Document:

Document

Exhibit 10.25

CVS HEALTH SEVERANCE PLAN FOR
NON-STORE EMPLOYEES
       (Amended and Restated as of October 11, 2021)

Proprietary

 
 
      CVS HEALTH SEVERANCE PLAN 
      FOR NON-STORE EMPLOYEES
(Amended and Restated as of October 11, 2021)

WHEREAS, CVS Health Corporation (the  “Company”)  has  established  the  CVS  Health Severance Plan for Non-Store Employees (the “Plan”) to provide financial assistance to employees in non-store positions who are involuntarily terminated and are eligible within the terms and conditions of the Plan;

WHEREAS, it is intended that the Plan constitute an employee welfare benefit plan within the scope of Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that the Plan constitute a separation pay plan within the scope of Department of Labor (“DOL”) Regulation Section 2510.3- 2(b), and that all payments made under the Plan be deductible by the Company under Section 162(a) of the Internal Revenue Code of 1986, as amended (the “Code”);

WHEREAS, the benefits provided under the Plan are intended to constitute separation pay within        the meaning of Treasury Regulation Section 1.409A-1(b)(9)(iii);

WHEREAS, this document is the official plan document; and

WHEREAS, the Company wishes to make certain amendments to the Plan, effective as of October 11, 2021 (the “Effective Date”);

NOW, THEREFORE, as of the Effective Date, the Company does hereby amend the Plan to           provide as follows:
ARTICLE 1
DEFINITIONS 

For purposes of the Plan, the following terms, when used with an initial capital letter, shall have the meaning set forth below unless a different meaning is plainly required by the context.

1.1     “Affiliate” shall mean (a) any corporation which is required to be aggregated with the     Company under Code Section 414(b), (c), (m), or (o) and (b) any other entity in which the Company has an ownership interest and which the Company designates as an Affiliate for purposes of the Plan.

1.2     “Cause” shall refer to a termination of an Eligible Employee’s employment because of the 
Eligible Employee’s (a) failure to satisfactorily perform under a performance improvement plan of the Employer; (b) acts of unethical business activity, including but not limited to fraud, misappropriation, embezzlement, dishonesty, harassment, discrimination in violation of Employer policies, or willful or negligent destruction of property of an Employer or an Affiliate; (c) misconduct that could cause damage (monetary, reputational or otherwise) to the Employer, an Affiliate, or any personnel thereof; (d) conviction of or a plea of guilty or nolo contendere to any felony, whether or not any right to appeal has been or may be exercised; (e) negligence of duty; (f) insubordination; or (g) a violation of the Employer’s policy, procedure, or practice.

1.3         “Code” shall mean the Internal Revenue Code of 1986, as amended.

1.4       “Eligible Employee” shall mean an individual who is employed by the Employer on a regular basis in a non-store position and has been employed by the Employer in any position for a minimum of ninety (90) days prior to the individual’s separation of employment. For purposes of the Plan, distribution warehouse employees, field managers and employees employed by CVS ProCare, Inc. working at Company headquarters, shall be treated as working in a non-store location and therefore not subject to exclusion from eligibility. For purposes of the Plan, individuals in the following categories will not be considered Eligible Employees:

 
2 
Proprietary 

(a)individuals who are covered by a collective bargaining agreement, provided welfare benefits were the subject of bargaining, unless the terms of the collective bargaining agreement provide for participation in the Plan;

(b)individuals who are seasonal employees, leased employees, independent contractors, temporary employees, or consultants;

(c)individuals who work for the Employer or an Affiliate in a store location of the Company or an Affiliate, or whose compensation is paid through or according to a store payroll, including but not limited to: pharmacists, store managers, assistant store managers, crew, and pharmacy staff;

(d)individuals employed by MinuteClinic, L.L.C. or by any practitioner-owned entity managed by MinuteClinic, L.L.C.;

(e)the President and CEO of CVS Health Corporation;

(f)individuals employed in Puerto Rico; and

(g)individuals employed outside the United States of America.

The decision of whether an individual falls into one of these categories and whether an individual is employed    by an Employer on a regular basis in a non-store position for a minimum of ninety (90) days shall be made by   the Employer in its sole discretion. Any individual who is excluded from being considered an Eligible Employee under the Plan shall be excluded from the Plan regardless of the individual’s reclassification by a government agency, including a reclassification by the Internal Revenue Service for tax withholding purposes.

1.5“Employer” shall mean CVS Pharmacy, Inc., Caremark Rx, L.L.C. and Aetna Inc. and any current or future Affiliate thereof that does not maintain its own severance plan for employees of that Affiliate.

1.6“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

1.7“Exempt Employee” shall mean an Eligible Employee who is paid on a salaried basis for payroll purposes and classified in the sole discretion of the Employer under its normal classification procedures   as an exempt employee under the Fair Labor Standards Act.

1.8“Involuntary Termination” shall mean an Eligible Employee’s termination of employment  with the Employer due to the unilateral action of the Employer, including but not limited to a termination as a result of the elimination of an Eligible Employee’s position due to a reorganization or changes in responsibilities,  a reduction in force, or a closing of the business unit in which the Eligible Employee works; provided, however, that such Involuntary Termination constitutes a separation from service under Treasury Regulation Section 1.409A-1(h).  Notwithstanding the foregoing, an Eligible Employee will not have an Involuntary  Termination if the Eligible Employee: (a) is terminated for Cause, as determined by the Employer  in  its  sole discretion;  (b)  voluntarily  terminates  his or her  employment  at any time  or  resigns  prior  to  an Involuntary Termination;    (c) takes a leave of absence; (d) is administratively terminated for failure to return from a leave of absence upon expiration of his or her leave; (e) terminates employment due to his or her death or disability; (f) transfers to an Affiliate; (g) transfers to a new employer in connection with the sale of an Employer facility; or (h) fails to accept an offer for a job with the Employer that is comparable to the job that he or she is performing for the Employer at the time of the offer. For purposes of Subsection (h) of this Section 1.8, whether a job is considered “comparable” shall be determined in the sole discretion of the Employer, taking into account whether the new  job is located 50 or fewer miles from the Eligible Employee’s job at the time of the offer, whether the compensation offered is materially less than the Eligible Employee’s compensation at the time of the offer, and 
 
3 
Proprietary 

whether the new job will result in a substantial change of duties from the Eligible Employee’s job at the time of the offer. The determination of whether an Eligible Employee’s termination of employment is an Involuntary Termination shall be made in the sole discretion of the Employer. If an Employer deems an Eligible Employee’s termination of employment to be an Involuntary Termination and, Employer later learns of facts and circumstances that, had the Employer known such facts and circumstances at the time of termination, would   have resulted in a termination of employment for Cause, the Eligible Employee’s termination shall be deemed as of the date of termination to not have been an Involuntary Termination.

1.9“Non-exempt Employee” shall mean an Eligible Employee who is paid on an hourly basis    for time worked and classified in the sole discretion of the Employer under its normal classification procedures    as a non-exempt employee under the Fair Labor Standards Act.

1.10“Plan Administrator” shall mean the Senior Vice President of Human Resources of CVS Pharmacy, Inc., or such other person, designated by the Chief People Officer of the Company to act as the Plan Administrator.

1.11“Rehire Date” shall mean the date an Eligible Employee accepts reemployment with any Employer.

1.12“Severance Pay” shall mean the pay an Eligible Employee is eligible to receive under Subsection (b) of Section 2.1 of the Plan upon his or her Involuntary Termination.

1.13“Severance Period” shall mean the period of time during which an Eligible Employee is  eligible to receive Severance Pay

1.14“Weekly Rate” shall mean, (a) with respect to an Eligible Employee paid on a salaried basis,   an Eligible Employee’s annual base salary (as determined by the Employer), as of the date of the Eligible Employee’s Involuntary Termination, expressed on a weekly basis (as determined in the sole discretion of the Employer), and (b) with respect to an Eligible Employee paid on an hourly basis, the hourly wage rate of the Eligible Employee as of the date of the Eligible Employee’s Involuntary Termination multiplied by the Eligible Employee’s regularly scheduled number of hours of service per week (as determined by the Employer), not in excess of 40 hours. Weekly Rate shall exclude any overtime, incentive, and bonus payments, unless otherwise required by law.

1.15“Year of Service” shall mean each full year of service performed by the Eligible Employee    for an Employer as reflected in the records of the Employer and as determined as of the Eligible Employee’s   date of termination of employment, based on the Employer’s policies and procedures for determining periods of service, and the applicable law.

ARTICLE 2
SEVERANCE PAY AND ELIGIBLE EMPLOYEE BENEFITS

2.1     (a)     Eligibility. Upon his or her Involuntary Termination, an Eligible Employee may, in the discretion of the Plan Administrator, be granted Severance Pay and benefits provided under Subsections (b),  (c), and (d) of this Section 2.1, provided the conditions of Section 2.2 are satisfied. The determination of whether Severance Pay is payable under the Plan, and the form and amount of such pay, shall be made in the sole discretion of the Plan Administrator.

(b)Severance Pay. The Severance Pay payable to an Eligible Employee in the event of   Involuntary Termination shall be determined by the Plan Administrator in its, his or her sole discretion, using the guidelines set forth in Appendix A for the applicable Eligible Employee’s grade, as determined by the Employer. Notwithstanding such referenced guidelines, the Plan Administrator may increase or decrease (including, to zero) the amount of Severance Pay with respect to any Eligible Employee for reasons it, he or   
 
4 
Proprietary 

she deems appropriate in its sole discretion at any time, whether before or after payments of Severance Pay have commenced (including, but not limited to, a decrease to take into account any debts owed to an Employer or a decrease if an Eligible Employee fails to satisfactorily perform his or her duties and is not on or has not completed a performance improvement plan at the time of termination of employment), at any time, whether before or after payments of Severance Pay have commenced. A special one-time lump sum payment shall be made with respect to each Eligible Employee who experienced an Involuntary Termination on or after January 1, 2021 and prior to October 11, 2021 equal to the difference, if any, between the Severance Pay payable to  such Eligible Employee under Appendix A as in effect upon his or her Involuntary Termination and the Severance Pay that would have been paid to him or her under Appendix A as in effect as of October 11, 2021.

(c)COBRA Assistance.  In the event an Eligible Employee who has an Involuntary Termination
(i) is eligible to elect continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 as amended (“COBRA”) in accordance with the terms of the medical and prescription drug plan and/or dental plan of the Employer and (ii) properly and timely elects such continuation coverage, the Employer   may pay for a portion of the cost of COBRA coverage equivalent to the contribution which the Employer makes on behalf of similarly situated active employees under such plan for the appropriate tier of coverage selected and in place immediately prior to the date of the Eligible Employee’s Involuntary Termination (e.g., employee-only, family coverage), for a period determined in the sole discretion of the Plan Administrator, which generally shall be the Severance Period but in any event no longer than eighteen (18) months from the date of the Involuntary Termination. Any COBRA assistance provided under this Subsection (c) shall be   paid by the Employer directly to the insurance carrier, if applicable. The portion of the COBRA premium   not covered by the COBRA assistance specified in this Subsection (c) must be paid by the Eligible Employee directly to the insurance carrier or service provider that administers COBRA, as applicable, based on the standard rules under the respective plan for payment of COBRA premiums. This Subsection (c) does not provide COBRA assistance in the event the Eligible Employee fails to properly and timely elect COBRA continuation coverage, regardless of whether his or her covered dependents elect COBRA continuation coverage.

(d)     Outplacement Services. Upon an Involuntary Termination, the outplacement services   provided to an Eligible Employee shall be provided in the sole discretion of the Plan Administrator based    on the guidelines contained in this Subsection (d).

(i)If an Eligible Employee so desires, he or she may be eligible for outplacement   services for assistance in obtaining new employment, provided through a vendor selected by the Employer, with the Employer directly providing payment to such vendor. The provision of outplacement services is contingent upon the Eligible Employee’s cooperation with the   outplacement service vendor, upon the active efforts of the Eligible Employee to locate a new position, and upon the Eligible Employee initiating outplacement services during the Severance Period.

(ii)Subject to the requirements of Paragraph (i) of this Subsection (d), outplacement services shall be offered for a period of time determined in the sole discretion of the Plan Administrator, based on the guidelines set forth in Appendix A for the applicable Eligible  Employee’s grade, as determined by the Employer, provided that in no event shall such services extend beyond twelve (12) months following the Involuntary Termination of the Eligible Employee.

(e)Form and Timing of Payment. In the event an Eligible Employee is awarded Severance Pay under the terms of Subsection (a) of this Section 2.1, such Severance Pay shall be paid following an Eligible Employee’s Involuntary Termination (except as provided in Section 2.3, below), as follows: No Severance    Pay shall commence (with respect to salary continuation payments) or be paid (with respect to a lump sum)    (i) prior to the expiration of the later of a period that is identified in a severance agreement with the Eligible Employee during which he or she may consider the execution of the release of claims form (the “Consideration Period”) or a period ending at least seven (7) days following the execution of the release of claims form (the “Revocation Period”), or (ii) later than sixty (60) days following the date of  Eligible  Employee’s  Involuntary  Termination.    Severance Pay that is paid in the form of salary continuation shall 
 
5 
Proprietary 

commence as soon as feasible following expiration of the later of the Consideration Period or the Revocation Period, which generally shall be the first regularly scheduled payroll date following the expiration of the Consideration Period or the Revocation Period, as the case may be, and shall thereafter be paid in substantially equal installments in accordance with the Employer’s regular payroll practice, except as provided in Section  2.3 of the Plan, except that the first installment paid after the expiration of the later of the Consideration Period or the Revocation Period shall include, on a retroactive basis, all installments that would have been  paid had they started as soon as administratively feasible after the date of the Eligible Employee’s Involuntary Termination. It is the intent of the Plan that the Severance Period in all cases be measured from the date of  the Eligible Employee’s Involuntary Termination. Further, in the Plan Administrator’s sole discretion, Severance Pay may be paid to any Eligible Employees in a single lump sum, in which event Severance Pay  shall be paid within the period that satisfies the 409A requirements for short-term deferrals under Section 409A of the Code.

(f)Withholding. Any payment of Severance Pay to an Eligible Employee shall be subject              to normal withholding for state and federal income taxes and Social Security taxes.

(g)Death.    Upon the death of the Eligible Employee who had an Involuntary Termination and who has not received all Severance Pay payable under the Plan, the Severance Pay otherwise payable under Section 2.1(b) of the Plan shall be paid in the form of a lump sum to the Eligible Employee’s surviving legal spouse or, if there is no surviving legal spouse, to the Eligible Employee’s estate as soon as practicable, but    in no event later than 60 days following death. Any other severance benefits provided under this Section 2.1 (COBRA assistance and outplacement services) shall cease upon the Eligible Employee’s death.

2.2    Conditions on Payment of Severance Pay and Benefits. Payment of the Severance Pay and   benefits provided in Section 2.1 of the Plan shall be subject to and conditioned upon the following:

(a)to the extent an Eligible Employee receives notice of a date selected by the Employer (in its sole discretion) on which the Eligible Employee’s Involuntary Termination shall occur (a “Designated Termination Date”), the Eligible Employee must continue to work in a satisfactory manner until his or her Designated Termination Date;

(b)the Eligible Employee must cooperate in transitioning all of the Eligible Employee’s work in consultation with the Eligible Employee’s supervisor or other designated employee;

(c)the Eligible Employee must execute and deliver a severance agreement that includes    a release of claims, which agreement shall be in a form specified by the Employer from time to time, which may include restrictive covenants and a waiver as described in Subsection (d) of this Section  2.2) within the  time period specified under the terms of the applicable severance offer.  Further, in  no event will Severance Pay be paid with respect to an Eligible Employee in the event the release of claims form is revoked during the Revocation Period (described in Section 2.1(e) of the Plan); and

(d)the Eligible Employee must waive the right to receive any other severance payment relating to salary continuation or salary replacement the Eligible Employee may otherwise be eligible to receive upon termination of employment under any employment agreement, severance plan, practice, policy or program of the Employer or an Affiliate.

2.3     Maximum Severance Pay. Notwithstanding any other provisions to the contrary, benefits
paid hereunder (a) shall not exceed two times the lesser of (i) the Eligible Employee’s Compensation (as defined  in this Section 2.3) during the calendar year immediately preceding the Eligible Employee’s Involuntary Termination or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the calendar year in which the Eligible Employee’s Involuntary Termination occurs and (b) shall be paid in full within twenty-four (24) months after the date the Eligible Employee’s Involuntary Termination occurs. In the event that any Severance Pay payable to an Eligible Employee would exceed the twenty-four (24) month period provided in the foregoing sentence if the Severance Pay continued to  
 
6 
Proprietary 

be paid in accordance with the Employer’s regular payroll practice, any Severance Pay that would otherwise  exceed the twenty-four (24) month time period will be paid to the Eligible Employee in a lump sum on the last regular payroll date within the twenty-four (24) month period. For purposes of this Section 2.3, “Compensation” shall mean the Eligible Employee’s total annualized compensation, based upon the annual rate of pay for services provided to the Employer for the calendar year preceding the calendar year in which the Eligible Employee’s Involuntary Termination occurs, adjusted for any increase in such preceding calendar year that was expected to continue indefinitely if the Eligible Employee had not had an Involuntary Termination.

2.4     Cessation of Severance Pay Upon Reemployment. If an Eligible Employee who had an Involuntary Termination and who is receiving Severance Pay thereafter accepts reemployment with any Employer during the Severance Period, such Employee’s Severance Pay shall cease on the Rehire Date and any remaining Severance Pay shall be forfeited.

2.5     Cessation of Severance Pay After Commencement of Payments. If an Eligible Employee is deemed to have an Involuntary Termination and begins to receive Severance Pay under the Plan and the  Employer or the Plan Administrator becomes aware of facts and circumstances that, had the Employer known same at the time of the Eligible Employee’s termination of employment, would have affected the Employer’s determination as to whether such Employee’s termination was an Involuntary Termination, the Plan  Administrator may suspend any future Severance Pay payments to the Eligible Employee while the Employer investigates the facts and circumstances and finalizes such investigation, and, if the Employer determines that the Eligible Employee should have been terminated for Cause, such Eligible Employee’s Severance Pay shall cease    as of the suspension date, any remaining Severance Pay shall be forfeited and any Severance Pay that has been  paid shall be subject to repayment by the Eligible Employee.

2.6     Impact of Debt on Severance Pay. In the event an Eligible Employee is indebted to the  Company or Employer (determined in the sole discretion of the Company or Employer, as applicable), the Plan Administrator reserves the right to reduce, offset, withhold, and/or forfeit the Severance Pay otherwise payable under the Plan.

2.7     Employee Benefits. As of the date of an Eligible Employee’s Involuntary Termination, the Eligible Employee’s active participation in any benefit plan, program, or policy sponsored or subsidized by the Employer shall cease, unless otherwise continued pursuant to the terms of such plan, program or policy.

2.8     Awards. Any award or grant made to the Eligible Employee under any stock option, stock purchase, or stock appreciation rights plan of the Company or Employer shall be administered and interpreted     in accordance with the terms of the applicable plan documents.

2.9     Paid Time Off. Any pay for accrued paid time off shall be determined under the terms of         the Employer's applicable policies

2.10     Bonuses. Whether any bonuses or other incentive payments are payable to an Eligible    Employee shall be determined based on the terms of any applicable bonus or incentive program, plan, or policy.

2.11     Benefits Not Vested. No one under any circumstance is automatically entitled to Severance      Pay or benefits described in Section 2.1 of the Plan. Notwithstanding anything in the Plan to the contrary, the  Plan Administrator reserves the right, at its, his or her sole discretion, to increase, decrease, or eliminate Severance Pay and benefits under the Plan.

ARTICLE 3 
ADMINISTRATION OF THE PLAN

3.1     Control and Administration. Notwithstanding any other provision in the Plan, and to the full extent permitted under ERISA and the Internal Revenue Code, the Plan Administrator shall  have  the exclusive right, power and final authority, in its, his or her sole and absolute discretion, to administer, apply, construe and 
 
7 
Proprietary 

interpret the terms of the Plan and all  related  plan  documents  and  all  facts  surrounding claims for benefits under the Plan and shall determine all questions arising in the administration, interpretation and application of   the Plan, including, but not limited to, those concerning eligibility for benefits. Accordingly, benefits under the Plan shall be paid only if the Plan Administrator decides in its, his or her sole discretion that an Eligible Employee is entitled to benefits, and the Plan Administrator shall decide all questions regarding the form, amount and duration of benefits. The Plan Administrator may consult with attorneys, consultants and other persons for  advice, counsel and reports to make determinations under the Plan, and the Plan Administrator may delegate its administrative duties and responsibilities to persons or entities of its choice, in all cases who may be employees    of the Company. All determinations of the Plan Administrator shall be conclusive and binding on all parties. The Plan Administrator shall be the named fiduciary of the Plan for purposes of ERISA.

3.2     Claim Procedures.

(a)Procedure for Granting or Denying Claims.  An Eligible Employee, or his or her duly authorized representative, may file a claim for payment of benefits under the Plan within 30 days after termination of employment. Such a claim must be made in writing and be delivered to the Plan Administrator, in person or by mail, postage paid. Within 90 days after receipt of such claim, the Plan Administrator shall notify the claimant of the granting or denying, in whole or in part, of such claim, unless special circumstances require an extension of  time for processing the claim. In no event may the extension exceed 90 days from the end of the initial 90-day period. If such extension is necessary, the claimant will be given a written notice to this effect prior to the expiration of the initial 90-day period. The Plan Administrator shall have full discretion to deny or grant a claim    in whole or in part.

(b)Requirement for Notice of Claim Denial. The Plan Administrator shall provide to every             claimant who is denied a claim for benefits a written or electronic notice setting forth in a manner calculated to       be understood by the claimant:

(i)The specific reason or reasons for the denial;

(ii)Specific reference to pertinent Plan provisions on which the denial is based;

(iii)A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material is necessary; and 

(iv)An explanation of the Plan’s claim review procedures and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse determination on review. 

(c)Right to Appeal on Claim Denial. Within 60 days after receipt by the claimant of written or electronic notification of the denial (in whole or in part) of his or her claim, the claimant or his or her duly authorized representative may make a written application to the Plan Administrator, in person or by certified mail, postage prepaid, to be afforded a full and fair review of such denial. The claimant or his or her duly authorized representative may submit written comments, documents, records, and other information relating to the claim for benefits. Moreover, the claimant or his or her duly authorized representative shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits.

(d)Disposition of Disputed Claims. Upon receipt of a request for review, the Plan Administrator shall make a decision on the claim. The review shall take into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The decision on review shall be made not later than 60 days after the Plan Administrator's receipt of a request for a review, unless special circumstances require an  extension of time for processing, in which case a decision shall be rendered not later than 120 days after receipt of 
 
8 
Proprietary 

the request for review. If an extension is necessary, the claimant shall be given written notice of the extension prior to the expiration of the initial 60-day period.

The Plan Administrator shall provide the claimant or his or her duly authorized representative with    written or electronic notification of the Plan Administrator’s determination on review. In the case of an adverse determination, the notification shall set forth, in a manner calculated to be understood by the claimant, the specific   reason or reasons for the decision as well as specific references to the Plan provisions on which the decision was       based. The decision shall also include a statement that the claimant is entitled to receive, upon request and free of     charge, reasonable access to, and copies of, all documents, records, and other information relevant to the             claimant’s claim for benefits. Moreover, the decision shall contain a statement of the claimant’s right to bring an         action under Section 502(a) of ERISA.

3.3Conditions to Legal Action. No legal action may be commenced or maintained against the Plan, the Company or any Employer prior to the claimant’s exhaustion of the claims procedures set forth in Section 3.2 of the Plan. In addition, no legal action may be commenced against the Plan more than ninety (90) days after the Plan Administrator’s final claim determination on review pursuant to Section 3.2(d) of the Plan.  Any legal action must be conducted in the United States District Court for Rhode Island.

3.4Named Fiduciary. The Plan Administrator of the Plan shall be the Named Fiduciary of the Plan for purposes of ERISA Section 402(a)(1).
ARTICLE 4 
MISCELLANEOUS 

4.1       Amendment or Termination. The Plan may be amended, terminated, withdrawn or suspended   at any time in writing by the Management Planning and Development Committee of the Company or any individual designated by such Committee to take such actions.

4.2      Choice of Law. The validity, interpretation, construction and performance of the obligations created under the Plan shall be governed by ERISA, and to the extent not preempted by federal law, the laws of  the State of Rhode Island without regard to its conflicts of law principles.

4.3     Validity. The invalidity or unenforceability of any provision of the Plan shall not affect the  validity or enforceability of any other provision of the Plan, which shall remain in full force and effect.

4.4     Plan Exclusive Source of Rights. The Plan contains all of the terms and conditions with      respect to the benefits provided hereunder, and no employee or former employee of the Company or any Employer may rely on any  other  communication  or  representation,  whether  oral  or  written,  of  the Company or any Employer or  any  of  its subsidiaries, or any officer or employee thereof, as creating any right or obligation not expressly provided by the Plan.

4.5     Non-assignability. No benefit which shall be payable under the Plan to any Eligible Employee shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge (except as required by law), and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge a benefit shall be null and void. No benefit shall in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements, or torts of any Eligible Employee. No benefit shall be subject to legal attachment or legal process for, or against, the Eligible Employee and the same shall not be recognized under the Plan. Notwithstanding the preceding sentence, the Employer retains the discretion, in accordance with federal and/or state laws, to reduce the amount of benefits payable under the Plan to any Eligible Employee to recover any amounts that the Eligible Employee owes to the Employer.

4.6     No Employment Rights. The Plan shall not give any Eligible Employee any right or claim    except to the extent that the right is specifically provided under the terms of the Plan. The establishment of the Plan shall not be construed (a) to give any Eligible Employee a right to continue in the employ of the Employer  
 
9 
Proprietary 

or (b) to interfere with the right of the Employer to terminate the employment of any Eligible Employee at any time.

4.7     Headings. Article and section headings are for convenience only and the language of the         Plan itself will be controlling.

4.8     Gender and Numbers.  Masculine pronouns include the feminine as well as the neuter       genders, and the singular shall include the plural, unless indicated otherwise by the context.

4.9     Code Section 409A. The benefits provided under the terms of the Plan are intended to fall
within the short-term deferral exception, the separation pay exception or another exception to the application of Section 409A of the Code and the applicable guidance issued thereunder. In furtherance of this intent, the Plan shall be interpreted, operated and administered in a manner consistent with this intention. To the extent the benefits provided under the Plan become subject to Code Section 409A and applicable guidance issued thereunder, the Plan shall be construed, and benefits paid hereunder, as necessary to comply with Section 409A   of the Code and such guidance. Further, to the extent that an Eligible Employee becomes entitled to receive Severance Pay under the terms of the Plan, and, at the time of the Eligible Employee’s Involuntary Termination, he or she is a “specified employee” within the meaning of Treasury Regulation Section 1.409A- 1(i), any portion  of Severance Pay payable to such Eligible Employee that is subject to Code Section 409A and applicable guidance thereunder shall be delayed until the date that is the earlier of (i) the Eligible Employee’s death or (ii) six months following the date of the Eligible Employee’s Involuntary Termination, at which time the payments that were delayed for such six month period shall be paid in a lump sum on the date of the next occurring regular payroll date of the Employer, and any remaining payments shall  be  paid according to the original schedule provided herein. In addition, each payment of a salary continuation stream of installment payments hereunder shall be a separate payment for purposes of Section 409A of the Code.
4.10     Funding.  The Plan is not funded, and Severance Pay and benefits under the Plan are paid      from the general assets of the Employer.
4.11     Plan Year. The Plan’s records shall be maintained on the basis of the calendar year.
IN WITNESS WHEREOF, the Management Planning and Development Committee of the Company, or its duly authorized delegate, has amended the Plan as of the Effective Date pursuant to the execution hereof on its behalf by a duly authorized officer on October 11, 2021.

																											
			CVS HEALTH CORPORATION
									
				By: 	/s/ Laurie P. Havanec
									
			Date: 	October, 26, 2021		Title:	EVP and Chief People Officer

 
10 
Proprietary 

Appendix A 
Amount of Severance Pay and Outplacement 
Services, effective as of October 11, 2021 

Severance Pay is the Weekly Rate payable for the number of weeks listed below, determined by Grade and Years of Service (YOS) 
																					
		 
 
Tier 1 
	 
 
Tier 2 
	 
 
Tier 3 
	 
 
Tier 4 
	 
 
Executive Tier 1 
	 
 
Executive Tier 2 

	Grades 101, 102, 103, 104, 105, 106, 550, 551, 552, 652, 752
	Grades 107, 108, 201, 202, 203, 301, 302, 405, 406, 407, 408, 553, 554, 653, 753, 654, 754
	Grades 109, 110, 111, 204, 205, 303, 304, 409, 410, 411, 555, 556, 557, 558, 655, 656, 657, 658, 755, 756, 757, 758
	Grades 112, 206, 305, 412, 559, 560, 659, 759
	Grades 36 A-Z, 70G
	Grades 38 A-Z, 39 A-Z, 71G, 72G

	Full 
YOS 
	Number of Weeks 
	Number of Weeks 
	 
Number of Weeks 
	Number of Weeks 
	Number of Weeks 
	Number of Weeks 

	0 
	2 
	4 
	13 
	26 
	52 
	52 

	1 
	4 
	6 
	13 
	26 
	52 
	*52 or 78 

	2 
	6 
	8 
	13 
	26 
	52 
	78 

	3 
	8 
	10 
	13 
	26 
	52 
	78 

	4 
	10 
	12 
	13 
	26 
	52 
	78 

	5 
	12 
	14 
	14 
	26 
	52 
	78 

	6 
	13 
	16 
	16 
	26 
	52 
	78 

	7 
	13 
	18 
	18 
	26 
	52 
	78 

	8 
	13 
	20 
	20 
	26 
	52 
	78 

	9 
	13 
	20 
	20 
	26 
	52 
	78 

	10 
	13 
	20 
	20 
	26 
	52 
	78 

	11 
	13 
	20 
	21 
	26 
	52 
	78 

	12 
	13 
	20 
	22 
	26 
	52 
	78 

	13 
	13 
	20 
	23 
	26 
	52 
	78 

	14 
	14
	20 
	24 
	26 
	52 
	78 

	15 
	15
	20 
	25 
	28 
	52 
	78 

	16 
	16
	21
	26 
	29 
	52 
	78 

	17 
	17
	22
	26 
	30 
	52 
	78 

	18 
	18
	23
	26 
	31 
	52 
	78 

	19 
	19
	24
	26 
	32 
	52 
	78 

	20 
	20
	25
	26 
	33 
	52 
	78 

	21 
	21
	26
	26 
	34 
	52 
	78 

	22 
	22
	26
	26 
	35 
	52 
	78 

	23 
	23
	26
	26 
	36 
	52 
	78 

	24 
	24
	26
	26 
	37 
	52 
	78 

	25 
	25
	26
	26 
	38 
	52 
	78 

	26 
	26
	26
	27
	39 
	52 
	78 

	27 
	26
	26
	28
	39 
	52 
	78 

	28
	26
	26
	29
	39
	52
	78

 
11 
Proprietary 

																					
	29
	26
	26
	30
	39
	52
	78

	

	 
 
Tier 1 
	 
 
Tier 2 
	 
 
Tier 3 
	 
 
Tier 4 
	 
 
Executive Tier 1 
	 
 
Executive Tier 2

	

	Grades 101, 102, 103, 104, 105, 106, 550, 551, 552, 652, 752
	Grades 107, 108, 201, 202, 203, 301, 302, 405, 406, 407, 408, 553, 554, 653, 753, 654, 754
	Grades 109, 110, 111, 204, 205, 303, 304, 409, 410, 411, 555, 556, 557, 558, 655, 656, 657, 658, 755, 756, 757, 758
	Grades 112, 206, 305, 412, 559, 560, 659, 759
	Grades 36 A-Z, 70G
	Grades 38 A-Z, 39 A-Z, 71G, 72G

	Full YOS
	Number of Weeks
	Number of Weeks
	Number of Weeks
	Number of Weeks
	Number of Weeks
	Number of Weeks

	30
	26
	26
	31
	39
	52
	78

	31
	26
	26
	32
	39
	52
	78

	32
	26
	26
	33
	39
	52
	78

	33
	26
	26
	34
	39
	52
	78

	34
	26
	26
	35
	39
	52
	78

	35
	26
	26
	36
	39
	52
	78

	36+
	26
	26
	39
	39
	52
	78

		 
  6-Week Virtual 
Outplacement 
	 
3-Month Virtual 
Outplacement 
	 
3-Month Professional Outplacement 
	3-Month 
Professional 
Outplacement 
	6-Month 
Executive 
Outplacement 
	6-Month 
Executive 
Outplacement 

* Under 18 months of service receives 52 weeks 
      
 
12 
ProprietaryDocument

Exhibit 10.55

CVS HEALTH CORPORATION
NONQUALIFIED STOCK OPTION AGREEMENT 
GRANT DATE:  [MERGED FIELD]

1.      GRANT OF AWARD.   Pursuant and subject to the provisions of the [MERGED FIELD] of CVS Health Corporation (the “Plan”), on the date set forth above (the “Grant Date”), CVS Health Corporation (the ”Company”) has granted and hereby evidences the Grant to the person named below (the “Participant”), subject to the terms and conditions set forth or incorporated in this Nonqualified Stock Option Agreement (“Agreement”), the right, and option, to purchase from the Company the aggregate number of shares of Common Stock ($.01 par value) of the Company (“Shares”) set forth below, at the purchase price indicated below (the “Option”), such Option to be exercised as hereinafter provided.  The Plan is hereby made a part hereof and Participant agrees to be bound by all the provisions of the Plan.  Capitalized terms not otherwise defined herein shall have the meaning assigned to such term(s) in the Plan.  The Option is a nonqualified option as defined in the Plan.

						
	Participant:	[MERGED FIELD]
	Employee ID:	[MERGED FIELD]
	Shares:	[MERGED FIELD]
	Option Price:	[MERGED FIELD]

2.    TERM OF OPTION.  The term of this Option shall be for a period of ten (10) years from the Grant Date, subject to the earlier termination of the Option, as set forth in the Plan and in this Agreement.  No portion of the Option shall be exercisable after the term of the Option.

3.    EXERCISE OF OPTION.    (a)    The Option, subject to the provisions of the Plan, shall be exercised by submitting a request to exercise to the Company’s stock option administrator, in accordance with the Company’s current exercise policies and procedures, specifying the number    of Shares to be purchased, which number may not be less than one hundred (100) Shares (unless the number of Shares purchased is the total balance which is then exercisable).  An exercise by Participant of all or part of this Option shall be effected through the Company’s “cashless exercise” procedures.  Otherwise, at the time of exercise, Participant shall tender to the Company cash or cash equivalent for the aggregate option price of the Shares Participant has elected to purchase or certificates for Shares of Common Stock of the Company owned by Participant for at least six (6) months with a fair market value at least equal to the aggregate option price of the Shares Participant has elected to purchase, or a combination of the foregoing. 

    (b)    Prior to its expiration or termination and except as otherwise provided herein, the Option will become vested in accordance with the vesting schedule set forth below, each date on which vesting occurs a “Vesting Date”, and any vested Option will be exercisable by Participant prior to the expiration of its term so long as Participant has maintained continuous employment with the Company or a subsidiary of the Company from the Grant Date through the exercise date: 

(i)    25% of the Option shall vest on the 1st anniversary of the Grant Date.
(ii)    25% of the Option shall vest on the 2nd anniversary of the Grant Date.
(iii)    25% of the Option shall vest on the 3rd anniversary of the Grant Date.
(iv)    25% of the Option shall vest on the 4th anniversary of the Grant Date.

			
	

1

4.    TAXES.  Upon a cashless exercise of the Option the Company shall withhold from the proceeds of the exercise of the Option any required taxes. If the Option is exercised other than through a cashless exercise Company shall have the right to require Participant to pay the amount of any withholding taxes immediately, upon notification from the Company, before the proceeds  from the exercise of the Option are delivered to Participant. Furthermore, the Company may elect to deduct such taxes from any other amounts then payable to Participant in cash or in Shares or from any other amounts payable any time thereafter to Participant to the extent allowed under applicable law. 

5.    NON-TRANSFERABILITY.  The Option shall not be transferable by Participant other than by will   or by the laws of descent and distribution, and during Participant’s lifetime shall be exercised only by the Participant during the continuance of Participant’s employment with the Company and any of    its subsidiaries. 

6.    FORFEITURE OF OPTION UPON TERMINATION OF EMPLOYMENT.  Unless otherwise provided for in the Plan or in this Agreement, as of the date on which Participant’s employment with the Company and its subsidiaries terminates, the Option, to the extent unexercised as of the employment  termination date, shall be forfeited immediately in its entirety, provided that, if the Participant’s employment with the Company and its subsidiaries terminates without Cause, the Option, to the extent vested and unexercised, shall be exercisable at any time on or before the ninetieth (90th) day immediately following the employment termination date and, to the extent unvested, shall be forfeited immediately.

7.    TERMINATION OF PARTICIPANT’S EMPLOYMENT WITHOUT CAUSE.  In the event that Participant’s employment with the Company and its subsidiaries is terminated without Cause and Participant receives severance pay following Participant’s employment pursuant to a written agreement,    vesting of the Option shall continue through the end of the severance period set forth in the agreement providing for such severance pay.  To the extent vested, the Option shall be exercisable  at any time during the severance period and on or before the ninetieth (90th) day following the last day of the severance period, as long as no government regulations or rules are violated by such continued vesting or exercise period; provided, however, that in no event will the Option be exercisable beyond its original term.  Any portion of the Option not vested as of the last day of the severance period shall be forfeited as of the last day of the severance period.  In the event that Participant returns to employment with the Company or any subsidiary prior to the expiration of the severance period, Participant shall be treated as if his or her employment with the Company or any subsidiary of the Company had continued through the severance period for purposes of determining eligibility for continued vesting.

8.    RETIREMENT OF PARTICIPANT.   In the event Participant’s employment with the Company and any subsidiary of the Company terminates by reason of a Qualified Retirement, Participant (a) shall continue to vest in the Option, to the extent unvested as of the retirement date,  for a period of three (3) years following Participant’s retirement date and (b) may exercise the Option, to the extent  vested, at any time within the period of three (3) years following Participant’s retirement date, but    not beyond the original term of the Option, in both cases as long as no government regulations or rules are violated by such continued vesting or exercise period.  To the extent unvested or  unexercised at the end of the three (3) year period following Participant’s retirement date, the Option shall be forfeited.  In the event Participant’s termination of employment qualifies as a Qualified Retirement and Participant also enters into a severance agreement with the Company, the terms of this Section 8 shall apply with respect to the vesting and exercise of the Option as of the Participant’s employment termination date.  “Qualified Retirement” shall mean termination of employment on or after attainment of age fifty-five (55) with at least ten (10) years of continuous service, or attainment  of age sixty (60) with at least five (5) years of continuous service, provided that:  (i) if Participant elects to terminate his or her employment voluntarily, Participant has provided the Company with at least twelve (12) months advance notice, in accordance with the provisions of Section 13 below, of his or her retirement date or such other term of advance notice as is determined by the Chief Human Resources Officer of the Company; or (ii) if the Company elects to terminate Participant’s employment, such termination is without cause.  A Participant shall also be deemed to have 
			
	

2

experienced a Qualified Retirement if the Company elects to terminate Participant’s employment without Cause and Participant shall meet the age and service requirement set forth above during   the severance period set forth in a severance agreement with the Company. 

9.    DISABILITY OF PARTICIPANT.  In the event Participant’s employment with the Company and  any subsidiary of the Company terminates by reason of total and permanent disability (as defined in the Company’s Long-Term Disability Plan, or, if not defined in such Plan, as defined by the Social Security Administration), the Option shall vest as of the employment termination date on a pro-rata basis as follows: the Option shall vest with respect to a total number of Shares as of the employment termination date (which is the last day that Participant is employed by the Company and any subsidiary of the Company) equal to (i) the number of Shares subject to the Option on the Grant   Date multiplied by the following fraction:  (A) the numerator shall be the whole number of months elapsed as of the employment termination date since the Grant Date and (B) the denominator shall be forty-eight (48), minus (ii) the number of Shares with respect to which the Option vested prior to   the employment termination date (whether or not the Option was previously exercised).  For purposes of this calculation, the number of months in the numerator in sub-section (A) above shall include any partial month in which Participant has worked.  For example, if the time elapsed between the Grant Date and the employment termination date is eight months and five days, the numerator in sub-section (A) above shall be nine.  The Option may be exercised to the extent vested at any time within one (1) year of Participant’s employment termination date but not beyond the original term of the Option.  The prorated Option shall vest on the Participant’s employment termination date.

10.    DEATH OF PARTICIPANT.   In the event of Participant’s death while Participant is employed    with the Company and any subsidiary of the Company, the Option shall immediately vest in full, and the Option shall remain exercisable for a period of one (1) year after Participant’s death, or until the Option expiration date, whichever occurs first, by Participant’s Beneficiary.  At the end of said one   (1)-year time period, all rights with respect to any Option that is unexercised shall terminate and the Option shall be cancelled.

11.    TRANSFER OF EMPLOYMENT.     Transfer of Participant’s employment from the Company to a subsidiary of the Company, among or between subsidiaries of the Company, or from a subsidiary of the Company to the Company shall not be treated as termination of employment.

12.    REQUIRED ACCEPTANCE OF AWARD.   The Option may not be exercised unless and until the Company has received the Participant’s acceptance of the terms and conditions set forth herein.  Acceptance shall be submitted electronically as required by the Company.

13.    NOTICE.   Any notice required to be given hereunder to the Company shall be in writing.  If     by regular mail, any required notice shall be addressed to: CVS Health Corporation, Attention: Senior Director, Executive Compensation, One CVS Drive, Woonsocket, RI  02895.  If by electronic mail, any notice required shall be sent to:  equityadministration@cvshealth.com, with “Retirement Notice” in   the subject line. Any notice required to be given hereunder to Participant shall be addressed to Participant at his or her address as shown on the records of the Company, subject to the right of  either party hereafter to designate in writing to the other some other address.

14.    RECOUPMENT OF OPTION AWARD.  The Option subject to this Agreement under the Plan shall be subject to the terms of the Company’s Recoupment Policy as it exists from time to time, which   may require the Participant to immediately repay to the Company the value of any pre-tax  economic benefit that he or she may derive from the Award.  By accepting this Award, Participant acknowledges that a copy of the Company’s Recoupment Policy has been made available for the Participant’s reference.

15.    COMMITTEE AUTHORITY.  The Committee shall have the authority, in its sole discretion, to make any interpretations, determinations, and/or take any administrative actions with respect to the Plan and this Agreement, including whether any post-termination payments to Participant shall be  deemed severance pay, the duration of any severance period, and/or whether a termination was without cause.
			
	

3

16.    GOVERNING LAW.   This Nonqualified Stock Option Agreement and the Option evidenced hereby shall be governed by the laws of Delaware, without giving effect to principles of conflict of laws.

17.    ACKNOWLEDGEMENT.      This Agreement shall be fully effective only upon the Participant’s formal acceptance of the terms and conditions set forth above as required by the Company.

						
	BY:
	
		Executive Vice President, Chief Human Resources Officer
CVS Health Corporation            

                    

Stock Option Agreement 

			
	

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00339-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00339-of-00352.parquet"}]]