CAREMARK RX INC
EX-10.1
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="ka1431_exhibit_10.1"> </A>
<A NAME="toc_ka1431_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit 10.1    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ka1431_employment_agreement"> </A>
<A NAME="toc_ka1431_2"> </A>
<BR></FONT><FONT SIZE=2><B>EMPLOYMENT AGREEMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>THIS EMPLOYMENT AGREEMENT</B></FONT><FONT SIZE=2> (this "Agreement") is made and entered into as of June&nbsp;26, 2002, by and between
Caremark Rx,&nbsp;Inc., a Delaware corporation ("Employer"), and A.D. Frazier, Jr. ("Officer"). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>Recitals  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Employer wishes to retain the services of Officer, and Officer wishes to serve Employer in the capacity of President and Chief Operating Officer; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
Employer and Officer have agreed to set forth the terms and conditions of Officer's employment with Employer in this Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>Agreement  </B></FONT></P>

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


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Term.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Employer agrees to employ Officer, and Officer agrees to serve Employer, on an "at will" basis for such
period (such period being the "Term") as Employer desires to employ Officer and Officer agrees to serve Employer. Without limiting the generality of the foregoing sentence, Employer shall have the
right to terminate Officer at any time for any reason or no reason without any obligation to Officer other than for Base Salary (as hereinafter defined) earned but unpaid through the date of such
termination and for the obligations of Employer pursuant to Section&nbsp;5 of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Employment of Officer.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Position.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Employer and Officer agree that, subject to the provisions of this Agreement, Officer will serve
as President and Chief Operating Officer of Employer. Unless otherwise agreed by Employer and Officer, Officer's employment will commence August&nbsp;1, 2002, and Officer will be based at Employer's
Northbrook, Illinois corporate offices. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Duties.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Officer will have general responsibility for the overall operations of Employer and its subsidiaries
and affiliates (including entities acquired from time to time by Employer), but excluding, however, their finance, legal, administration, corporate development/mergers and acquisitions, aviation and
discontinued operations functions. The scope of such duties may be modified from time to time by agreement of Officer and Employer's Chief Executive Officer. Officer shall devote substantially all of
his time and energies during business hours, faithfully and to the best of his ability, to the supervision and conduct of the business and affairs of Employer and its subsidiaries and affiliates; </FONT> <FONT SIZE=2><I>provided that,</I></FONT><FONT
SIZE=2> it shall not be a violation of this Agreement for Officer to serve on the Board of Directors of R.J. Reynolds Tobacco Corporation and
Apache Corporation following commencement of employment. Employer acknowledges and agrees that Officer currently serves on the Board of Directors of Magellan Health Services,&nbsp;Inc. but intends
to resign such position upon commencement of employment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Board Membership.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Employer agrees that Officer will be nominated for membership to Employer's Board of
Directors at its next regular meeting, currently scheduled for August&nbsp;22, 2002. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Compensation.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Salary.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Employer shall pay Officer a base salary in the amount of One Million Dollars ($1,000,000) per year
(pro-rated for any partial year during the Term) (the "Base Salary") payable in equal bi-weekly installments, less state and federal tax and other legally required or
authorized withholdings. The Base Salary shall be subject to review and adjustment from time-to-time at the discretion of the Chief Executive Officer of Employer. </FONT></P>

</UL>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Incentive Compensation.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;During the Term, Officer shall be eligible to receive from Employer incentive
compensation in an amount up to 100% percent of Base Salary (pro-rated for any partial calendar year during the Term), less state and federal tax and other legally required or authorized
withholdings. The incentive compensation contemplated by this Section&nbsp;3(b) shall be payable to Officer and subject to review and adjustment from time-to-time solely at
the discretion of the Chief Executive Officer of Employer based upon Officer's and Employer's performance. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Employment Benefits.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Fringe Benefits.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In addition to the compensation and other remuneration provided for in this Agreement,
Officer shall be entitled, during the Term, to such other benefits of employment with Employer as are now or may after the date of this Agreement be offered pursuant to Employer's standard and
executive benefits plans. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Expenses.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;During the Term, Employer shall reimburse Officer promptly for all reasonable travel,
entertainment, parking, business meeting and similar expenditures in pursuit and furtherance of Employer's business upon receipt of reasonable supporting documentation as required by Employer's
policies applicable to its officers generally. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Stock Options.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Upon commencement of employment, Officer shall receive a grant of 1,000,000 options to
acquire Employer's common stock, subject to the terms and conditions of Employer's stock option plans. The opportunity for additional option grants will be reviewed at least annually at the discretion
of the Chief Executive Officer. Officer acknowledges that he will be a Section&nbsp;16 executive officer of Employer and will be subject to the trading restrictions applicable to "Designated
Individuals" under Employer's Stock Trading Policy in effect from time to time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Country Club Membership.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;During the Term, Officer shall be entitled to payment of the dues for one country
club suitable for use in furthering the business interests of Employer. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Use of Aircraft.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;During the Term, Officer shall have professional and personal use of Employer's
Citation&nbsp;X or Lear&nbsp;45 corporate aircraft, subject to availability, with such use to be determined in accordance with Employer's policy for security of executives. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Termination Benefits.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Employer shall provide to Officer the applicable termination benefits and/or payments
set forth below. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Termination by Resignation, Disability or Death.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall terminate upon Officer's voluntary
resignation, disability or death, and Officer shall be entitled to only Base Salary payable
through the date of termination and those benefits and payments he is entitled to receive under Employer's applicable controlling benefit plans and policies. Officer shall not be entitled to any
severance or like payments. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Termination for Cause.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If Employer terminates Officer's employment for Cause, then Officer shall be entitled
to only Base Salary payable through the date of termination and those benefits and payments he is entitled to receive under the applicable controlling benefit plans and policies. Officer shall not be
entitled to any severance or like payments. The term "Cause" shall mean Officer (i)&nbsp;breaches Section&nbsp;6 of this Agreement or any other material term of this Agreement; (ii)&nbsp;is
convicted by a court of competent jurisdiction of a felony; (iii)&nbsp;refuses, fails or neglects to perform his duties under this Agreement in a manner that is materially detrimental to the
business or reputation of Employer; (iv)&nbsp;engages in illegal, unethical or other wrongful conduct that is materially detrimental to the business or reputation of Employer; or (v)&nbsp;develops
or pursues interests materially adverse to Employer; </FONT><FONT SIZE=2><I>provided, however</I></FONT><FONT SIZE=2>, that in the case of clauses (i), (iii), or (v), no such termination shall be
effective unless (A)&nbsp;Employer shall have given Officer 30&nbsp;days prior written notice of and opportunity to cure any conduct or deficiency in performance by Officer that Employer believes
justifies Officer's termination under this Section&nbsp;5(b); and </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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(B)&nbsp;Officer shall not have cured such non-compliant conduct or performance during such notice period. Employer and Officer may agree to waive the foregoing requirement of
30&nbsp;days notice and opportunity to cure in the case of termination under clauses (i), (iii)&nbsp;or (v)&nbsp;above. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Termination without Cause.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If Employer terminates this Agreement without Cause, it shall provide Officer
with the following termination benefits: (i)&nbsp;30&nbsp;days prior written notice of Employer's intention to terminate this Agreement without Cause; (ii)&nbsp;a lump sum payment equal to three
(3)&nbsp;years of Officer's Base Salary then in effect; (iii)&nbsp;a lump sum payment equal to any portion of any bonus accrued for Officer on Employer's books through the date of termination;
(iv)&nbsp;continued coverage under Employer's standard and executive benefit plans for three (3)&nbsp;years in accordance with the terms of the applicable plans; provided, if the terms of the
applicable plan do not permit continued coverage, then Employer shall pay to Officer the value of the applicable benefits in lump sum upon termination of employment; and (v)&nbsp;the applicable
stock option plan shall control the treatment of Officer's unexercised stock options, if any. As a condition precedent to receiving the payments and benefits described in this Section&nbsp;5(c),
Officer shall be required to execute a full release of all claims for the benefit of Employer in a form provided by Employer. Upon execution of this release, Employer shall provide the payments and
benefits described in this Section&nbsp;5(c) within 10 business days. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Termination Following a Change in Control.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Definitions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Agreement, the term "Change in Control" shall have the same definition of
"Change in Control" contained in the Caremark Rx,&nbsp;Inc. 1998 Stock Option Plan, as amended from time to time. The term "Successor Employer" shall refer to the surviving corporation or entity
following a Change in Control of Employer. The term "Direct Competitor" shall mean a company engaged in business activities that directly compete with Employer's business activities at the time of the
Change in Control. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Change in Control Involving Direct Competitor.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;During the first year following a Change in Control
involving a Direct Competitor, Officer may elect to terminate his employment by giving 30&nbsp;days prior written notice to Successor Employer. Notwithstanding the foregoing, Officer agrees not to
terminate his employment until at least 6&nbsp;months after the Change in Control if Successor Employer has notified Officer in writing within 10 business days following the Change in Control that
it would like Officer to remain employed for a 6-month transition period. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Change in Control Not Involving Direct Competitor.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;During the first 6&nbsp;months following a Change in
Control not involving a Direct Competitor, Officer may provide Successor Employer with a written request that Successor Employer acknowledge and confirm in writing that it has assumed all of
Employer's obligations under this Agreement. If Successor Employer fails to timely provide such written confirmation within 60&nbsp;days of receipt of Officer's written request, then Officer shall
be deemed to be terminated by Successor Employer at the end of such 60-day period. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;By Successor Employer.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Successor Employer may terminate this Agreement following a Change in Control by
giving 30&nbsp;days prior written notice to Officer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Benefits.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Upon any termination of this Agreement following a Change in Control, whether by Officer under
(ii)&nbsp;above or by Successor Employer under (iii)&nbsp;or (iv)&nbsp;above, Officer shall receive the following termination benefits: (A)&nbsp;a lump sum payment equal to three
(3)&nbsp;years of Officer's current base salary; (B)&nbsp;a lump sum payment equal to three (3)&nbsp;years of Officer's current annual incentive bonus; (C)&nbsp;continued coverage under
Employer's standard and executive benefit plans for three (3)&nbsp;years in accordance with the terms of the applicable plans; provided, if the terms of the applicable plan do not permit </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>
continued coverage, then Successor Employer shall pay to Officer the value of the applicable benefits in lump sum upon termination of employment; and (D)&nbsp;the applicable stock option plan shall
control the treatment of Officer's unexercised stock options, if any. As a condition precedent to receiving the payments and benefits described in this Section&nbsp;5(d), Officer shall be required
to execute a full release of all claims for the benefit of Successor Employer in a form provided by Successor Employer. Upon execution of this release, Successor Employer shall provide the payments
and benefits described in this Section&nbsp;5(d) within 10 business days. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Termination for Good Reason.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If Officer terminates this Agreement for Good Reason, Employer shall provide
Officer with the following termination benefits: (i)&nbsp;a lump sum payment equal to three (3)&nbsp;years of Officer's Base Salary then in effect; (ii)&nbsp;a lump sum payment equal to any
portion of any bonus accrued for Officer on Employer's books through the date of termination; (iii)&nbsp;continued coverage under Employer's standard and executive benefit plans for three
(3)&nbsp;years in accordance with the terms of the applicable plans; provided, if the terms of the applicable plan do not permit continued coverage, then Employer shall pay to Officer the value of
the applicable benefits in lump sum upon termination of employment; and (iv)&nbsp;the applicable stock option plan shall control the treatment of Officer's unexercised stock options, if any. The
term "Good Reason" shall mean Officer's duties as described in
Section&nbsp;2 are materially diminished by Employer without Officer's prior written consent; </FONT><FONT SIZE=2><I>provided, however,</I></FONT><FONT SIZE=2> no such termination for Good Reason
shall be effective unless (A)&nbsp;Officer shall have given Employer 30&nbsp;days prior notice of and opportunity to cure any action by Employer that Officer believes justifies Officer's
termination under this Section&nbsp;5(e); and (B)&nbsp;Employer shall not have cured such non-compliant action during such notice period. Employer and Officer may agree to waive the
foregoing requirement of 30&nbsp;days notice and opportunity to cure in the case of termination under this Section&nbsp;5(e). As a condition precedent to receiving the payments and benefits
described in this Section&nbsp;5(e), Officer shall be required to execute a full release of all claims for the benefit of Employer in a form provided by Employer. Upon execution of this release,
Employer shall provide the payments and benefits described in this Section&nbsp;5(e) within 10 business days. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Restrictive Covenants.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Definitions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The following terms shall have the meanings set forth below: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2><I>"Caremark Parties"</I></FONT><FONT SIZE=2> means Employer and its subsidiaries and affiliates.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2><I>"Confidential Information"</I></FONT><FONT SIZE=2> means any data or information (other than Trade Secrets) that is valuable to
any of the Caremark Parties (or, if owned by someone else, is valuable to that third party) and not generally known to the public or to competitors in the pharmaceutical services industry, including,
but not limited to, any non-public information (regardless of whether in writing or retained as personal knowledge) pertaining to research and development; product costs and processes;
shareholder information; pricing, costs or profit factors; quality programs; strategic planning; business operations; financial condition; annual budget and long-range business plans;
marketing plans and methods; contracts and bids; and personnel. The term "Confidential Information" does not include information that (A)&nbsp;has become generally available to the public by the act
of one who has the right to disclose such information without violating any right of the party to which such information pertains, or (B)&nbsp;is obtained by Officer on a
non-confidential basis from a third party and which Officer is are not prohibited from disclosing by a legal, contractual or fiduciary duty owed to any of the Caremark Parties.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2><I>"Restricted Business"</I></FONT><FONT SIZE=2> means the business of providing pharmaceutical services (including, without
limitation, prescription benefit management services, specialty distribution services and disease management services) to employers, insurance companies, unions, government employee groups,
governmental entities, government program beneficiaries, </FONT></DD></DL>
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<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2>managed
care organizations, coalitions, other sponsors of health benefit plans and/or individuals. </FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2><I>"Restricted Period"</I></FONT><FONT SIZE=2> means during the Term and for a period of 3&nbsp;years after the end of the Term
of this Agreement for purposes of Sections 6(d), (e)&nbsp;and (f)&nbsp;and for a period of 5&nbsp;years after the end of the Term of this Agreement for purposes of Sections 6(b) and (c).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(v)</FONT></DT><DD><FONT SIZE=2><I>"Territory"</I></FONT><FONT SIZE=2> means the United States and Puerto Rico, or such lesser territory in which the Caremark
Parties are actually conducting business at the time of enforcement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(vi)</FONT></DT><DD><FONT SIZE=2><I>"Trade Secret"</I></FONT><FONT SIZE=2> means information including, but not limited to, any technical or nontechnical data,
formula, pattern, compilation, program, device, method, technique, drawing, process (including, without limitation, any process relating to customer bids or requests for proposal), financial data,
financial plan, product plan, list of actual or potential customers or suppliers or other information similar to any of the foregoing, which (A)&nbsp;derives independent economic value, actual or
potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can derive economic value from its disclosure or use and (B)&nbsp;is the
subject of efforts that are reasonable under the circumstances to maintain its secrecy. </FONT></DD></DL>
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<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Trade Secrets.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Officer hereby covenants and agrees that he will hold in confidence all Trade Secrets of the
Caremark Parties and will not disclose, publish or make use of such Trade Secrets at any time after the Effective Date, except as is necessary to perform duties assigned him or as specifically
authorized in writing by Employer's Chief Executive Officer, for as long as the information remains a Trade Secret. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Confidential Information.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Officer hereby covenants and agrees that, during the Restricted Period, he will
hold in confidence all Confidential Information of the Caremark Parties and will not disclose, publish or make use of such Confidential Information, except as is necessary to perform duties assigned
to him or as specifically authorized in writing by Employer's Chief Executive Officer. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Nonsolicitation of Employees.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Officer hereby covenants and agrees that he will not, during the Restricted
Period, either directly or indirectly, on his own behalf or on behalf of others, solicit or divert or attempt to solicit or divert for employment or other engagement to provide services, any person
who, as of the date of this Agreement or at any time during the Term, is or was employed by or engaged to provide services for any of the Caremark Parties. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Nonsolicitation of Customers and Suppliers.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Officer hereby covenants and agrees that he will not, within the
Territory and during the Restricted Period, solicit or attempt to solicit on his own behalf or on behalf of any business engaged in the Restricted Business, any person or entity who, as of the
Effective Date or at any time during the Term, is or was a customer or supplier to any of the Caremark Parties or is an actively sought prospective customer or supplier of any of the Caremark Parties. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Noncompetition.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Officer hereby covenants and agrees that he will not, within the Territory and during the
Restricted Period, either directly or indirectly, on his own behalf or in the service or on behalf of
others, engage in, establish, have any equity or profit interest in, make any loan to or for the benefit of, or render services (of any product development or design, operations, advertising,
marketing, sales, administrative, logistics, supervisory, strategic planning, management or consulting nature) to any business, entity or individual engaged in the Restricted Business. </FONT></P>

<P><FONT SIZE=2>Notwithstanding
anything in this Section&nbsp;6 to the contrary, nothing herein shall prohibit Officer, in the aggregate, from owning or acquiring a passive investment of one percent (1%) or less of
the </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
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<UL>
<BR>

<P><FONT SIZE=2>
issued and outstanding capital stock of a publicly-held corporation engaged in the Restricted Business in the Territory, provided that Officer does not, directly or indirectly,
participate in the management or operation of such publicly-held corporation or organization. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;State Law.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The restrictions set forth in Sections 6(a) and (b)&nbsp;are in addition to and not in lieu of
protections afforded to trade secrets and confidential information under applicable state law. This Agreement shall not be interpreted as diminishing or otherwise limiting Employer's right under
applicable state law to protect its trade secrets and confidential information. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Return of Materials.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of this Agreement, Officer will deliver to Employer all memoranda,
notes, records, manuals or other documents (including, but not limited to, written instruments, voice or data recordings, or computer tapes, disks or files of any nature), including all copies of such
materials and all documentation prepared or produced in connection therewith, pertaining to the businesses of the Caremark Parties or containing Trade Secrets or Confidential Information, whether made
or compiled by Officer or otherwise made available to Officer. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Reasonable and Necessary Restrictions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Officer acknowledges that the restrictions, prohibitions and other
provisions in Section&nbsp;6, including the definitions of Restricted Business, Restricted Period and Territory, are reasonable, fair and equitable in scope, terms and duration, are necessary to
protect the legitimate business interests of Employer, and are a material inducement to Employer to enter into this Agreement. Officer covenants that he will not challenge the enforceability of this
Agreement nor will he raise any equitable defense to its enforcement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Specific Performance.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Officer acknowledges that the obligations undertaken by him pursuant to this Agreement
are unique and that Employer will likely have no adequate remedy at law if he fails to perform any of those obligations. Officer therefore confirms that Employer has the right to specific performance
of the terms of this Agreement and that this right is essential to protect the rights and interests of Employer and to protect the benefit of Employer's bargain with Officer. Accordingly, in addition
to any other remedies that Employer may have at law or in equity, Employer shall have the right to have all obligations, covenants, agreements and other provisions of this Agreement specifically
performed by Officer and the right to obtain preliminary and permanent injunctive relief to secure specific performance and to prevent a breach or contemplated breach of this Agreement by Officer. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Survival.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All rights and obligations of Employer and Officer under this Agreement shall cease upon
termination of this Agreement, except the obligations of the parties set forth in Sections&nbsp;5, 6, 7, 8 and 9 hereof shall survive termination of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Succession.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall inure to the benefit of and shall be binding upon Employer, its successors
and assigns. The obligations and duties of Officer under this Agreement are personal and not assignable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Notices.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Any notice, request, instruction or other document to be given under this Agreement by any party to
the others shall be in writing and delivered in person or by courier, telegraphed, telexed or sent by facsimile transmission or mailed by certified mail, postage prepaid, return receipt requested
(such mailed notice to be effective on the date of such receipt is acknowledged), as follows: </FONT></P>

<UL>

<P><FONT SIZE=2>If
to Officer: </FONT></P>

<UL>

<P><FONT SIZE=2>A.D.
Frazier, Jr.<BR>
200 East Delaware Place<BR>
#4D<BR>
Chicago, Illinois 60611 </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<UL>
<UL>

<P><FONT SIZE=2>If
to Employer: </FONT></P>

<UL>

<P><FONT SIZE=2>Caremark
Rx,&nbsp;Inc.<BR>
3000 Galleria Tower<BR>
Suite 1000<BR>
Birmingham, Alabama 35244<BR>
Attn.: Chief Executive Officer </FONT></P>

</UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or
to such other place as either party may designate as to itself by written notice to the other. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Waiver; Amendment.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;No provision of this Agreement may be waived except by a written agreement signed by the
waiving party. The waiver of any term or of any condition of this Agreement shall not be deemed to constitute the waiver of any other term or condition. This Agreement may be amended only by a written
agreement signed by the parties. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be construed under and governed by the internal laws of the State of
Alabama, without regard to Alabama's choice of law rules. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Arbitration.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Any disputes or controversies arising under this Agreement shall be settled by arbitration in
Birmingham, Alabama in accordance with the rules of the American Arbitration Association relating to the arbitration of commercial disputes. The determination and findings of such arbitrators shall be
final and binding on all parties and may be enforced, if necessary, in the courts of the State of Alabama. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Captions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Captions have been inserted solely for the convenience of reference and in no way define, limit or
describe the scope or substance of any provisions of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement, and the other documents and agreements referenced herein, represent the
entire agreement of the parties hereto relating to the subject matter hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Severability.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If this Agreement shall for any reason be or become unenforceable by any party, this Agreement
shall thereupon terminate and become unenforceable by the other party as well. In all other respects, if any provision of this Agreement is held invalid or unenforceable, the remainder of this
Agreement shall nevertheless remain in full force and effect and, if any provision is held invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force
and effect in all other circumstances. </FONT></P>

</UL>

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

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>CAREMARK RX,&nbsp;INC.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>E. MAC CRAWFORD</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> E. Mac Crawford<BR>
Chairman and CEO</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>A.D. FRAZIER, JR.</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> A.D. Frazier, Jr.</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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