LONGS DRUG STORES CORP
EXHIBIT 10.1
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<DESCRIPTION>EXHIBIT 10.1
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<BR></FONT><FONT SIZE=2><B>EXHIBIT 10.1    <BR>  </B></FONT></P>

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<BR></FONT><FONT SIZE=2><B>AMENDMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That certain Employment Agreement (hereinafter "Agreement") entered into on the 17<SUP>th</SUP> of April, 2000, by and between Longs Drug Stores
California,&nbsp;Inc., a California corporation (hereinafter "Company") and Steven F. McCann, an individual (hereinafter "McCann") is hereby amended on this 22nd of May, 2002, as follows: </FONT></P>

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<P><FONT SIZE=2>Paragraph&nbsp;8
is hereby deleted in its entirety and the following substituted therefor: </FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>8.</FONT></DT><DD><FONT SIZE=2>Relocation
Allowance&#151;To aid in relocation and cost of the housing difference in the Walnut Creek area, an amount will be paid equal to the net present value of the
difference in interest payments for a ten (10)&nbsp;year period that is required to secure a comparable residence in Walnut Creek, California. It is agreed that the difference in home value is Four
Hundred Fifty-Seven Thousand Dollars ($457,000.00) and the interest rate is seven point eight seven five percent (7.875%) and therefore the net present value of increased interest over a ten
(10)&nbsp;year period is Two Hundred Fifty Thousand One Hundred Sixty-Three Dollars ($250,163.00). Company agrees to fund one (1)&nbsp;point amounting to Six Thousand Five Hundred Dollars
($6,500.00) to be included in the relocation allowance for a total relocation allowance of Two Hundred Fifty-Six Thousand Six Hundred Sixty-Three Dollars ($256,663.00). </FONT></DD></DL>
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<P><FONT SIZE=2>This
relocation allowance will be provided as a loan for which a Promissory Note will be prepared and signed. It is agreed that Company will forgive one-fifth (<SUP>1</SUP>/<SMALL>5</SMALL>) of this
loan plus accrued interest at the end of each of the first five (5)&nbsp;years of McCann's employment at which time Company will, at its sole discretion, either (1)&nbsp;make a cash payment to
McCann of an amount equal to the amount so forgiven, or (2)&nbsp;make a stock grant to McCann in shares of the Company's stock with the then current value equal to the amount so forgiven. This cash
payment or stock grant is intended to help offset any taxation resulting from this arrangement. </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
than as herein amended the parties hereby reaffirm all other provisions of the Agreement. </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 the Agreement as of the date first written above. </FONT></P>

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<TD COLSPAN=2><FONT SIZE=2>Steven F. McCann,<BR>
an Individual</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>LONGS DRUG STORES CALIFORNIA,&nbsp;INC.<BR>
a California Corporation</FONT></TD>
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By</FONT></TD>
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/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>STEVEN F. MCCANN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
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By</FONT></TD>
<TD WIDTH="45%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>LINDA WATT</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
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/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>H.R. SOMERSET</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
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<FONT SIZE=2><A HREF="#toc_kg1916_1">EXHIBIT 10.1</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_kg1916_2">AMENDMENT</A></FONT><BR>
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