CAREMARK RX INC
EXHIBIT 10.4
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<P ALIGN="RIGHT"><FONT SIZE=2><B>EXHIBIT 10.4  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kp1235_second_amendment_to_employment_agreement"> </A>
<A NAME="toc_kp1235_1"> </A>
<BR></FONT><FONT SIZE=2><B>SECOND AMENDMENT TO<BR>  EMPLOYMENT AGREEMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (this "Amendment") is made and entered into effective February&nbsp;19, 2002 by and between Caremark
Rx,&nbsp;Inc., a Delaware corporation ("Employer") and Edward L. Hardin, Jr. ("Officer"). Capitalized terms used herein and not otherwise defined herein shall have the meanings given to them in the
Employment Agreement between Employer and Officer dated July&nbsp;1, 1998, as amended March&nbsp;8, 2000 (as so amended, the "Employment Agreement"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS,</B></FONT><FONT SIZE=2> Employer and Officer have agreed to amend the Employment Agreement as provided therein; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>NOW, THEREFORE,</B></FONT><FONT SIZE=2> in consideration of the foregoing recitals and of the mutual covenants and agreements contained in the Employment
Agreement and this Amendment, the parties agree as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Amendments</I></FONT><FONT SIZE=2>. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Paragraphs
(1), (2), (3), (4), (5)&nbsp;and (6)&nbsp;of Section&nbsp;7, each of which begins with an underlined heading, shall be renumbered (a), (b), (c), (d),
(e)&nbsp;and (f), respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;The
first paragraph of Section&nbsp;7(f), which was formerly Section&nbsp;7(6), is hereby deleted in its entirety, and the following paragraph is substituted in lieu
thereof: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Termination Upon a Change of Control</I></FONT><FONT SIZE=2>. Officer shall be entitled to terminate his employment at any time during the
180&nbsp;day period following a Change of Control (as defined) and shall in such event be entitled to (i)&nbsp;those payments and rights provided under Section&nbsp;7(d) as though the
termination has been initiated by Employer without cause pursuant to Section&nbsp;7(c), and (ii)&nbsp;a Gross-Up Payment (as defined), to the extent provided by the second paragraph of
this Section&nbsp;7(f). For purposes of this Agreement, the term "Change of Control" shall mean the occurrence of any of the following events: (a)&nbsp;the acquisition after the date of this
Agreement, in one or more transactions, of beneficial ownership (within the meaning of Rule&nbsp;13d-3(a)(1) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"))
by any person or entity (other than Officer) or group of persons or entities (other than Officer) who constitute a group (within the meaning of Section&nbsp;13(d)(3) of the Exchange Act) of any
securities of Employer such that as a result of such acquisition such person or entity or group beneficially owns (within the meaning of Rule&nbsp;13d-3(a)(1) under the Exchange Act)
more than 50% of Employer's then outstanding voting securities entitled to vote on a regular basis for a majority of the Board; or (b)&nbsp;the sale of all or substantially all of the assets of
Employer (including, without limitation, by way of merger, consolidation, lease or transfer) in a transaction where Employer or the holders of common stock of Employer do not receive (i)&nbsp;voting
securities representing a majority of the voting power entitled to vote on a regular basis for the Board of Directors of the acquiring entity or of an affiliate that controls the acquiring entity or
(ii)&nbsp;securities representing a majority of the equity interests in the acquiring entity or of an affiliate that controls the acquiring entity; or (c)&nbsp;any other event constituting a
"Change in Control" under the Caremark Rx,&nbsp;Inc. 1998 Stock Option Plan. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>No Other Amendment</I></FONT><FONT SIZE=2>. Except as expressly modified by this Amendment, all other terms and conditions of the Employment
Agreement shall not be modified or amended and shall remain in full force and effect. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>IN WITNESS WHEREOF,</B></FONT><FONT SIZE=2> the parties have executed this Amendment as of the date first above written. </FONT></P>

<P><FONT SIZE=2>CAREMARK
RX,&nbsp;INC. </FONT></P>

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<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>/s/ Mac Crawford</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>/s/ Edward L. Hardin, Jr.</FONT></TD>
</TR>
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<TD WIDTH="49%"><FONT SIZE=2>Mac Crawford</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Edward L. Hardin, Jr.</FONT></TD>
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<TD WIDTH="49%"><FONT SIZE=2>Chairman and CEO</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
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