment.
        In the
        event that the Borrower borrows Loans hereunder in anticipation of consummation
        of the Caremark Acquisition and the payment of the Caremark Special Dividend,
        and the closing of the Caremark Acquisition does not occur within four Domestic
        Business Days after such borrowing, then the Borrower shall prepay such Loans
        in
        full no later than the fifth Domestic Business Day following such
        borrowing.

       

      (d) In
        General. Simultaneously
        with each prepayment hereunder, the Borrower shall prepay all accrued interest
        on the amount prepaid through the date of prepayment and indemnify the Lenders
        in accordance with Section 3.5.

       

      SECTION 2.7 Notes

       

      Any
        Lender
        may request that the Loans made by it be evidenced by a Note.
        In
        such
        event, the Borrower shall prepare, execute and deliver to such Lender a Note
        payable to the order of such Person or, if requested by such Person, such
        Person
        and its registered assigns.
        Thereafter,
        all Loans evidenced by such Note and interest thereon shall at all times
        (including after assignment pursuant to Section 11.7)
        be
        represented by a Note in like form payable to the order of the payee named
        therein and its registered assigns.

       

      ARTICLE 3

       

      PROCEEDS,
        PAYMENTS, CONVERSIONS,

      INTEREST,
        YIELD PROTECTION AND FEES

       

      SECTION 3.1 Disbursement
        of the Proceeds of Loans

       

      The
        Administrative Agent shall disburse the proceeds of Loans by wire transfer
        of
        the funds received from each Lender to the account of the Borrower designated
        by
        the Borrower in writing to the Administrative Agent. Unless the Administrative
        Agent shall have received prior notice from a Lender (by fax or other writing)
        that such Lender will not make available to the Administrative Agent such
        Lender’s Commitment Percentage of the Loan to be made by it on a Borrowing Date,
        the Administrative Agent may assume that such Lender has made such amount
        available to the Administrative Agent on such Borrowing Date in accordance
        with
        this Section, provided
        that such
        Lender received notice thereof from the Administrative Agent in accordance
        with
        the terms hereof, and the Administrative Agent may, in reliance upon such
        assumption, make available to the Borrower on such Borrowing Date a
        corresponding amount.
        

       

      
        
          
          

        

        
          -20-

          
            

          

        

        
          
          

        

      

       

      
        If
          and to
          the extent such Lender shall not have so made such amount available to
          the
          Administrative Agent, such Lender and the Borrower severally agree to pay
          to the
          Administrative Agent, forthwith on demand, such corresponding amount (to
          the
          extent not previously paid by the other), together with interest thereon
          for
          each day from the date such amount is made available to the Borrower until
          the
          date such amount is paid to the Administrative Agent, at a rate per annum
          equal
          to, in the case of the Borrower, the applicable interest rate set forth
          in
Section 3.4(a)
          and, in
          the case of such Lender, the Federal Funds Effective Rate from the date
          such
          payment is due until the third day after such date and, thereafter, at
          the
          Federal Funds Effective Rate plus
          2%.
          Any
          such
          payment by the Borrower shall be without prejudice to its rights against
          such
          Lender.
          If
          such
          Lender shall pay to the Administrative Agent such corresponding amount,
          such
          amount so paid shall constitute such Lender’s Loan as part of such Loans for
          purposes of this Agreement, which Loan shall be deemed to have been made
          by such
          Lender on the Borrowing Date applicable to such Loans.

         

        SECTION 3.2 Payments

         

        (a) Each
          payment, including each prepayment, of principal and interest on the Loans
          and
          of the Facility Fee (collectively, together with all of the other fees
          to be
          paid to the Administrative Agent and the Lenders in connection with the
          Loan
          Documents, the “Fees”),
          and of
          all of the other amounts to be paid to the Administrative Agent and the
          Lenders
          in connection with the Loan Documents shall be made by the Borrower to
          the
          Administrative Agent at its office specified in Section 11.2
          without
          setoff, deduction or counterclaim in funds immediately available in New
          York by
          3:00 P.M. on the due date for such payment. The failure of the Borrower to
          make any such payment by such time shall not constitute a default hereunder,
          provided
          that such
          payment is made on such due date, but any such payment made after 3:00 P.M.
          on such due date shall be deemed to have been made on the next Domestic
          Business
          Day or Eurodollar Business Day, as the case may be, for the purpose of
          calculating interest on amounts outstanding on the Loans. If the Borrower
          has
          not made any such payment prior to 3:00 P.M., the Borrower hereby
          authorizes the Administrative Agent to deduct the amount of any such payment
          from such account(s) as the Borrower may from time to time designate in
          writing
          to the Administrative Agent, upon which the Administrative Agent shall
          apply the
          amount of such deduction to such payment.
          Promptly
          upon receipt thereof by the Administrative Agent, each payment of principal
          and
          interest on the Loans shall be remitted by the Administrative Agent in
          like
          funds as received to each Lender (a) first,
          pro
          rata
          according
          to the amount of interest which is then due and payable to the Lenders,
          and
          (b) second,
          pro
          rata
          according
          to the amount of principal which is then due and payable to the
          Lenders.
          Each
          payment of the Facility Fee payable to the Lenders shall be promptly transmitted
          by the Administrative Agent in like funds as received to each Lender pro
          rata
          according to such Lender’s Commitment Amount or, if the Commitments shall have
          terminated or been terminated, according to the outstanding principal amount
          of
          such Lender’s Loans.

         

        (b) If
          any
          payment hereunder or under the Loans shall be due and payable on a day
          which is
          not a Domestic Business Day or Eurodollar Business Day, as the case may
          be, the
          due date thereof (except as otherwise provided in the definition of Eurodollar
          Interest Period) shall be extended to the next Domestic Business Day or
          Eurodollar Business Day, as the case  

         

        
          
            
            

          

          
            -21-

            
              

            

          

          
            
            

          

        

         

        may
          be,
          and (except with respect to payments of the Facility Fee) interest shall
          be
          payable at the applicable rate specified herein during such
          extension.

         

        SECTION 3.3 Conversions;
          Other Matters

         

        (a) The
          Borrower may elect at any time and from time to time to Convert one or
          more
          Eurodollar Advances to an ABR Advance by giving the Administrative Agent
          at
          least one Domestic Business Day’s prior irrevocable notice of such election,
          specifying the amount to be so Converted.
          In
          addition, the Borrower may elect at any time and from time to time to Convert
          an
          ABR Advance to any one or more new Eurodollar Advances or to Convert any
          one or
          more existing Eurodollar Advances to any one or more new Eurodollar Advances
          by
          giving the Administrative Agent no later than 10:00 A.M. at least two
          Eurodollar Business Days’ prior irrevocable notice, in the case of a Conversion
          to Eurodollar Advances, of such election, specifying the amount to be so
          Converted and the initial Eurodollar Interest Period relating thereto,
          provided
          that any
          Conversion of an ABR Advance to Eurodollar Advances shall only be made
          on a
          Eurodollar Business Day. The Administrative Agent shall promptly provide
          the
          Lenders with notice of each such election. Each Conversion of Loans from
          one
          Type to another shall be made pro rata according to the outstanding principal
          amount of the Loans of each Lender. ABR Advances and Eurodollar Advances
          may be
          Converted pursuant to this Section in whole or in part, provided
          that the
          amount to be Converted to each Eurodollar Advance, when aggregated with
          any
          Eurodollar Advance to be made on such date in accordance with Section 2.1
          and
          having the same Eurodollar Interest Period as such first Eurodollar Advance,
          shall equal no less than $10,000,000 or an integral multiple of $1,000,000
          in
          excess thereof.

         

        (b) Notwithstanding
          anything in this Agreement to the contrary, upon the occurrence and during
          the
          continuance of a Default or an Event of Default, the Borrower shall have
          no
          right to elect to Convert any existing ABR Advance to a new Eurodollar
          Advance
          or to Convert any existing Eurodollar Advance to a new Eurodollar
          Advance.
          In
          such
          event, such ABR Advance shall be automatically continued as an ABR Advance
          or
          such Eurodollar Advance shall be automatically Converted to an ABR Advance
          on
          the last day of the Eurodollar Interest Period applicable to such Eurodollar
          Advance.
          The
          foregoing shall not affect any other rights or remedies that the Administrative
          Agent or any Lender may have under this Agreement or any other Loan
          Document.

         

        (c) Each
          Conversion shall be effected by each Lender by applying the proceeds of
          each new
          ABR Advance or Eurodollar Advance, as the case may be, to the existing
          Advance
          (or portion thereof) being Converted (it being understood that such Conversion
          shall not constitute a borrowing for purposes of Article 4,
          Article 5
          or
Article 6).

         

        (d) Notwithstanding
          any other provision of any Loan Document:

         

        (i) if
          the
          Borrower shall have failed to elect a Eurodollar Advance under Section 2.2
          or this
Section 3.3,
          as the
          case may be, in connection with any borrowing of new Loans or expiration
          of an
          Eurodollar Interest Period with respect to any existing Eurodollar Advance,
          the
          amount of the Loans subject to such borrowing or such existing Eurodollar
          Advance shall thereafter be an ABR Advance until such time, if any, as
          the
          Borrower shall elect a new Eurodollar Advance pursuant to this Section 3.3,

         

        
          
            
            

          

          
            -22-

            
              

            

          

          
            
            

          

        

         

        (ii) the
          Borrower shall not be permitted to select a Eurodollar Advance the Eurodollar
          Interest Period in respect of which ends later than the Maturity Date,
          and

         

        (iii) the
          Borrower shall not be permitted to have more than ten Eurodollar Advances
          outstanding at any one time, it being understood and agreed that each borrowing
          of Eurodollar Advances pursuant to a single Borrowing Request shall constitute
          the making of one Eurodollar Advance for the purpose of calculating such
          limitation.

         

        SECTION 3.4 Interest
          Rates and Payment Dates

         

        (a) Prior
          to Maturity. Except
          as
          otherwise provided in Section 3.4(b)
          and
Section 3.4(c),
          the
          Loans shall bear interest on the unpaid principal balance thereof at the
          applicable interest rate or rates per annum set forth below:

        

        
          	
                  LOANS

                	
                  RATE

                
	
                  Loans
                    constituting ABR Advances

                	
                  Alternate
                    Base Rate applicable thereto plus
                    the
                    Applicable Margin.

                
	
                  Loans
                    constituting Eurodollar Advances

                	
                  Eurodollar
                    Rate applicable thereto plus
                    the
                    Applicable Margin.

                

        

         

        (b) After
          Maturity, Late Payment Rate. After
          maturity, whether by acceleration, notice of intention to prepay or otherwise,
          the outstanding principal balance of the Loans shall bear interest at the
          Alternate Base Rate plus
          2% per
          annum until paid (whether before or after the entry of any judgment
          thereon).
          Any
          payment of principal, interest or any Fees not paid on the date when due
          and
          payable shall bear interest at the Alternate Base Rate plus
          2% per
          annum from the due date thereof until the date such payment is made (whether
          before or after the entry of any judgment thereon).

         

        (c) Highest
          Lawful Rate. Notwithstanding
          anything to the contrary contained in this Agreement, at no time shall
          the
          interest rate payable to any Lender on any of its Loans, together with
          any Fees
          and all other amounts payable hereunder to such Lender to the extent the
          same
          constitute or are deemed to constitute interest, exceed the Highest Lawful
          Rate.
          If
          in
          respect of any period during the term of this Agreement, any amount paid
          to any
          Lender hereunder, to the extent the same shall (but for the provisions
          of this
Section 3.4)
          constitute or be deemed to constitute interest, would exceed the maximum
          amount
          of interest permitted by the Highest Lawful Rate during such period (such
          amount
          being hereinafter referred to as an “Unqualified
          Amount”),
          then
          (i) such Unqualified Amount shall be applied or shall be deemed to have
          been applied as a prepayment of the Loans of such Lender, and (ii) if, in
          any subsequent period during the term of this Agreement, all amounts payable
          hereunder to such Lender in respect of such period which constitute or
          shall be
          deemed to constitute interest shall be less than the maximum amount of
          interest
          permitted by the Highest Lawful Rate during such period, then 

         

        
          
            
            

          

          
            -23-

            
              

            

          

          
            
            

          

        

         

        the
          Borrower shall pay to such Lender in respect of such period an amount (each
          a
“Compensatory
          Interest Payment”)
          equal
          to the lesser of (x) a sum which, when added to all such amounts, would
          equal the maximum amount of interest permitted by the Highest Lawful Rate
          during
          such period, and (y) an amount equal to the aggregate sum of all
          Unqualified Amounts less
          all other
          Compensatory Interest Payments.

         

        (d) General.
          Interest
          shall be payable in arrears on each Interest Payment Date, on the Expiration
          Date and, to the extent provided in Section 2.6(d),
          upon
          each prepayment of the Loans.
          Any
          change
          in the interest rate on the Loans resulting from an increase or a decrease
          in
          the Alternate Base Rate or any reserve requirement shall become effective
          as of
          the opening of business on the day on which such change shall become
          effective.
          The
          Administrative Agent shall (i) in accordance with its customary practice,
          provide notice to the Borrower when interest payments are due, and (ii) as
          soon as practicable, notify the Borrower and the Lenders of the effective
          date
          and the amount of each change in the Prime Rate, but any failure to so
          notify
          shall not in any manner affect the obligation of the Borrower to pay interest
          on
          the Loans in the amounts and on the dates set forth herein. Each determination
          by the Administrative Agent of the Alternate Base Rate and the Eurodollar
          Rate
          pursuant to this Agreement shall be conclusive and binding on the Borrower
          absent manifest error.
          The
          Borrower acknowledges that to the extent interest payable on the Loans
          is based
          on the Alternate Base Rate, such rate is only one of the bases for computing
          interest on loans made by the Lenders, and by basing interest payable on
          ABR
          Advances on the Alternate Base Rate, the Lenders have not committed to
          charge,
          and the Borrower has not in any way bargained for, interest based on a
          lower or
          the lowest rate at which the Lenders may now or in the future make extensions
          of
          credit to other Persons.
          All
          interest (other than interest calculated with reference to the Prime Rate)
          shall
          be calculated on the basis of a 360-day year for the actual number of days
          elapsed, and all interest determined with reference to the Prime Rate shall
          be
          calculated on the basis of a 365/366-day year for the actual number of
          days
          elapsed.

         

        SECTION 3.5 Indemnification
          for Loss

         

        Notwithstanding
          anything contained herein to the contrary, if: (i) the Borrower shall fail
          to borrow a Eurodollar Advance or if the Borrower shall fail to Convert
          a
          Eurodollar Advance after it shall have given notice to do so in which it
          shall
          have requested a Eurodollar Advance pursuant to Section 2.2
          or
Section 3.3,
          as the
          case may be, (ii) a Eurodollar Advance shall be terminated for any reason
          prior to the last day of the Eurodollar Interest Period applicable thereto,
          (iii) any repayment or prepayment of the principal amount of a Eurodollar
          Advance is made for any reason on a date which is prior to the last day
          of the
          Eurodollar Interest Period applicable thereto, or (iv) the Borrower shall
          have revoked a notice of prepayment or notice of termination of the Commitments
          that was conditioned upon the effectiveness of other credit facilities
          or the
          consummation of the issuance of long term Indebtedness or equity securities
          pursuant to Section 2.5
          or
Section 2.6,
          the
          Borrower agrees to indemnify each Lender against, and to pay on demand
          directly
          to such Lender the amount (calculated by such Lender using any method chosen
          by
          such Lender which is customarily used by such Lender for such purpose)
          equal to
          any loss or expense suffered by such Lender as a result of such failure
          to
          borrow or Convert, or such termination, repayment, prepayment or revocation,
          including any loss, cost or expense suffered by such Lender in liquidating
          or
          employing deposits acquired to 

         

        
          
            
            

          

          
            -24-

            
              

            

          

          
            
            

          

        

         

        fund
          or
          maintain the funding of such Eurodollar Advance or redeploying funds prepaid
          or
          repaid, in amounts which correspond to such Eurodollar Advance and any
          reasonable internal processing charge customarily charged by such Lender
          in
          connection therewith.

         

        SECTION 3.6 Reimbursement
          for Costs, Etc.

         

        If
          at any
          time or from time to time there shall occur a Regulatory Change and any
          Lender
          shall have reasonably determined that such Regulatory Change (i) shall have
          had or will thereafter have the effect of reducing (A) the rate of return
          on such Lender’s capital or the capital of any Person directly or indirectly
          owning or controlling such Lender (each a “Control
          Person”),
          or
          (B) the asset value (for capital purposes) to such Lender or such Control
          Person, as applicable, of the Loans, or any participation therein, in any
          case
          to a level below that which such Lender or such Control Person could have
          achieved or would thereafter be able to achieve but for such Regulatory
          Change
          (after taking into account such Lender’s or such Control Person’s policies
          regarding capital), (ii) will impose, modify or deem applicable any
          reserve, asset, special deposit or special assessment requirements on deposits
          obtained in the interbank eurodollar market in connection with the Loan
          Documents (excluding, with respect to any Eurodollar Advance, any such
          requirement which is included in the determination of the rate applicable
          thereto), (iii) will subject such Lender or such Control Person, as
          applicable, to any tax (documentary, stamp or otherwise) with respect to
          this
          Agreement or any Note, or (iv) will change the basis of taxation of
          payments to such Lender or such Control Person, as applicable, of principal,
          interest or fees payable under the Loan Documents (except, in the case
          of
          clauses (iii) and (iv) above, for any tax or changes in the rate of tax on
          such Lender’s or such Control Person’s net income) then, in each such case,
          within ten days after demand by such Lender, the Borrower shall pay to
          such
          Lender or such Control Person, as the case may be, such additional amount
          or
          amounts as shall be sufficient to compensate such Lender or such Control
          Person,
          as the case may be, for any such reduction, reserve or other requirement,
          tax,
          loss, cost or expense (excluding general administrative and overhead costs)
          (collectively, “Costs”)
          attributable to such Lender’s or such Control Person’s compliance during the
          term hereof with such Regulatory Change.
          Each
          Lender may make multiple requests for compensation under this
          Section.

         

        Notwithstanding
          the foregoing, the Borrower will not be required to compensate any Lender
          for
          any Costs under this Section 3.6
          arising
          prior to 45 days preceding the date of demand, unless the applicable
          Regulatory Change giving rise to such Costs is imposed retroactively.
          In
          the
          case of retroactivity, such notice shall be provided to the Borrower not
          later
          than 45 days from the date that such Lender learned of such Regulatory
          Change.
          The
          Borrower’s obligation to compensate such Lender shall be contingent upon the
          provision of such timely notice (but any failure by such Lender to provide
          such
          timely notice shall not affect the Borrower’s obligations with respect to
          (i) Costs incurred from the date as of which such Regulatory Change became
          effective to the date that is 45 days after the date such Lender reasonably
          should have learned of such Regulatory Change and (ii) Costs incurred
          following the provision of such notice).

         

        SECTION 3.7 Illegality
          of Funding

         

        Notwithstanding
          any other provision hereof, if any Lender shall reasonably determine that
          any
          law, regulation, treaty or directive, or any change therein or in
          the

         

        
          
            
            

          

          
            -25-

            
              

            

          

          
            
            

          

        

         

        interpretation
          or application thereof, shall make it unlawful for such Lender to make
          or
          maintain any Eurodollar Advance as contemplated by this Agreement, such
          Lender
          shall promptly notify the Borrower and the Administrative Agent thereof,
          and
          (a) the commitment of such Lender to make such Eurodollar Advances or
          Convert ABR Advances to such Eurodollar Advances shall forthwith be suspended,
          (b) such Lender shall fund its portion of each requested Eurodollar Advance
          as an ABR Advance and (c) such Lender’s Loans then outstanding as such
          Eurodollar Advances, if any, shall be Converted automatically to an ABR
          Advance
          on the last day of the then current Eurodollar Interest Period applicable
          thereto or at such earlier time as may be required.
          If
          the
          commitment of any Lender with respect to Eurodollar Advances is suspended
          pursuant to this Section and such Lender shall have obtained actual knowledge
          that it is once again legal for such Lender to make or maintain Eurodollar
          Advances, such Lender shall promptly notify the Administrative Agent and
          the
          Borrower thereof and, upon receipt of such notice by each of the Administrative
          Agent and the Borrower, such Lender’s commitment to make or maintain Eurodollar
          Advances shall be reinstated.
          If
          the
          commitment of any Lender with respect to Eurodollar Advances is suspended
          pursuant to this Section, such suspension shall not otherwise affect such
          Lender’s Commitment.

         

        SECTION 3.8 Option
          to Fund; Substituted Interest Rate

         

        (a) Each
          Lender has indicated that, if the Borrower requests a Eurodollar Advance,
          such
          Lender may wish to purchase one or more deposits in order to fund or maintain
          its funding of its Pro Rata Percentage of such Eurodollar Advance during
          the
          Eurodollar Interest Period with respect thereto; it being understood that
          the
          provisions of this Agreement relating to such funding are included only
          for the
          purpose of determining the rate of interest to be paid in respect of such
          Eurodollar Advance and any amounts owing under Section 3.5
          and
Section 3.6.
          Each
          Lender shall be entitled to fund and maintain its funding of all or any
          part of
          each Eurodollar Advance in any manner it sees fit, but all such determinations
          hereunder shall be made as if such Lender had actually funded and maintained
          its
          Pro Rata Percentage of each Eurodollar Advance during the applicable Eurodollar
          Interest Period through the purchase of deposits in an amount equal to
          the
          amount of its Pro Rata Percentage of such Eurodollar Advance and having
          a
          maturity corresponding to such Eurodollar Interest Period.
          Each
          Lender may fund its Loans from or for the account of any branch or office
          of
          such Lender as such Lender may choose from time to time, subject to Section 3.10.

         

        (b) In
          the
          event that (i) the Administrative Agent shall have determined in good faith
          (which determination shall be conclusive and binding upon the Borrower)
          that by
          reason of circumstances affecting the interbank eurodollar market either
          adequate and reasonable means do not exist for ascertaining the Eurodollar
          Rate
          applicable pursuant to Section 2.2
          or
Section 3.3,
          or
          (ii) the Required Lenders shall have notified the Administrative Agent that
          they have in good faith determined (which determination shall be conclusive
          and
          binding on the Borrower) that the applicable Eurodollar Rate will not adequately
          and fairly reflect the cost to such Lenders of maintaining or funding loans
          bearing interest based on such Eurodollar Rate with respect to any portion
          of
          the Loans that the Borrower has requested be made as Eurodollar Advances
          or any
          Eurodollar Advance that will result from the requested conversion of any
          portion
          of the Loans into Eurodollar Advances (each, an “Affected
          Advance”),
          the
          Administrative Agent shall promptly notify the Borrower and the Lenders
          (by fax
          or other writing) of such 

         

        
          
            
            

          

          
            -26-

            
              

            

          

          
            
            

          

        

         

        determination
          on or, to the extent practicable, prior to the requested Borrowing Date
          or
          conversion date for such Affected Advances.
          If
          the
          Administrative Agent shall give such notice, (A) any Affected Advances
          shall be made as ABR Advances, (B) the Loans (or any portion thereof) that
          were to have been Converted to Affected Advances shall be Converted to
          or
          continued as ABR Advances, and (C) any outstanding Affected Advances shall
          be Converted, on the last day of the then current Eurodollar Interest Period
          with respect thereto, to ABR Advances.
          Until
          any
          notice under clauses (i) or (ii), as the case may be, of this Section 3.8(b)
          has been
          withdrawn by the Administrative Agent (by notice to the Borrower) promptly
          upon
          either (x) the Administrative Agent having determined that such
          circumstances affecting the relevant market no longer exist and that adequate
          and reasonable means do exist for determining the Eurodollar Rate pursuant
          to
Section 2.2
          or
Section 3.3,
          or
          (y) the Administrative Agent having been notified by such Required Lenders
          that circumstances no longer render the Loans (or any portion thereof)
          Affected
          Advances, no further Eurodollar Advances shall be required to be made by
          the
          Lenders nor shall the Borrower have the right to Convert all or any portion
          of
          the Loans to Eurodollar Advances.

         

        SECTION 3.9 Certificates
          of Payment and Reimbursement

         

        Each
          Lender agrees, in connection with any request by it for payment or reimbursement
          pursuant to Section 3.5
          or
Section 3.6,
          to
          provide the Borrower with a certificate, signed by an officer of such Lender,
          setting forth a description in reasonable detail of any such payment or
          reimbursement. Each determination by each Lender of such payment or
          reimbursement shall be conclusive absent manifest error.

         

        SECTION 3.10 Taxes;
          Net Payments

         

        (a) All
          payments made by the Borrower under the Loan Documents shall be made free
          and
          clear of, and without reduction for or on account of, any taxes required
          by law
          to be withheld from any amounts payable under the Loan Documents.
          In
          the
          event that the Borrower is prohibited by law from making such payments
          free of
          deductions or withholdings, then the Borrower shall pay such additional
          amounts
          to the Administrative Agent, for the benefit of the Lenders, as may be
          necessary
          in order that the actual amounts received by the Lenders in respect of
          interest
          and any other amounts payable under the Loan Documents after deduction
          or
          withholding (and after payment of any additional taxes or other charges
          due as a
          consequence of the payment of such additional amounts) shall equal the
          amount
          that would have been received if such deduction or withholding were not
          required.
          In
          the
          event that any such deduction or withholding can be reduced or nullified
          as a
          result of the application of any relevant double taxation convention, the
          Lenders and the Administrative Agent will, at the expense of the Borrower,
          cooperate with the Borrower in making application to the relevant taxing
          authorities seeking to obtain such reduction or nullification, provided
          that the
          Lenders and the Administrative Agent shall have no obligation to (i) engage
          in any litigation, hearing or proceeding with respect thereto or
          (ii) disclose any tax return or other confidential information.
          If
          the
          Borrower shall make any payment under this Section or shall make any deduction
          or withholding from amounts paid under any Loan Document, the Borrower
          shall
          forthwith forward to the Administrative Agent original or certified copies
          of
          official receipts or other evidence acceptable to the Administrative Agent
          establishing each such payment, deduction or 

         

        
          
            
            

          

          
            -27-

            
              

            

          

          
            
            

          

        

         

        withholding,
          as the case may be, and the Administrative Agent in turn shall distribute
          copies
          thereof to each Lender.
          If
          any
          payment to any Lender under any Loan Document is or becomes subject to
          any
          withholding, such Lender shall (unless otherwise required by a Governmental
          Authority or as a result of any law, rule, regulation, order or similar
          directive applicable to such Lender) designate a different office or branch
          to
          which such payment is to be made from that initially selected thereby,
          if such
          designation would avoid such withholding and would not be otherwise
          disadvantageous to such Lender in any respect.
          In
          the
          event that any Lender determines that it received a refund or credit for
          taxes
          paid by the Borrower under this Section, such Lender shall promptly notify
          the
          Administrative Agent and the Borrower of such fact and shall remit to the
          Borrower the amount of such refund or credit applicable to the payments
          made by
          the Borrower in respect of such Lender under this Section.

         

        (b) Any
          Foreign Lender that is entitled to an exemption from or reduction of withholding
          tax under the law of the jurisdiction in which the Borrower is located,
          or any
          treaty to which such jurisdiction is a party, with respect to payments
          under the
          Loan Documents shall deliver to the Borrower (with a copy to the Administrative
          Agent), at the time or times prescribed by applicable law, such properly
          completed and executed documentation prescribed by applicable law or reasonably
          requested by the Borrower as will permit such payments to be made without
          withholding or at a reduced rate.
          Notwithstanding
          any provision herein to the contrary, the Borrower shall have no obligation
          to
          pay to any Lender any amount which the Borrower is liable to withhold due
          to the
          failure of such Lender to file any statement of exemption required by the
          Internal Revenue Code.

         

        SECTION 3.11 Facility
          Fee

         

        The
          Borrower agrees to pay to the Administrative Agent for the pro rata account
          of
          each Lender a fee (the “Facility
          Fee”)
          during
          the period commencing on the Effective Date and ending on the Facility
          Fee
          Termination Date, payable quarterly in arrears on the last day of each
          March,
          June, September and December of each year, commencing on the last day of
          the
          calendar quarter in which the Effective Date shall have occurred, and on
          the
          Facility Fee Termination Date, at a rate per annum equal to the Applicable
          Margin of (i) prior to the date that is the earlier of (x) the third
          Borrowing Date and (y) the last day of the Commitment Period, the Available
          Commitment of such Lender plus
          the sum
          of the outstanding principal balance of all Loans of such Lender on such
          date
          and (ii) on any day thereafter, the sum of the outstanding principal
          balance of all Loans of such Lender on such date. The Facility Fee shall
          be
          computed on the basis of a 360-day year for the actual number of days
          elapsed.

         

        SECTION 3.12 [Intentionally
          Omitted]

         

        SECTION 3.13 Replacement
          of Lender

         

        If
          the
          Borrower is obligated to pay to any Lender any amount under Section 3.6
          or
Section 3.10,
          the
          Borrower shall have the right within 90 days thereafter, in accordance
          with the
          requirements of Section 11.7(b),
          if no
          Default or Event of Default shall exist, to replace such Lender (the
“Replaced
          Lender”)
          with
          one or more other assignees (each a “Replacement
          Lender”),
          provided
          that
          (i) at the time of any replacement pursuant to this Section, the
          Replacement Lender shall enter into one or more Assignment and Acceptance
          Agreements 

         

        
          
            
            

          

          
            -28-

            
              

            

          

          
            
            

          

        

         

        pursuant
          to Section 11.7(b)
          (with the
          processing and recordation fee referred to in Section 11.7(b)
          payable
          pursuant to said Section 11.7(b)
          to be
          paid by the Replacement Lender) pursuant to which the Replacement Lender
          shall
          acquire the Commitment (if any) and the outstanding Loans of the Replaced
          Lender
          and, in connection therewith, shall pay the following: (a) to the Replaced
          Lender, an amount equal to the sum of (A) an amount equal to the principal
          of, and all accrued interest on, all outstanding Loans of the Replaced
          Lender
          and (B) an amount equal to all accrued, but unpaid, fees owing to the
          Replaced Lender and (b) to the Administrative Agent an amount equal to all
          amounts owed by such Replaced Lender to the Administrative Agent under
          this
          Agreement, including, without limitation, an amount equal to the principal
          of,
          and all accrued interest on, all outstanding Loans of the Replaced Lender,
          a
          corresponding amount of which was made available by the Administrative
          Agent to
          the Borrower pursuant to Section 3.1
          and which
          has not been repaid to the Administrative Agent by such Replaced Lender
          or the
          Borrower, and (ii) all obligations of the Borrower owing to the Replaced
          Lender (other than those specifically described in clause (i) above in
          respect of which the assignment purchase price has been, or is concurrently
          being, paid) shall be paid in full to such Replaced Lender concurrently
          with
          such replacement.
          Upon
          the
          execution of the respective Assignment and Acceptance Agreements and the
          payment
          of amounts referred to in clauses (i) and (ii) of this Section 3.13,
          the
          Replacement Lender shall become a Lender hereunder and the Replaced Lender
          shall
          cease to constitute a Lender hereunder, except with respect to indemnification
          provisions under this Agreement that are intended to survive the termination
          of
          the Commitments and the repayment of the Loans.

         

        ARTICLE 4

         

        REPRESENTATIONS
          AND WARRANTIES

         

        In
          order
          to induce the Administrative Agent and the Lenders to enter into this Agreement,
          and the Lenders to make Loans, the Borrower hereby makes the following
          representations and warranties to the Administrative Agent and the
          Lenders:

         

        SECTION 4.1 Existence
          and Power

         

        Each
          of
          the Borrower and the Subsidiaries is duly organized, validly existing and
          in
          good standing under the laws of the jurisdiction of its incorporation or
          formation (except, in the case of the Subsidiaries, where the failure to
          be in
          such good standing could not reasonably be expected to have a Material
          Adverse
          effect), has all requisite corporate power and authority to own its Property
          and
          to carry on its business as now conducted, and is qualified to do business
          as a
          foreign corporation and is in good standing in each jurisdiction in which
          it
          owns or leases real Property or in which the nature of its business requires
          it
          to be so qualified (except those jurisdictions where the failure to be
          so
          qualified or to be in good standing could not reasonably be expected to
          have a
          Material Adverse effect).

         

        SECTION 4.2 Authority

         

        The
          Borrower has full corporate power and authority to enter into, execute,
          deliver
          and perform the terms of the Loan Documents, all of which have been duly
          authorized by 

         

        
          
            
            

          

          
            -29-

            
              

            

          

          
            
            

          

        

         

        all
          proper
          and necessary corporate action and are not in contravention of any applicable
          law or the terms of its Certificate of Incorporation and By-Laws.
          No
          consent
          or approval of, or other action by, shareholders of the Borrower, any
          Governmental Authority, or any other Person (which has not already been
          obtained) is required to authorize in respect of the Borrower, or is required
          in
          connection with the execution, delivery, and performance by the Borrower
          of the
          Loan Documents or is required as a condition to the enforceability of the
          Loan
          Documents against the Borrower.

         

        SECTION 4.3 Binding
          Agreement

         

        The
          Loan
          Documents constitute the valid and legally binding obligations of the Borrower,
          enforceable in accordance with their respective terms, except as such
          enforceability may be limited by applicable bankruptcy, insolvency,
          reorganization, moratorium or similar laws affecting the enforcement of
          creditors’ rights generally and by equitable principles relating to the
          availability of specific performance as a remedy.

         

        SECTION 4.4 Litigation

         

        As
          at
          February 2, 2007, there were no actions, suits, arbitration proceedings or
          claims (whether purportedly on behalf of the Borrower, any Subsidiary or
          otherwise) pending or, to the knowledge of the Borrower, threatened against
          the
          Borrower or any Subsidiary or any of their respective Properties, or maintained
          by the Borrower or any Subsidiary, at law or in equity, before any Governmental
          Authority which could reasonably be expected to have a Material Adverse
          effect.
          There are no proceedings pending or, to the knowledge of the Borrower,
          threatened against the Borrower or any Subsidiary (a) which call into
          question the validity or enforceability of any Loan Document, or otherwise
          seek
          to invalidate, any Loan Document, or (b) which might, individually or in
          the aggregate, materially and adversely affect any of the transactions
          contemplated by any Loan Document (it being understood that the Caremark
          Acquisition is not a transaction contemplated by any Loan Document for
          the
          purposes of this clause (b)).

         

        SECTION 4.5 No
          Conflicting Agreements

         

        (a) Neither
          the Borrower nor any Subsidiary is in default under any agreement to which
          it is
          a party or by which it or any of its Property is bound the effect of which
          could
          reasonably be expected to have a Material Adverse effect.
          No
          notice
          to, or filing with, any Governmental Authority is required for the due
          execution, delivery and performance by the Borrower of the Loan
          Documents.

         

        (b) No
          provision of any existing material mortgage, material indenture, material
          contract or material agreement or of any existing statute, rule, regulation,
          judgment, decree or order binding on the Borrower or any Subsidiary or
          affecting
          the Property of the Borrower or any Subsidiary conflicts with, or requires
          any
          consent which has not already been obtained under, or would in any way
          prevent
          the execution, delivery or performance by the Borrower of the terms of,
          any Loan
          Document.
          The
          execution, delivery or performance by the Borrower of the terms of each
          Loan
          Document will not constitute a default under, or result in the

         

        
          
            
            

          

          
            -30-

            
              

            

          

          
            
            

          

        

         

        creation
          or imposition of, or obligation to create, any Lien upon the Property of
          the
          Borrower or any Subsidiary pursuant to the terms of any such mortgage,
          indenture, contract or agreement.

         

        SECTION 4.6 Taxes

         

        The
          Borrower and each Subsidiary has filed or caused to be filed all tax returns,
          and has paid, or has made adequate provision for the payment of, all taxes
          shown
          to be due and payable on said returns or in any assessments made against
          them,
          the failure of which to file or pay could reasonably be expected to have
          a
          Material Adverse effect, and no tax Liens (other than Liens permitted under
          Section 8.2)
          have
          been filed against the Borrower or any Subsidiary and no claims are being
          asserted with respect to such taxes which are required by GAAP to be reflected
          in the Financial Statements and are not so reflected, except for taxes
          which
          have been assessed but which are not yet due and payable.
          The
          charges, accruals and reserves on the books of the Borrower and each Subsidiary
          with respect to all federal, state, local and other taxes are considered
          by the
          management of the Borrower to be adequate, and the Borrower knows of no
          unpaid
          assessment which (a) could reasonably be expected to have a Material
          Adverse effect, or (b) is or might be due and payable against it or any
          Subsidiary or any Property of the Borrower or any Subsidiary, except such
          thereof as are being contested in good faith and by appropriate proceedings
          diligently conducted, and for which adequate reserves have been set aside
          in
          accordance with GAAP or which have been assessed but are not yet due and
          payable.

         

        SECTION 4.7 Compliance
          with Applicable Laws; Filings

         

        Neither
          the Borrower nor any Subsidiary is in default with respect to any judgment,
          order, writ, injunction, decree or decision of any Governmental Authority
          which
          default could reasonably be expected to have a Material Adverse
          effect.
          The
          Borrower and each Subsidiary is complying with all applicable statutes,
          rules
          and regulations of all Governmental Authorities, a violation of which could
          reasonably be expected to have a Material Adverse effect.
          The
          Borrower and each Subsidiary has filed or caused to be filed with all
          Governmental Authorities all reports, applications, documents, instruments
          and
          information required to be filed pursuant to all applicable laws, rules,
          regulations and requests which, if not so filed, could reasonably be expected
          to
          have a Material Adverse effect.

         

        SECTION 4.8 Governmental
          Regulations

         

        Neither
          the Borrower nor any Subsidiary nor any corporation controlling the Borrower
          or
          any Subsidiary or under common control with the Borrower or any Subsidiary
          is
          subject to regulation under the Investment Company Act of 1940, as amended,
          or
          is subject to any statute or regulation which regulates the incurrence
          of
          Indebtedness.

         

        SECTION 4.9 Federal
          Reserve Regulations; Use of Proceeds

         

        The
          Borrower is not engaged principally, or as one of its important activities,
          in
          the business of extending credit for the purpose of purchasing or carrying
          any
          margin stock within the meaning of Regulation U of the Board of Governors
          of the
          Federal Reserve System, as amended.
          No
          part of
          the proceeds of the Loans has been or will be used, directly or indirectly,
          and
          whether immediately, incidentally or ultimately, for a purpose which violates
          any law, rule 

         

        
          
            
            

          

          
            -31-

            
              

            

          

          
            
            

          

        

         

        or
          regulation of any Governmental Authority, including, without limitation,
          the
          provisions of Regulations T, U or X of the Board of Governors of the
          Federal Reserve System, as amended.
          Anything
          in this Agreement to the contrary notwithstanding, no Lender shall be obligated
          to extend credit to or on behalf of the Borrower in violation of any limitation
          or prohibition provided by any applicable law, regulation or statute, including
          said Regulation U.
          Following
          application of the proceeds of each Loan, not more than 25% (or such greater
          or
          lesser percentage as is provided in the exclusions from the definition
          of
“Indirectly Secured” contained in said Regulation U as in effect at the
          time of the making of such Loan) of the value of the assets of the Borrower
          and
          the Subsidiaries on a Consolidated basis that are subject to Section 8.2
          will be
          Margin Stock.
          In
          addition, no part of the proceeds of any Loan will be used, whether directly
          or
          indirectly, and whether immediately, incidentally or ultimately, to make
          a loan
          to any director or executive officer of the Borrower or any
          Subsidiary.

         

        SECTION 4.10 No
          Misrepresentation

         

        No
          representation or warranty contained in any Loan Document and no certificate
          or
          written report furnished by the Borrower to the Administrative Agent or
          any
          Lender pursuant to any Loan Document contains or will contain, as of its
          date, a
          misstatement of material fact, or omits or will omit to state, as of its
          date, a
          material fact required to be stated in order to make the statements therein
          contained not misleading in the light of the circumstances under which
          made (it
          being understood that the Borrower makes no representation or warranty
          hereunder
          with respect to any projections or other forward looking
          information).

         

        SECTION 4.11 Plans

         

        Each
          Employee Benefit Plan of the Borrower, each Subsidiary and each ERISA Affiliate
          is in compliance with ERISA and the Internal Revenue Code, where applicable,
          except where the failure to so comply would not be material.
          The
          Borrower, each Subsidiary and each ERISA Affiliate have complied with the
          material requirements of Section 515 of ERISA with respect to each Pension
          Plan which is a Multiemployer Plan, except where the failure to so comply
          would
          not be material.
          The
          Borrower, each Subsidiary and each ERISA Affiliate has, as of the date
          hereof,
          made all contributions or payments to or under each Pension Plan required
          by law
          or the terms of such Pension Plan or any contract or agreement.
          No
          liability to the PBGC has been, or is reasonably expected by the Borrower,
          any
          Subsidiary or any ERISA Affiliate to be, incurred by the Borrower, any
          Subsidiary or any ERISA Affiliate.
          Liability,
          as referred to in this Section 4.11,
          includes
          any joint and several liability, but excludes any current or, to the extent
          it
          represents future liability in the ordinary course, any future liability
          for
          premiums under Section 4007 of ERISA.
          Each
          Employee Benefit Plan which is a group health plan within the meaning of
          Section 5000(b)(1) of the Internal Revenue Code is in material compliance
          with the continuation of health care coverage requirements of Section 4980B
          of the Internal Revenue Code and with the portability, nondiscrimination
          and
          other requirements of Sections 9801, 9802, 9803, 9811 and 9812 of the
          Internal Revenue Code.

         

        SECTION 4.12 Environmental
          Matters

         

        Neither
          the Borrower nor any Subsidiary (a) has received written notice or
          otherwise learned of any claim, demand, action, event, condition, report
          or
          investigation

         

        
          
            
            

          

          
            -32-

            
              

            

          

          
            
            

          

        

         

         indicating
          or concerning any potential or actual liability which individually or in
          the
          aggregate could reasonably be expected to have a Material Adverse effect,
          arising in connection with (i) any non-compliance with or violation of the
          requirements of any applicable federal, state or local environmental health
          or
          safety statute or regulation, or (ii) the release or threatened release of
          any toxic or hazardous waste, substance or constituent, or other substance
          into
          the environment, (b) to the best knowledge of the Borrower, has any
          threatened or actual liability in connection with the release or threatened
          release of any toxic or hazardous waste, substance or constituent, or other
          substance into the environment which individually or in the aggregate could
          reasonably be expected to have a Material Adverse effect, (c) has received
          notice of any federal or state investigation evaluating whether any remedial
          action is needed to respond to a release or threatened release of any toxic
          or
          hazardous waste, substance or constituent or other substance into the
          environment for which the Borrower or any Subsidiary is or would be liable,
          which liability would reasonably be expected to have a Material Adverse
          effect,
          or (d) has received notice that the Borrower or any Subsidiary is or may be
          liable to any Person under the Comprehensive Environmental Response,
          Compensation and Liability Act, as amended, 42 U.S.C. Section 9601
et seq.,
          or any
          analogous state law, which liability would reasonably be expected to have
          a
          Material Adverse effect.
          The
          Borrower and each Subsidiary is in compliance with the financial responsibility
          requirements of federal and state environmental laws to the extent applicable,
          including those contained in 40 C.F.R., parts 264 and 265,
          subpart H, and any analogous state law, except in those cases in which the
          failure so to comply would not reasonably be expected to have a Material
          Adverse
          effect.

         

        SECTION 4.13 Financial
          Statements

         

        The
          Borrower has heretofore delivered to the Lenders through the Administrative
          Agent copies of the audited Consolidated Balance Sheet of the Borrower
          and its
          Subsidiaries as of December 31, 2006, and the related Consolidated
          Statements of Operations, Shareholders’ Equity and Cash Flows for the fiscal
          year then ended.
          The
          financial statements referred to immediately above, including all related
          notes
          and schedules, are herein referred to collectively as the “Financial
          Statements.” The
          Financial Statements fairly present the Consolidated financial condition
          and
          results of the operations of the Borrower and the Subsidiaries as of the
          date
          and for the period indicated therein and, except as noted therein, have
          been
          prepared in conformity with GAAP as then in effect.
          Neither
          the Borrower nor any of the Subsidiaries has any obligation or liability
          of any
          kind (whether fixed, accrued, contingent, unmatured or otherwise) which,
          in
          accordance with GAAP as then in effect, should have been disclosed in the
          Financial Statements and was not. During the period from December 31, 2005
          to and including February 2, 2007 there was no Material Adverse change,
          including as a result of any change in law or any change in the consolidated
          financial condition, operations, business or Property of the Borrower and
          its
          Subsidiaries taken as a whole.

         

        
          
            
            

          

          
            -33-

            
              

            

          

          
            
            

          

        

         

        ARTICLE 5

         

        CONDITIONS
          OF LENDING —

        LOANS
          ON
          THE FIRST BORROWING DATE

         

        In
          addition to the requirements set forth in Article 6,
          the
          obligation of each Lender on the first Borrowing Date to make a Loan is
          subject
          to the fulfillment of the following conditions precedent prior to or
          simultaneously with the Effective Date:

         

        SECTION 5.1 Evidence
          of Corporate Action

         

        The
          Administrative Agent shall have received a certificate, dated the Effective
          Date, of the Secretary or an Assistant Secretary of the Borrower
          (i) attaching a true and complete copy of the resolutions of its Board of
          Directors and of all documents evidencing all other necessary corporate
          action
          (in form and substance reasonably satisfactory to the Administrative Agent)
          taken by the Borrower to authorize the Loan Documents and the transactions
          contemplated thereby, (ii) attaching a true and complete copy of its
          Certificate of Incorporation and By-Laws, (iii) setting forth the
          incumbency of the officer or officers of the Borrower who may sign the
          Loan
          Documents and any other certificates, requests, notices or other documents
          now
          or in the future required thereunder, and (iv) attaching a long-form
          certificate of good standing of the Secretary of State of the State of
          Delaware.

         

        SECTION 5.2 Notes

         

        The
          Administrative Agent shall have received a Note for each Lender that shall
          have
          requested one, executed by the Borrower.

         

        SECTION 5.3 Opinion
          of Counsel to the Borrower

         

        The
          Administrative Agent shall have received:

         

        (a) an
          opinion
          of Zenon Lankowsky, counsel to the Borrower, dated the Effective Date,
          and in
          the form of Exhibit D-1; and

         

        (b) an
          opinion
          of Davis Polk & Wardwell, special counsel to the Borrower, dated the
          Effective Date, and in the form of Exhibit D-2.

         

        SECTION 5.4 Caremark
          Acquisition

         

        The
          Administrative Agent shall have received a certificate of the Chief Financial
          Officer of the Borrower, dated as of the first Borrowing Date, certifying
          that
          the closing of the Caremark Acquisition has been or will be consummated
          substantially in accordance with all material terms and conditions of the
          Caremark Merger Agreement.

         

        
          
            
            

          

          
            -34-

            
              

            

          

          
            
            

          

        

         

        ARTICLE 6

         

        CONDITIONS
          TO LENDING —

        LOANS
          ON
          EACH BORROWING DATE

         

        The
          obligation of each Lender on any Borrowing Date to make each Loan is subject
          to
          the fulfillment of the following conditions precedent:

         

        SECTION 6.1 Compliance

         

        On
          each
          Borrowing Date, and after giving effect to the Loans to be made on such
          Borrowing Date, (a) there shall exist no Default or Event of Default, and
          (b) the representations and warranties contained in this Agreement shall be
          true and correct with the same effect as though such representations and
          warranties had been made on such Borrowing Date, except those which are
          expressly specified to be made as of an earlier date.

         

        SECTION 6.2 Requests

         

        The
          Administrative Agent shall have received a Borrowing Request (which shall
          comply
          with the provisions of Section 2.2)
          from the
          Borrower.

         

        SECTION 6.3 Loan
          Closings

         

        All
          documents required by the provisions of this Agreement to have been executed
          or
          delivered by the Borrower to the Administrative Agent or any Lender on
          or before
          the applicable Borrowing Date shall have been so executed or delivered
          on or
          before such Borrowing Date.

         

        ARTICLE 7

         

        AFFIRMATIVE
          COVENANTS

         

        The
          Borrower covenants and agrees that on and after the Effective Date and
          until the
          payment in full of the Loans and all other sums and amounts payable under
          the
          Loan Documents, the Borrower will:

         

        SECTION 7.1 Legal
          Existence

         

        Except
          as
          may otherwise be permitted by Section 8.3
          and
Section 8.4,
          maintain, and cause each Subsidiary to maintain, its corporate existence
          in good
          standing in the jurisdiction of its incorporation or formation and in each
          other
          jurisdiction in which the failure so to do could reasonably be expected
          to have
          a Material Adverse effect, except that the corporate existence of Subsidiaries
          operating closing or discontinued operations may be terminated.

         

        
          
            
            

          

          
            -35-

            
              

            

          

          
            
            

          

        

         

        SECTION 7.2 Taxes

         

        Pay
          and
          discharge when due, and cause each Subsidiary so to do, all taxes, assessments,
          governmental charges, license fees and levies upon or with respect to the
          Borrower and such Subsidiary, and upon the income, profits and Property
          thereof
          unless, and only to the extent, that either (i)(a) such taxes, assessments,
          governmental charges, license fees and levies shall be contested in good
          faith
          and by appropriate proceedings diligently conducted by the Borrower or
          such
          Subsidiary, and (b) such reserve or other appropriate provision as shall be
          required by GAAP shall have been made therefor, or (ii) the failure to pay
          or discharge such taxes, assessments, governmental charges, license fees
          and
          levies could not reasonably be expected to have a Material Adverse
          effect.

         

        SECTION 7.3 Insurance

         

        Keep,
          and
          cause each Subsidiary to keep, insurance with responsible insurance companies
          in
          such amounts and against such risks as is usually carried by the Borrower
          or
          such Subsidiary.

         

        SECTION 7.4 Performance
          of Obligations

         

        Pay
          and
          discharge promptly when due, and cause each Subsidiary so to do, all lawful
          Indebtedness, obligations and claims for labor, materials and supplies
          or
          otherwise which, if unpaid, could reasonably be expected to (a) have a
          Material Adverse effect, or (b) become a Lien on the Property of the
          Borrower or any Subsidiary, except those Liens permitted under Section 8.2,
          provided
          that
          neither the Borrower nor such Subsidiary shall be required to pay or discharge
          or cause to be paid or discharged any such Indebtedness, obligation or
          claim so
          long as (i) the validity thereof shall be contested in good faith and by
          appropriate proceedings diligently conducted by the Borrower or such Subsidiary,
          and (ii) such reserve or other appropriate provision as shall be required
          by GAAP shall have been made therefor.

         

        SECTION 7.5 Condition
          of Property

         

        Except
          for
          ordinary wear and tear, at all times, maintain, protect and keep in good
          repair,
          working order and condition, all material Property necessary for the operation
          of its business (other than Property which is replaced with similar Property)
          as
          then being operated, and cause each Subsidiary so to do.

         

        SECTION 7.6 Observance
          of Legal Requirements

         

        Observe
          and comply in all material respects, and cause each Subsidiary so to do,
          with
          all laws, ordinances, orders, judgments, rules, regulations, certifications,
          franchises, permits, licenses, directions and requirements of all Governmental
          Authorities, which now or at any time hereafter may be applicable to it
          or to
          such Subsidiary, a violation of which could reasonably be expected to have
          a
          Material Adverse effect.

         

        
          
            
            

          

          
            -36-

            
              

            

          

          
            
            

          

        

         

        SECTION 7.7 Financial
          Statements and Other Information

         

        Maintain,
          and cause each Subsidiary to maintain, a standard system of accounting
          in
          accordance with GAAP, and furnish to each Lender:

         

        (a) As
          soon as
          available and, in any event, within 120 days after the close of each fiscal
          year, a copy of (x) the Borrower’s 10-K in respect of such fiscal year, and
          (y)(i) the Borrower’s Consolidated Balance Sheet as of the end of such
          fiscal year, and (ii) the related Consolidated Statements of Operations,
          Shareholders’ Equity and Cash Flows, as of and through the end of such fiscal
          year, setting forth in each case in comparative form the corresponding
          figures
          in respect of the previous fiscal year, all in reasonable detail, and
          accompanied by a report of the Borrower’s auditors, which report shall state
          that (A) such auditors audited such financial statements, (B) such
          audit was made in accordance with generally accepted auditing standards
          in
          effect at the time and provides a reasonable basis for such opinion, and
          (C) said financial statements have been prepared in accordance with
          GAAP;

         

        (b) As
          soon as
          available, and in any event within 60 days after the end of each of the
          first three fiscal quarters of each fiscal year, a copy of (x) the
          Borrower’s 10-Q in respect of such fiscal quarter, and (y)(i) the
          Borrower’s Consolidated Balance Sheet as of the end of such quarter and
          (ii) the related Consolidated Statements of Operations, Shareholders’
Equity and Cash Flows for (A) such quarter and (B) the period from the
          beginning of the then current fiscal year to the end of such quarter, in
          each
          case in comparable form with the prior fiscal year, all in reasonable detail
          and
          prepared in accordance with GAAP (without footnotes and subject to year-end
          adjustments);

         

        (c) Simultaneously
          with the delivery of the financial statements required by
          clauses (a)
          and
(b)
          above, a
          certificate of the chief financial officer or treasurer of the Borrower
          certifying that no Default or Event of Default shall have occurred or be
          continuing or, if so, specifying in such certificate all such Defaults
          and
          Events of Default, and setting forth computations in reasonable detail
          demonstrating compliance with Section 8.1
          and
Section 8.9;

         

        (d) Prompt
          notice upon the Borrower becoming aware of any change in a Pricing
          Level;

         

        (e) Promptly
          upon becoming available, copies of all regular or periodic reports (including
          current reports on Form 8-K) which the Borrower or any Subsidiary may now
          or hereafter be required to file with or deliver to the Securities and
          Exchange
          Commission, or any other Governmental Authority succeeding to the functions
          thereof, and copies of all material news releases sent to all
          stockholders;

         

        (f) Prompt
          written notice of: (i) any citation, summons, subpoena, order to show cause
          or other order naming the Borrower or any Subsidiary a party to any proceeding
          before any Governmental Authority which could reasonably be expected to
          have a
          Material Adverse effect, and include with such notice a copy of such citation,
          summons, subpoena, order to show cause or other order, (ii) any lapse or
          other termination of any license, permit, franchise or other authorization
          issued to the Borrower or any Subsidiary by any Governmental Authority,
          (iii) any refusal by any Governmental Authority to renew or extend any
          license, permit, franchise 

         

        
          
            
            

          

          
            -37-

            
              

            

          

          
            
            

          

        

         

        or
          other
          authorization, and (iv) any dispute between the Borrower or any Subsidiary
          and any Governmental Authority, which lapse, termination, refusal or dispute,
          referred to in clause (ii), (iii) or (iv) above, could reasonably be
          expected to have a Material Adverse effect;

         

        (g) Prompt
          written notice of the occurrence of (i) each Default, (ii) each Event
          of Default and (iii) each Material Adverse change;

         

        (h) Promptly
          upon receipt thereof, copies of any audit reports delivered in connection
          with
          the statements referred to in Section 7.7(a);

         

        (i) From
          time
          to time, such other information regarding the financial position or business
          of
          the Borrower and the Subsidiaries as the Administrative Agent, at the request
          of
          any Lender, may reasonably request; and

         

        (j) Prompt
          written notice of such other information with documentation required by
          bank
          regulatory authorities under applicable “know your customer” and Anti-Money
          Laundering rules and regulations (including, without limitation, the PATRIOT
          Act), as from time to time may be reasonably requested by the Administrative
          Agent or any Lender.

         

        SECTION 7.8 Records

         

        Upon
          reasonable notice and during normal business hours, permit representatives
          of
          the Administrative Agent and each Lender to visit the offices of the Borrower
          and each Subsidiary, to examine the books and records (other than tax returns
          and work papers related to tax returns) thereof and auditors’ reports relating
          thereto, to discuss the affairs of the Borrower and each Subsidiary with
          the
          respective officers thereof, and to meet and discuss the affairs of the
          Borrower
          and each Subsidiary with the Borrower’s auditors.

         

        SECTION 7.9 Authorizations

         

        Maintain
          and cause each Subsidiary to maintain, in full force and effect, all copyrights,
          patents, trademarks, trade names, franchises, licenses, permits, applications,
          reports, and other authorizations and rights, which, if not so maintained,
          would
          individually or in the aggregate have a Material Adverse effect.

         

        ARTICLE 8

         

        NEGATIVE
          COVENANTS

         

        The
          Borrower covenants and agrees that on and after the Effective Date and
          until the
          payment in full of the Loans and all other sums and amounts which are payable
          under the Loan Documents, the Borrower will not:

         

        SECTION 8.1 Subsidiary
          Indebtedness

         

        Permit
          the
          Indebtedness of all Subsidiaries (excluding the ESOP Guaranty) to exceed
(on a
          combined basis) 10% of Tangible Net Worth.

         

        
          
            
            

          

          
            -38-

            
              

            

          

          
            
            

          

        

         

        SECTION 8.2 Liens

         

        Create,
          incur, assume or suffer to exist any Lien against or on any Property now
          owned
          or hereafter acquired by the Borrower or any of the Subsidiaries, or permit
          any
          of the Subsidiaries so to do, except any one or more of the following types
          of
          Liens: (a) Liens in connection with workers’ compensation, unemployment
          insurance or other social security obligations (which phrase shall not
          be
          construed to refer to ERISA or the minimum funding obligations under
          Section 412 of the Code), (b) Liens to secure the performance of bids,
          tenders, letters of credit, contracts (other than contracts for the payment
          of
          Indebtedness), leases, statutory obligations, surety, customs, appeal,
          performance and payment bonds and other obligations of like nature, in
          each such
          case arising in the ordinary course of business, (c) mechanics’, workmen’s,
          carriers’, warehousemen’s, materialmen’s, landlords’ or other like Liens arising
          in the ordinary course of business with respect to obligations which are
          not due
          or which are being contested in good faith and by appropriate proceedings
          diligently conducted, (d) Liens for taxes, assessments, fees or
          governmental charges the payment of which is not required by Section 7.2,
          (e) easements, rights of way, restrictions, leases of Property to others,
          easements for installations of public utilities, title imperfections and
          restrictions, zoning ordinances and other similar encumbrances affecting
          Property which in the aggregate do not materially impair its use for the
          operation of the business of the Borrower or such Subsidiary, (f) Liens on
          Property of the Subsidiaries under capital leases and Liens on Property
          of the
          Subsidiaries acquired (whether as a result of purchase, capital lease,
          merger or
          other acquisition) and either existing on such Property when acquired,
          or
          created contemporaneously with or within 12 months of such acquisition to
          secure the payment or financing of the purchase price of such Property
          (including the construction, development, substantial repair, alteration
          or
          improvement thereof), and any renewals thereof, provided
          that such
          Liens attach only to the Property so purchased or acquired (including any
          such
          construction, development, substantial repair, alteration or improvement
          thereof) and provided
          further
          that the
          Indebtedness secured by such Liens is permitted by Section 8.1,
          (g) statutory Liens in favor of lessors arising in connection with Property
          leased to the Borrower or any of the Subsidiaries, (h) Liens of
          attachments, judgments or awards against the Borrower or any of the Subsidiaries
          with respect to which an appeal or proceeding for review shall be pending
          or a
          stay of execution or bond shall have been obtained, or which are otherwise
          being
          contested in good faith and by appropriate proceedings diligently conducted,
          and
          in respect of which adequate reserves shall have been established in accordance
          with GAAP on the books of the Borrower or such Subsidiary, (i) Liens
          securing Indebtedness of a Subsidiary to the Borrower or another Subsidiary,
          (j) Liens (other than Liens permitted by any of the foregoing clauses)
          arising in the ordinary course of its business which do not secure Indebtedness
          and do not, in the aggregate, materially detract from the value of the
          business
          of the Borrower and its Subsidiaries, taken as a whole, and (k) additional
          Liens securing Indebtedness of the Borrower and the Subsidiaries in an
          aggregate
          outstanding Consolidated principal amount not exceeding 10% of Tangible
          Net
          Worth.

         

        SECTION 8.3 Dispositions

         

        Make
          any
          Disposition, or permit any of its Subsidiaries so to do, of all or substantially
          all of the assets of the Borrower and the Subsidiaries on a Consolidated
          basis.

         

         

        
          
            
            

          

          
            -39-

            
              

            

          

          
            
            

          

        

         

        SECTION 8.4 Merger
          or Consolidation, Etc.

         

        The
          Borrower will not consolidate with, be acquired by, or merge into or with
          any
          Person unless (x) immediately after giving effect thereto no Default or
          Event of Default shall or would exist and (y) either (i) the Borrower
          or (ii) a corporation organized and existing under the laws of one of the
          States of the United States of America shall be the survivor of such
          consolidation or merger, provided
          that if
          the Borrower is not the survivor, the corporation which is the survivor
          shall
          expressly assume, pursuant to an instrument executed and delivered to the
          Administrative Agent, and in form and substance satisfactory to the
          Administrative Agent, all obligations of the Borrower under the Loan Documents
          and the Administrative Agent shall have received such documents, opinions
          and
          certificates as it shall have reasonable requested in connection
          therewith.

         

        SECTION 8.5 Acquisitions

         

        Make
          any
          Acquisition, or permit any of the Subsidiaries so to do, except any one
          or more
          of the following: (a) Intercompany Dispositions permitted by Section 8.3
          and
          (b) Acquisitions by the Borrower or any of the Subsidiaries (including the
          Caremark Acquisition), provided
          that
          immediately before and after giving effect to each such Acquisition no
          Default
          or Event of Default shall or would exist.

         

        SECTION 8.6 Restricted
          Payments

         

        Make
          any
          Restricted Payment or permit any of the Subsidiaries so to do, except any
          one or
          more of the following Restricted Payments: (a) any direct or indirect
          Subsidiary may make dividends or other distributions to the Borrower or
          to any
          other direct or indirect Subsidiary, and (b) the Borrower may make
          Restricted Payments, provided
          that, in
          the case of this clause (b), immediately before and after giving effect
          thereto, no Event of Default shall or would exist.
          Nothing
          in this Section 8.6
          shall
          prohibit or restrict the declaration or payment of dividends in respect
          of the
          Series One ESOP Convertible Preferred Stock of the Borrower. 

         

        SECTION 8.7 Limitation
          on Upstream Dividends by Subsidiaries

         

        Permit
          or
          cause any of the Subsidiaries to enter into or agree, or otherwise be or
          become
          subject, to any agreement, contract or other arrangement (other than this
          Agreement) with any Person (each a “Restrictive
          Agreement”)
          pursuant to the terms of which (a) such Subsidiary is or would be
          prohibited from declaring or paying any cash dividends on any class of
          its stock
          owned directly or indirectly by the Borrower or any of the other Subsidiaries
          or
          from making any other distribution on account of any class of any such
          stock
          (herein referred to as “Upstream
          Dividends”),
          or
          (b) the declaration or payment of Upstream Dividends by a Subsidiary to the
          Borrower or another Subsidiary, on an annual or cumulative basis, is or
          would be
          otherwise limited or restricted (“Dividend
          Restrictions”).
          Notwithstanding
          the foregoing, nothing in this Section 8.7
          shall
          prohibit:

         

        (i) Dividend
          Restrictions set forth in any Restrictive Agreement in effect on the date
          hereof
          and any extensions, refinancings, renewals or replacements thereof, provided
          that
          the
          Dividend Restrictions in any such extensions, refinancings, 

         

        
          
            
            

          

          
            -40-

            
              

            

          

          
            
            

          

        

         

        
           

          renewals
            or replacements are no less favorable in any material respect to the
            Lenders
            than those Dividend Restrictions that are then in effect and that are
            being
            extended, refinanced, renewed or replaced;

           

          (ii) Dividend
            Restrictions existing with respect to any Person acquired by the Borrower
            or any
            Subsidiary and existing at the time of such acquisition, which Dividend
            Restrictions are not applicable to any Person or the property or assets
            of any
            Person other than such Person or its property or assets acquired, and
            any
            extensions, refinancings, renewals or replacements of any of the foregoing,
            provided
            that the
            Dividend Restrictions in any such extensions, refinancings, renewals
            or
            replacements are no less favorable in any material respect to the Lenders
            than
            those Dividend Restrictions that are then in effect and that are being
            extended,
            refinanced, renewed or replaced;

           

          (iii) Dividend
            Restrictions consisting of customary net worth, leverage and other financial
            covenants, customary covenants regarding the merger of or sale of assets
            of a
            Subsidiary, customary restrictions on transactions with affiliates, and
            customary subordination provisions governing Indebtedness owed to the
            Borrower
            or any Subsidiary, in each case contained in, or required by, any agreement
            governing Indebtedness incurred by a Subsidiary in accordance with Section
            8.1;
            or

           

          (iv) Dividend
            Restrictions contained in any other credit agreement so long as such
            Dividend
            Restrictions are no more restrictive than those contained in this Agreement
            (including Dividend Restrictions contained in the Existing Credit
            Agreements).

           

          SECTION 8.8 Limitation
            on Negative Pledges

           

          Enter
            into
            any agreement, other than (i) this Agreement, (ii) the Existing Credit
            Agreements, (iii) any other credit agreement that is substantially similar
            to this Agreement, and (iv) purchase money mortgages or capital leases
            permitted
            by this Agreement (in which cases, any prohibition or limitation shall
            only be
            effective against the assets financed thereby), or permit any Subsidiary
            so to
            do, which prohibits or limits the ability of the Borrower or such Subsidiary
            to
            create, incur, assume or suffer to exist any Lien upon any of its Property
            or
            revenues, whether now owned or hereafter acquired to secure the obligations
            of
            the Borrower hereunder.

           

          SECTION 8.9 Ratio
            of Consolidated Indebtedness to Total Capitalization

           

          Permit
            its
            ratio of Consolidated Indebtedness to Total Capitalization at the end
            of any
            fiscal quarter to exceed 0.6:1.0.

           

          SECTION 8.10 Caremark
            Acquisition

           

          (a) Amend
            the
            Caremark Merger Agreement if such amendment has the effect of
            (i) increasing the purchase price to be paid by the Borrower thereunder by
            a material amount, (ii) increasing the liabilities of the Borrower
            thereunder by a material amount, or (iii) decreasing 

           

          
            
              
              

            

            
              41

              
                

              

            

            
              
              

            

          

           

          the
            assets
            being acquired thereunder by the Borrower by a material amount, in each
            case,
            without the consent of the Administrative Agent.

           

          (b) Waive
            any
            material condition to the obligations of the Borrower under the Caremark
            Merger
            Agreement to consummate the transactions contemplated by the Caremark
            Merger
            Agreement (except as provided in the Waiver Agreement) without the consent
            of
            the Administrative Agent.

           

          ARTICLE 9

           

          DEFAULT

           

          SECTION 9.1 Events
            of Default

           

          The
            following shall each constitute an “Event
            of Default”
            hereunder:

           

          (a) The
            failure of the Borrower to make any payment of principal on any Loan
            when due
            and payable; or

           

          (b) The
            failure of the Borrower to make any payment of interest on any Loan or
            of the
            Fees on any date when due and payable and such default shall continue
            unremedied
            for a period of 5 Domestic Business Days after the same shall be due and
            payable; or

           

          
            (c) The
              failure of the Borrower to observe or perform any covenant or agreement
              contained in Section 2.4,
              Section 2.6(b)
              or
Section 7.1
              or in
Article 8;
              or

          

           

          (d) The
            failure of the Borrower to observe or perform any other covenant or agreement
            contained in this Agreement, and such failure shall have continued unremedied
            for a period of 30 days after the Borrower shall have become aware of
            such
            failure; or

           

          (e) [Intentionally
            Omitted]

           

          (f) Any
            representation or warranty of the Borrower (or of any of its officers
            on its
            behalf) made in any Loan Document, or made in any certificate, report,
            opinion
            (other than an opinion of counsel) or other document delivered on or
            after the
            date hereof shall in any such case prove to have been incorrect or misleading
            (whether because of misstatement or omission) in any material respect
            when made;
            or

           

          (g) (i) Obligations
            in an aggregate Consolidated amount in excess of $25,000,000 of the Borrower
            (other than its obligations hereunder and under the Notes) and the Subsidiaries,
            whether as principal, guarantor, surety or other obligor, for the payment
            of any
            Indebtedness or any net liability under interest rate swap, collar, exchange
            or
            cap agreements, (A) shall become or shall be declared to be due and payable
            prior to the expressed maturity thereof, or (B) shall not be paid when due
            or within any grace period for the payment thereof, or (ii) any holder of
            any such obligations shall have the right to declare the Indebtedness
            evidenced
            thereby due and payable prior to its stated maturity; or

           

          
            
              
              

            

            
              42

              
                

              

            

            
              
              

            

          

           

          (h) An
            involuntary proceeding shall be commenced or an involuntary petition
            shall be
            filed seeking (i) liquidation, reorganization or other relief in respect of
            the Borrower or any Subsidiary or its debts, or of a substantial part
            of its
            assets, under any federal, state or foreign bankruptcy, insolvency, receivership
            or similar law now or hereafter in effect or (ii) the appointment of a
            receiver, trustee, custodian, sequestrator, conservator or similar official
            for
            the Borrower or any Subsidiary or for a substantial part of its assets,
            and, in
            any such case, such proceeding or petition shall continue undismissed
            for
            60 days or an order or decree approving or ordering any of the foregoing
            shall be entered; or

           

          (i) The
            Borrower or any Subsidiary shall (i) voluntarily commence any proceeding or
            file any petition seeking liquidation, reorganization or other relief
            under any
            federal, state or foreign bankruptcy, insolvency, receivership or similar
            law
            now or hereafter in effect, (ii) consent to the institution of, or fail to
            contest in a timely and appropriate manner, any proceeding or petition
            described
            in clause (h)
            of this
            Section 9.1,
            (iii) apply for or consent to the appointment of a receiver, trustee,
            custodian, sequestrator, conservator or similar official for the Borrower
            or any
            Subsidiary or for a substantial part of its assets, (iv) file an answer
            admitting the material allegations of a petition filed against it in
            any such
            proceeding, (v) make a general assignment for the benefit of creditors or
            (vi) take any action for the purpose of effecting any of the foregoing;
            or

           

          (j) The
            Borrower or any Subsidiary shall (i) suspend or discontinue its business
            (except for store closings in the ordinary course of business and except
            in
            connection with a permitted Disposition under Section 8.3 and
            as may otherwise be expressly permitted herein), or (ii) generally not be
            paying its debts as such debts become due, or (iii) admit in writing its
            inability to pay its debts as they become due; or

           

          (k) Judgments
            or decrees in an aggregate Consolidated amount in excess of $25,000,000
            against
            the Borrower and the Subsidiaries shall remain unpaid, unstayed on appeal,
            undischarged, unbonded or undismissed for a period of 60 days during which
            execution shall not be effectively stayed, or any action shall be legally
            taken
            by a judgment creditor to attach or levy upon any assets of the Borrower
            or any
            Subsidiary to enforce any such judgment; or

           

          (l) After
            the
            Effective Date a Change of Control shall occur; or

           

          (m) (i) Any
            Termination Event shall occur (x) with respect to any Pension Plan (other
            than a Multiemployer Plan) or (y) with respect to any other retirement plan
            subject to Section 302 of ERISA or Section 412 of the Internal Revenue
            Code, which plan, during the five year period prior to such Termination
            Event,
            was the responsibility in whole or in part of the Borrower, any Subsidiary
            or
            any ERISA Affiliate, provided
            that this
            clause (y) shall only apply if, in connection with such Termination Event,
            it is reasonably likely that liability in an aggregate Consolidated amount
            in
            excess of $25,000,000 will be imposed upon the Borrower, any Subsidiary
            or any
            ERISA Affiliate; (ii) any Accumulated Funding Deficiency, whether or not
            waived, in an aggregate Consolidated amount in excess of $25,000,000
            shall exist
            with respect to any Pension Plan (other than that portion of a Multiemployer
            Plan’s Accumulated Funding Deficiency to the extent such Accumulated Funding
            Deficiency is attributable to employers other than Borrower, any Subsidiary
            or
            any ERISA Affiliate); (iii) any Person shall engage in any Prohibited
            Transaction involving any Employee Benefit Plan; (iv) the Borrower, any
            Subsidiary 

           

          
            
              
              

            

            
              43

              
                

              

            

            
              
              

            

          

           

          or
            any
            ERISA Affiliate shall fail to pay when due an amount which is payable
            by it to
            the PBGC or to a Pension Plan (including a Multiemployer Plan) under
            Title IV of ERISA; (v) the imposition of any tax under
            Section 4980(B)(a) of the Internal Revenue Code; or (vi) the
            assessment of a civil penalty with respect to any Employee Benefit Plan
            under
            Section 502(c) of ERISA; in each case, to the extent such event or
            condition would have a Material Adverse effect.

           

          
            SECTION 9.2  Remedies

             

            (a)  Upon
              the
              occurrence of an Event of Default or at any time thereafter during
              the
              continuance of an Event of Default, the Administrative Agent, at the
              written
              request of the Required Lenders, shall notify the Borrower that the
              Commitments
              have been terminated and/or that all of the Loans and the Notes and
              all accrued
              and unpaid interest on any thereof and all other amounts owing under
              the Loan
              Documents have been declared immediately due and payable, provided
              that upon
              the occurrence of an Event of Default under Section 9.1(h),
              (i)
              or
(j)
              with
              respect to the Borrower, the Commitments shall automatically terminate
              and all
              of the Loans and the Notes and all accrued and unpaid interest on any
              thereof
              and all other amounts owing under the Loan Documents shall become immediately
              due and payable without declaration or notice to the Borrower.
              To
              the
              fullest extent not prohibited by law, except for the notice provided
              for in the
              preceding sentence, the Borrower expressly waives any presentment,
              demand,
              protest, notice of protest or other notice of any kind in connection
              with the
              Loan Documents and its obligations thereunder.
              To
              the
              fullest extent not prohibited by law, the Borrower further expressly
              waives and
              covenants not to assert any appraisement, valuation, stay, extension,
              redemption
              or similar law, now or at any time hereafter in force which might delay,
              prevent
              or otherwise impede the performance or enforcement of the Loan
              Documents.

             

            (b)  In
              the
              event that the Commitments shall have been terminated pursuant to the
              provisions
              of Section 9.2(a)
              or all of
              the Loans and the Notes shall have been declared due and payable pursuant
              to the
              provisions of Section 9.2(a),
              the
              Administrative Agent and the Lenders agree, among themselves, that
              any funds
              received from or on behalf of the Borrower under any Loan Document
              by any Lender
              (except funds received by any Lender as a result of a purchase from
              such Lender
              pursuant to the provisions of Section 11.9(b))
              shall be
              remitted to the Administrative Agent, and shall be applied by the Administrative
              Agent in payment of the Loans and the other obligations of the Borrower
              under
              the Loan Documents in the following manner and order: (1) first,
              to
              reimburse the Administrative Agent and the Lenders, in that order,
              for any
              expenses due from the Borrower pursuant to the provisions of Section 11.5,
              (2) second,
              to the
              payment of the Fees, (3) third,
              to the
              payment of any expenses or amounts (other than the principal of and
              interest on
              the Loans and the Notes) payable by the Borrower to the Administrative
              Agent or
              any of the Lenders under the Loan Documents, (4) fourth,
              to the
              payment, pro
              rata
              according
              to the outstanding principal balance of the Loans of each Lender, of
              interest
              due on the Loans, (5) fifth,
              to the
              payment, pro
              rata
              according
              to the outstanding principal balance of the Loans of each Lender, of
              the
              aggregate outstanding principal balance of the Loans, and (6) sixth,
              any
              remaining funds shall be paid to whosoever shall be entitled thereto
              or as a
              court of competent jurisdiction shall direct.

             

            (c)  In
              the
              event that the Loans and the Notes shall have been declared due and
              payable
              pursuant to the provisions of this Section 9.2,
              the
              Administrative Agent upon the written 

          

           

          
            
              
              

            

            
              44

              
                

              

            

            
              
              

            

          

           

          request
            of
            the Required Lenders, shall proceed to enforce the rights of the holders
            of the
            Loans and the Notes by suit in equity, action at law and/or other appropriate
            proceedings, whether for payment or the specific performance of any covenant
            or
            agreement contained in the Loan Documents.
            In
            the
            event that the Administrative Agent shall fail or refuse so to proceed,
            each
            Lender shall be entitled to take such action as the Required Lenders
            shall deem
            appropriate to enforce its rights under the Loan Documents.

           

          ARTICLE 10

           

          AGENT

           

          SECTION 10.1 Appointment

           

          Each
            Lender hereby irrevocably designates and appoints LCPI as the Administrative
            Agent of such Lender under this Agreement and the other Loan Documents
            and each
            Lender irrevocably authorizes the Administrative Agent, in such capacity,
            to
            take such action on its behalf under the provisions of this Agreement
            and the
            other Loan Documents and to exercise such powers and perform such duties
            as are
            expressly delegated to the Administrative Agent by the terms of this
            Agreement
            and the other Loan Documents, together with such other powers as are
            reasonably
            incidental thereto.
            Notwithstanding
            any provision to the contrary contained in this Agreement and the other
            Loan
            Documents, the Administrative Agent shall not have any duties or
            responsibilities except those expressly set forth in this Agreement and
            the
            other Loan Documents, or any fiduciary relationship with any Lender,
            and no
            implied covenants, functions, responsibilities, duties, obligations or
            liabilities shall be read into the Loan Documents or otherwise exist
            against the
            Administrative Agent.

           

          SECTION 10.2 Delegation
            of Duties

           

          The
            Administrative Agent may execute any of its duties under this Agreement
            and the
            other Loan Documents by or through agents or attorneys-in-fact and shall
            be
            entitled to rely upon the advice of counsel concerning all matters pertaining
            to
            such duties, and shall not be liable for any action taken or omitted
            to be taken
            in good faith upon the advice of such counsel. The Administrative Agent
            shall be
            responsible for the negligence or misconduct of any agents or attorneys-in-fact
            selected by it with reasonable care.

           

          SECTION 10.3 Exculpatory
            Provisions

           

          Neither
            the Administrative Agent nor any of its officers, directors, employees,
            agents,
            attorneys-in-fact or Affiliates shall be (i) liable for any action lawfully
            taken or omitted to be taken by the Administrative Agent or such Person
            under or
            in connection with the Loan Documents (except the Administrative Agent
            for its
            own gross negligence or willful misconduct), or (ii) responsible in any
            manner to any of the Lenders for any recitals, statements, representations
            or
            warranties made by any party contained in the Loan Documents or in any
            certificate, report, statement or other document referred to or provided
            for in,
            or received by the Administrative Agent under or in connection with,
            the Loan
            Documents or for the value, validity, effectiveness, genuineness, enforceability
            or sufficiency of any of the Loan Documents 

           

          
            
              
              

            

            
              45

              
                

              

            

            
              
              

            

          

           

          or
            for any
            failure of the Borrower or any other Person to perform its obligations
            thereunder.
            The
            Administrative Agent shall not be under any obligation to any Lender
            to
            ascertain or to inquire into the observance or performance of any of
            the
            covenants or agreements contained in, or conditions of, the Loan Documents,
            or
            to inspect the Property, books or records of the Borrower or any
            Subsidiary.
            The
            Administrative Agent shall not be under any liability or responsibility
            to the
            Borrower or any other Person as a consequence of any failure or delay
            in
            performance, or any breach, by any Lender of any of its obligations under
            any of
            the Loan Documents.
            The
            Lenders acknowledge that the Administrative Agent shall not be under
            any duty to
            take any discretionary action permitted under the Loan Documents unless
            the
            Administrative Agent shall be requested in writing to do so by the Required
            Lenders.

           

          SECTION 10.4 Reliance
            by Administrative Agent

           

          The
            Administrative Agent shall be entitled to rely, and shall be fully protected
            in
            relying, upon any writing, resolution, notice, request, consent, certificate,
            affidavit, opinion, letter, cablegram, telegram, fax, telex or teletype
            message,
            statement, order or other document or conversation reasonably believed
            by it to
            be genuine and correct and to have been signed, sent or made by the proper
            Person or Persons and upon advice and statements of legal counsel (including
            counsel to the Borrower), independent accountants and other experts selected
            by
            the Administrative Agent.
            The
            Administrative Agent shall not be under any duty to examine or pass upon
            the
            validity, effectiveness or genuineness of the Loan Documents or any instrument,
            document or communication furnished pursuant thereto or in connection
            therewith,
            and the Administrative Agent shall be entitled to assume that the same
            are
            valid, effective and genuine, have been signed or sent by the proper
            parties and
            are what they purport to be.
            The
            Administrative Agent shall be fully justified in failing or refusing
            to take any
            action not expressly required under the Loan Documents unless it shall
            first
            receive such advice or concurrence
            of the Required Lenders as it deems appropriate.
            The
            Administrative Agent Agent shall in all cases be fully protected in acting,
            or
            in refraining from acting, under the Loan Documents in accordance with
            a request
            of the Required Lenders or, if required by Section 11.1,
            all
            Lenders, and such request and any action taken or failure to act pursuant
            thereto shall be binding upon the Borrower, all the Lenders and all future
            holders of the Notes.

           

          SECTION 10.5 Notice
            of Default

           

          The
            Administrative Agent shall not be deemed to have knowledge or notice
            of the
            occurrence of any Default or Event of Default unless the Administrative
            Agent
            shall have received written notice thereof from a Lender or the Borrower
            referring to this Agreement, describing such Default or Event of Default
            and
            stating such notice is a “Notice of Default.” In the event that the
            Administrative Agent receives such a notice, the Administrative Agent
            shall
            promptly give notice thereof to the Lenders.
            The
            Administrative Agent shall take such action with respect to such Default
            or
            Event of Default as shall be reasonably directed by the Required Lenders,
            provided
            that
            unless and until the Administrative Agent shall have received such directions,
            the Administrative Agent may (but shall not be obligated to) take such
            action or
            give such directions, or refrain from taking such action or giving such
            directions, with respect to such Default or Event of Default as it shall
            deem to
            be in the best interests of the Lenders.

           

          
            
              
              

            

            
              46

              
                

              

            

            
              
              

            

          

           

          SECTION 10.6 Non-Reliance

           

          Each
            Lender expressly acknowledges that neither the Administrative Agent nor
            any of
            its officers, directors, employees, agents, attorneys-in-fact or Affiliates
            has
            made any representations or warranties to such Lender and that no act
            by the
            Administrative Agent hereafter, including any review of the affairs of
            the
            Borrower or the Subsidiaries, shall be deemed to constitute any representation
            or warranty by the Administrative Agent to any Lender.
            Each
            Lender represents to the Administrative Agent that such Lender has,
            independently and without reliance upon any the Administrative Agent
            or any
            other Lender, and based on such documents and information as it has deemed
            appropriate, made its own evaluation of and investigation into the business,
            operations, Property, financial and other condition and creditworthiness
            of the
            Borrower and the Subsidiaries and has made its own decision to enter
            into this
            Agreement.
            Each
            Lender also represents that it will, independently and without reliance
            upon the
            Administrative Agent or any other Lender, and based on such documents
            and
            information as it shall deem appropriate at the time, continue to make
            its own
            credit analysis, evaluations and decisions in taking or not taking action
            under
            the Loan Documents, and to make such investigation as it deems necessary
            to
            inform itself as to the business, operations, Property, financial and
            other
            condition and creditworthiness of the Borrower and the Subsidiaries.
            Each
            Lender acknowledges that a copy of this Agreement and all exhibits and
            schedules
            hereto have been made available to it and its individual counsel for
            review, and
            each Lender acknowledges that it is satisfied with the form and substance
            thereof.
            Except
            for
            notices, reports and other documents expressly required to be furnished
            to the
            Lenders by the Administrative Agent hereunder, the Administrative Agent
            shall
            have no duty or responsibility to provide any Lender with any credit
            or other
            information concerning the business, operations, property, financial
            and other
            condition or creditworthiness of the Borrower or the Subsidiaries which
            may come
            into the possession
            of the Administrative Agent or any of its officers, directors, employees,
            agents, attorneys-in-fact or Affiliates.

           

          SECTION 10.7 The
            Administrative Agent in Its Individual Capacity

           

          LCPI
            and
            each of the affiliates thereof, may make loans to, accept deposits from,
            issue
            letters of credit for the account of and generally engage in any kind
            of
            business with the Borrower and the Subsidiaries as though it were not
            the
            Administrative Agent.
            With
            respect to the Commitment made by it and each Note issued to it (if any),
            the
            Administrative Agent shall have the same rights and powers under the
            Loan
            Documents as any Lender and may exercise the same as though it were not
            the
            Administrative Agent, and the term “Lender” and “Lenders” shall include LCPI in
            its individual capacity.

           

          SECTION 10.8 Successor
            Administrative Agent

           

          If
            at any
            time the Administrative Agent deems it advisable, in its sole discretion,
            it may
            submit to each Lender a written notification of its resignation as
            Administrative Agent under the Loan Documents, such resignation to be
            effective
            on the earlier to occur of (a) the thirtieth day after the date of such
            notice, and (b) the date upon which any successor to the Administrative
            Agent, in accordance with the provisions of this Section, shall have
            accepted in
            writing its appointment as successor Administrative Agent.
            Upon
            any
            such resignation, the Required Lenders shall have the right to appoint
            from
            among the Lenders a successor 

           

          
            
              
              

            

            
              47

              
                

              

            

            
              
              

            

          

           

          Administrative
            Agent, which successor Administrative Agent, provided
            that no
            Default or Event of Default shall then exist, shall be reasonably satisfactory
            to the Borrower.
            If
            no such
            successor Administrative Agent shall have been so appointed by the Required
            Lenders and accepted such appointment within 30 days after the retiring
            Administrative Agent’s giving of notice of resignation, then the retiring
            Administrative Agent may, on behalf of the Lenders, appoint a successor
            Administrative Agent, which successor Administrative Agent shall be a
            commercial
            bank organized or licensed under the laws of the United States of America
            or of
            any State thereof and having a combined capital and surplus of at least
            $500,000,000.
            Upon
            the
            written acceptance of any appointment as Administrative Agent hereunder
            by a
            successor Administrative Agent, such successor Administrative Agent shall
            automatically become a party to this Agreement and shall thereupon succeed
            to
            and become vested with all the rights, powers, privileges and duties
            of the
            retiring Administrative Agent, and the retiring Administrative Agent’s rights,
            powers, privileges and duties as Administrative Agent under the Loan
            Documents
            shall be terminated.
            The
            Borrower and the Lenders shall execute such documents as shall be necessary
            to
            effect such appointment.
            After
            any
            retiring Administrative Agent’s resignation as Administrative Agent, the
            provisions of this Article 10 shall
            inure to its benefit as to any actions taken or omitted to be taken by
            it while
            it was the Administrative Agent.
            If
            at any
            time there shall not be a duly appointed and acting Administrative Agent,
            upon
            notice duly given, the Borrower agrees to make each payment when due
            under the
            Loan Documents directly to the Lenders entitled thereto during such
            time.

           

          SECTION 10.9 Arrangers,
            Co-Documentation Agents and Syndication Agent

           

          None
            of
            the Arrangers, the Co-Documentation Agents or the Syndication Agent,
            in their
            respective capacities as such, shall have any duties or responsibilities,
            nor
            shall any such Person incur any liability under this Agreement or the
            other Loan
            Documents. 

           

          ARTICLE 11

           

          OTHER
            PROVISIONS

           

          SECTION 11.1 Amendments,
            Waivers, Etc.

           

          With
            the
            written consent of the Required Lenders, the Administrative Agent and
            the
            Borrower may, from time to time, enter into written amendments, supplements
            or
            modifications of the Loan Documents and, with the written consent of
            the
            Required Lenders, the Administrative Agent on behalf of the Lenders may
            execute
            and deliver to any such parties a written instrument waiving or consenting
            to
            the departure from, on such terms and conditions as the Administrative
            Agent may
            specify in such instrument, any of the requirements of the Loan Documents
            or any
            Default or Event of Default and its consequences, provided
            that
            no
            such amendment, supplement, modification, waiver or consent shall
            (i) increase the Commitment Amount of any Lender without the consent of
            such Lender (provided
            that no
            waiver of a Default or Event of Default shall be deemed to constitute
            such an
            increase), (ii) extend the Commitment Period without the consent of each
            Lender directly affected thereby, (iii) reduce the amount, or extend the
            time of payment, of the Fees without the consent of each Lender directly
            affected thereby, (iv) reduce the rate, or extend the time of payment of,
            interest on any Loan or any Note 

           

          
            
              
              

            

            
              48

              
                

              

            

            
              
              

            

          

           

          (other
            than the applicability of any post-default increase in such rate of interest)
            without the consent of each Lender directly affected thereby, (v) reduce
            the amount, or extend the time of payment of any payment of principal
            on any
            Loan or any Note without the consent of each Lender directly affected
            thereby,
            (vi) decrease or forgive the principal amount of any Loan or any Note
            without the consent of each Lender directly affected thereby, (vii) consent
            to any assignment or delegation by the Borrower of any of its rights
            or
            obligations under any Loan Document without the consent of each Lender,
            (viii) change the provisions of this Section 11.1 without
            the consent of each Lender, (ix) change the definition of Required Lenders
            without the consent of each Lender, (x) change the several nature of the
            obligations of the Lenders without the consent of each Lender, or
            (xi) change the sharing provisions among Lenders without the consent of
            each Lender.
            Notwithstanding
            the foregoing, no such amendment, supplement, modification, waiver or
            consent
            shall amend, modify or waive any provision of Article 10 or
            otherwise change any of the rights or obligations of the Administrative
            Agent
            under any Loan Document without the written consent of the Administrative
            Agent.
            Any
            such
            amendment, supplement, modification, waiver or consent shall apply equally
            to
            each of the Lenders and shall be binding upon the parties to the applicable
            Loan
            Document, the Lenders, the Administrative Agent and all future holders
            of the
            Loans and the Notes.
            In
            the
            case of any waiver, the Borrower, the Lenders and the Administrative
            Agent shall
            be restored to their former position and rights under the Loan Documents,
            but any Default or Event of Default waived shall not extend to any subsequent
            or
            other Default or Event of Default, or impair any right consequent
            thereon.

           

          SECTION 11.2 Notices

           

          Except
            in
            the case of notices and other communications expressly permitted to be
            given by
            telephone, all notices and other communications provided for herein shall
            be in
            writing and shall be delivered by hand or overnight courier service,
            mailed by
            certified or registered mail or sent by facsimile, as follows:

           

          
            
              
              

            

            
              49

              
                

              

            

            
              
              

            

          

           

          
            If
              to
              the Borrower:

             

            
              	 	
                      CVS
                        Corporation

                    
	 	One
                      CVS Drive
	 	
                      Woonsocket,
                        Rhode Island 02895

                    
	 	
                      Attention:

                    	
                      Carol
                        A. DeNale

                    
	 	 	Vice
                      President and Treasurer
	 	
                      Facsimile:

                    	
                      (401)
                        770-5768

                    
	 	
                      Telephone:

                    	(401)
                      770-4407
	 	 	 
	 	
                      with
                        a copy, in the case of a notice of Default or Event of Default,
                        to:

                    

            

            
               

            

            
              
                	 	CVS
                        Corporation
	 	One
                        CVS Drive
	 	Woonsocket,
                        Rhode Island 02895
	 	
                        Attention:

                      	
                        Legal
                          Department

                      
	 	
                        Facsimile:

                      	
                        (401)
                          765-7887

                      
	 	
                        Telephone:

                      	
                        (401)
                          765-1500

                      

              

            If
              to
              the Administrative Agent:

            
              
                 

                
                  	 	
                          in
                            the case of each Borrowing Request and each notice of
                            prepayment under
                            Section 2.6:

                        
	 	 
	 	
                          Lehman
                            Commercial Paper Inc.

                          c/o
                            Lehman Brothers Inc.

                          745
                            Seventh Avenue, 16th Floor

                          New
                            York, New York 10019

                          Attention:
                            Maritza Ospina

                          Facsimile:
                            (646) 758-4648

                          Telephone:
                            (212) 526-6590

                        
	 	 
	 	and
                          in all other cases:
	 	 
	 	
                          Lehman
                            Commercial Paper Inc.

                          c/o
                            Lehman Brothers Inc.

                          745
                            Seventh Avenue, 5th Floor

                          New
                            York, New York 10019

                          Attention:
                            Ahuva Schwager

                          Facsimile:
                            (917) 522-0593

                          Telephone:
                            (212) 526-7417

                        

                

                 

              

            

            
              
                
                

              

              
                50

                
                  

                

              

              
                
                

              

            

             

            If
              to
              the Syndication Agent:

             

            
              	 	
                      Morgan
                        Stanley Senior Funding, Inc. 

                      1585
                        Broadway 

                      New
                        York, New York 10036

                      Attention:
                        Nomi Clarke

                      Facsimile:
                        (718) 233-2132 

                      Telephone:
                        (718) 754-7283

                    

            

             

            If
              to
              any Lender:
              to it at
              its address (or facsimile number) set forth in its Administrative
              Questionnaire.

             

            
              Any
                party
                hereto may change its address or facsimile number for notices and
                other
                communications hereunder by notice to the other parties hereto (or,
                in the case
                of any Lender, by notice to the Administrative Agent and the Borrower).
                All
                notices and other communications given to any party hereto in accordance
                with
                the provisions of this Agreement shall be deemed to have been given
                on the date
                of receipt.
                Any
                party
                to a Loan Document may rely on signatures of the parties thereto
                which are
                transmitted by fax or other electronic means as fully as if originally
                signed.

               

              SECTION 11.3 No
                Waiver; Cumulative Remedies

               

              No
                failure
                to exercise and no delay in exercising, on the part of the Administrative
                Agent
                or any Lender, any right, remedy, power or privilege under any Loan
                Document
                shall operate as a waiver thereof, nor shall any single or partial
                exercise of
                any right, remedy, power or privilege under any Loan Document preclude
                any other
                or further exercise thereof or the exercise of any other right, remedy,
                power or
                privilege.
                The
                rights, remedies, powers and privileges under the Loan Documents
                are cumulative
                and not exclusive of any rights, remedies, powers and privileges
                provided by
                law.

               

              SECTION 11.4 Survival
                of Representations and Warranties

               

              All
                representations and warranties made in the Loan Documents and in
                any document,
                certificate or statement delivered pursuant thereto or in connection
                therewith
                shall survive the execution and delivery of the Loan Documents.

               

              SECTION 11.5 Payment
                of Expenses and Taxes; Indemnified Liabilities

               

              The
                Borrower agrees, promptly upon presentation of a statement or invoice
                therefor
                setting forth in reasonable detail the items thereof, and whether
                any Loan is
                made, (a) to pay
                or
                reimburse the Administrative Agent and its Affiliates for all its
                reasonable
                costs and expenses actually incurred in connection with the development,
                syndication, preparation and execution of, and any amendment, waiver,
                consent,
                supplement or modification to, the Loan Documents, any documents
                prepared in
                connection therewith and the consummation of the transactions contemplated
                thereby, whether such Loan Documents or any such amendment, waiver,
                consent,
                supplement or modification to the Loan Documents or any documents
                prepared in
                connection therewith are executed and whether the transactions contemplated
                thereby are 

               

              
                
                  
                  

                

                
                  51

                  
                    

                  

                

                
                  
                  

                

              

               

              consummated,
                including the reasonable fees and disbursements of Special Counsel,
                (b) to
                pay, indemnify, and hold any Credit Party harmless from any and all
                recording
                and filing fees and any and all liabilities and penalties with respect
                to, or
                resulting from any delay (other than penalties to the extent attributable
                to the
                negligence of the applicable Credit Party in failing to pay such
                fees or other
                liabilities when due) in paying, stamp, excise and other similar
                taxes, if any,
                which may be payable or determined to be payable in connection with
                the
                execution and delivery of, or consummation of any of the transactions
                contemplated by, or any amendment, supplement or modification of,
                or any waiver
                or consent under or in respect of, the Loan Documents and any such
                other
                documents, and (c) to pay, reimburse, indemnify and hold each Indemnified
                Person harmless from and against any and all other liabilities, obligations,
                claims, losses, damages, penalties, actions, judgments, suits, costs,
                expenses
                and disbursements of any kind or nature whatsoever (including reasonable
                counsel
                fees and disbursements of counsel (including the allocated costs
                of internal
                counsel) and such local counsel as may be required) actually incurred
                with
                respect to the enforcement, performance of, and preservation of rights
                under,
                the Loan Documents (all the foregoing, collectively, the “Indemnified
                Liabilities”)
                and, if
                and to the extent that the foregoing indemnity may be unenforceable
                for any
                reason, the Borrower agrees to make the maximum payment permitted
                under
                applicable law, provided
                that the
                Borrower shall have no obligation hereunder to pay Indemnified Liabilities
                to an
                Indemnified Person to the extent arising from its gross negligence
                or willful
                misconduct.
                The
                agreements in this Section shall survive the termination of the Commitments
                and
                the payment of the Loans and the Notes and all other amounts payable
                under the
                Loan Documents.

               

              SECTION 11.6 Lending
                Offices

               

              Each
                Lender shall have the right at any time and from time to time to
                transfer any
                Loan to a different office of such Lender, subject to Section 3.10.

               

              SECTION 11.7 Successors
                and Assigns

               

              (a) The
                provisions of the Loan Documents shall be binding upon and inure
                to the benefit
                of the parties hereto and their respective successors and assigns
                permitted
                hereby, except that the Borrower may not assign or otherwise transfer
                any of its
                rights or obligations hereunder without the prior written consent
                of each Lender
                (and any attempted assignment or transfer by the Borrower without
                such consent
                shall be null and void).
                Nothing
                in
                the Loan Documents, expressed or implied, shall be construed to confer
                upon any
                Person (other than the parties hereto, their respective successors
                and assigns
                permitted hereby and, to the extent expressly contemplated hereby,
                the Related
                Parties of each Credit Party) any legal or equitable right, remedy
                or claim
                under or by reason of any Loan Document.

               

              (b) Any
                Lender
                may assign all or a portion of its rights and obligations under the
                Loan
                Documents (including all or a portion of its Commitment and the applicable
                Loans
                at the time owing to it), to an Eligible Assignee, provided
                that
                (i) except in the case of an assignment to a Lender or an Affiliate or
                an
                Approved Fund of a Lender, each of the Borrower and the Administrative
                Agent
                must give its prior written consent to such assignment (which consent
                shall not
                be unreasonably withheld or delayed), (ii) except in the case of an
                assignment to a Lender or an Affiliate or an Approved Fund of a Lender
                or an
                assignment of the entire remaining amount of the assigning Lender’s Commitment
                or Loans, as the case may be, the 

               

              
                
                  
                  

                

                
                  52

                  
                    

                  

                

                
                  
                  

                

              

               

              amount
                of
                the Commitment or Loans, as the case may be, of the assigning Lender
                subject to
                each such assignment (determined as of the date the Assignment and
                Acceptance
                Agreement with respect to such assignment is delivered to the Administrative
                Agent) shall not be less than $5,000,000, unless the Borrower and
                the
                Administrative Agent otherwise consent (which consent shall not be
                unreasonably
                withheld or delayed) and shall be for a pro rata portion of such
                Lender’s then
                remaining Commitment, if any, and such Lender’s then outstanding Loans,
                (iii) no assignments to the Borrower or any of its Affiliates shall be
                permitted (and any attempted assignment or transfer to the Borrower
                or any of
                its Affiliates shall be null and void), (iv) the parties to each assignment
                shall execute and deliver to the Administrative Agent an Assignment
                and
                Acceptance Agreement together with, unless otherwise agreed by the
                Administrative Agent, a processing and recordation fee of $3,500,
                and
                (v) the assignee, if it shall not be a Lender, shall deliver to the
                Administrative Agent an Administrative Questionnaire, and provided
                further
                that any
                consent of the Borrower otherwise required under this subsection
                shall not be
                required if an Event of Default has occurred and is continuing.
                Subject
                to
                acceptance and recording thereof pursuant to subsection (d)
                of this
                Section, from and after the effective date specified in each Assignment
                and
                Acceptance Agreement, the assignee thereunder shall be a party hereto
                and, to
                the extent of the interest assigned by such Assignment and Acceptance
                Agreement,
                have the rights and obligations of a Lender under the Loan Documents,
                and the
                assigning Lender thereunder shall, to the extent of the interest
                assigned by
                such Assignment and Acceptance Agreement, be released from its obligations
                under
                the Loan Documents (and, in the case of an Assignment and Acceptance
                Agreement
                covering all of the assigning Lender’s rights and obligations under the Loan
                Documents, such Lender shall cease to be a party hereto but shall
                continue to be
                entitled to the benefits of Section 3.5,
                Section 3.6,
                Section 3.7,
                Section 3.10
                and
Section 11.10).
                Except
                as
                otherwise provided under clause (iii) of this subsection, any assignment or
                transfer by a Lender of rights or obligations under the Loan Documents
                that does
                not comply with this subsection shall be treated for purposes of
                the Loan
                Documents as a sale by such Lender of a participation in such rights
                and
                obligations in accordance with subsection 0
                of this
                Section.

               

              (c) The
                Administrative Agent, acting for this purpose as an agent of the
                Borrower, shall
                maintain a copy of each Assignment and Acceptance Agreement delivered
                to it and
                a register for the recordation of the names and addresses of the
                Lenders, and
                the Commitments of, and principal amount of the Loans owing to, each
                Lender
                pursuant to the terms hereof from time to time (the “Register”).
                The
                entries in the Register shall be conclusive absent clearly demonstrable
                error,
                and the Borrower and each Credit Party may treat each Person whose
                name is
                recorded in the Register pursuant to the terms hereof as a Lender
                hereunder for
                all purposes of this Agreement, notwithstanding notice to the
                contrary.
                The
                Register shall be available
                for inspection by the Borrower and any Credit Party, at any reasonable
                time and
                from time to time upon reasonable prior notice.

               

              (d) Upon
                its
                receipt of a duly completed Assignment and Acceptance Agreement executed
                by an
                assigning Lender and an assignee, the assignee’s completed Administrative
                Questionnaire (unless the assignee shall already be a Lender hereunder),
                the
                processing and recordation fee referred to in subsection (b)
                of this
                Section and any written consent to such assignment required by
                subsection (b)
                of this
                Section, the Administrative Agent shall accept such Assignment and
                Acceptance
                Agreement and record the information contained 

               

              
                
                  
                  

                

                
                  53

                  
                    

                  

                

                
                  
                  

                

              

               

              therein
                in
                the Register. No assignment shall be effective for purposes of this
                Agreement
                unless it has been recorded in the Register as provided in this
                subsection.

               

              
                (e)  Any
                  Lender
                  may, without the consent of the Borrower or any Credit Party, sell
                  participations to Eligible Assignees (each a “Participant”)
                  in all
                  or a portion of such Lender’s rights and obligations under the Loan Documents
                  (including all or a portion of its Commitments and outstanding
                  Loans owing to
                  it), provided
                  that
                  (i) such Lender’s obligations under the Loan Documents shall remain
                  unchanged, (ii) such Lender shall remain solely responsible to the other
                  parties hereto for the performance of such obligations, (iii) the Borrower
                  and the Credit Parties shall continue to deal solely and directly
                  with such
                  Lender in connection with such Lender’s rights and obligations under the Loan
                  Documents and (iv) no participations to the Borrower or any of its
                  Affiliates shall be permitted (and any attempted participation
                  to the Borrower
                  or any of its Affiliates shall be null and void). Any agreement
                  or instrument
                  pursuant to which a Lender sells such a participation shall provide
                  that such
                  Lender shall retain the sole right to enforce the Loan Documents
                  and to approve
                  any amendment, modification or waiver of any provision of any Loan
                  Documents,
provided
                  that such
                  agreement or instrument may provide that such Lender will not,
                  without the
                  consent of the Participant, agree to any amendment, modification
                  or waiver
                  described in the proviso to Section 11.1
                  that
                  affects such Participant. Subject to subsection (f)
                  of this
                  Section, the Borrower agrees that each Participant shall be entitled
                  to the
                  benefits of Section 3.5,
                  Section 3.6,
                  Section 3.7
                  and
Section 3.10
                  to the
                  same extent as if it were a Lender and had acquired its interest
                  by assignment
                  pursuant to subsection (b)
                  of this
                  Section.
                  To
                  the
                  extent permitted by law, each Participant also shall be entitled
                  to the benefits
                  of Section 11.9(a)
                  as though
                  it were a Lender, provided
                  that such
                  Participant agrees to be subject to Section 11.9(b)
                  as though
                  it were a Lender.

                 

                (f)  A
                  Participant shall not be entitled to receive any greater payment
                  under
Section 3.6,
                  Section 3.7
                  or
Section 3.10
                  than the
                  Lender that sold the participation to such Participant would have
                  been entitled
                  to receive with respect to the interest in the Loan Documents subject
                  to the
                  participation sold to such Participant, unless the sale of the
                  participation to
                  such Participant is made with the Borrower’s prior written consent.
                  A
                  Participant that would be a Foreign Lender if it were a Lender
                  shall not be
                  entitled to the benefits of Section 3.10
                  unless
                  the Borrower is notified of the participation sold to such Participant
                  and such
                  Participant agrees, for the benefit of the Borrower, to comply
                  with Section 3.10(b)
                  as though
                  it were a Lender.

                 

              

              (g) Any
                Lender
                may at any time pledge or assign a security interest in all or any
                portion of
                its rights under the Loan Documents to secure obligations of such
                Lender,
                including any pledge or assignment to secure obligations to a Federal
                Reserve
                Bank, and this Section shall not apply to any such pledge or assignment
                of a
                security interest, provided
                that no
such
                pledge or assignment of a security interest shall release a Lender
                from any of
                its obligations under the Loan Documents or substitute any such pledgee
                or
                assignee for such Lender as a party hereto.

               

              (h) Notwithstanding
                anything to the contrary contained herein, any Lender (a “Granting
                Lender”)
                may
                grant to an Eligible SPC the option to fund all or any part of any
                Loan that
                such Granting Lender would otherwise be obligated to fund pursuant
                to this
                Agreement, 

               

              
                
                  
                  

                

                
                  54

                  
                    

                  

                

                
                  
                  

                

              

               

              provided
                that
                (i) such designation shall not be effective unless the Borrower consents
                thereto (which consent shall not be unreasonably withheld), (ii) nothing
                herein shall constitute a commitment by any Eligible SPC to fund
                any Loan, and
                (iii) if an Eligible SPC elects not to exercise such option or otherwise
                fails to fund all or any part of such Loan, the Granting Lender shall
                be
                obligated to fund such Loan pursuant to the terms hereof.
                The
                funding of a Loan by an Eligible SPC hereunder shall utilize the
                Commitment of
                the Granting Lender to the same extent, and as if, such Loan were
                funded by such
                Granting Lender.
                As
                to any
                Loans or portion thereof made by it, each Eligible SPC shall have
                all the rights
                that a Lender making such Loans or portion thereof would have had
                under this
                Agreement and otherwise, provided
                that
                (x) its voting rights under this Agreement shall be exercised solely
                by its
                Granting Lender and (y) its Granting Lender shall remain solely responsible
                to the other parties hereto for the performance of such Granting
                Lender’s
                obligations under this Agreement, including its obligations in respect
                of the
                Loans or portion thereof made by it.
                Each
                Granting Lender shall act as administrative agent for its Eligible
                SPC and give
                and receive notices and other communications on its behalf.
                Any
                payments for the account of any Eligible SPC shall be paid to its
                Granting
                Lender as administrative agent for such Eligible SPC and neither
                the Borrower
                nor the Administrative Agent shall be responsible for any Granting
                Lender’s
                application of such payments.
                Each
                party
                hereto hereby agrees that no Eligible SPC shall be liable for any
                indemnity or
                payment under this Agreement for which a Lender would otherwise be
                liable for so
                long as, and to the extent, the Granting Lender provides such indemnity
                or makes
                such payment.
                Notwithstanding
                anything to the contrary contained in this Agreement, any Eligible
                SPC may
                (i) at any time, subject to payment of the processing and recordation
                fee
                referred to in Section 11.7(b),
                assign
                all or a portion of its interests in any Loans to its Granting Lender
                (but
                nothing contained herein shall be construed in derogation of the
                obligation of
                the Granting Lender to make Loans hereunder) or to any financial
                institutions
                providing liquidity and/or credit support to or for the account of
                such Eligible
                SPC to support the funding or maintenance of Loans, and (ii) disclose on a
                confidential basis any non-public information relating to its funding
                of Loans
                to any rating agency, commercial paper dealer or provider of any
                surety or
                guarantee or credit or liquidity enhancements to such Eligible SPC.
                This
                Section may not be amended without the prior written consent of each
                Granting
                Lender, all or any part of whose Loans is being funded by an Eligible
                SPC at the
                time of such amendment.

               

              SECTION 11.8 Counterparts

               

              Each
                of
                the Loan Documents (other than the Notes) may be executed on any
                number of
                separate counterparts and all of said counterparts taken together
                shall be
                deemed to constitute one and the same agreement.
                It
                shall
                not be necessary in making proof of any Loan Document to produce
                or account for
                more than one counterpart signed by the party to be charged.
                A
                set of
                the copies of this Agreement signed by all of the parties hereto
                shall be lodged
with
                each
                of the Borrower and the Administrative Agent.
                Any
                party
                to a Loan Document may rely upon the signatures of any other party
                thereto which
                are transmitted by fax or other electronic means to the same extent
                as if
                originally signed.

               

              
                
                  
                  

                

                
                  55

                  
                    

                  

                

                
                  
                  

                

              

               

              
                SECTION 11.9  Set-off
                  and Sharing of Payments

              

            

             

            (a)  In
              addition to any rights and remedies of the Lenders provided by law,
              upon the
              occurrence of an Event of Default under Section 9.1(a)
              or
(b)
              or upon
              the acceleration of the Loans, each Lender shall have the right, without
              prior
              notice to the Borrower, any such notice being expressly waived by the
              Borrower,
              to set-off and apply against any indebtedness or other liability, whether
              matured or unmatured, of the Borrower to such Lender arising under
              the Loan
              Documents, any amount owing from such Lender to the Borrower.
              To
              the
              extent permitted by applicable law, the aforesaid right of set-off
              may be
              exercised by such Lender against the Borrower or against any trustee
              in
              bankruptcy, custodian, debtor in possession, assignee for the benefit
              of
              creditors, receiver, or execution, judgment or attachment creditor
              of the
              Borrower, or against anyone else claiming through or against the Borrower
              or
              such trustee in bankruptcy, custodian, debtor in possession, assignee
              for the
              benefit of creditors, receivers, or execution, judgment or attachment
              creditor,
              notwithstanding the fact that such right of set-off shall not have
              been
              exercised by such Lender prior to the making, filing or issuance of,
              service
              upon such Lender of, or notice to such Lender of, any petition, assignment
              for
              the benefit of creditors, appointment or application for the appointment
              of a
              receiver, or issuance of execution, subpoena, order or warrant.
              Each
              Lender agrees promptly to notify the Borrower and the Administrative
              Agent after
              each such set-off and application made by such Lender, provided
              that the
              failure to give such notice shall not affect the validity of such set-off
              and
              application.

             

            (b)  If
              any
              Lender (each a “Benefited
              Lender”)
              shall
              obtain any payment (whether voluntary, involuntary, through the exercise
              of any
              right of set-off, or otherwise) on account of its Loans or its Notes
              in excess
              of its pro rata share (in accordance with the outstanding principal
              balance of
              all Loans) of payments then due and payable on account of the Loans
              and Notes
              received by all the Lenders, such Lender shall forthwith purchase,
              without
              recourse, for cash, from the other Lenders such participations in their
              Loans
              and Notes as shall be necessary to cause such purchasing Lender to
              share the
              excess payment with each of them according to their pro rata share
              (in
              accordance with the outstanding principal balance of all Loans), provided
              that if
              all or any portion of such excess payment is thereafter recovered from
              such
              purchasing Lender, such purchase from each Lender shall be rescinded
              and each
              such Lender shall repay to the purchasing Lender the purchase price
              to the
              extent of such recovery, together with an amount equal to such Lender’s pro rata
              share (according to the proportion of (i) the amount of such Lender’s
              required repayment to (ii) the total amount so recovered from the
              purchasing Lender) of any interest or other amount paid or payable
              by the
              purchasing Lender in respect of the total amount so recovered.
              The
              Borrower agrees, to the fullest extent permitted by law, that any Lender
              so
              purchasing a participation from another Lender pursuant to this Section
              may
              exercise such rights to payment (including the right of set-off) with
              respect to
              such participation as fully as if such Lender were the direct creditor
              of the
              Borrower in the amount of such participation.

             

            SECTION 11.10  Indemnity

             

            (a)  The
              Borrower shall indemnify each Credit Party and each Related Party thereof
              (each
              such Person being called an “Indemnified
              Person”)
              against, and hold each Indemnified Person harmless from, any and all
              losses,
              claims, damages, liabilities and related 

             

            
              
                
                

              

              
                56

                
                  

                

              

              
                
                

              

            

             

            expenses,
              including the reasonable fees, charges and disbursements of any counsel
              for any
              Indemnified Person, incurred by or asserted against any Indemnified
              Person
              arising out of, in connection with, or as a result of (i) the execution or
              delivery of any Loan Document or any agreement or instrument contemplated
              thereby, the performance by the parties to the Loan Documents of their
              respective obligations thereunder or the consummation of the transactions
              contemplated hereby or any other transactions contemplated thereby
              (including
              the Caremark Acquisition), (ii) any Loan or the use of the proceeds
              thereof, (iii) any actual or alleged presence or release of Hazardous
              Materials on or from any property owned or operated by the Borrower
              or any of
              the Subsidiaries, or any Environmental Liability related in any way
              to the
              Borrower or any of the Subsidiaries or (iv) any actual or prospective
              claim, litigation, investigation or proceeding relating to any of the
              foregoing,
              whether based on contract, tort or any other theory and regardless
              of whether
              any Indemnified Person is a party thereto, provided
              that such
              indemnity shall not, as to any Indemnified Person, be available to
              the extent
              that such losses, claims, damages, liabilities or related expenses
              are
              determined by a court of competent jurisdiction by final and nonappealable
              judgment to have resulted primarily from the gross negligence or willful
              misconduct of such Indemnified Person.
              Notwithstanding
              the above, the Borrower shall have no liability under clause (i) of this
              Section to indemnify or hold harmless any Indemnified Person for any
              losses,
              claims, damages, liabilities and related expenses relating to income
              or
              withholding taxes or any tax in lieu of such taxes.

             

            (b)  To
              the
              extent that the Borrower fails to promptly pay any amount required
              to be paid by
              it to the Administrative Agent under
              subsection (a)
              of this
              Section, each Lender severally agrees to pay to the Administrative
              Agent an
              amount equal to the product of such unpaid amount multiplied
              by
              (i) at any time prior to the making of Loans pursuant to Section 2.1(a)
              or at any
              time when Loans are outstanding, its Pro Rata Percentage and (ii) if the
              Loans have been repaid in full, its Pro Rata Percentage on the last
              day on which
              such Loans were outstanding (in each case with respect to clause (ii)
              immediately above, determined as of the time that the applicable unreimbursed
              expense or indemnity payment is sought), provided
              that the
              unreimbursed expense or indemnified loss, claim, damage, liability
              or related
              expense, as applicable, was incurred by or asserted against the Administrative
              Agent in its capacity as such.

             

            (c)  The
              obligations of the Borrower and the Lenders under this Section 11.10
              shall
              survive the termination of the Commitments and the payment or repayment
              of the
              Loans and the Notes and all other amounts payable under the Loan
              Documents.

             

            (d)  To
              the
              extent permitted by applicable law, the Borrower shall not assert,
              and hereby
              waives, any claim against any Indemnified Person, on any theory of
              liability,
              for special, indirect, consequential or punitive damages (as opposed
              to direct
              and actual damages) arising out of, in connection with, or as a result
              of, any
              Loan Document or any agreement, instrument or other document contemplated
              thereby, the transactions contemplated hereby or any Loan or the use
              of the
              proceeds thereof.

             

            SECTION 11.11  Governing
              Law

             

            The
              Loan
              Documents and the rights and obligations of the parties thereto shall
              be
              governed by, and construed and interpreted in accordance with, the
              laws of the
              State of New York.

             

            
              
                
                

              

              
                57

                
                  

                

              

              
                
                

              

            

             

            SECTION 11.12  Severability

             

            Every
              provision of the Loan Documents is intended to be severable, and if any term or
              provision thereof shall be invalid, illegal or unenforceable for any
              reason, the
              validity, legality and enforceability of the remaining provisions thereof
              shall
              not be affected or impaired thereby, and any invalidity, illegality
              or
              unenforceability in any jurisdiction shall not affect the validity,
              legality or
              enforceability of any such term or provision in any other
              jurisdiction.

             

            SECTION 11.13  Integration

             

            All
              exhibits to the Loan Documents shall be deemed to be a part thereof.
              Each
              Loan
              Document embodies the entire agreement and understanding between or
              among the
              parties thereto with respect to the subject matter thereof and supersedes
              all
              prior agreements and understandings between or among the parties thereto
              with
              respect to the subject matter thereof.

             

            SECTION 11.14  Treatment
              of Certain Information

             

            Each
              Credit Party agrees to maintain as confidential and not to disclose,
              publish or
              disseminate to any third parties any financial or other information
              relating to
              the business, operations and condition, financial or otherwise, of
              the Borrower
              provided to it, except if and to the extent that:

             

            (a)  such
              information is in the public domain at the time of disclosure;

             

            (b)  such
              information is required to be disclosed by subpoena or similar process
              or
              applicable law or regulations;

             

            (c)  such
              information is required or requested to be disclosed to any regulatory
              or
              administrative body or commission to whose jurisdiction it may be
              subject;

             

            (d)  such
              information is disclosed to its counsel, auditors or other professional
              advisors;

             

            (e)  such
              information is disclosed to (and, unless and until it receives written
              objection
              from the Borrower, the Borrower shall be deemed to have consented to
              disclosure
              of such information to) its affiliates (and its affiliates’ officers, directors
              and employees), provided that such information shall be used in connection
              with
              this Agreement and the transactions contemplated hereby;

             

            (f)  such
              information is disclosed to its officers, directors and employees;

             

            (g)  such
              information is disclosed with the prior written consent of the party
              furnishing
              the information;

             

            (h)  such
              information is disclosed in connection with any litigation or dispute
              involving
              the Borrower and/or it;

             

            
              
                
                

              

              
                58

                
                  

                

              

              
                
                

              

            

             

            (i)  such
              information is disclosed in connection with the sale of a participation
              or other
              disposition by it of any of its interest in this Agreement, provided
              that such
              information shall not be disclosed unless and until the party to whom
              it shall
              be disclosed shall have agreed to keep such information confidential
              as set
              forth herein;

             

            (j)  such
              information was in its possession or in its affiliate’s possession as shown by
              clear and convincing evidence prior to any of the Borrower and/or any
              or the
              Borrower’s representatives or agents furnishing such information to it;
              or

             

            (k)  such
              information is received by it, without restriction as to its disclosure
              or use,
              from a Person who, to its knowledge or reasonable belief, was not prohibited
              from disclosing such information by any duty of confidentiality.

             

            Except
              to
              the extent prohibited or restricted by law or Governmental Authority,
              each
              Lender shall notify the Borrower promptly of any disclosures of information
              made
              by it as permitted pursuant to (h)
              above.

             

            SECTION 11.15  Acknowledgments

             

            The
              Borrower acknowledges that (a) it has been advised by counsel in the
              negotiation, execution and delivery of the Loan Documents, (b) by virtue of
              the Loan Documents, neither the Administrative Agent nor any Lender
              has any
              fiduciary relationship to the Borrower, and the relationship between
              the
              Administrative Agent and the Lenders, on the one hand, and the Borrower,
              on the
              other hand, is solely that of debtor and creditor, and (c) by virtue of the
              Loan Documents, no joint venture exists among the Lenders or among
              the Borrower
              and the Lenders.

             

            SECTION 11.16  Consent
              to Jurisdiction

             

            The
              Borrower irrevocably submits to the non-exclusive jurisdiction of any
              New York
              State or Federal Court sitting in the City of New York over any suit,
              action or
              proceeding arising out of or relating to the Loan Documents. The Borrower
              irrevocably waives, to the fullest extent permitted by law, any objection
              which
              it may now or hereafter have to the laying of the venue of any such
              suit, action
              or proceeding brought in such a court and any claim that any such suit,
              action
              or proceeding brought in such a court has been brought in an inconvenient
              forum.
              The Borrower agrees that a final judgment in any such suit, action
              or proceeding
              brought in such a court, after all appropriate appeals, shall be conclusive
              and
              binding upon it.

             

            SECTION 11.17  Service
              of Process

             

            The
              Borrower agrees that process may be served against it in any suit,
              action or
              proceeding referred to in Section 11.16
              by
              sending the same by first class mail, return receipt requested or by
              overnight
              courier service, with receipt acknowledged, to the address of the Borrower
              set
              forth in Section 11.2.
              The
              Borrower agrees that any such service (i) shall be deemed in every respect
              effective service of process upon it in any such suit, action, or proceeding,
              and (ii) shall to the fullest extent enforceable by law, be taken and held
              to be valid personal service upon and personal delivery to it.

             

            
              
                
                

              

              
                59

                
                  

                

              

              
                
                

              

            

             

            SECTION 11.18  No
              Limitation on Service or Suit

             

            Nothing
              in
              the Loan Documents or any modification, waiver, or amendment thereto
              shall
              affect the right of the Administrative Agent or any Lender to serve
              process in
              any manner permitted by law or limit the right of the Administrative
              Agent or
              any Lender to bring proceedings against the Borrower in the courts
              of any
              jurisdiction or jurisdictions.

             

            SECTION 11.19  WAIVER
              OF TRIAL BY JURY

             

            EACH
              CREDIT PARTY AND THE BORROWER KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
              WAIVE ANY
              RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
              ARISING OUT
              OF, UNDER OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE TRANSACTIONS
              CONTEMPLATED THEREBY.
              FURTHER,
              THE BORROWER HEREBY CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF ANY
              CREDIT
              PARTY, OR COUNSEL TO THE ANY CREDIT PARTY, HAS REPRESENTED, EXPRESSLY
              OR
              OTHERWISE, THAT ANY CREDIT PARTY WOULD NOT, IN THE EVENT OF SUCH LITIGATION,
              SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION.
              THE
              BORROWER ACKNOWLEDGES THAT EACH CREDIT PARTY HAS BEEN INDUCED TO ENTER
              INTO THIS
              AGREEMENT BY, INTER
              ALIA,
              THE
              PROVISIONS OF THIS SECTION.

             

            SECTION 11.20  Effective
              Date

             

            This
              Agreement shall be effective at such time (the “Effective
              Date”)
              as the
              Administrative Agent shall have received executed counterparts hereof
              by the
              Borrower, the Administrative Agent and each Lender and the conditions
              set forth
              in Section 5.1,
              Section 5.2
              and
Section 5.3
              have been
              or simultaneously will be satisfied, provided
              that this
              Agreement shall not become effective or be binding on any party hereto
              unless
              all of such conditions are satisfied not later than November 1,
              2007.

             

            SECTION 11.21  PATRIOT
              Act Notice

             

            Each
              Lender and the Administrative Agent (for itself and not on behalf of
              any Lender)
              hereby notifies the Borrower that pursuant to the requirements of the
              USA
              PATRIOT Act (Title III of Pub. L. 107-56 (signed into law
              October 26, 2001)) (the “PATRIOT
              Act”),
              it is
              required to obtain, verify and record information that identifies the
              Borrower,
              which information includes the name and address of the Borrower and
              other
              information that will allow such Lender or the Administrative Agent,
              as
              applicable, to identify the Borrower in accordance with the PATRIOT
              Act.

             

            [Signature
              Pages Follow]

             

            
              
                
                

              

              
                60

                
                  

                

              

              
                
                

              

            

             

          

        

      

      
        IN
          WITNESS
          WHEREOF, the parties hereto, by their respective officers thereunto duly
          authorized, have executed this Agreement on the date first above
          written.

      

      
         

        
          	CVS
                  CORPORATION	 
	 	 	 	 
	By:	/s/
                  Carol A. DeNale	 
	 	Name:	Carol
                  A.
                  DeNale 	 
	 	Title:	Vice
                  President and
                  Treasurer 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                  LEHMAN
                    BROTHERS
                    INC.,
   as Arranger

                	 
	 	 	 	 
	By:	/s/
                  Claire O’Connor	 
	 	Name:	Claire
                  O’Connor 	 
	 	Title:	Managing
                  Director 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	LEHMAN
                  COMMERCIAL PAPER INC., 
   as Administrative Agent and a
                  Lender
	 	 	 	 
	By:	/s/
                  Claire O’Connor	 
	 	Name:	Claire
                  O’Connor 	 
	 	Title:	Managing
                  Director 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	MORGAN
                  STANLEY SENIOR FUNDING, INC., 
   as Arranger,
                  Syndication Agent and a Lender 
	 	 	 	 
	By:	/s/
                  Elizabeth Hendricks	 
	 	Name:	Elizabeth
                  Hendricks 	 
	 	Title:	Vice
                  President
                   	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	THE
                  BANK OF NEW YORK, as Co-
   Documentation Agent and a
                  Lender
	 	 	 	 
	By:	/s/
                  Erin Morrissey	 
	 	Name:	Erin
                  Morrissey 	 
	 	Title:	Assistant
                  Vice
                  President 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	BANK
                  OF
                  AMERICA, N.A., as Co-
   Documentation Agent and a
                  Lender
	 	 	 	 
	By:	/s/
                  John Pocalyko	 
	 	Name:	John
                  Pocalyko
                   	 
	 	Title:	Senior
                  Vice
                  President 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	WACHOVIA
                  BANK, NATIONAL ASSOCIATION, 
   as
                  Co-Documentation Agent and a Lender 
	 	 	 	 
	By:	/s/
                  Denis Waltrich	 
	 	Name:	Denis
                  Waltrich 	 
	 	Title:	Vice
                  President 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	ABN
                  AMRO Bank N.V., as a Lender
	 	 	 	 
	By:	/s/
                  Tracie Elliot	 
	 	Name:	Tracie
                  Elliot 	 
	 	Title:	Senior
                  Vice
                  President 	 
	 	 	 	 
	By:	/s/
                  Thomas T. Rogers	 
	 	Name:	Thomas
                  T.
                  Rogers	 
	 	Title:	Managing
                  Director	 

        

        
           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

        

        
          	Branch
                  Banking and Trust Company, as a Lender 
	 	 	 	 
	By:	/s/
                  Eric Searls	 
	 	Name:	Eric
                  Searls 	 
	 	Title:	Assistant
                  Vice
                  President 	 

        

        
           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

        

        
          	HSBC
                  Bank USA, as a Lender
	 	 	 	 
	By:	/s/
                  Michael Frawley	 
	 	Name:	Michael
                  Frawley 	 
	 	Title:	Senior
                  Vice
                  President 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                  KeyBank
                    National
                    Association, as a Lender

                
	 	 	 	 
	By:	/s/
                  Marianne T. Meil	 
	 	Name:	Marianne
                  T.
                  Meil 	 
	 	Title:	Senior
                  Vice
                  President 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	Mizuho
                  Corporate Bank, Ltd., as a Lender
	 	 	 	 
	By:	/s/
                  Bertram H. Tang 	 
	 	Name:	Bertram
                  H. Tang  	 
	 	Title:	Senior
                  Vice President & Team Leader 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	SUMITOMO
                  MITSUI BANKING
   CORPORATION, as a
                  Lender
	 	 	 	 
	By:	/s/
                  David A. Buck	 
	 	Name:	David
                  A. Buck 	 
	 	Title:	Senior
                  Vice President 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	SunTrust
                  Bank, as a Lender	 
	 	 	 	 
	By:	/s/
                  John N. Gregg, Jr.	 
	 	Name:	John
                  N.
                  Gregg, Jr. 	 
	 	Title:	Managing
                  Director 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	US
                  Bank,
                  N.A., as a Lender	 
	 	 	 	 
	By:	/s/
                  David J. Dannemiller	 
	 	Name:	David
                  J.
                  Dannemiller 	 
	 	Title:	Vice
                  President 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	Wells
                  Fargo Bank, N.A., as a Lender	 
	 	 	 	 
	By:	/s/
                  Megan Donnelly	 
	 	Name:	Megan
                  Donnelly 	 
	 	Title:	Vice
                  President 	 

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

    
      BRIDGE
        CREDIT
        AGREEMENT

       

      EXHIBIT
        A

       

      COMMITMENTS

       

      
        	
                Lender

              	
                Commitment

              
	Lehman
                Commercial Paper Inc.	
                $935,000,000

              
	Morgan
                Stanley Senior Funding, Inc.	
                935,000,000

              
	The
                Bank of New York	
                810,000,000

              
	Bank
                of
                America, N.A.	
                810,000,000

              
	Wachovia
                Bank, National Association.	
                810,000,000

              
	ABN
                AMRO Bank	
                250,000,000

              
	KeyBank	
                250,000,000

              
	SunTrust
                Bank	
                250,000,000

              
	HSBC	
                122,000,000

              
	Mizuho	
                122,000,000

              
	Sumitomo
                Mitsui Bank	
                122,000,000

              
	US
                Bank	
                122,000,000

              
	Wells
                Fargo Bank	
                122,000,000

              
	BB&T	
                90,000,000

              
	
                     Total:

              	
                $5,750,000,000

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        BRIDGE
          CREDIT AGREEMENT

         

        EXHIBIT
          B

         

        FORM
          OF NOTE

         

        
          	 	
                  [                      ],
                    2007

                
	 	
                  New
                    York, New
                    York

                

        

         

        FOR
          VALUE RECEIVED, the undersigned, CVS CORPORATION, a Delaware corporation
          (the
“Borrower”),
          hereby promises to pay to the order of _________________________ (the
“Lender”)
          the outstanding principal balance of the Lender’s Loan, together with interest
          thereon, at the rate or rates, in the amounts and at the time or times
          set forth
          in the Bridge Credit Agreement (as the same may be amended, supplemented
          or
          otherwise modified from time to time, the “Bridge
          Credit Agreement”),
          dated as of March [___], 2007, by and among the Borrower, the Lenders party
          thereto, Lehman Brothers Inc. and Morgan Stanley Senior Funding, Inc.,
          as joint
          lead arrangers and joint bookrunners, Morgan Stanley Senior Funding, Inc.,
          as
          syndication agent, The Bank of New York, Bank of America, N.A. and Wachovia
          Bank, National Association, as co-documentation agents, and Lehman Commercial
          Paper Inc., as administrative agent (in such capacity, the “Administrative
          Agent”),
          in each case at the office of the Administrative Agent located at 745 Seventh
          Avenue, New York, New York, or at such other place as the Administrative
          Agent
          may specify from time to time, in lawful money of the United States of
          America
          in immediately available funds.

        

        Capitalized
          terms used herein that are not otherwise defined herein shall have the
          respective meanings ascribed thereto in the Bridge Credit
          Agreement.

        

        The
          Loan evidenced by this Note is prepayable in the amounts, and on the dates,
          set
          forth in the Bridge Credit Agreement. This Note is one of the Notes under
          the
          Bridge Credit Agreement, and is subject to, and shall be construed in accordance
          with, the provisions thereof, and is entitled to the benefits set forth
          in the
          Loan Documents.

        

        The
          Lender is hereby authorized to record on the schedule annexed hereto, and
          any
          continuation sheets which the Lender may attach thereto (a) the date and
          amount
          of the Loan made by the Lender, (b) the Eurodollar Interest Period for
          the Loan
          (Eurodollar Advance only) made by the Lender, (c) the Type of the Loan
          made by
          the Lender as an ABR Advance, a Eurodollar Advance, or a combination thereof,
          (d) the Eurodollar Rate applicable to the Loan (Eurodollar Advance only)
          made by
          the Lender and (e) the date and amount of each Conversion of the Loan made
          by
          the Lender, and each payment or prepayment of principal of, the Loan made
          by the
          Lender. The failure to so record or any error in so recording shall not
          affect
          the obligation of the Borrower to repay the Loan, together with interest
          thereon, as provided in the Bridge Credit Agreement.

        

        
          
            
            

          

          
            B-1

            
              

            

          

          
            
            

          

        

         

        Except
          as specifically otherwise provided in the Bridge Credit Agreement, the
          Borrower
          hereby waives presentment, demand, notice of dishonor, protest, notice
          of
          protest and all other demands, protests and notices in connection with
          the
          execution, delivery, performance, collection and enforcement of this
          Note.

        

        This
          Note is being delivered in, is intended to be performed in, shall be construed
          and interpreted in accordance with, and be governed by the laws of, the
          State of
          New York.

        

        This
          Note may only be amended by an instrument in writing executed pursuant
          to the
          provisions of Section 11.1 of the Bridge Credit Agreement.

        
          	 	 	 
	 	CVS
                  CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Name:
	 	Title 

        

         

        
          
            
            

          

          
            B-2

            
              

            

          

          
            
            

          

        

        SCHEDULE
          TO NOTE

         

        
          	
                  Date
                    of 

                  Loan

                	
                  Type
                    

                  and
                    

                  Amount
                    

                  of
                    Loan

                	
                  Eurodollar
                    

                  Interest
                    

                  Period
                    

                  (Eurodollar
                    

                  Advance
                    only)

                	
                  Type
                    of 

                  Loan

                  (ABR
                    or Eurodollar)

                	
                  Eurodollar
                    

                  Rate
                    

                  (Eurodollar
                    

                  Advance
                    only)

                	
                  Date
                    and 

                  Amount
                    of 

                  Conversion
                    of Loan

                	
                  Date
                    and 

                  Amount
                    of 

                  Principal
                    

                  Payment
                    or Prepayment

                	
                  Notation
                    

                  Made
                    by

                
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        BRIDGE
          CREDIT AGREEMENT

         

        EXHIBIT
          C

         

        FORM
          OF
          BORROWING REQUEST

         

        [Date]

         

        Lehman
          Commercial Paper Inc., as Administrative Agent

        745
          Seventh Avenue, 5th
          Floor

        New
          York,
          New York 10019

        Attention:
          Maritza Ospina

         

        
          	
                  Re:

                	
                	
                  Bridge
                    Credit Agreement, dated as of March [___], 2007, by and among
                    CVS
                    Corporation, the Lenders party thereto, Lehman
                    Brothers Inc. and Morgan Stanley Senior Funding, Inc., as Arrangers,
                    Morgan Stanley Senior Funding, Inc., as Syndication Agent, The
                    Bank of New
                    York, Bank of America, N.A. and Wachovia Bank, National Association,
                    as
                    co-documentation agents, and Lehman Commercial Paper Inc.,
                    as
                    Administrative Agent (as amended, supplemented or otherwise modified
                    from
                    time to time, “Bridge
                    Credit Agreement”)

                

        

         

        Capitalized
          terms used herein that are not otherwise defined herein shall have the
          respective meanings ascribed thereto in the Bridge Credit Agreement. 

         

        Pursuant
          to Section 2.2 of the Credit Agreement, the Borrower hereby gives notice
          of its
          intention to borrow Loans in the aggregate sum of $____________ on ____________,
          which borrowing shall consist of the following:

         

        
          	
                   

                  ABR
                    Advance or

                  Eurodollar
                    Advance

                	
                   

                   

                  Amount

                	
                  Eurodollar
                    Interest Period 

                  (applicable
                    only for a

                  Eurodollar
                    Advance)

                
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

        

        

        The
          Borrower hereby represents and warrants that on the Borrowing Date set
          forth
          above, and after giving effect to the Loans requested hereby:

         

        
          
            
            

          

          
            C-1

            
              

            

          

          
            
            

          

        

         

        (a) There
          shall exist no Default or Event of Default.

         

        (b) The
          representations and warranties contained in the Bridge Credit Agreement
          shall be
true
          and
          correct, except those which are expressly specified to be made as of an
          earlier
          date.

         

        The
          Borrower hereby instructs the Administrative Agent to deposit the proceeds
          of
          the Loans to the following account of the Borrower:

         

        
          	 	
                  Account
                    Name: 

                  Account
                    Number

                  Bank
                    Name: 

                  Bank
                    Address: 

                  ABA
                    Number: 

                  Contact
                    Name: 

                

        

         

        [Remainder
          of page intentionally left blank]

         

         

         

        
          
            
            

          

          
            C-2

            
              

            

          

          
            
            

          

        

         

        IN
          EVIDENCE of the foregoing, the undersigned has caused this Borrowing Request
          to
          be duly executed on its behalf.

         

        
          
            	 	 	 
	 	CVS
                    CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
                    
Name:
	 	Title 

          

           

           

          
            
              
              

            

            
              C-3

              
                

              

            

            
              
              

            

          

        

         

        BRIDGE
          CREDIT AGREEMENT

         

        EXHIBIT
          D-1

         

        FORM
          OF
          OPINION

         

        [              ],
          2007

         

        The
          Lenders and

        the
          Administrative Agent Referred to Below

        c/o
          Lehman
          Commercial Paper Inc.,

        as
          Administrative Agent

        745
          Seventh Avenue

        New
          York,
          New York 10019

         

        Ladies
          and
          Gentlemen:

         

        I
          am
          general counsel of CVS Corporation, a Delaware corporation (the “Borrower”),
          and
          have acted as such in connection with the Bridge Credit Agreement, dated
          as of
          March [___], 2007, by and among the Borrower, the Lenders party thereto,
          Lehman
          Brothers Inc. and Morgan Stanley Senior Funding, Inc., as Arrangers, Morgan
          Stanley Senior Funding, Inc., as Syndication Agent,
          Lehman
          Commercial Paper Inc., as Administrative Agent, and The
          Bank of New York, Bank of America, N.A. and Wachovia Bank, National Association,
          as Co-Documentation Agents (as
          in
          effect on the date hereof, the “Bridge
          Credit Agreement”).
          Capitalized terms not otherwise defined herein shall have the meanings
          assigned
          to them in the Bridge Credit Agreement.

         

        I
          have
          examined originals or copies, certified or otherwise identified to my
          satisfaction, of such documents, corporate records, certificates of public
          officials and other instruments and have conducted such other investigations
          of
          fact and law as I have deemed necessary or advisable for purposes of this
          opinion. In rendering my opinions set forth below, I have assumed (i) the
          due
          authorization, execution and delivery by all parties thereto (other than
          the
          Borrower) of the Bridge Credit Agreement, (ii) the authenticity of all
          documents
          submitted to me as originals and (iii) the conformity to original documents
          of
          all documents submitted to me as copies.

         

        Based
          upon
          the foregoing, I am of the opinion that:

         

        1.  The
          Borrower is a corporation duly incorporated, validly existing and in good
          standing under the laws of the State of Delaware. The Borrower has all
          requisite
          corporate power and authority to own its Property and to carry on its business
          as now conducted.

         

        
          
            
            

          

          
            D-1-1

            
              

            

          

          
            
            

          

        

         

        2.  The
          Borrower is qualified to do business as a foreign corporation and is in
          good
          standing in each jurisdiction in which it owns or leases real Property
          or in
          which the nature of its business requires it to be so qualified (except
          those
          jurisdictions where the failure to be so qualified or to be in good standing
          could not reasonably be expected to have a Material Adverse
          effect).

         

        3.  The
          execution, delivery and performance by the Borrower of the Bridge Credit
          Agreement and the Notes are within the Borrower’s corporate powers and have been
          duly authorized by all necessary corporate action on the part of the
          Borrower.

         

        4.  The
          execution, delivery and performance by the Borrower of the Bridge Credit
          Agreement and Notes do not require any action or approval on the part of
          the
          shareholders of the Borrower or any action by or in respect of, or filing
          with,
          any governmental body, agency or official under United States federal law
          or the
          Delaware General Corporation Law, and do not contravene, or constitute
          a default
          under, any provision of (i) United States federal law or the Delaware General
          Corporation Law, (ii) the Certificate of Incorporation or bylaws of the
          Borrower
          or (iii) any existing material mortgage, material indenture, material contract
          or material agreement, in each case binding on the Borrower or any Subsidiary
          or
          affecting the Property of the Borrower or any Subsidiary.

         

        5.  The
          Bridge
          Credit Agreement and the Notes delivered by the Borrower on or prior to
          the date
          hereof have been duly executed and delivered by the Borrower and each
          constitutes the valid and binding agreement of the Borrower, in each case
          enforceable in accordance with their respective terms, subject to applicable
          bankruptcy, insolvency, reorganization, moratorium or similar laws from
          time to
          time in effect affecting the enforcement of creditors’ rights generally and to
          general principles of equity.

         

        6.  The
          Borrower is not an “investment company” (as such term is defined in the United
          States Investment Company Act of 1940, as amended).

         

        7.  To
          the
          best of my knowledge, there are no actions, suits, arbitration proceedings
          or
          claims (whether purportedly on behalf of the Borrower, any Subsidiary or
          otherwise) pending or threatened against the Borrower or any Subsidiary
          or any
          of their respective Properties, or maintained by the Borrower or any Subsidiary,
          at law or in equity, before any Governmental Authority which could reasonably
          be
          expected to have a Material Adverse effect. To the best of my knowledge,
          there
          are no proceedings pending or threatened against the Borrower or any Subsidiary
          (a) which call into question the validity or enforceability of, or otherwise
          seek to invalidate, any Loan Document or (b) which could reasonably be
          expected
          to, individually or in the aggregate, materially and adversely affect any
          of the
          transactions contemplated by any Loan Document.

         

        8.  To
          the
          best of my knowledge, the Borrower is not in default under any agreement
          to
          which it is a party or by which it or any of its Property is bound the
          effect of
          which could reasonably be expected to have a Material Adverse
          effect.

         

        
          
            
            

          

          
            D-1-2

            
              

            

          

          
            
            

          

        

         

        9.  To
          the
          best of my knowledge, no provision of any judgment, decree or order, in
          each
          case binding on the Borrower or any Subsidiary or affecting the Property
          of the
          Borrower or any Subsidiary conflicts with, or requires any consent which
          has not
          already been obtained under, or would in any way prevent the execution,
          delivery
          or performance by the Borrower of the terms of, any Loan Document.

         

        The
          foregoing opinion is subject to the following qualifications:

         

        (a)  I
          express
          no opinion as to the effect (if any) of any law of any jurisdiction (except
          the
          Commonwealth of Massachusetts) in which any Lender is located which may
          limit
          the rate of interest that such Lender may charge or collect.

         

        (b)  I
          express
          no opinion as to provisions in the Bridge Credit Agreement which purport
          to
          create rights of set-off in favor of participants or which provide for
          set-off
          to be made otherwise than in accordance with applicable laws.

         

        (c)  I
          note
          that public policy considerations or court decisions may limit the rights
          of any
          party to obtain indemnification under the Bridge Credit Agreement.

         

        I
          am a
          member of the bar of the Commonwealth of Massachusetts and the foregoing
          opinion
          is limited to the laws of the Commonwealth of Massachusetts, the federal
          law of
          the United States of America and the Delaware General Corporation Law.
          For
          purposes of paragraph 5 of this opinion, I have assumed that, with your
          permission and without any research or investigation, the laws of the State
          of
          New York are identical to the law of the Commonwealth of
          Massachusetts.

         

        This
          opinion is rendered solely to you in connection with the above matter.
          This
          opinion may not be relied upon by you for any other purpose or relied upon
          by
          any other person without my prior written consent, except that any person
          that
          becomes a Lender in accordance with the provisions of the Bridge Credit
          Agreement may rely upon this opinion as if it were specifically addressed
          and
          delivered to such person on the date hereof.

         

        Very
          truly
          yours,

         

         

        
          
            
            

          

          
            D-1-3

            
              

            

          

          
            
            

          

        

         

        BRIDGE
          CREDIT AGREEMENT

         

        EXHIBIT
          D-2

         

        FORM
          OF
          OPINION

         

        [              ],
          2007

         

        The
          Lenders and

        the
          Administrative Agent Referred to Below

        c/o
          Lehman
          Commercial Paper Inc.,

        as
          Administrative Agent

        745
          Seventh Avenue

        New
          York,
          New York 10019

         

        Re: CVS
          Corporation

         

        Ladies
          and
          Gentlemen:

         

        We
          have
          acted as special New York counsel to CVS Corporation, a Delaware corporation
          (the “Company”),
          in
          connection with the Bridge Credit Agreement, dated as of March [___], 2007,
          among the Company, the lenders listed on the signature pages thereof (the
          “Lenders”),
          Lehman
          Brothers Inc. and Morgan Stanley Senior Funding, Inc., as joint lead arrangers
          and joint bookrunners (in such capacity, the “Arrangers”),
          Morgan Stanley Senior Funding, Inc., as syndication agent (in
          such
          capacity, the “Syndication
          Agent”),
          Lehman
          Commercial Paper Inc., as administrative agent (in such capacity, the
“Administrative
          Agent”),
          and
The
          Bank of New York, Bank of America, N.A. and Wachovia Bank, National Association,
          as co-documentation agents (in such capacity, the “Co-Documentation
          Agents”)
          (as
          in
          effect on the date hereof, the “Bridge
          Credit Agreement”).
          Capitalized terms defined in the Bridge Credit Agreement and not otherwise
          defined herein are used herein as therein defined.

         

        We
          have
          reviewed an executed copy of the Bridge Credit Agreement. In addition,
          we have
          examined originals or copies, certified or otherwise identified to our
          satisfaction, of such documents, corporate records, certificates of public
          officials and other instruments, and have conducted such other investigations
          of
          fact and law, as we have deemed necessary or advisable for purposes of
          this
          opinion.

         

        Based
          upon
          the foregoing, and subject to the qualifications and assumptions set forth
          herein, we are of the opinion that (i) the Bridge Credit Agreement constitutes
          a
          valid and binding agreement of the Company, enforceable against the Company
          in
          accordance with its terms, and (ii) the execution, delivery and performance
          by
          the Company of the Bridge Credit Agreement (x) require no consent or other
          action by or in respect of, or filing with, any gov-

         

        
          
            
            

          

          
            D-2-1

            
              

            

          

          
            
            

          

        

         

        ernmental
          body, agency or official under New York State law, and (y) do not contravene,
          or
          constitute a default under, any provision of New York State law or regulation
          that in our experience is normally applicable to general business corporations
          in relation to transactions of the type contemplated by the Bridge Credit
          Agreement.

         

        The
          foregoing opinions are subject to the following qualifications and
          assumptions:

         

        (a) Our
          opinions are subject to the effects of applicable bankruptcy, insolvency
          and
          similar laws affecting creditors’ rights generally and equitable principles of
          general applicability, and the enforceability of indemnification provisions
          may
          be limited by Federal or State laws or policies underlying such
          laws.

         

        (b) We
          express
          no opinion as to the effect (if any) of any law of any jurisdiction (except
          the
          State of New York) in which any Lender is located that may limit the rate
          of
          interest that such Lender may charge or collect.

         

        (c) We
          express
          no opinion as to the effect of Section 548 of the United States Bankruptcy
          Code
          or any similar provisions of State law.

         

        (d) We
          have
          assumed, with your permission and without independent investigation, that
          (i)
          the Company is a corporation duly incorporated, validly existing and in
          good
          standing under the laws of the State of Delaware, (ii) the execution, delivery
          and performance by the Company of the Bridge Credit Agreement are within
          its
          corporate powers and have been duly authorized by all necessary corporate
          and
          other action, and (iii) the execution, delivery and performance by the
          Company
          of the Bridge Credit Agreement (x) require no consent or other action by
          or in
          respect of, or filing with, any governmental body, agency or official under
          United States federal law or the Delaware General Corporation Law and (y)
          do not
          contravene, or constitute a default under, any provision of (a) United
          States
          federal law or regulation or the Delaware General Corporation Law, or (b)
          the
          certificate of incorporation or bylaws of the Company.

         

        We
          are
          members of the bar of the State of New York and the foregoing opinion is
          limited
          to the laws of the State of New York.

         

        This
          opinion is rendered solely to you in connection with the above matter.
          This
          opinion may not be relied upon by you for any other purpose or relied upon
          by
          any other person (other than an assignee permitted under Section 11.7 of
          the
          Bridge Credit Agreement) without our prior written consent.

         

        Very
          truly
          yours,

         

        
          
            
            

          

          
            D-2-2

            
              

            

          

          
            
            

          

        

         

        BRIDGE
          CREDIT AGREEMENT

         

        EXHIBIT
          E

         

        FORM
          OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

         

        Reference
          is made to the Bridge Credit Agreement, dated as of March [___],
          2007 (as
          amended and in effect on the date hereof, the “Bridge
          Credit Agreement”),
          by and
          among CVS Corporation, the Lenders party thereto, Lehman
          Brothers Inc. and Morgan Stanley Senior Funding, Inc., as Arrangers, Morgan
          Stanley Senior Funding, Inc., as Syndication
          Agent, Lehman Commercial Paper Inc., as Administrative Agent, and The
          Bank of New York, Bank of America, N.A. and Wachovia Bank, National Association,
          as Co-Documentation Agents.
          Capitalized terms used herein that are not otherwise defined herein shall
          have
          the respective meanings ascribed thereto in the Bridge Credit
          Agreement.

         

        The
          Assignor named below hereby sells and assigns, without recourse, to the
          Assignee
          named below, and the Assignee hereby purchases and assumes, without recourse,
          from the Assignor, effective as of the Assignment Date (defined below),
          the
          interests set forth below (the “Assigned
          Interest”)
          in the
          Assignor’s rights and obligations under the Bridge Credit Agreement, including,
          without limitation, the interests set forth below in the Commitment and
          the
          Loans owing to the Assignor that are outstanding on the Assignment Date,
          but
          excluding accrued interest and fees to and excluding the Assignment Date.
          The
          Assignee hereby acknowledges receipt of a copy of the Bridge Credit Agreement.
          From and after the Assignment Date, (i) the Assignee shall be a party to
          and be
          bound by the provisions of the Bridge Credit Agreement and, to the extent
          of the
          Assigned Interest, have the rights and obligations of a Lender under the
          Loan
          Documents and (ii) the Assignor shall, to the extent of the Assigned Interest,
          relinquish its rights and be released from its obligations under the Loan
          Documents.

         

        This
          Assignment and Acceptance is being delivered to the Administrative Agent,
          together with (i) if the Assignee is a Foreign Lender, any documentation
          required to be delivered by the Assignee pursuant to Section 3.10(b) of
          the
          Bridge Credit Agreement, duly completed and executed by the Assignee, and
          (ii)
          if the Assignee is not already a Lender under the Bridge Credit Agreement,
          an
          Administrative Questionnaire in the form supplied by the Administrative
          Agent,
          duly completed by the Assignee. The [Assignee/Assignor]1 
          shall pay the fee payable to the Administrative Agent pursuant to Section
          11.7(b) of the Bridge Credit Agreement.

         

         

          
            

          

        

        1  Delete
          inapplicable term.

         

        
          
            
            

          

          
            E-1

            
              

            

          

          
            
            

          

        

         

        THIS
          ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY, AND 

        CONSTRUED
          IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

         

        Date
          of
          Assignment:

         

        Legal
          Name
          of Assignor:

         

        Legal
          Name
          of Assignee:

         

        Assignee’s
          Address for Notices:

         

        Effective
          Date of

         

        Assignment
          (the “Assignment
          Date”):

         

        Commitment
          Assigned:

         

        Principal
          Amount of Loans Assigned:

        [SIGNATURE
          PAGE FOLLOWS]

         

        
          
            
            

          

          
            E-2

            
              

            

          

          
            
            

          

        

         

        The
          terms
          set forth above are hereby agreed to:

         

         

        
          	 	
                  [Name
                    of Assignor],
                    as
                    Assignor

                
	 	 	 
	 	By: 	
                
	 	 	 
	 	 	 
	 	[Name of
                  Assignee],
                  as
                  Assignee
	 	 	 
	 	By:  	
                
	 	 	 

        

         

        The
          undersigned hereby consent to the within assignment:

         

         

        
          	 	CVS CORPORATION
	 	 	 
	 	By:	 
	 	 	 
	 	 	 
	 	LEHMAN COMMERCIAL PAPER
                  INC.,
	 	as Administrative
                  Agent
	 	 	 
	 	By:	
                
	 	 	 

        

         

         

         

        E-3

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