Document:

Exhibit 10.1

 

SHARE
PURCHASE AGREEMENT

 

This SHARE PURCHASE AGREEMENT, dated as of
March 27, 2020 (this “Agreement”), is entered into by and between The Howard Hughes Corporation (“Seller”),
and Pershing Square Capital Management, L.P. (“PSCM”) on behalf of Pershing Square Holdings, Ltd., Pershing
Square International, Ltd., and Pershing Square, L.P. (each, except PSCM, together with its permitted nominees and assignees, a
 “Purchaser” and together the “Purchasers”).

 

WHEREAS, Seller desires to sell to the Purchasers,
and the Purchasers desire to purchase from Seller, shares of common stock (the “Shares”) of the Seller, par
value $0.01 per share (the “Common Stock”), subject to the terms and conditions set forth in this Agreement
(the “Transaction”);

 

WHEREAS, both Seller and each of the Purchasers
acknowledge that the Transaction shall be made in parallel with, and be, as a consequence of the conditions, representations and
warranties as set forth in this Agreement, inextricably linked to, a sale of Common Stock by the Seller by way of a registered,
public offering (the “Public Offering”);

 

NOW, THEREFORE, in consideration of the foregoing
premises, and of the representations, warranties, covenants and agreements set forth in this Agreement, Seller and each Purchaser,
intending to be legally bound, agree as follows:

 

1.            
Purchase(a) and Sale. On the terms and subject
to the conditions set forth in this Agreement, at the Closing (as defined below), Seller shall sell and transfer to the Purchasers,
and the Purchasers shall purchase from Seller, a number of shares of Common Stock (the “Purchased Shares”)
equal to 10,000,000. The price for each Purchased Share will be $50 (the “Per Share Purchase Price”), which
is the same as the public offering price per share contemplated by that certain underwriting agreement (the “Underwriting
Agreement”) dated the date hereof and entered into by and among Seller and each of the underwriters party thereto, attached
hereto as Annex A.

 

2.            
Closing. The closing of the Transaction (the “Closing”) shall be held at the offices of Sullivan
 & Cromwell LLP, 125 Broad Street, New York, NY 10004 at the time specified for the closing in the Underwriting Agreement,
subject to the satisfaction or waiver of the conditions set forth in Section 3 below (the date of which the Closing actually occurs
is referred to herein as the “Closing Date”). At the Closing: (a) Seller shall cause the Purchased Shares,
without any restrictive legends, to be delivered to the Purchasers to an account specified by PSCM to Seller in writing; and (b)
the Purchasers shall pay to Seller the aggregate Per Share Purchase Price for the Purchased Shares in immediately available funds
by wire transfer to an account specified by Seller in writing to PSCM.

 

3.            
Closing Conditions.  

 

(a)            The
obligation of Seller to sell the Purchased Shares to the Purchasers, and the obligation of the Purchasers to purchase and pay for
the Purchased Shares, on the Closing Date are subject to the consummation of the Public Offering in accordance with and as provided
by the Underwriting Agreement and without the waiver or amendment of any material term or condition set forth therein (it being
understood that any default by an underwriter shall be considered a waiver of a condition for purposes of this Agreement even if
another person is substituted for that underwriter pursuant to the Underwriting Agreement).

 

(b)            The
obligation of the Purchasers to purchase and pay for the Purchased Shares on the Closing Date is subject to the satisfaction
or waiver of the following additional conditions: (i) each representation and warranty made by Seller in Article 4(a) below
shall be true and correct on and as of the Closing Date as though made as of the Closing Date; (ii) the Purchasers shall have
received the documents required to be delivered by the Seller to the underwriters party to the Underwriting Agreement,
including, but not limited to, legal opinions, officers’ certificates, secretary’s certificates and certificates
of good standing; and such certificates and opinions shall be addressed to the Purchasers and shall cover the Purchased
Shares (other than with respect to the registered status of the securities); (iii) the Seller shall have provided an opinion
of counsel of Seller reasonably satisfactory to PSCM that: (a) the Transaction is exempt from registration under the
Securities Act of 1933, (b) the approval under Section 203 of the Delaware General Corporation Law of the Transaction has
been adopted and is in full force and effect and (c) based on Seller’s counsel’s discussions with the New York
Stock Exchange, Seller’s counsel is of the view that the New York Stock Exchange is not requiring a shareholder vote
approving the Transaction; and (iv) the Underwriting Agreement shall at all times be in full
force and effect up to and including Closing.

 

     

     

    

 

(c)            The obligation of Seller to sell the
Purchased Shares on the Closing Date is subject to the additional condition that each representation and warranty made by the Purchasers
in Article 4(b) below shall be true and correct on and as of the Closing Date as though made as of the Closing Date and all conditions
and required covenants under the Underwriting Agreement shall have been satisfied or performed prior to the Closing Date.

 

4.            
Representations and Warranties.

 

(a)          
Representations and Warranties of Seller. Seller represents and warrants to, and agrees
with, each Purchaser that: (i) Seller is duly organized, validly existing and in good standing under the laws of its jurisdiction
of organization; (ii) Seller has the requisite power and authority to enter into, execute and deliver this Agreement and
to perform its obligations under this Agreement and has taken all necessary action required for the due authorization, execution,
delivery and performance by it of this Agreement; (iii) this Agreement has been duly and validly executed and delivered by
Seller and, assuming due and valid execution and delivery by the Purchasers, constitutes its valid and binding obligation, enforceable
against Seller in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity (the “Bankruptcy Exception”)); (iv) at the Closing,
the Purchasers will acquire good and marketable title to the Purchased Shares, free and clear of all claims, liens, charges, pledges,
security interests or other encumbrances or adverse claims (other than restrictions on transfer under the federal securities laws);
(v)  the execution and delivery of this Agreement by the Seller and the consummation by Seller of the transactions contemplated
hereby do not require the consent, waiver, approval or authorization of or any filing with any shareholder or any person or public
authority and will not violate, result in a breach of or the acceleration of any obligation under or constitute a default under,
any provision of any organizational document of the Seller, any order, law, rule, regulation, judgment, ordinance or decree to
which Seller is subject or by which any of Seller’s property is bound, or any agreement or instrument to which Seller is
a party or by which any of the Seller’s property is bound; (vii) all representations and warranties made by Seller in the
Underwriting Agreement are true and correct and shall be treated, for the purposes of this Agreement, as though made and given
to the Purchasers as if they were underwriters and treating the Purchased Shares as if covered thereby; (viii) prior to the execution
of this Agreement, the board of directors of the Seller approved the Transaction and accordingly, the Transaction will not subject
the Purchasers and/or PSCM to the restrictions contained in Section 203 of the Delaware General Corporation Law; (ix) the board
of directors of the Seller has waived effectively and validly the applicability of Section 203 of the Delaware General Corporation
Law to the Purchasers such that the Purchasers may increase their collective position in our “voting stock” (as defined
in Section 203 of the Delaware General Corporation Law) up to 40% of the outstanding voting stock without being subject to Section
203’s restrictions on business combinations; (x) the board of directors of the Seller has pre-approved the Transaction and
all direct or indirect transactions related thereto between or among William A. Ackman or the Purchasers and/or Pershing Square
affiliates and the Company and the Transaction and such other transactions are exempt from Section 16(b) of the Securities Exchange
Act of 1934 by virtue of Rule 16b-3 thereunder; (xi) the copies of the emails between the Seller’s counsel and the
New York Stock Exchange provided to PSCM and its counsel accurately reflect the results of the discussions between Seller’s
counsel and the New York Stock Exchange regarding the absence of a need for the Transaction to be approved by the Seller’s
shareholders; and (xii) no waiver or amendment or supplement or other change to the Underwriting Agreement shall have occurred.

 

(b)           Representations
and Warranties of the Purchasers. Each Purchaser represents
and warrants to, and agrees with, Seller that: (i) it is duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization; (ii) it has the requisite power and authority to enter into, execute and
deliver this Agreement and to perform its obligations under this Agreement and has taken all necessary action required for
the due authorization, execution, delivery and performance by it of this Agreement; (iii) this Agreement has been duly
and validly executed and delivered by it and, assuming due and valid execution and delivery by Seller, constitutes its valid
and binding obligation, enforceable against it in accordance with its terms, except as such enforceability may be
limited by the Bankruptcy Exception; (iv) it is an “accredited investor” within the meaning of Rule 501(a)
under the U.S. Securities Act of 1933, as amended;(v) it is acquiring the Purchased Shares for investment for its own
account for investment purposes, and not with a view to, or for sale in connection with, any distribution or other
dispositions (within the meaning of U.S. securities laws) thereof, has knowledge and experience in financial and business
matters such, that it is capable of evaluating the merits and risks of purchasing the Purchased Shares and will exercise
independent judgment in evaluating the transaction contemplated by this Agreement; and (vi) it will hold the Purchased Shares
in a segregated account for six months and will not sell, transfer or otherwise dispose of the Purchased Shares except as
permitted by federal securities laws.

 

     

     

    

 

5.            
Miscellaneous.

 

(a)          
Assignment. Neither this Agreement nor any of the rights, interests or obligations
under this Agreement may be assigned or delegated by either party hereto without the prior written consent of the other party,
except any Purchaser may assign its rights or delegate its obligations, in whole or in part, to any entity controlled by PSCM
and upon any such assignment or delegation such entity shall be deemed a Purchaser hereunder and the assigning or delegating Purchaser
shall be released from its obligations hereunder to the extent of such assignment or delegation.

 

(b)          
Governing Law. This Agreement shall be governed and construed in accordance with the
laws of the State of New York, without regard to any applicable conflicts of law principles.

 

(c)          
Interpretation; Headings. The parties hereto have participated jointly in negotiating
and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any
party by virtue of the authorship of any provision of this Agreement. The headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

(d)          
Entire Agreement. This Agreement (including the Annex hereto) constitutes the entire
agreement of the parties and supersedes all prior and contemporaneous agreements, arrangements or understandings, whether written
or oral, between the parties with respect to the subject matter of this Agreement.

 

(e)          
Severability. Whenever possible, each provision or portion of any provision of this
Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision or portion
of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement.

 

(f)           
Expenses. Each party hereto shall bear its own expenses incurred or to be incurred
in connection with the negotiation and execution of this Agreement and each other agreement, document and instrument contemplated
by this Agreement and the consummation of the transaction contemplated by this Agreement.

 

(g)          
Waivers and Amendments of this Agreement and the Underwriting Agreement.
This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions of this Agreement
may be waived, only by a written instrument signed by the parties hereto or, in the case of a waiver, by the party hereto waiving
compliance. 

 

(h)          
Investigations. The respective agreements, representations, warranties and other statements of the Seller and the
Purchasers, as set forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall remain
in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of
the Purchasers or any controlling person of the Purchasers, or Seller, or any officer or director or controlling person of Seller,
and shall survive delivery of and payment for the Purchased Shares.

 

(i)             Counterparts.
This Agreement may be executed in any number of counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each of the parties and delivered to the other party (including
via email or other electronic transmission), it being understood that each party need not sign the same counterpart.

 

[Signature page follows]

 

     

     

    

 

IN WITNESS WHEREOF, this Agreement is executed
as of the date first written above.

 

	 	The
    Howard Hughes Corporation
	 	 
	 	By:	/s/
    David O'Reilly
	 	 	Name:  	David O'Reilly
	 	 	Title: 	Chief Financial Officer

 

	 	Pershing
    Square Capital Management, L.P.
	 	 
	 	On
    behalf of each of the Purchasers
	 	 
	 	By:
    PS Management GP, its general partner
	 	 
	 	By:	 /s/
    William A. Ackman
	 	 	Name:  	William
    A. Ackman
	 	 	Title:	Managing
    Member

 

[Signature Page to Share Purchase Agreement]

 

     

     

    

 

ANNEX A

 

Underwriting
agreementEX-4.1

 Exhibit 4.1 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 UNLESS AND UNTIL THIS GLOBAL NOTE IS EXCHANGED IN WHOLE OR IN PART FOR A GLOBAL NOTE IN
DEFINITIVE REGISTERED FORM, THIS GLOBAL NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY. 

 CVS HEALTH CORPORATION 

 

			
	No. [●]	  	$[●]

 CUSIP No. 126650 DH0 
 ISIN
No. US126650DH04 
 3.625% Senior Note due 2027 

CVS HEALTH CORPORATION, a Delaware corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to,
being herein called the “Company”), for value received promises to pay to CEDE & CO., or registered assigns, the principal sum of $[●] on April 1, 2027. If such maturity date is not a Business Day, then payment
of principal will be made on the next succeeding Business Day and no interest will accrue on the amount so payable for the period from such maturity date to the date payment is made. 

Interest Payment Dates: April 1 and October 1. 

Record Dates: Each March 15 and September 15, immediately preceding each Interest Payment Date. 

Additional provisions of this Note are set forth on the reverse side of this Note. 

[Remainder of page intentionally left blank] 

 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed. 

 

			
	CVS HEALTH CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Note] 

 Dated: March 31, 2020 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 THE BANK OF NEW
YORK MELLON TRUST COMPANY, N.A., 
 as Trustee, certifies that this is one of the Debt Securities referred to 

in the Indenture. 
  

			
	By	 	  

		 	Authorized Signatory

 [Signature Page to Note] 

 3.625% Senior Note due 2027 

This Note is one of a duly authorized series of Notes of the Company, designated as its 3.625% Senior Notes due 2027 (hereinafter referred to
as the “Notes”). 
  

	 	(a)	 Interest 

The Company promises to pay interest on the principal amount of this Note at the rate per annum shown above. 

The Company will pay interest on the Notes semi-annually on April 1 and October 1 of each year, commencing October 1, 2020.
Interest on the Notes will accrue from the most recent date to which interest has been paid or provided for, or, if no interest has been paid or provided for, from March 31, 2020. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Company shall pay interest on overdue principal at the rate borne by the Notes. If any interest payment date is not a Business
Day, then payment of interest will be made on the next succeeding Business Day and no interest will accrue on the amount so payable for the period from such interest payment date to the date payment is made. 

 

	 	(b)	 Method of Payment 

The Company will pay interest on the Notes (except defaulted interest) to the Persons who are registered Holders thereof at the close of
business on the March 15 and September 15 (whether or not a Business Day) immediately preceding the interest payment date even if the Notes are canceled after the record date and on or before the interest payment date. Holders must
surrender Notes to a Paying Agent to collect principal payments. The Company will pay principal, premium, if any, and interest in money of the United States that at the time of payment is legal tender for payment of public and private debts by wire
transfer of immediately available funds to the accounts specified by the Holders, or, if no such account is specified, the Company may pay principal and interest by check payable in such money. It may mail an interest check to a Holder’s
registered address. 
  

	 	(c)	 Paying Agent and Registrar 

Initially, The Bank of New York Mellon Trust Company, N.A., a national banking association (the “Trustee”), will act as Paying
Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice. The Company or any of its domestically incorporated Wholly Owned Subsidiaries may act as
Paying Agent, Registrar or co-registrar. 
  

	 	(d)	 Indenture 

The Company issued the Notes under an Indenture dated as of August 15, 2006 (the “Indenture”), between the Company and
the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. ss.ss. 77aaa-77bbbb) as in effect on the date of the Indenture (the
“TIA”). Terms defined in the Indenture and not otherwise defined herein have the respective meanings ascribed thereto in the Indenture. The Notes are subject to all such terms, and Holders of Notes are referred to the Indenture and
the TIA for a statement of those terms. 

  
 5 

 The Notes are general unsecured senior obligations of the Company initially limited to
$750,000,000 aggregate principal amount (subject to Section 2.08 of the Indenture). The Company may at any time issue additional Notes under the Indenture in unlimited amounts having the same terms as and treated as a single class with the
Notes for all purposes under the Indenture and that will vote together as one class with respect to the Notes. The Indenture imposes certain limitations on the incurrence of certain additional indebtedness by the Company and certain of its
subsidiaries and the entry into certain sale and leaseback arrangements by the Company and certain of its subsidiaries. The Indenture also restricts the ability of the Company to consolidate or merge with or into, or to transfer all or substantially
all its assets to, another person. 
  

	 	(e)	 Optional Redemption 

Prior to February 1, 2027 (for purposes of this Note, the “Applicable Par Call Date”), the Company, at its option, may at
any time redeem all or any portion of the Notes upon not less than 10 nor more than 60 days’ notice at a redemption price, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, equal to the greater of (i) 100%
of the aggregate principal amount of the Notes being redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed that would be due if the Notes matured on the
Applicable Par Call Date (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable Treasury Yield plus 45 basis points. On or after the Applicable Par Call Date, the Company, at its option, may at any time redeem all or any portion of the Notes
upon not less than 10 nor more than 60 days’ notice at a redemption price equal to 100% of the aggregate principal amount of the Notes being redeemed plus accrued and unpaid interest, if any, to, but excluding, the redemption date on such
Notes. If any redemption date is not a Business Day, then payment of the redemption price and accrued and unpaid interest will be made on the next succeeding Business Day, and no interest will accrue on the amounts so payable for the period from
such redemption date to the date payment is made. 
 “Comparable Treasury Issue” means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Notes (assuming, for this purpose, that the Notes matured on the Applicable Par Call Date) that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to such remaining term. 

“Comparable Treasury Price” means, with respect to any redemption date for the Notes, (i) the average of the applicable
Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such applicable Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations. 

  
 6 

 “Independent Investment Banker” means Barclays Capital Inc. or, if such
firm is unwilling or unable to select the applicable Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Company. 

“Reference Treasury Dealer” means (i) Barclays Capital Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities
LLC and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary United States government securities dealer in New York City (a “Primary Treasury Dealer”), the Company
shall substitute therefor another Primary Treasury Dealer and (ii) any other Primary Treasury Dealer selected by the Company. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date for the
Notes, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue for the Notes (expressed as a percentage of the aggregate principal amount of the Comparable Treasury Issue) quoted
in writing to the Independent Investment Banker by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding such redemption date. 

“Treasury Yield” means, with respect to any redemption date for the Notes, the rate per annum equal to the semiannual
equivalent yield to maturity of the Comparable Treasury Issue for the Notes, assuming a price for the Comparable Treasury Issue (expressed as a percentage of the aggregate principal amount of the Comparable Treasury Issue) equal to the applicable
Comparable Treasury Price for such redemption date. 
  

	 	(f)	 Notice of Optional Redemption 

Notice of redemption shall be transmitted by the Company (or, at the Company’s request, by the Trustee on the Company’s behalf) to
each Holder of Notes to be redeemed. Notes in denominations larger than $2,000 may be redeemed in part but only in whole multiples of $1,000. If money sufficient to pay the redemption price of and accrued interest on all Notes (or portions thereof)
to be redeemed on the redemption date is deposited with the Paying Agent on or before the redemption date and certain other conditions are satisfied, on and after such date interest ceases to accrue on such Notes (or such portions thereof) called
for redemption. 
  

	 	(g)	 Repurchase of the Notes Upon a Change of Control Triggering Event 

If a Change of Control Triggering Event (as defined below) occurs, Holders of the Notes will have the right to require the Company to
repurchase all or any part (in integral multiples of $1,000 up to the original principal amount) of their Notes pursuant to the offer described below (the “Change of Control Offer”) on the terms set forth in this Note. In the Change
of Control Offer, the Company will be required to offer payment in cash equal to 101% of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest, if any, on the Notes repurchased, to, but excluding, the date of purchase
(the “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event, the Company will be required to mail a notice to Holders of Notes describing the transaction or transactions that constitute the
Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the notice, which date will be no earlier than 30 days and no later than 60 days 

  
 7 

 
from the date such notice is mailed (the “Change of Control Payment Date”), pursuant to the procedures required by this Note and described in such notice. The Company must comply
with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of
the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control provisions of the Notes, the Company will be required to comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control provisions of the Notes by virtue of such conflicts and compliance with law. 

On the Change of Control Payment Date, the Company will be required, to the extent lawful, to: 

 

	 	•	 	 accept for payment all Notes properly tendered pursuant to the Change of Control Offer; 

 

	 	•	 	 deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or
portions of Notes properly tendered; and 

  

	 	•	 	 deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’
Certificate stating the aggregate principal amount of Notes or portions of Notes being purchased. 

 The Company will not
be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the
Company and the third party repurchases all Notes properly tendered and not withdrawn under its offer. In addition, the Company will not repurchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an event of
default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event. 

For purposes of the foregoing, the following definitions are applicable: 

“Below Investment Grade Rating Event” means that the Notes are rated below an Investment Grade Rating by each of the Rating
Agencies (as defined below) on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the
occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by any of the Rating Agencies);
provided, however, that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating will not be deemed to have occurred in respect of a particular Change of Control (and thus will not be deemed
a Below Investment Grade Rating Event for purposes of the definition of Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or
inform the Trustee in writing at the Company’s or the Trustee’s request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or 

  
 8 

 
arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control has occurred at the time of the Below Investment Grade Rating Event).

 “Change of Control” means the occurrence of any of the following: (1) any event requiring the filing of any report
under or in response to Schedule 13D or 14D-1 pursuant to the Exchange Act disclosing beneficial ownership of either 50% or more of the Company’s common stock then outstanding or 50% or more of the
Company’s voting power or the Company’s voting stock then outstanding; (2) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the Company’s properties or the Company’s assets and the assets of its respective subsidiaries taken as a whole to one or more persons (as defined in the Indenture) other than the Company or one
of its subsidiaries; or (3) the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors. 

Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control if (1) the Company becomes a direct or
indirect wholly-owned subsidiary of a holding company and (2)(A) the direct or indirect holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of the Company’s voting
stock immediately prior to that transaction or (B) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of
the voting stock of such holding company. 
 “Change of Control Triggering Event” means the occurrence of both a Change of
Control and a Below Investment Grade Rating Event. 
 “Continuing Director” means, as of any date of determination, any
member of the Company’s Board of Directors who (1) was a member of such Board of Directors on the date of the issuance of the Notes; or (2) was nominated for election or elected to such Board of Directors with the approval of a
majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election (either by a specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee
for election as a director, without objection to such nomination). 
 “Investment Grade Rating” means a rating equal to or
higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P. 

“Moody’s” means Moody’s Investors Service, Inc., or its successor. 

“Rating Agencies” means (1) each of Moody’s and S&P; and (2) if any of Moody’s or S&P ceases to
rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Rule 3(a)(62) under the Exchange
Act selected by the Company (as certified by a resolution of the Company’s Board of Directors) as a replacement agency for Moody’s or S&P, or both of them, as the case may be. 

“S&P” means S&P Global Ratings, a division of S&P Global Inc., or its successor. 

  
 9 

	 	(h)	 Denominations; Transfer; Exchange 

The Notes are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. Holders of
Notes may transfer or exchange Notes in accordance with the Indenture. The Registrar may require a Holder of Notes, among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or
permitted by the Indenture. The Registrar need not register the transfer of or exchange any Notes selected for redemption (except, in the case of a Note to be redeemed in part, the portion of the Note not to be redeemed) or any Notes for a period of
15 days before a selection of Notes to be redeemed or 15 days before an interest payment date. 
  

	 	(i)	 Persons Deemed Owners 

The registered Holder of this Note may be treated as the sole owner of such Note for all purposes. 

 

	 	(j)	 Unclaimed Money 

Subject to applicable abandoned property law, if money for the payment of principal or interest remains unclaimed for two years, the Trustee or
Paying Agent shall pay the money back to the Company at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the money must look only to the Company and not to the Trustee or Paying
Agent for payment. 
  

	 	(k)	 Discharge and Defeasance 

Subject to certain conditions, the Company at any time may terminate some or all of its obligations under the Notes and the Indenture if the
Company deposits with the Trustee money or U.S. Government Obligations for the payment of principal and interest on the Notes to redemption or maturity, as the case may be. 
  

	 	(l)	 Amendment; Waiver 

Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Notes may be amended with the written consent of the
Holders of at least a majority in principal amount outstanding of the Notes; and (ii) any default or compliance with any provision may be waived with the written consent of the Holders of a majority in principal amount of the Notes then
outstanding. Subject to certain exceptions set forth in the Indenture, without the consent of any Holder of a Note, the Company and the Trustee may amend the Indenture or the Notes to cure any ambiguity, omission, defect or inconsistency that does
not materially and adversely affect the rights of any Holder of a Note, or to comply with Article 5 of the Indenture or to comply with requirements of the SEC in connection with the qualification of the Indenture under the TIA. 

 

	 	(m)	 Defaults and Remedies 

If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes may
declare all the Notes to be due and payable immediately. Certain events of bankruptcy or insolvency are Events of Default which will result in the Notes being due and payable immediately upon the occurrence of such Events of Default. 

  
 10 

 Holders of Notes may not enforce the Indenture or the Notes except as provided in the
Indenture. The Trustee may refuse to enforce the Indenture or the Notes unless it receives indemnity or security satisfactory to it. Subject to certain limitations, Holders of a majority in principal amount of the Notes may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders of Notes notice of any continuing Default (except a Default in payment of principal or interest) if it determines that withholding such notice is in the interest of the Holders of
Notes. 
  

	 	(n)	 Trustee Dealings with the Company 

Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Notes and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. 

 

	 	(o)	 No Recourse Against Others 

A director, officer, employee or stockholder, as such, of the Company or the Trustee shall not have any liability for any obligations of the
Company under the Notes or the Indenture or for any claim based on, in respect of or by reason of such obligations. By accepting a Note, each Holder of a Note waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Notes. 
  

	 	(p)	 Authentication 

This Note shall not be valid until an authorized signatory of the Trustee (or an authenticating agent) manually signs the certificate of
authentication on the face of this Note. 
  

	 	(q)	 Abbreviations 

Customary abbreviations may be used in the name of a Holder of a Note or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants
by the entireties), JT TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act). 
  

	 	(r)	 Governing Law 

This Note shall be governed by, and construed in accordance with, the laws of the State of New York. 

 

	 	(s)	 CUSIP Numbers 

Pursuant to the recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers
to be printed on the Notes and has directed the Trustee to use such CUSIP numbers in notices of redemption as a 

  
 11 

 
convenience to Holders of Notes. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed
only on the other identification numbers placed thereon. 
  
  

  
 12 

 The Company will furnish to any Holder of a Note upon written request and without charge to
such Holder of a Note a copy of the Indenture. Requests may be made to: 
 CVS Health Corporation 

One CVS Drive — MC 1008 

Woonsocket, Rhode Island 02895 

Attention: Valerie Haertel 

  
 13 

 ASSIGNMENT FORM 

To assign this Note, complete the form below: 

I or we assign and transfer this Note to: 

[Print or type assignee’s name, address and zip code] 

[Insert assignee’s soc. sec. or tax I.D. No.] 

and irrevocably appoint
                                 as agent to 

transfer this Note on the books of CVS Health Corporation. 

The agent may substitute another to act for him. 
  

 
  

							
	Date:	 	     
	    	Your Signature:	 	     

  
  

Sign exactly as your name appears on the face of this Note. 

  
 14

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