CVS Health Corporation PLAN OF MERGER — page 1

EX-2.1 2 d444237dex21.htm EX-2.1

Exhibit 2.1

CONFIDENTIAL

EXECUTION VERSION

AGREEMENT AND PLAN OF MERGER

dated as of

December 3, 2017

among

CVS HEALTH CORPORATION,

HUDSON MERGER SUB CORP.

and

AETNA INC.

TABLE OF CONTENTS

Page

ARTICLE I

DEFINITIONS

Section 1.01. Definitions

Section 1.02. Other Definitional and Interpretative Provisions

ARTICLE II

CLOSING; THE MERGER

Section 2.01. Closing

Section 2.02. The Merger

Section 2.03. Conversion of Shares

Section 2.04. Surrender and Payment

Section 2.05. No Dissenters Rights

Section 2.06. Company Equity Awards; Company ESPP

Section 2.07. Adjustments

Section 2.08. Fractional Shares

Section 2.09. Withholding Rights

Section 2.10. Lost Certificates

Section 2.11. Further Assurances

ARTICLE III

ORGANIZATIONAL DOCUMENTS; DIRECTORS AND OFFICERS

Section 3.01. Articles of Incorporation and Bylaws of the Surviving Corporation

Section 3.02. Directors and Officers of the Surviving Corporation

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

Section 4.01. Corporate Existence and Power

CVS Health Corporation PLAN OF MERGER — page 2

Section 4.02. Corporate Authorization

Section 4.03. Governmental Authorization

Section 4.04. Non-contravention

Section 4.05. Capitalization

Section 4.06. Subsidiaries

Section 4.07. SEC Filings and the Sarbanes-Oxley Act

Section 4.08. Financial Statements and Financial Matters

Section 4.09. Disclosure Documents

Section 4.10. Statutory Financial Statements

Section 4.11. Reserves

Section 4.12. Capital or Surplus Maintenance

Section 4.13. Absence of Certain Changes

Section 4.14. No Undisclosed Material Liabilities

Section 4.15. Litigation

Section 4.16. Permits

Section 4.17. Compliance with Applicable Laws

Section 4.18. Material Contracts

Section 4.19. Taxes

Section 4.20. Employees and Employee Benefit Plans

Section 4.21. Labor Matters

Section 4.22. Intellectual Property

Section 4.23. Properties

Section 4.24. Environmental Matters

Section 4.25. Insurance

Section 4.26. Transactions with Affiliates

Section 4.27. Antitakeover Statutes

Section 4.28. Opinions of Financial Advisors

Section 4.29. Finders’ Fees

Section 4.30. No Ownership of Parent Common Stock

Section 4.31. No Other Company Representations and Warranties

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF PARENT

Section 5.01. Corporate Existence and Power

Section 5.02. Corporate Authorization

Section 5.03. Governmental Authorization

Section 5.04. Non-contravention

Section 5.05. Capitalization

Section 5.06. Subsidiaries

Section 5.07. SEC Filings and the Sarbanes-Oxley Act

Section 5.08. Financial Statements and Financial Matters

Section 5.09. Disclosure Documents

Section 5.10. Absence of Certain Changes

Section 5.11. No Undisclosed Material Liabilities

Section 5.12. Litigation

Section 5.13. Permits

Section 5.14. Compliance with Applicable Laws

Section 5.15. Taxes

Section 5.16. Employees and Employee Benefit Plans

Section 5.17. Labor Matters

Section 5.18. Intellectual Property

Section 5.19. Environmental Matters

Section 5.20. Antitakeover Statutes

Section 5.21. Opinions of Financial Advisors

CVS Health Corporation PLAN OF MERGER — page 3

Section 5.22. Finders’ Fees

Section 5.23. No Ownership of Company Common Stock

Section 5.24. Financing

Section 5.25. No Other Parent Representations and Warranties

ARTICLE VI

COVENANTS OF THE COMPANY

Section 6.01. Conduct of the Company

Section 6.02. No Solicitation by the Company

Section 6.03. Financing Assistance

Section 6.04. Indentures

Section 6.05. 280G Calculation

ARTICLE VII

COVENANTS OF PARENT

Section 7.01. Conduct of Parent

Section 7.02. No Solicitation by Parent

Section 7.03. Obligations of Merger Sub

Section 7.04. Director and Officer Liability

Section 7.05. Employee Matters

Section 7.06. Financing

ARTICLE VIII

COVENANTS OF PARENT AND THE COMPANY

Section 8.01. Access to Information; Confidentiality

Section 8.02. Reasonable Best Efforts

Section 8.03. Certain Filings; SEC Matters

Section 8.04. Shareholder and Stockholder Meetings

Section 8.05. Public Announcements

Section 8.06. Notices of Certain Events

Section 8.07. Section 16 Matters

Section 8.08. Transaction Litigation

Section 8.09. Stock Exchange Delisting

Section 8.10. Dividends

Section 8.11. Governance and Social Matters

Section 8.12. State Takeover Statutes

ARTICLE IX

CONDITIONS TO THE MERGER

Section 9.01. Conditions to the Obligations of Each Party

iii

Section 9.02. Conditions to the Obligations of Parent and Merger Sub

Section 9.03. Conditions to the Obligations of the Company

ARTICLE X

TERMINATION

CVS Health Corporation PLAN OF MERGER — page 4

Section 10.01. Termination

Section 10.02. Effect of Termination

101

Section 10.03. Termination Fees

102

ARTICLE XI

MISCELLANEOUS

Section 11.01. Notices

104

Section 11.02. Survival

105

Section 11.03. Amendments and Waivers

106

Section 11.04. Expenses

106

Section 11.05. Disclosure Schedule References and SEC Document References

106

Section 11.06. Binding Effect; Benefit; Assignment

107

Section 11.07. Governing Law

107

Section 11.08. Jurisdiction/Venue

108

Section 11.09. WAIVER OF JURY TRIAL

108

Section 11.10. Counterparts; Effectiveness

109

Section 11.11. Entire Agreement

109

Section 11.12. Severability

109

Section 11.13. Specific Performance

109

EXHIBITS

Exhibit A - Articles of Incorporation of Surviving Corporation

AGREEMENT AND PLAN OF MERGER

AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of December 3, 2017,

among CVS Health Corporation, a Delaware corporation (“Parent”), Hudson Merger Sub Corp., a Pennsylvania

corporation and a wholly owned Subsidiary of Parent (“Merger Sub”), and Aetna Inc., a Pennsylvania

corporation (the “Company”).

WHEREAS, the Board of Directors of the Company has unanimously (i) determined that this

Agreement and the transactions contemplated hereby (including the Merger) are fair to and in the best interests

of the Company and its shareholders, (ii) approved, adopted and declared advisable this Agreement and the

transactions contemplated hereby (including the Merger), (iii) directed that this Agreement (including the

Merger) be submitted to a vote at a meeting of the Company’s shareholders, and (iv) recommended the approval

and adoption of this Agreement (including the Merger) by the Company’s shareholders;

WHEREAS, the Board of Directors of Parent has unanimously (i) determined that this Agreement

and the transactions contemplated hereby (including the Parent Share Issuance) are fair to and in the best

interests of Parent’s stockholders, (ii) approved, adopted and declared advisable this Agreement and the

transactions contemplated hereby (including the Parent Share Issuance), (iii) directed that the Parent Share

Issuance be submitted to a vote at a meeting of Parent’s stockholders, and (iv) recommended the approval of the

Parent Share Issuance by Parent’s stockholders;

WHEREAS, the Board of Directors of Merger Sub has unanimously (i) approved, adopted and

declared advisable this Agreement and the transactions contemplated hereby (including the Merger), and

(ii) directed that this Agreement be submitted for approval and adoption by the sole shareholder of Merger Sub;

and

WHEREAS, the Company, Parent and Merger Sub desire to make certain representations,

warranties, covenants and agreements specified in this Agreement in connection with the Merger and to

prescribe certain conditions to the Merger.

CVS Health Corporation PLAN OF MERGER — page 5

NOW, THEREFORE, in consideration of the foregoing and the representations, warranties,

covenants and agreements contained in this Agreement, the parties agree as follows:

ARTICLE I

DEFINITIONS

Section 1.01. Definitions.

(a) As used in this Agreement, the following terms have the following meanings:

“1933 Act” means the Securities Act of 1933.

“1934 Act” means the Securities Exchange Act of 1934.

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling,

controlled by, or under common control with such Person.

“Antitrust Laws” shall mean the Sherman Act of 1890, the Clayton Act of 1914, the Federal Trade

Commission Act of 1914, the HSR Act and all other federal, state and foreign Applicable Laws in effect from

time to time that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of

monopolization or restraint of trade.

“Applicable Law(s)” means, with respect to any Person, any federal, state or local law (statutory,

common or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, executive order, Order

or other similar requirement (including any federal, state or local directive or other requirement that relates to

Medicare or Medicaid) enacted, adopted, promulgated or applied by a Governmental Authority that is binding

upon or applicable to such Person, as the same may be amended from time to time unless expressly specified

otherwise in this Agreement. References to “Applicable Law” or “Applicable Laws” shall be deemed to include

Health Care Laws, any applicable Insurance Law and Antitrust Law.

“ASOPs” means actuarial standards of practice promulgated by the Actuarial Standards Board for

use by actuaries when providing professional services in the United States.

“Benefits Continuation Period” means the period from the Closing Date through the later of (i) the

first anniversary of the Closing Date and (ii) May 31, 2019.

“Business Day” means a day, other than Saturday, Sunday or other day on which commercial banks

in New York, New York are authorized or required by Applicable Law to close.

“CMS” means the Centers for Medicare & Medicaid Services.

“Code” means the Internal Revenue Code of 1986.

“Company Acquisition Proposal” means any indication of interest, proposal or offer from any

Person or Group, other than Parent and its Subsidiaries, relating to any (i) direct or indirect acquisition (whether

in a single transaction or a series of related transactions) of assets of the Company or its Subsidiaries (including

securities of Subsidiaries) equal to 20% or more of the consolidated assets of the Company, or to which 20% or

more of the revenues or earnings of the Company on a consolidated basis are attributable, (ii) direct or indirect

acquisition or issuance (whether in a single transaction or a series of related transactions) of 20% or more of any

class of equity or voting securities of the Company, (iii) tender offer or exchange offer that, if consummated,

would result in such Person or Group beneficially owning 20% or more of any class of equity or voting

securities of the Company, or (iv) merger, consolidation, share exchange, business combination, joint venture,

reorganization, recapitalization, liquidation, dissolution or similar transaction involving the Company, under

which such Person or Group would acquire, directly or indirectly, (A) assets equal to 20% or more of the

consolidated assets of the Company, or to which 20% or more of the revenues or earnings of the Company on a

CVS Health Corporation PLAN OF MERGER — page 6

consolidated basis are attributable, or (B) beneficial ownership of 20% or more of any class of equity or voting

securities of the Company.

“Company Balance Sheet” means the consolidated balance sheet of the Company and its

Subsidiaries as of December 31, 2016, and the footnotes to such consolidated balance sheet, in each case set

forth in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2016.

“Company Balance Sheet Date” means December 31, 2016.

“Company Common Stock” means the common shares, $0.01 par value, of the Company.

“Company Disclosure Schedule” means the Company Disclosure Schedule delivered to Parent on

the date of this Agreement.

“Company Employee Plan” means any (i) “employee benefit plan” as defined in Section 3(3) of

ERISA, (ii) compensation, employment, consulting, severance, termination protection, change in control,

transaction bonus, retention or similar plan, agreement, arrangement, program or policy, or (iii) other plan,

agreement, arrangement, program or policy providing for compensation, bonuses, profit-sharing, equity or

equity-based compensation or other forms of incentive or deferred compensation, vacation benefits, insurance

(including any self-insured arrangement), medical, dental, vision, prescription or fringe benefits, life insurance,

relocation or expatriate benefits, perquisites, disability or sick leave benefits, employee assistance program,

workers’ compensation, supplemental unemployment benefits or post-employment or retirement benefits

(including compensation, pension, health, medical or insurance benefits), in each case whether or not written

(x) that is sponsored, maintained, administered, contributed to or entered into by the Company or any of its

Subsidiaries for the current or future benefit of any director, officer, employee or individual independent

contractor (including any former director, officer, employee or individual independent contractor) of the

Company or any of its Subsidiaries or (y) for which the Company or any of its Subsidiaries has any direct or

indirect liability.

“Company Equity Awards” means Company Stock Appreciation Rights, Company RSU Awards

and Company PSU Awards.

“Company Intellectual Property” means the Owned Intellectual Property and the Licensed

Intellectual Property, in each case, of the Company and its Subsidiaries.

“Company Material Adverse Effect”

means a material adverse effect on the financial condition,

business or results of operations of the Company and its Subsidiaries, taken as a whole;

provided

that no event,

change, effect, development or occurrence to the extent resulting from, arising out of, or relating to any of the

following shall be deemed to constitute, or shall be taken into account in determining whether there has been, a

Company Material Adverse Effect, or whether a Company Material Adverse Effect would reasonably be

expected to occur: (i) any changes in general United States or global economic conditions, (ii) any changes in

conditions generally affecting the health insurance or managed care industry (including the Medicare Advantage

managed care industry) or any other industry in which the Company or any of its Subsidiaries operate, (iii) any

decline, in and of itself, in the market price or trading volume of the Company Common Stock (it being

understood and agreed that the foregoing shall not

preclude Parent from asserting that any facts or occurrences giving rise to or contributing to such decline that

are not otherwise excluded from the definition of Company Material Adverse Effect should be deemed to

constitute, or be taken into account in determining whether there has been, or would reasonably be expected to

be, a Company Material Adverse Effect), (iv) any changes in regulatory, legislative or political conditions or in

securities, credit, financial, debt or other capital markets, in each case in the United States or any foreign

jurisdiction, (v) any failure, in and of itself, by the Company or any of its Subsidiaries to meet any internal or

published projections, forecasts, estimates or predictions in respect of enrollments, revenues, earnings or other

financial or operating metrics for any period (it being understood and agreed that the foregoing shall not

preclude Parent from asserting that any facts or occurrences giving rise to or contributing to such failure that are

not otherwise excluded from the definition of Company Material Adverse Effect should be deemed to constitute,

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or be taken into account in determining whether there has been, or would reasonably be expected to be, a

Company Material Adverse Effect), (vi) the execution and delivery of this Agreement, the public announcement

or the pendency of this Agreement or the Merger, the taking of any action required or expressly contemplated by

this Agreement or the identity of, or any facts or circumstances relating to Parent or any of its Subsidiaries,

including the impact of any of the foregoing on the relationships, contractual or otherwise, of the Company or

any of its Subsidiaries with Governmental Authorities, customers, Providers, suppliers, partners, officers or

employees (it being understood and agreed that the foregoing shall not apply with respect to any representation

or warranty that is intended to address the consequences of the execution, delivery or performance of this

Agreement or the consummation of the transactions contemplated hereby), (vii) any adoption, implementation,

promulgation, repeal, modification, amendment, authoritative interpretation, change or proposal of any

Applicable Law of or by any Governmental Authority, (viii) any changes in GAAP, SAP or ASOPs (or

authoritative interpretations thereof), (ix) any changes in geopolitical conditions, the outbreak or escalation of

hostilities, any acts of war, sabotage, cyberattack or terrorism, or any escalation or worsening of any such acts of

war, sabotage, cyberattack or terrorism threatened or underway as of the date of this Agreement, (x) any taking

of any action at the written request of or with the consent of Parent (it being understood and agreed that, with

respect to any action taken with such consent, the foregoing shall not preclude Parent from asserting that any

facts or occurrences resulting from such action that are not otherwise excluded from the definition of Company

Material Adverse Effect should be deemed to constitute, or be taken into account in determining whether there

has been, or would reasonably be expected to be, a Company Material Adverse Effect), (xi) any reduction in the

credit rating of the Company or any of its Subsidiaries (it being understood and agreed that the foregoing shall

not preclude Parent from asserting that any facts or occurrences giving rise to or contributing to such reduction

that are not otherwise excluded from the definition of Company Material Adverse Effect should be deemed to

constitute, or be taken into account in determining whether there has been, or would reasonably be expected to

be, a Company Material Adverse Effect), (xii) any epidemic, plague, pandemic or other outbreak of illness or

public health event, hurricane, earthquake, flood or other natural disasters, acts of God or any change resulting

from weather conditions, (xiii) any changes to reimbursement rates or in methods or procedures for determining

such rates, any changes to eligibility requirements or any other programmatic changes by any Governmental

Authority, in each case, whether such changes are applicable nationally or to only certain geographic areas, or

(xiv) any claims, actions, suits or proceedings arising from allegations of a breach of fiduciary duty or violation

Applicable Law relating to this Agreement or the Merger, except in the case of each of clauses (i), (ii), (iv),

(vii), (viii) or (xiii), to the extent that any such event, change, effect, development or occurrence has a materially

disproportionate adverse effect on the Company and its Subsidiaries, taken as a whole, relative to the adverse

effect such event, change, effect, development or occurrence has on other companies operating in the industries

in which the Company and its Subsidiaries operate (it being understood and agreed that any such

disproportionate effect on the Company and its Subsidiaries to the extent resulting from the greater

concentration of the businesses of the Company and its Subsidiaries in any particular industry or geography

relative to other companies operating in the industries in which the Company and its Subsidiaries operate shall

not be taken into account in determining whether there has been, or would reasonably be expected to be, a

Company Material Adverse Effect).

“Company Stock Plans” means the Aetna Inc. 2016 Employee Stock Purchase Plan, the Amended

Aetna Inc. 2010 Stock Incentive Plan, the Aetna Inc. 2010 Non-Employee Director Compensation Plan, the

Aetna Inc. 2000 Non-Employee Director Compensation Plan, and the Amended and Restated Aetna Inc. 2000

Stock Incentive Plan, in each case, as amended from time to time.

“Consent” means any consent, approval, waiver, license, permit, variance, exemption, franchise,

clearance, authorization, acknowledgment, Order or other confirmation.

“Contract” means any contract, agreement, obligation, understanding or instrument, lease or license.

“Credit Agreement” means the Five-Year Credit Agreement, dated as of March 27, 2012, among

the Company, the several banks and other financial institutions from time to time parties thereto, JPMorgan

Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., and Citibank, N.A., as Co-Syndication

Agents, Wells Fargo Bank, National Association and U.S. Bank, N.A., as Documentation Agents, and J.P.

Morgan Securities Inc., Citigroup Global Markets, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated,

as Joint Lead Arrangers and Joint Bookrunners.

CVS Health Corporation PLAN OF MERGER — page 8

“Delaware Law” means the General Corporation Law of the State of Delaware.

“Environmental Law” means any Applicable Law relating to (i) the protection, preservation or

restoration of the environment (including air, surface water, groundwater, drinking water supply, surface land,

subsurface land, plant and animal life or any other natural resource), or (ii) the exposure to, or the use, storage,

recycling, treatment, generation, transportation, processing, handling, labeling, production, release or disposal of

Hazardous Substances.

“Environmental Permits” means all permits, licenses, franchises, consents (including consents

required by Contract), variances, exemptions, orders, certificates, approvals and other similar authorizations of

Governmental Authorities required by Environmental Law and affecting, or relating to, the business of the

Company or any of its Subsidiaries, or the business of Parent or any of its Subsidiaries, as applicable.

“Equity Award Exchange Ratio” means the sum of (i) the Share Consideration,

plus

(ii) the quotient

of (x) the Cash Consideration

divided by

(y) the Parent Stock Price, rounded to the nearest one thousandth.

“ERISA” means the Employee Retirement Income Security Act of 1974.

“ERISA Affiliate” means, with respect to any entity, any other entity that, together with such entity,

would be treated as a single employer under Section 414 of the Code.

“Filing” means any registration, petition, statement, application, schedule, form, declaration, notice,

notification, report, submission or other filing.

“Financing Sources” means the Persons that have entered or will enter into commitment letters or

agreements with Parent in connection with the Debt Financing (including any Persons providing Alternative

Financing and including, for purposes of Section 6.03(a), any Persons providing any permanent financing

referred to in the Debt Commitment Letters) and any joinder agreements, indentures or credit agreements

entered into pursuant thereto, including the agents, arrangers, lenders and other entities that have committed to

provide or arrange all or part of the Debt Financing, and their respective Affiliates.

“GAAP” means United States generally accepted accounting principles.

“Government Sponsored Health Care Programs” means (i) the Medicare program established under

and governed by the applicable provisions of Title XVIII of the Social Security Act, the regulations promulgated

thereunder and any sub-regulatory guidance issued, (ii) the Medicaid program governed by the applicable

provisions of Title XIX of the Social Security Act, the regulations promulgated thereunder, as well as any state’s

Applicable Laws implementing the Medicaid program, (iii) the Federal Employees Health Benefit Program, and

(iv) any other state or federal health care program or plan.

“Governmental Authority” means any transnational, domestic or foreign federal, state or local

governmental, regulatory or administrative authority, department, court, agency, commission or official,

including any political subdivision thereof, or any non-governmental self-regulatory agency, commission or

authority.

“Group” means a “group” as defined in Section 13(d) of the 1934 Act.

“Hazardous Substance” means any substance, material or waste that is listed, defined, designated or

classified as hazardous, toxic, radioactive, dangerous or a “pollutant” or “contaminant” or words of similar

meaning under any Applicable Law relating to the environment or natural resources or that is otherwise

regulated by any Governmental Authority with jurisdiction over the environment or natural resources, including

petroleum or any derivative or byproduct thereof, radon, radioactive material, asbestos or asbestos-containing

material, urea formaldehyde, foam insulation or polychlorinated biphenyls.

“Health Care Laws” means all Applicable Laws relating to: (i) the licensure, certification,

qualification or authority to transact business in connection with the provision of, payment for, or arrangement

of, health care services, health benefits or health insurance,

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including Applicable Laws that regulate Providers, managed care, third party payors and Persons bearing the

financial risk for, or providing administrative or other functions in connection with, the provision of, payment

for or arrangement of health care services and, including all Applicable Laws relating to Health Care Programs

pursuant to which any Regulated Subsidiary of the Company or Parent, as applicable, is required to be licensed

or authorized to transact business; (ii) health care or insurance fraud or abuse, including the solicitation or

acceptance of improper incentives involving persons operating in the health care industry, patient referrals or

Provider incentives generally, including the following statutes: the Federal anti-kickback law (42 U.S.C. §

1320a-7b), the Stark Law (42 U.S.C. § 1395nn), the Federal False Claims Act (31 U.S.C. §§ 3729, et seq.), the

Federal Civil Monetary Penalties Law (42 U.S.C. § 1320a-7a), the Federal Program Fraud Civil Remedies Act

(31 U.S.C. § 3801 et seq.) and the Federal Health Care Fraud Law (18 U.S.C. § 1347); (iii) the provision of

administrative, management or other services related to any Health Care Programs, including the administration

of health care claims or benefits or processing or payment for health care items and services, treatment or

supplies furnished by Providers, including the provision of the services of third party administrators, utilization

review agents and Persons performing quality assurance, credentialing or coordination of benefits; (iv) the

licensure, certification, qualification or authority to transact business in connection with the provision of, or

payment for, pharmacy services, along with the requirements of the U.S. Drug Enforcement Administration in

connection therewith, including 21 U.S.C. § 801 et. seq., commonly referred to as the “Controlled Substances

Act” and any similar state laws governing the prescribing or dispensing of controlled substances; (v) the

Consolidated Omnibus Budget Reconciliation Act of 1985; (vi) ERISA; (vii) the Medicare Prescription Drug,

Improvement, and Modernization Act of 2003; (viii) the Medicare Improvements for Patients and Providers Act

of 2008; (ix) privacy, security, integrity, accuracy, transmission, storage or other protection of information about

or belonging to actual or prospective participants in the Company’s Health Care Programs or other lines of

business, including the Health Insurance Portability and Accountability Act of 1996 (Pub. L. No. 104-191), as

amended by the Health Information Technology for Economic and Clinical Health Act (Pub. L. No. 111-5),

including any other Applicable Laws relating to medical information; (x) the Patient Protection and Affordable

Care Act (Pub. L. 111-148) as amended by the Health Care and Education Reconciliation Act of 2010 (Pub. L.

111-152); (xi) the claims made or promotional or marketing efforts undertaken by the Company or any of its

Subsidiaries with respect to prescription drugs or controlled substances; (xii) 42 U.S.C. § 1320a-7a(a)(5), 42

C.F.R. § 1003.101, commonly referred to as the “Beneficiary Inducement Law”; (xiii) the U.S. Food and Drug

Administration; (xiv) restricting the corporate practice of medicine or fee splitting by licensed healthcare

professionals; (xv) the practice of pharmacy, the operation of pharmacies, the wholesale distribution, dispensing,

labeling, packaging, repackaging, advertising, adulteration or compounding of drug products or controlled

substances; (xvi) the provision of pharmacy benefit management, utilization review and healthcare discount card

programs and services; (xvii) federal or state laws related to billing or claims for reimbursement for health care

items and services submitted to any third party payor; (xviii) healthcare risk sharing products, services and

arrangements; and (xix) any state unfair and deceptive trade acts.

“Health Care Programs” means all lines of business, programs and types of services offered by the

Company or any of its Subsidiaries or Parent or any of its Subsidiaries that involve or relate to providing,

arranging to provide, reimbursing, or otherwise administering health care services, as applicable, including

Government Sponsored Health Care Programs,

commercial risk (individual, small group, large group), workers compensation, the Federal Employees Health

Benefits Program (FEHBP), the Children’s Health Insurance Program (CHIP), TRICARE, administrative

services only (ASO) and network rental, including self-funded group health plans.

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

“Insurance Laws” means all state and federal laws, regulations, subregulatory guidance, bulletins,

licensure standards, permits, approvals, or other requirements applicable to the provision of, payment for, or

arrangement of any type of insurance coverage, including health insurance, life insurance, disability insurance,

long term care insurance, critical illness insurance, specific disease insurance, travel insurance, travel health

insurance, reinsurance, home insurance, renters insurance, vehicle insurance, and liability insurance.

“Intellectual Property” means any and all of the following, whether or not registered, and all rights

therein, arising in the United States or any other jurisdiction throughout the world: (i) trademarks, service marks,

CVS Health Corporation PLAN OF MERGER — page 10

trade names, Internet domain names, Internet account names (including social networking and media names)

and other indicia of origin, together with all goodwill associated therewith or symbolized thereby, and all

registrations and applications relating to the foregoing; (ii) patents and pending patent applications, and all

divisions, continuations, continuations-in-part, reissues and reexaminations, and any extensions thereof;

(iii) registered and unregistered copyrights (including those in Software), all registrations and applications to

in confidential technology and information, know-how, inventions, processes, formulae, algorithms, models and

methodologies; (v) rights in Software; and (vi) other similar types of proprietary rights or intellectual property.

“IT Assets” means any and all computers, Software, firmware, middleware, servers, workstations,

routers, hubs, switches, data communications lines and other information technology equipment, and all

associated documentation, owned by, or licensed or leased to, the Company or any of its Subsidiaries, or Parent

or any of its Subsidiaries, as applicable.

“knowledge” of any Person that is not an individual means the actual knowledge of those executive

officers of the Company or Parent, as the case may be, set forth in Section 1.01 of the Company Disclosure

Schedule or Section 1.01 of the Parent Disclosure Schedule, as applicable.

“Licensed Intellectual Property” means any and all Intellectual Property owned by a Third Party and

licensed or sublicensed to the Company or any of its Subsidiaries, or Parent or any of its Subsidiaries, as

applicable.

“Lien” means, with respect to any property or asset, any mortgage, lien, license, pledge, charge,

security interest, encumbrance or other adverse claim of any kind in respect of such property or asset.

“Major Subsidiary” means, with respect to any Person, each Subsidiary of such Person that is a

“significant subsidiary” (as defined in Regulation S-X) of such Person or a Regulated Subsidiary of such Person.

“Order” means any order, writ, decree, judgment, award, injunction, ruling, settlement or stipulation

issued, promulgated, made, rendered or entered into by or with any Governmental Authority or arbitrator (in

each case, whether temporary, preliminary or permanent).

“Owned Intellectual Property” means any and all Intellectual Property owned or purported to be

owned by the Company or any of its Subsidiaries, or Parent or any of its Subsidiaries, as applicable.

“Parent Acquisition Proposal” means any indication of interest, proposal or offer from any Person

or Group, other than the Company and its Subsidiaries, relating to any (i) direct or indirect acquisition (whether

in a single transaction or a series of related transactions) of assets of Parent or its Subsidiaries (including

securities of Subsidiaries) equal to 20% or more of the consolidated assets of Parent, or to which 20% or more

of the revenues or earnings of Parent on a consolidated basis are attributable, (ii) direct or indirect acquisition or

issuance (whether in a single transaction or a series of related transactions) of 20% or more of any class of

equity or voting securities of Parent, (iii) tender offer or exchange offer that, if consummated, would result in

such Person or Group beneficially owning 20% or more of any class of equity or voting securities of Parent, or

(iv) merger, consolidation, share exchange, business combination, joint venture, reorganization, recapitalization,

liquidation, dissolution or similar transaction involving Parent, under which such Person or Group would

acquire, directly or indirectly, (A) assets equal to 20% or more of the consolidated assets of Parent, or to which

20% or more of the revenues or earnings of Parent on a consolidated basis are attributable, or (B) beneficial

ownership of 20% or more of any class of equity or voting securities of Parent.

“Parent Balance Sheet” means the consolidated balance sheet of Parent and its Subsidiaries as of

December 31, 2016, and the footnotes to such consolidated balance sheet, in each case set forth in Parent’s

annual report on Form 10-K for the fiscal year ended December 31, 2016.

“Parent Balance Sheet Date” means December 31, 2016.

“Parent Common Stock” means the common stock, $0.01 par value, of Parent.

CVS Health Corporation PLAN OF MERGER — page 11

“Parent Disclosure Schedule” means the Parent Disclosure Schedule delivered to the Company on

the date of this Agreement.

“Parent Employee Plan” means any (i) “employee benefit plan” as defined in Section 3(3) of

ERISA, (ii) compensation, employment, consulting, severance, termination protection, change in control,

transaction bonus, retention or similar plan, agreement, arrangement, program or policy or (iii) other plan,

agreement, arrangement, program or policy providing for compensation, bonuses, profit-sharing, equity or

equity-based compensation or other forms of incentive or deferred compensation, vacation benefits, insurance

(including any self-insured arrangement), medical, dental, vision, prescription or fringe benefits, life insurance,

relocation or expatriate benefits, perquisites, disability or sick leave benefits, employee assistance program,

workers’ compensation, supplemental unemployment benefits or post-employment or retirement benefits

(including compensation, pension, health, medical or

insurance benefits), in each case whether or not written (x) that is sponsored, maintained, administered,

contributed to or entered into by Parent or any of its Subsidiaries for the current or future benefit of any director,

officer, employee or individual independent contractor (including any former director, officer, employee or

individual independent contractor) of Parent or any of its Subsidiaries or (y) for which Parent or any of its

Subsidiaries has any direct or indirect liability.

“Parent Intellectual Property” means the Owned Intellectual Property and the Licensed Intellectual

Property, in each case, of Parent and its Subsidiaries.

“Parent Material Adverse Effect”

means a material adverse effect on the financial condition,

business or results of operations of Parent and its Subsidiaries, taken as a whole;

provided

that no event, change,

effect, development or occurrence to the extent resulting from, arising out of, or relating to any of the following

shall be deemed to constitute, or shall be taken into account in determining whether there has been, a Parent

Material Adverse Effect, or whether a Parent Material Adverse Effect would reasonably be expected to occur:

(i) any changes in general United States or global economic conditions, (ii) any changes in conditions generally

affecting any industry in which Parent or any of its Subsidiaries operate, (iii) any decline, in and of itself, in the

market price or trading volume of Parent Common Stock (it being understood and agreed that the foregoing

shall not preclude the Company from asserting that any facts or occurrences giving rise to or contributing to

such decline that are not otherwise excluded from the definition of Parent Material Adverse Effect should be

deemed to constitute, or be taken into account in determining whether there has been, or would reasonably be

expected to be, a Parent Material Adverse Effect), (iv) any changes in regulatory, legislative or political

conditions or in securities, credit, financial, debt or other capital markets, in each case in the United States or

any foreign jurisdiction, (v) any failure, in and of itself, by Parent or any of its Subsidiaries to meet any internal

or published projections, forecasts, estimates or predictions in respect of enrollments, revenues, earnings or

other financial or operating metrics for any period (it being understood and agreed that the foregoing shall not

preclude the Company from asserting that any facts or occurrences giving rise to or contributing to such failure

that are not otherwise excluded from the definition of Parent Material Adverse Effect should be deemed to

constitute, or be taken into account in determining whether there has been, or would reasonably be expected to

be, a Parent Material Adverse Effect), (vi) the execution and delivery of this Agreement, the public

announcement or the pendency of this Agreement or the Merger, the taking of any action required or expressly

contemplated by this Agreement or the identity of, or any facts or circumstances relating to the Company or any

of its Subsidiaries, including the impact of any of the foregoing on the relationships, contractual or otherwise, of

Parent or any of its Subsidiaries with Governmental Authorities, customers, Providers, suppliers, partners,

officers or employees (it being understood and agreed that the foregoing shall not apply with respect to any

representation or warranty that is intended to address the consequences of the execution, delivery or

performance of this Agreement or the consummation of the transactions contemplated hereby), (vii) any

adoption, implementation, promulgation, repeal, modification, amendment, authoritative interpretation, change

or proposal of any Applicable Law of or by any Governmental Authority, (viii) any changes in GAAP (or

authoritative interpretations thereof), (ix) any changes in geopolitical conditions, the outbreak or escalation of

hostilities, any acts of war, sabotage, cyberattack or terrorism, or any escalation or worsening of any such acts of

war, sabotage, cyberattack or terrorism threatened or underway as of the date of this Agreement, (x)

CVS Health Corporation PLAN OF MERGER — page 12

any taking of any action at the written request of or with the consent of the Company (it being understood and

agreed that, with respect to any action taken with such consent, the foregoing shall not preclude the Company

from asserting that any facts or occurrences resulting from such action that are not otherwise excluded from the

definition of Parent Material Adverse Effect should be deemed to constitute, or be taken into account in

determining whether there has been, or would reasonably be expected to be, a Parent Material Adverse Effect),

(xi) any reduction in the credit rating of Parent or any of its Subsidiaries (it being understood and agreed that the

foregoing shall not preclude the Company from asserting that any facts or occurrences giving rise to or

contributing to such reduction that are not otherwise excluded from the definition of Parent Material Adverse

Effect should be deemed to constitute, or be taken into account in determining whether there has been, or would

reasonably be expected to be, a Parent Material Adverse Effect), (xii) any epidemic, plague, pandemic or other

outbreak of illness or public health event, hurricane, earthquake, flood or other natural disasters, acts of God or

any change resulting from weather conditions, (xiii) any changes to reimbursement rates or in methods or

procedures for determining such rates, any changes to eligibility requirements or any other programmatic

changes by any Governmental Authority, in each case, whether such changes are applicable nationally or to only

certain geographic areas, or (xiv) any claims, actions, suits or proceedings arising from allegations of a breach

of fiduciary duty or violation of Applicable Law relating to this Agreement or the Merger, except in the case of

each of clauses (i), (ii), (iv), (vii), (viii) or (xiii), to the extent that any such event, change, effect, development

or occurrence has a materially disproportionate adverse effect on Parent and its Subsidiaries, taken as a whole,

relative to the adverse effect such event, change, effect, development or occurrence has on other companies

operating in the industries in which Parent and its Subsidiaries operate (it being understood and agreed that any

such disproportionate effect on Parent and its Subsidiaries to the extent resulting from the greater concentration

of the businesses of Parent and its Subsidiaries in any particular industry or geography relative to other

companies operating in the industries in which Parent and its Subsidiaries operate shall not be taken into account

in determining whether there has been, or would reasonably be expected to be, a Parent Material Adverse

Effect).

“Parent Stock Price” means the average of the volume weighted averages of the trading prices of

Parent Common Stock on the NYSE (as reported by Bloomberg L.P. or, if not reported therein, in another

authoritative source mutually selected by Parent and the Company in good faith) on each of the five (5)

consecutive trading days ending on the trading day that is two (2) trading days prior to the Closing Date.

“PBGC” means the Pension Benefit Guaranty Corporation.

“Permitted Lien” means (i) any Liens for Taxes not yet due and payable or which are being

contested in good faith by appropriate proceedings and with respect to which adequate reserves have been

established in accordance with GAAP or SAP, as applicable, (ii) carriers’, warehousemen’s, mechanics’,

materialmen’s, repairmen’s or other similar liens, (iii) pledges or deposits in connection with workers’

compensation, unemployment insurance and other social security legislation, (iv) gaps in the chain of title

evident from the records of the applicable Governmental Authority maintaining such records, easements, rights-

of-way, covenants, restrictions and other encumbrances of record as of the date of this Agreement,

(v) easements, rights-of-way, covenants, restrictions and other encumbrances incurred in the ordinary course of

business that do not, in any case, materially detract from the value or the use of the property

subject thereto, (vi) statutory landlords’ liens and liens granted to landlords under any lease, (vii) non-exclusive

licenses to Intellectual Property granted in the ordinary course of business, (viii) any purchase money security

interests, equipment leases or similar financing arrangements, (ix) any Liens which are disclosed on the

Company Balance Sheet (in the case of Liens applicable to the Company or any of its Subsidiaries) or the Parent

Balance Sheet (in the case of Liens applicable to Parent or any of its Subsidiaries), or the notes thereto, or

(x) any Liens that are not material to the Company and its Subsidiaries or Parent and its Subsidiaries, as

applicable, taken as a whole.

“Person” means any individual, corporation, partnership, limited liability company, association,

trust or other entity or organization, including a government or political subdivision or an agency or

instrumentality of such government or political subdivision.

“Providers” means all physicians, physician groups, medical groups, and other groups of health care

practitioners, independent practice associations and other provider networks, dentists, optometrists, pharmacies

and pharmacists, radiologists, radiology centers, laboratories, mental health professionals, community health

CVS Health Corporation PLAN OF MERGER — page 13

centers, clinics, surgicenters, accountable care organizations, chiropractors, physical therapists, nurses, nurse

practitioners, physician’s assistants, hospitals, skilled nursing facilities, extended care facilities, other health care

or services facilities, durable medical equipment suppliers, home health agencies, alcoholism or drug abuse

centers and any other specialty, ancillary or allied health professional or facility.

“Regulated Subsidiary” means any Subsidiary of the Company or Parent, as applicable, that is

licensed in one or more jurisdictions as an insurance company, health maintenance organization (including a

single healthcare service plan), managed care organization, healthcare service plan, specialized healthcare

service plan, healthcare service corporation, pharmacy, dental maintenance organization, dental plan

organization, prepaid dental plan, third party administrator and/or utilization review agent, broker or agency.

“SAP” means, as to any insurance company or health maintenance organization conducting an

insurance business, the statutory accounting practices prescribed or permitted by Applicable Law or

Governmental Authorities seated in the jurisdiction where such insurance company or health maintenance

organization is domiciled and responsible for the regulation thereof.

“Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002.

“SEC” means the United States Securities and Exchange Commission.

“Severance Pay Plan” means the severance plan set forth on Section 7.05(a) of the Company

Disclosure Schedule.

“Social Security Act” means the Social Security Act of 1935.

“Software” means all (i) computer programs and other software including any and all software

implementations of algorithms, models, methodologies, assemblers, applets, compilers, development tools,

design tools and user interfaces, whether in source code or object

code form, (ii) databases and compilations, including all data and collections of data, whether machine readable

or otherwise, and (iii) updates, upgrades, modifications, improvements, enhancements, derivative works, new

versions, new releases and corrections to or based on any of the foregoing.

“Subsidiary” means, with respect to any Person, any entity of which securities or other ownership

interests having ordinary voting power to elect a majority of the board of directors or other persons performing

similar functions are directly or indirectly owned by such Person. For purposes of this Agreement, a Subsidiary

shall be considered a “wholly owned Subsidiary” of a Person as long as such Person directly or indirectly owns

all of the securities or other ownership interests (excluding any securities or other ownership interests held by an

individual director or officer required to hold such securities or other ownership interests pursuant to Applicable

Law) of such Subsidiary.

“Tax” means any income, gross receipts, franchise, sales, use, ad valorem, property, payroll,

withholding, excise, severance, transfer, employment, estimated, alternative or add-on minimum, value added,

stamp, occupation, premium, environmental or windfall profits taxes, and any other taxes, charges, fees, levies,

imposts, customs, duties, licenses or other assessments, together with any interest, penalties and additions to tax

(including penalties for failure to file or late filing of any tax return, report or other filing, and any interest in

respect of such penalties, additions to tax or additional amounts imposed by any federal, state, local, non-U.S. or

other Taxing Authority).

“Tax Return” means any report, return, document, statement, declaration or other information or

filing required to be supplied to any Taxing Authority with respect to Taxes, including information returns,

claims for refunds, any documents with respect to or accompanying payments of estimated Taxes or with

respect to or accompanying requests for the extension of time in which to file any such report, return, document,

declaration or other information.

“Tax Sharing Agreement” means any existing agreement binding any Person or any of its

Subsidiaries that provides for the allocation, apportionment, sharing or assignment of any Tax liability or

benefit, or the transfer or assignment of income, revenues, receipts, or gains for the purpose of determining any

CVS Health Corporation PLAN OF MERGER — page 14

Person’s Tax liability, other than (i) agreements entered into in the ordinary course of business that do not have

as a principal purpose addressing Tax matters, (ii) financing agreements that do not have as a principal purpose

addressing Tax matters and (iii) leases.

“Taxing Authority” means any Governmental Authority responsible for the imposition or collection

of any tax.

“Third Party” means any Person or Group, other than the Company, Parent, any of their respective

Affiliates or the Representatives of any such Persons acting in such capacity.

“Treasury Regulations” means the Treasury regulations promulgated by the United States

Department of Treasury under the Code.

“Willful Breach” means a material breach of this Agreement that is the consequence of an act or

omission by a party with the actual knowledge that the taking of such act or failure to take such action would be

a material breach of this Agreement or as otherwise contemplated by the last sentence of Section 7.06(b).

(b) Each of the following terms is defined in the Section set forth opposite such term:

Term

Section

2001 Indenture

6.04

2007 Indenture

6.04

Affected Employee

7.05(a)

Agreement

Preamble

Alternative Financing

7.06

Annual Incentive Plan

7.05(d)

Assumed Performance Unit Award

2.06(b)(ii)

Assumed Restricted Unit Award

2.06(a)(ii)

Assumed Stock Appreciation Right

2.06(c)(ii)

Bankruptcy and Equity Exceptions

4.02(a)

Cash Consideration

2.03(a)(i)

Certificate

2.03(a)(iv)

Claim Expenses

7.04(a)

Closing

2.01

Closing Date

2.01

Company

Preamble

Company Additional Amounts

10.03(e)

Company Adverse Recommendation Change

6.02(a)

Company Approval Time

6.02(b)

Company Board Recommendation

4.02(b)

Company Class A Preferred Shares

4.05(a)

Company ESPP

2.06(d)

Company ESPP Offering Period

2.06(d)

Company Insurance Policies

4.25

Company Intervening Event

6.02(g)

Company Material Contract

4.18(a)

Company Notes

6.04

Company Organizational Documents

4.01

Company Permits

4.16

Company PSU Award

2.06(b)(i)

Company Record Date

8.04(a)

Company Registered IP

4.22(a)

Company Required Governmental Authorizations

4.03

Company RSU Award

2.06(a)(i)

Company SEC Documents

4.07(b)

Company Securities

4.05(a)

Company Shareholder Approval

4.02(a)

Company Shareholder Meeting

8.04(a)

CVS Health Corporation PLAN OF MERGER — page 15

Term

Section

Company Statutory Filings

4.10

Company Stock Appreciation Right

2.06(c)(i)

Company Superior Proposal

6.02(f)

Company Termination Fee

10.03(a)

Confidentiality Agreement

8.01(a)

Debt Commitment Letter

5.24(a)

Debt Commitment Letters

5.24(a)

Debt Financing

5.24(a)

D&O Claim

7.04(a)

D&O Indemnified Parties

7.04(a)

D&O Indemnifying Parties

7.04(a)

EBITDA

8.02(b)

Effective Time

2.02(a)

End Date

10.01(b)(i)

Equity Award Cash Consideration

2.06(c)(i)

Exchange Agent

2.04(a)

Exchange Agent Agreement

2.04(a)

Exchange Fund

2.04(a)

Exchange Ratio

2.03(a)(i)

Excluded Shares

2.03(a)(i)

Existing Notes

6.04

Incentive Plan Participant

7.05(d)

Indentures

6.04

internal controls

4.07(f)

Joint Proxy Statement/Prospectus

8.03(a)

Lease

4.23

Maximum Premium

7.04(b)

Merger

2.02(b)

Merger Consideration

2.03(a)(i)

Merger Sub

Preamble

New Company Plans

7.05(b)

NYSE

4.03

Parent

Preamble

Parent Additional Amounts

10.03(e)

Parent Adverse Recommendation Change

7.02(a)

Parent Approval Time

7.02(b)

Parent Board Recommendation

5.02(b)

Parent Equity Awards

5.05(a)

Parent Intervening Event

7.02(g)

Parent Organizational Documents

5.01

Parent Permits

5.13

Parent Preference Stock

5.05(a)

Parent Preferred Stock

5.05(a)

Parent Registered IP

5.18(a)

Parent Required Governmental Authorizations

5.03

Term

Section

Parent Restricted Stock Units

5.05(a)

Parent SEC Documents

5.07(b)

Parent Securities

5.05(a)

Parent Share Issuance

5.02(a)

Parent Stock Options

5.05(a)

Parent Stockholder Approval

5.02(a)

Parent Stockholder Meeting

8.04(b)

CVS Health Corporation PLAN OF MERGER — page 16

Parent Superior Proposal

7.02(f)

Parent Termination Fee

10.03(b)

Pennsylvania Department of State

2.02(a)

Pennsylvania Law

2.02(a)

principal executive officer

4.07(e)

principal financial officer

4.07(e)

Registration Statement

8.03(a)

Regulation S-K

4.14

Regulation S-X

6.01(m)

Regulatory Material Adverse Effect

8.02(b)

Regulatory Termination Fee

10.03(c)

Representatives

6.02(a)

S&S

2.01

Share Consideration

2.03(a)(i)

Statement of Merger

2.02(a)

Surviving Corporation

2.02(b)

Surviving Corporation Common Stock

2.03(a)(iii)

Transaction Litigation

8.08

Uncertificated Share

2.03(a)(iv)

Section 1.02. Other Definitional and Interpretative Provisions. The following rules of

interpretation shall apply to this Agreement: (i) the words “hereof”, “hereby”, “herein” and “hereunder” and

words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular

provision of this Agreement; (ii) the table of contents and captions in this Agreement are included for

convenience of reference only and shall be ignored in the construction or interpretation hereof; (iii) references to

Articles, Sections and Exhibits are to Articles, Sections and Exhibits of this Agreement unless otherwise

specified; (iv) all Exhibits and schedules annexed to this Agreement or referred to in this Agreement, including

the Company Disclosure Schedule and the Parent Disclosure Schedule, are incorporated in and made a part of

this Agreement as if set forth in full in this Agreement; (v) any capitalized term used in any Exhibit, the

Company Disclosure Schedule or the Parent Disclosure Schedule but not otherwise defined therein shall have

the meaning set forth in this Agreement; (vi) any singular term in this Agreement shall be deemed to include the

plural, and any plural term the singular, and references to any gender shall include all genders; (vii) whenever

the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed

by the words “without limitation”, whether or not they are in fact followed by those words or words of like

import; (viii) “writing”, “written” and comparable terms refer to printing, typing and other means of reproducing

words (including electronic media) in a visible form; (ix) references to any

Applicable Law shall be deemed to refer to such Applicable Law as amended from time to time and to any rules

or regulations promulgated thereunder; (x) references to any Contract are to that Contract as amended, modified

or supplemented from time to time in accordance with the terms hereof and thereof;

provided

that with respect

to any Contract listed on any schedule hereto, all such amendments, modifications or supplements (other than

such amendments, modifications or supplements that are immaterial) must also be listed in the appropriate

schedule; (xi) references to any Person include the successors and permitted assigns of that Person;

(xii) references “from” or “through” any date mean, unless otherwise specified, “from and including” or

“through and including”, respectively; (xiii) references to “dollars” and “$” means U.S. dollars; (xiv) the term

“made available” and words of similar import mean that the relevant documents, instruments or materials were

(A) posted and made available to the other party on the Intralinks/Project Tree due diligence data site, with

respect to the Company, or on the Merrill Datasite/Project Hudson due diligence data site, with respect to

Parent, as applicable, maintained by such party in connection with the transactions contemplated hereby, in each

case, prior to the date hereof; (B) provided via electronic mail or in person prior to the date hereof (including

materials provided to or reviewed by outside counsel); or (C) filed or furnished to the SEC prior to the date

hereof; (xv) the word “extent” in the phrase “to the extent” shall mean the degree to which a subject or other

theory extends and such phrase shall not mean “if”; and (xvi) the parties hereto have participated jointly in the

negotiation and drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation

arises, this Agreement shall be construed as jointly drafted by the parties hereto 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.

CVS Health Corporation PLAN OF MERGER — page 17

ARTICLE II

CLOSING; THE MERGER

Section 2.01. Closing.

The closing of the Merger (the “Closing”) shall take place in New York

City at the offices of Shearman & Sterling LLP (“S&S”), 599 Lexington Avenue, New York, New York, 10022

at 10:00 a.m., Eastern time, on the third (3rd) Business Day after the date the conditions set forth in Article IX

(other than conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or, to

the extent permitted by Applicable Law, waiver of such conditions by the party or parties entitled to the benefit

thereof at the Closing) have been satisfied or, to the extent permitted by Applicable Law, waived by the party or

parties entitled to the benefit thereof, or at such other place, at such other time or on such other date as Parent

and the Company may mutually agree (the date on which the Closing occurs, the “Closing Date”).

Section 2.02. The Merger.

(a) At the Closing, the Company shall file a statement of merger (the “Statement of Merger”) with

the Department of State of the Commonwealth of Pennsylvania (the “Pennsylvania Department of State”) and

make all other filings or recordings required by Title 15 of the Pennsylvania Consolidated Statutes

(“Pennsylvania Law”) in connection with the Merger. The Merger shall become effective at such time (the

“Effective Time”) as the Statement of Merger is duly filed with the Pennsylvania Department of State (or at

such later time as Parent and the Company shall agree and is specified in the Statement of Merger).

(b) At the Effective Time, Merger Sub shall be merged (the “Merger”) with and into the Company

in accordance with Pennsylvania Law, whereupon the separate existence of Merger Sub shall cease, and the

Company shall be the surviving corporation (the “Surviving Corporation”).

powers, privileges and franchises and be subject to all of the obligations, liabilities, restrictions and disabilities

of the Company and Merger Sub, all as provided under Pennsylvania Law.

Section 2.03. Conversion of Shares.

(a) At the Effective Time, by virtue of the Merger and without any action on the part of Parent,

Merger Sub, the Company or the holders of the Company Common Stock:

(i) other than shares of Company Common Stock to be cancelled pursuant to

Section 2.03(a)(ii) (collectively, the “Excluded Shares”), each share of Company Common Stock

outstanding immediately prior to the Effective Time shall be converted into the right to receive (i) 0.8378

(the “Exchange Ratio”) fully paid and non-assessable shares of Parent Common Stock (the “Share

Consideration”) and (ii) $145.00 in cash without interest thereon (the “Cash Consideration” and, together

with the Share Consideration, the “Merger Consideration”);

(ii) each share of Company Common Stock held by the Company as treasury stock or

owned by Parent or any of its Subsidiaries immediately prior to the Effective Time (other than any such

shares owned by Parent or any of its Subsidiaries in a fiduciary, representative or other capacity on behalf

of other Persons, whether or not held in a separate account) shall be cancelled, and no consideration shall

be paid with respect thereto;

(iii) each share of common stock of Merger Sub outstanding immediately prior to the

Effective Time shall be converted into and become one share of common stock, par value $0.01 per share,

of the Surviving Corporation with the same rights, powers and privileges as the shares so converted and

shall constitute the only outstanding shares of capital stock of the Surviving Corporation (the “Surviving

Corporation Common Stock”); and

(iv) all outstanding shares of Company Common Stock shall no longer be outstanding and

shall automatically be cancelled and retired and shall cease to exist, and (x) each share of Company

Common Stock that was immediately prior to the Effective Time represented by a certificate (each, a

“Certificate”) and (y) each uncertificated share of Company Common Stock (an “Uncertificated Share”)

which immediately prior to the Effective Time was registered to a holder on the stock transfer books of

the Company shall (other than with respect to Excluded Shares) thereafter represent only the right to

CVS Health Corporation PLAN OF MERGER — page 18

receive (A) the Merger Consideration and (B) with respect to the Share Consideration, the right to receive

(1) any dividends or other distributions pursuant to Section 2.04(f) and (2) any cash in lieu of any

fractional shares of Parent Common Stock pursuant to Section 2.08, in each case to be issued or paid in

accordance with Section 2.04, without interest.

Section 2.04. Surrender and Payment.

(a) Prior to the Effective Time, Parent shall appoint a commercial bank or trust company

reasonably acceptable to the Company (the “Exchange Agent”) and enter into an exchange agent agreement

with the Exchange Agent reasonably acceptable to the Company (the “Exchange Agent Agreement”) for the

purpose of exchanging (i) Certificates or (ii) Uncertificated Shares for the Merger Consideration payable in

respect of the shares of Company Common Stock. As of the Effective Time, Parent shall deposit with the

Exchange Agent, for the benefit of the holders of shares of Company Common Stock, for exchange in

accordance with this Section 2.04 through the Exchange Agent, (x) certificates (or evidence of shares in book-

entry form) representing the shares of Parent Common Stock issuable pursuant to Section 2.03(a)(i) in exchange

for outstanding shares of Company Common Stock and (y) cash sufficient to pay the aggregate Cash

Consideration payable pursuant to Section 2.03(a)(i). Parent agrees to make available, directly or indirectly, to

the Exchange Agent from time to time as needed additional cash and/or shares of Parent Common Stock

sufficient to pay any dividends or other distributions to which such holders are entitled pursuant to

Section 2.04(f) and cash in lieu of any fractional share of Parent Common Stock to which such holder is entitled

pursuant to Section 2.08. Promptly after the Effective Time (and in no event more than two (2) Business Days

following the Closing Date), Parent shall send, or shall cause the Exchange Agent to send, to each holder of

shares of Company Common Stock at the Effective Time a letter of transmittal and instructions (which shall be

in a form reasonably acceptable to the Company and substantially finalized prior to the Effective Time and

which shall specify that delivery shall be effected, and risk of loss and title shall pass, only upon proper delivery

of the Certificates or transfer of the Uncertificated Shares to the Exchange Agent) for use in such exchange. All

certificates (or evidence of shares in book-entry form) and cash deposited with the Exchange Agent pursuant to

this Section 2.04 shall be referred to in this Agreement as the “Exchange Fund.” Parent shall cause the

Exchange Agent to deliver the Merger Consideration contemplated to be issued or paid pursuant to this

Article II out of the Exchange Fund. The Exchange Fund shall not be used for any other purpose. The Exchange

Agent shall invest any cash included in the Exchange Fund as directed by Parent;

provided

that such cash shall

only be invested in the manner provided in the Exchange Agent Agreement; and

provided

further

, that no such

investment or losses thereon shall affect the Merger Consideration payable to holders of Company Common

Stock entitled to receive such consideration or cash in lieu of fractional interests;

provided

further

, that to the

extent necessary to pay the Merger Consideration, Parent shall promptly cause to be provided additional funds

to the Exchange Agent for the benefit of holders of Company Common Stock entitled to receive such

consideration in the amount of any such losses. Any interest and other income resulting from such investments

shall be the property of, and paid to, Parent upon termination of the Exchange Fund.

(b) Each holder of shares of Company Common Stock that have been converted into the right to

receive the Merger Consideration shall be entitled to receive, upon (i) surrender to the Exchange Agent of a

Certificate, together with a properly completed letter of transmittal, or (ii) receipt of an “agent’s message” by the

Exchange Agent (or such other evidence, if any, of transfer as the Exchange Agent may reasonably request) in

the case of a

book-entry transfer of Uncertificated Shares, in respect of each share of the Company Common Stock

represented by such Certificate or Uncertificated Share (A) the Merger Consideration and (B) cash in lieu of any

fractional shares of Parent Common Stock and any dividends and distributions with respect to the Share

Consideration as contemplated by Section 2.08 and Section 2.04(f). The shares of Parent Common Stock

constituting part of such Merger Consideration, at Parent’s option, shall be in uncertificated book-entry form,

unless a physical certificate is requested by a holder of shares of Company Common Stock or is otherwise

required under Applicable Law.

Common Stock or any dividends and distributions with respect to the Share Consideration as contemplated by

Section 2.08 or Section 2.04(f)) is to be paid to a Person other than the Person in whose name the surrendered

Certificate or the transferred Uncertificated Share is registered, it shall be a condition to such payment that

CVS Health Corporation PLAN OF MERGER — page 19

(i) either such Certificate shall be properly endorsed or shall otherwise be in proper form for transfer or such

Uncertificated Share shall be properly transferred and (ii) the Person requesting such payment shall pay to the

Exchange Agent any transfer or similar Taxes required as a result of such payment to a Person other than the

registered holder of such Certificate or Uncertificated Share or establish to the satisfaction of the Exchange

Agent that such transfer or similar Taxes have been paid or are not payable.

(d) Upon the Effective Time, there shall be no further registration of transfers of shares of

Company Common Stock thereafter on the records of the Company. If, after the Effective Time, Certificates or

Uncertificated Shares are presented to Parent, the Surviving Corporation or the Exchange Agent for any reason,

they shall be cancelled and exchanged for the Merger Consideration (and cash in lieu of any fractional shares of

Parent Common Stock and any dividends and distributions with respect to the Share Consideration as

contemplated by Section 2.08 and Section 2.04(f)) with respect thereto in accordance with the procedures set

forth in, or as otherwise contemplated by, this Article II.

(e) Any portion of the Exchange Fund that remains unclaimed by the holders of shares of

Company Common Stock twelve (12) months following the Closing Date shall be delivered to Parent or as

otherwise instructed by Parent, and any such holder who has not exchanged shares of Company Common Stock

for the Merger Consideration in accordance with this Section 2.04 prior to that time shall thereafter look only to

Parent for payment of the Merger Consideration (and cash in lieu of any fractional shares of Parent Common

Stock and any dividends and distributions with respect to the Share Consideration as contemplated by

Section 2.08 and Section 2.04(f)), without any interest thereon. Notwithstanding the foregoing, Parent and its

Subsidiaries (including the Surviving Corporation and its Subsidiaries) shall not be liable to any holder of shares

of Company Common Stock for any amounts properly paid to a public official in compliance with applicable

abandoned property, escheat or similar laws. Any amounts remaining unclaimed by holders of shares of

Company Common Stock immediately prior to such time when the amounts would otherwise escheat to or

become property of any Governmental Authority shall become, to the extent permitted by Applicable Law, the

property of Parent free and clear of any claims or interest of any Person previously entitled thereto.

(f) Following the surrender of any Certificates or the transfer of any Uncertificated Shares as

provided in this Section 2.04, Parent shall pay, or cause to be paid, without interest, to the Person in whose

name the shares of Parent Common Stock constituting the Share Consideration have been registered, (i) in

connection with the payment of the Share Consideration, (x) the amount of any cash payable in lieu of fractional

shares to which such Person is entitled pursuant to Section 2.08, and (y) the aggregate amount of all dividends

or other distributions payable with respect to such shares of Parent Common Stock with a record date on or after

the Effective Time that were paid prior to the time of such surrender or transfer, and (ii) at the appropriate

payment date after the payment of the Merger Consideration, the amount of all dividends or other distributions

payable with respect to whole shares of Parent Common Stock constituting the Share Consideration with a

record date on or after the Effective Time and prior to the time of such surrender or transfer and with a payment

date subsequent to the time of such surrender or transfer. No dividends or other distributions with respect to

shares of Parent Common Stock constituting the Share Consideration, and no cash payment in lieu of fractional

shares pursuant to Section 2.08, shall be paid to the holder of any Certificates not surrendered or of any

Uncertificated Shares not transferred until such Certificates or Uncertificated Shares are surrendered or

transferred, as the case may be, as provided in this Section 2.04.

(g) The payment of any transfer, documentary, sales, use, stamp, registration, value added and

other Taxes and fees (including any penalties and interest) incurred solely by a holder of Company Common

Stock in connection with the Merger, and the filing of any related Tax Returns and other documentation with

respect to such Taxes and fees, shall be the sole responsibility of such holder.

Section 2.05. No Dissenters Rights. In accordance with Section 1571(b) of Pennsylvania Law, the

Merger will not entitle any holder of Company Common Stock to any dissenters rights.

Section 2.06. Company Equity Awards; Company ESPP

(a) Company Restricted Stock Units.

(i) Immediately prior to the Effective Time, with respect to each restricted stock unit award

with respect to shares of Company Common Stock outstanding under any Company Stock Plan that

CVS Health Corporation PLAN OF MERGER — page 20

(x) vests solely based on the passage of time (each, a “Company RSU Award”) and (y) pursuant to its

terms as in effect as of the date hereof, provides for automatic accelerated vesting upon the consummation

of the transactions contemplated by this Agreement, the restrictions and vesting conditions applicable to

such Company RSU Award shall lapse and each such Company RSU Award shall, by virtue of the Merger

and without any action on the part of the holder thereof, be converted as of the Effective Time into the

right to receive, with respect to each share of Company Common Stock underlying such Company RSU

Award, the Merger Consideration, less applicable Tax withholdings, which shall be paid or provided by

Parent as soon as practicable following the Closing Date, but in no event later than five (5) Business Days

following the Closing Date.

(ii) With respect to each Company RSU Award that (x) is not converted into a right to

receive the Merger Consideration in accordance with Section 2.06(a)(i) or (y) is granted after the date

hereof to the extent permitted under Section 6.01(d),

at the Effective Time, such Company RSU Award

shall, by virtue of the Merger and without further action on the part of the holder thereof, be assumed by

Parent and shall be converted into a restricted unit award (each, an “Assumed Restricted Unit Award”),

except that each Assumed Restricted Unit Award shall cover that number of whole shares of Parent

Common Stock equal to the product of the number of shares of Company Common Stock underlying such

Company RSU Award immediately prior to the Effective Time

multiplied

by the Equity Award Exchange

Ratio, with the result rounded down to the nearest whole number of shares of Parent Common Stock.

Except as provided in this Section 2.06(a)(ii), each Assumed Restricted Unit Award shall continue to

have, and shall be subject to, the same terms and conditions as applied to the corresponding Company

RSU Award immediately prior to the Effective Time (including any terms and conditions relating to

accelerated vesting upon a termination of the holder’s employment in connection with or following the

Merger).

(b) Company Performance Stock Units.

(i) Immediately prior to the Effective Time, with respect to each stock unit award with

respect to shares of Company Common Stock outstanding under any Company Stock Plan that (x) vests

based on the achievement of performance goals (each, a “Company PSU Award”) and (y) pursuant to its

terms as in effect as of the date hereof, provides for automatic accelerated vesting upon the consummation

of the transactions contemplated by this Agreement, the restrictions and vesting conditions applicable to

such Company PSU Award shall lapse and each such Company PSU Award shall, by virtue of the Merger

and without any action on the part of the holder thereof, be converted as of the Effective Time into the

right to receive, with respect to each share of Company Common Stock underlying such Company PSU

Award (determined assuming the achievement of target level performance), the Merger Consideration,

less applicable Tax withholdings, which shall be paid or provided by Parent as soon as practicable

following the Closing Date, but in no event later than five (5) Business Days following the Closing Date.

(ii) With respect to each Company PSU Award that (x) is not converted into a right to

receive Merger Consideration in accordance with Section 2.06(b)(i) or (y) is granted after the date hereof

to the extent permitted under Section 6.01(d), at the Effective Time, such Company PSU Award shall, by

virtue of the Merger and without further action on the part of the holder thereof, be assumed by Parent and

shall be converted into a time-vesting restricted unit award (each, an “Assumed Performance Unit

Award”), except that each Assumed Performance Unit Award shall cover that number of whole shares of

Parent Common Stock equal to the product of the number of shares of Company Common Stock

underlying such Company PSU Award immediately prior to the Effective Time (determined in accordance

with the applicable award agreement)

multiplied

by the Equity Award Exchange Ratio, with the result

rounded down to the nearest whole number of shares of Parent Common Stock. Except as provided in this

Section 2.06(b)(ii), each Assumed Performance Unit Award shall

continue to have, and shall be subject to, the same terms and conditions as applied to the corresponding

Company PSU Award immediately prior to the Effective Time (including any terms and conditions

relating to accelerated vesting upon a termination of the holder’s employment in connection with or

following the Merger).

CVS Health Corporation PLAN OF MERGER — page 21

(i) At the Effective Time, each stock appreciation right representing the right to receive a

payment in shares of Company Common Stock under any Company Stock Plan that is outstanding and

unexercised immediately prior to the Effective Time (each, a “Company Stock Appreciation Right”) that

is vested or that, pursuant to its terms as in effect as of the date hereof, would become vested as of the

Effective Time, with a per share exercise price less than the Equity Award Cash Consideration, shall be

cancelled and converted into the right to receive an amount in cash, without interest, equal to the product

of (A) the excess, if any, of (1) the sum of (x) the Cash Consideration

plus

(y) the value equal to the

product of the Parent Stock Price

multiplied

by the Exchange Ratio (the sum of the amounts in clauses

(x) and (y), the “Equity Award Cash Consideration”) over (2) the applicable per share exercise price of

such Company Stock Appreciation Right

multiplied

by (B) the total number of shares of Company

Common Stock subject to such Company Stock Appreciation Right. At the Effective Time, each

Company Stock Appreciation Right that is vested or that, pursuant to its terms as in effect as of the date

hereof, would become vested as of the Effective Time, with a per share exercise price greater than or

equal to the Equity Award Cash Consideration, shall be cancelled for no consideration.

(ii) Each Company Stock Appreciation Right that (x) is not cancelled in accordance with

Section 2.06(c)(i) or (y) is granted after the date hereof to the extent permitted under Section 6.01(d), at

the Effective Time shall, by virtue of the Merger and without further action on the part of the holder

thereof, be assumed by Parent and become, as of the Effective Time, a stock appreciation right (an

“Assumed Stock Appreciation Right”) representing the right to receive a payment in shares of Parent

Common Stock, on the same terms and conditions (including applicable vesting, exercise and expiration

provisions) as applied to each such Company Stock Appreciation Right immediately prior to the Effective

Time, shares of Parent Common Stock, except that (A) the number of shares of Parent Common Stock,

rounded down to the nearest whole share, subject to such Assumed Stock Appreciation Right shall equal

the product of (x) the number of shares of Company Common Stock that were subject to such Company

Stock Appreciation Right immediately prior to the Effective Time,

multiplied

by (y) the Equity Award

Exchange Ratio, and (B) the per share exercise price, rounded up to the nearest whole cent, shall equal the

quotient of (1) the exercise price per share of Company Common Stock at which such Company Stock

Appreciation Right was exercisable immediately prior to the Effective Time, divided by (2) the Equity

Award Exchange Ratio.

(d) Company ESPP. As soon as practicable following the date of this Agreement, the Company

shall take all actions with respect to the Aetna Inc. 2016 Employee Stock Purchase Plan (the “Company ESPP”)

that are necessary to provide that: (i) with respect to

the offering period for which participant payroll deductions commence during December 2017 (the “Company

ESPP Offering Period”), (A) no participant may elect to participate in the Company ESPP after the date of this

Agreement, (B) no participant may increase the percentage amount of his or her payroll deduction election from

that in effect on the date of this Agreement for such Company ESPP Offering Period; and (C) such Company

ESPP Offering Period shall terminate at the earlier of (x) the scheduled purchase date for such Company ESPP

Offering Period and (y) immediately prior to the Effective Time; (ii) each participant’s accumulated payroll

deduction shall be used to purchase shares of Company Common Stock in accordance with the terms of the

Company ESPP on the earlier of (x) the scheduled purchase date for such Company ESPP Offering Period and

(y) immediately prior to the Effective Time; (iii) no additional offering periods shall commence thereafter; and

(iv) subject to the consummation of the Merger, the Company ESPP shall terminate, effective at the Effective

Time.

(e) Reservation of Shares. As soon as practicable following the Closing Date (but in no event

more than five (5) Business Days following the Closing Date), Parent shall file a registration statement on Form

S-8 (or any successor form) with respect to the issuance of the shares of Parent Common Stock subject to the

Assumed Restricted Unit Awards, Assumed Performance Unit Awards and Assumed Stock Appreciation Rights

and shall use its reasonable best efforts to maintain the effectiveness of such registration statement or

registration statements (and maintain the current status of the prospectus or prospectuses contained therein) for

so long as the Assumed Restricted Unit Awards, Assumed Performance Unit Awards and Assumed Stock

Appreciation Rights remain outstanding.

(f) Board Actions. Prior to the Effective Time, the Board of Directors of the Company (and/or the

compensation committee (or equivalent committee) of the Board of Directors of the Company) and the Board of

Directors of Parent (and/or the Management Planning and Development Committee of the Board of Directors of

CVS Health Corporation PLAN OF MERGER — page 22

Parent) shall adopt such resolutions as are necessary to give effect to the transactions contemplated by this

Section 2.06.

Section 2.07. Adjustments. Without limiting or affecting any of the provisions of Section 6.01 or

Section 7.01, if, during the period between the date of this Agreement and the Effective Time, any change in the

outstanding shares of capital stock of the Company or Parent shall occur as a result of any reclassification,

recapitalization, stock split (including reverse stock split), merger, combination, exchange or readjustment of

shares, subdivision or other similar transaction, or any stock dividend thereon with a record date during such

period, the Merger Consideration and any other amounts payable pursuant to this Agreement shall be

appropriately adjusted to eliminate the effect of such event on the Merger Consideration or any such other

amounts payable pursuant to this Agreement.

Section 2.08. Fractional Shares. Notwithstanding anything in this Agreement to the contrary, no

fractional shares of Parent Common Stock shall be issued in the Merger. All fractional shares of Parent

Common Stock that a holder of shares of Company Common Stock would otherwise be entitled to receive as a

result of the Merger shall be aggregated and, if a fractional share results from such aggregation, such holder

shall be entitled to receive, in lieu thereof, an amount in cash, without interest, determined by multiplying the

Parent Stock Price by the fraction of a share of Parent Common Stock to which such holder would otherwise

have been entitled.

Section 2.09. Withholding Rights. Each of the Exchange Agent, Parent and the Surviving

Corporation shall be entitled to deduct and withhold from the consideration otherwise payable pursuant to this

Agreement such amounts as it is required to deduct and withhold with respect to the making of such payment

under any provision of any Applicable Law, including federal, state, local or non-U.S. Tax law. If the Exchange

Agent, Parent or the Surviving Corporation, as the case may be, so withholds and pays over all amounts so

withheld to the appropriate Taxing Authority within the period required under Applicable Law, such amounts

shall be treated for all purposes of this Agreement as having been paid to the Person in respect of which the

Exchange Agent, Parent or the Surviving Corporation, as the case may be, made such deduction and

withholding. Parent shall pay, or shall cause to be paid, all amounts so deducted or withheld by Parent or the

Surviving Corporation to the appropriate Taxing Authority within the period required under Applicable Law.

Section 2.10. Lost Certificates. If any Certificate shall have been lost, stolen or destroyed, upon

the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and,

if reasonably required by the Surviving Corporation, the posting by such Person of a customary bond issued for

lost, stolen or destroyed stock certificates, in such reasonable amount as the Surviving Corporation may direct,

as indemnity against any claim that may be made against the Surviving Corporation, with respect to such

Certificate, the Exchange Agent will issue, in exchange for such lost, stolen or destroyed Certificate, the Merger

Consideration to be paid in respect of the shares of Company Common Stock represented by such Certificate, as

contemplated by this Article II.

Section 2.11. Further Assurances. At and after the Effective Time, the officers and directors of the

Surviving Corporation shall be authorized to execute and deliver, in the name and on behalf of the Company,

any of its Subsidiaries or Merger Sub, any deeds, bills of sale, assignments or assurances and to take and do, in

the name and on behalf of the Company, any of its Subsidiaries or Merger Sub, any other actions and things to

vest, perfect or confirm of record or otherwise in the Surviving Corporation any and all right, title and interest

in, to and under any of the rights, properties or assets of the Company acquired or to be acquired by the

Surviving Corporation as a result of, or in connection with, the Merger.

ARTICLE III

ORGANIZATIONAL DOCUMENTS; DIRECTORS AND OFFICERS

Section 3.01. Articles of Incorporation and Bylaws of the Surviving Corporation. At the Effective

Time, the articles of incorporation of the Company shall be amended so that it reads in its entirety as set forth on

Exhibit A. From and after the Effective Time, the articles of incorporation of the Company as so amended shall

be the articles of incorporation of the Surviving Corporation until thereafter amended as provided therein or by

Applicable Law. The bylaws of Merger Sub, as in effect immediately prior to the Effective Time, shall be the

bylaws of the Surviving Corporation from and after the Effective Time until thereafter amended as provided

CVS Health Corporation PLAN OF MERGER — page 23

therein, in the articles of incorporation of the Surviving Corporation or by Applicable Law, except that the name

of the corporation reflected therein shall be “Aetna Inc.”

Section 3.02. Directors and Officers of the Surviving Corporation. From and after the Effective

Time, until their respective successors are duly elected or appointed and qualified in accordance with Applicable

Law, (i) the directors of Merger Sub immediately prior to the Effective Time shall be the directors of the

Surviving Corporation and (ii) the officers of the Company immediately prior to the Effective Time shall be the

officers of the Surviving Corporation.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

Subject to Section 11.05, except (i) other than with respect to the representations and warranties in

Section 4.01, Section 4.02, Section 4.05, Section 4.06, Section 4.27, Section 4.28 and Section 4.29, as disclosed

in any publicly available Company SEC Document filed after December 31, 2016 and before the date of this

Agreement or in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2015 or in

the Company’s proxy statement for the 2016 annual meeting of the Company’s shareholders or (ii) as set forth

in the Company Disclosure Schedule, the Company represents and warrants to Parent that:

Section 4.01. Corporate Existence and Power. The Company is a corporation duly incorporated

and validly subsisting under the laws of the Commonwealth of Pennsylvania. The Company has all corporate

powers required to own or lease all of its properties or assets and to carry on its business as now conducted. The

Company is duly qualified to do business and is in good standing in each jurisdiction where such qualification is

necessary, except for those jurisdictions where failure to be so qualified has not had and would not reasonably

be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Prior to the date of

this Agreement, the Company has made available to Parent true and complete copies of the articles of

incorporation and bylaws of the Company as in effect on the date of this Agreement (the “Company

Organizational Documents”).

Section 4.02. Corporate Authorization.

(a) The execution, delivery and performance by the Company of this Agreement and the

consummation by the Company of the transactions contemplated by this Agreement are within the corporate

powers of the Company and, except for the Company Shareholder Approval, have been duly authorized by all

necessary corporate action on the part of the Company. The affirmative vote of the holders of at least a majority

of the outstanding shares of Company Common Stock approving and adopting this Agreement is the only vote

of the holders of any of the Company’s capital stock necessary in connection with the consummation of the

Merger (the “Company Shareholder Approval”). This Agreement has been duly executed and delivered by the

Company and (assuming due authorization, execution and delivery by Parent and Merger Sub) constitutes a

valid and binding agreement of the Company enforceable against the Company in accordance with its terms

(subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’

rights and remedies generally, and subject, as to enforceability, to general principles of equity (regardless of

whether enforcement is sought in a proceeding at law or in equity) (collectively, the “Bankruptcy and Equity

Exceptions”)).

(b) At a meeting duly called and held, the Board of Directors of the Company unanimously

adopted resolutions (i) determining that this Agreement and the transactions contemplated hereby (including the

Merger) are fair to and in the best interests of the Company and its shareholders, (ii) approving, adopting and

declaring advisable this Agreement and the transactions contemplated hereby (including the Merger),

(iii) directing that this Agreement be submitted to a vote at a meeting of the Company’s shareholders, and

(iv) recommending approval and adoption of this Agreement (including the Merger) by the Company’s

shareholders (such recommendation, the “Company Board Recommendation”). Except as permitted by

Section 6.02, the Board of Directors of the Company has not subsequently rescinded, modified or withdrawn

any of the foregoing resolutions.

CVS Health Corporation PLAN OF MERGER — page 24

Section 4.03. Governmental Authorization. The execution, delivery and performance by the

Company of this Agreement and the consummation by the Company of the transactions contemplated hereby

require no action by or in respect of, Consents of, or Filing with, any Governmental Authority other than (i) the

filing of the Statement of Merger with the Pennsylvania Department of State and appropriate documents with

the relevant authorities of other states in which the Company is qualified to do business, (ii) compliance with

any applicable requirements of the HSR Act, (iii) compliance with any applicable requirements of the 1933 Act,

the 1934 Act and any other applicable U.S. state or federal securities laws or pursuant to the rules of the New

York Stock Exchange (the “NYSE”), (iv) Consents of, and Filings with, the state insurance departments, federal

and state departments of health and other Consents and Filings required under the Health Care Laws,

Government Sponsored Health Care Programs or Insurance Laws that are listed on Section 4.03 of the Company

Disclosure Schedule (the Consents and Filings required under or in connection with this clause (iv), collectively,

the “Company Required Governmental Authorizations”), and (v) any other actions, Consents or Filings the

absence of which has not had and would not reasonably be expected to have, individually or in the aggregate, a

Company Material Adverse Effect.

Section 4.04. Non-contravention. The execution, delivery and performance by the Company of

this Agreement and the consummation of the transactions contemplated hereby do not and will not

(i) contravene, conflict with, or result in any violation or breach of any provision of the Company

Organizational Documents, (ii) assuming compliance with the matters referred to in Section 4.03 and receipt of

the Company Shareholder Approval, contravene, conflict with or result in any violation or breach of any

provision of any Applicable Law, (iii) assuming compliance with the matters referred to in Section 4.03 and

receipt of the Company Shareholder Approval, require any Consent or other action by any Person under,

constitute a default, or an event that, with or without notice or lapse of time or both, would constitute a default,

under, or cause or permit the termination, cancellation, acceleration or other change of any right or obligation or

the loss of any benefit to which the Company or any of its Subsidiaries is entitled under, any provision of any

Contract binding upon the Company or any of its Subsidiaries or any governmental Consents (including

Consents required by Contract) affecting, or relating in any way to, the assets or business of the Company and

its Subsidiaries, or (iv) result in the creation or imposition of any Lien on any asset of the Company or any of its

Subsidiaries, with such exceptions, in the case of each of clauses (ii) through (iv), as has not had and would not

reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.05. Capitalization.

(a) Under the Company’s Articles of Incorporation, the total number of shares of all classes that

the Company has the authority to issue is 2,996,654,333. As of the date of this Agreement, the Company’s

authorized capital stock consists of (x) 7,625,000 Class A Voting Preferred Shares (“Company Class A

Preferred Shares”), (y) 2,520,137,562 shares of Company Common Stock and (z) 468,891,771 shares

undesignated as to class or series. As of the Closing Date, 2,520,137,562 shares (less any shares purchased by,

redeemed by, surrendered to or otherwise acquired by the Company after the date of this Agreement and prior to

the Closing Date, which shares will become undesignated) will be designated as Company Common Stock. As

of November 30, 2017, there were outstanding (i) 326,172,331 shares of Company Common Stock, (ii) no

Company Class A Preferred Shares, (iii) Company Stock Appreciation Rights (including any Company Stock

Appreciation Rights subject to performance conditions that settle into Company Common Stock) with respect to

an aggregate of 7,594,264 shares of Company Common Stock (of which Company Stock Appreciation Rights

with respect to 3,727,241 shares of Company Common Stock were exercisable), (iv) 886,715 Company PSU

Awards and 1,422,112 Company RSU Awards under the Company’s equity compensation plans and

(v) unexercised rights to purchase approximately 51,000 shares of Company Common Stock under the

Company ESPP in the current Company ESPP Offering Period. Except as set forth in this Section 4.05(a) and

for changes since November 30, 2017 resulting from (A) the exercise or vesting and settlement of Company

Equity Awards outstanding on such date or issued after such date, or (B) the issuance of Company Equity

Awards after such date, there are no issued, reserved for issuance or outstanding (i) shares of capital stock or

other voting securities of, or other ownership interest in, the Company, (ii) securities of the Company

convertible into or exchangeable for shares of capital stock or other voting securities of, or other ownership

interests in, the Company, (iii) warrants, calls, options or other rights to acquire from the Company, or other

obligations of the Company to issue, any capital stock or other voting securities of, or other ownership interests

in, or securities convertible into or exchangeable for capital stock or other voting securities of, or other

ownership interests in, the Company, or (iv) restricted shares, stock appreciation rights, performance units,

contingent value rights, “phantom” stock or similar securities or rights issued by or with the approval of the

Company that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price

CVS Health Corporation PLAN OF MERGER — page 25

of, any capital stock or other voting securities of, or other ownership interests in, the Company (the items in

clauses (i) through (iv) being referred to collectively as the “Company Securities”).

(b) All outstanding shares of capital stock of the Company have been, and all shares that may be

issued pursuant to any employee stock option or other compensation plan or arrangement will be, when issued

in accordance with the respective terms thereof, duly authorized and validly issued, fully paid and nonassessable

and free of preemptive rights. No Subsidiary of the Company owns any shares of capital stock of the Company

(other than any such shares owned by Subsidiaries of the Company in a fiduciary, representative or other

capacity on behalf of other Persons, whether or not held in a separate account). Section 4.05(b) of the Company

Disclosure Schedule sets forth a true and complete list, as of November 28, 2017, of all outstanding Company

Equity Awards, including with respect to each such equity award, the holder, date of grant, vesting schedule,

whether the award provides for accelerated vesting upon the consummation of the transactions contemplated by

this Agreement, whether subject to performance conditions, number of shares of Company Common Stock

subject to such

award, the amount of any accrued but unpaid dividend equivalent rights relating to such award and, for

Company Stock Appreciation Rights, the applicable exercise price and expiration date. There are no outstanding

bonds, debentures, notes or other indebtedness of the Company having the right to vote (or convertible into, or

exchangeable for, securities having the right to vote) on any matters on which shareholders of the Company may

vote. There are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem or

otherwise acquire any Company Securities. Neither the Company nor any of its Subsidiaries is a party to any

agreement with respect to the voting of any Company Securities.

Section 4.06. Subsidiaries.

(a) Each Major Subsidiary of the Company is a corporation or other entity duly incorporated or

organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or

organization and has all corporate or other organizational powers, as applicable, required to carry on its business

as now conducted, except for those jurisdictions where failure to be so organized, validly existing and in good

standing or to have such power has not had and would not reasonably be expected to have, individually or in the

aggregate, a Company Material Adverse Effect. Each such Major Subsidiary is duly qualified to do business and

is in good standing in each jurisdiction where such qualification is necessary, except for those jurisdictions

where failure to be so qualified has not had and would not reasonably be expected to have, individually or in the

aggregate, a Company Material Adverse Effect. Section 4.06(a) of the Company Disclosure Schedule sets forth

a true and complete list of each Major Subsidiary of the Company as of the date of this Agreement, its

jurisdiction of incorporation or organization, and, if a Regulated Subsidiary of the Company, each jurisdiction

where it is licensed by the state department of insurance, state department of health or other applicable state

agency.

(b) All of the outstanding capital stock or other voting securities of, or ownership interests in, each

Subsidiary of the Company are owned by the Company, directly or indirectly, free and clear of any Lien. There

are no issued, reserved for issuance or outstanding (i) securities of the Company or any of its Subsidiaries

convertible into or exchangeable for shares of capital stock or other voting securities of, or other ownership

interests in, any Subsidiary of the Company, (ii) warrants, calls, options or other rights to acquire from the

Company or any of its Subsidiaries, or other obligations of the Company or any of its Subsidiaries to issue, any

capital stock or other voting securities of, or other ownership interests in, or any securities convertible into or

exchangeable for any capital stock or other voting securities of, or other ownership interests in, any Subsidiary

of the Company, or (iii) restricted shares, stock appreciation rights, performance units, contingent value rights,

“phantom” stock or similar securities or rights issued by or with the approval of the Company or any of its

Subsidiaries that are derivative of, or provide economic benefits based, directly or indirectly, on the value or

price of, any capital stock or other voting securities of, or other ownership interests in, any Subsidiary of the

Company. There are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem

or otherwise acquire any securities described in the foregoing clauses (i) through (iii) of this Section 4.06(b).

Except for the capital stock or other voting securities of, or other ownership interests in, its Subsidiaries and

publicly traded securities held for investment which do not exceed 5% of the outstanding securities of any

entity, the

CVS Health Corporation PLAN OF MERGER — page 26

Company does not own, directly or indirectly, any capital stock or other voting securities of, or other ownership

interests in, any Person.

Section 4.07. SEC Filings and the Sarbanes-Oxley Act.

(a) The Company has timely filed with or furnished to the SEC all reports, schedules, forms,

statements, prospectuses, registration statements and other documents required to be filed with or furnished to

the SEC by the Company since January 1, 2015. No Subsidiary of the Company is required to file any report,

schedule, form, statement, prospectus, registration statement or other document with the SEC.

(b) As of its filing date, each report, schedule, form, statement, prospectus, registration statement

and other document filed with or furnished to the SEC by the Company since January 1, 2015 (collectively,

together with any exhibits and schedules thereto and other information incorporated therein, the “Company SEC

Documents”) filed prior to the date of this Agreement complied, and each Company SEC Document filed

subsequent to the date of this Agreement (assuming, in the case of the Joint Proxy Statement/Prospectus, that the

representation and warranty set forth in Section 5.09 is true and correct) will comply, in all material respects

with the applicable requirements of the NYSE, the 1933 Act, the 1934 Act and the Sarbanes-Oxley Act, as the

case may be.

Agreement, on the date of such amended or superseding filing), each Company SEC Document filed prior to the

date of this Agreement did not, and each Company SEC Document filed subsequent to the date of this

Agreement (assuming, in the case of the Joint Proxy Statement/Prospectus, that the representation and warranty

set forth in Section 5.09 is true and correct) will not, contain any untrue statement of a material fact or omit to

state any material fact necessary in order to make the statements made therein, in light of the circumstances

under which they were made, not misleading.

(d) The Company is, and since January 1, 2015 has been, in compliance in all material respects

with (i) the applicable provisions of the Sarbanes-Oxley Act and (ii) the applicable listing and corporate

governance rules and regulations of the NYSE.

(e) The Company and its Subsidiaries have established and maintain disclosure controls and

procedures (as defined in Rule 13a-15 under the 1934 Act). Such disclosure controls and procedures are

designed to ensure that material information relating to the Company, including its consolidated Subsidiaries, is

made known to the Company’s principal executive officer and its principal financial officer by others within

those entities, particularly during the periods in which the periodic reports required under the 1934 Act are being

prepared. Such disclosure controls and procedures are effective in timely alerting the Company’s principal

executive officer and principal financial officer to material information required to be included in the

Company’s periodic and current reports required under the 1934 Act. For purposes of this Agreement, “principal

executive officer” and “principal financial officer” shall have the meanings given to such terms in the Sarbanes-

Oxley Act.

(f) The Company and its Subsidiaries have established and maintain a system of internal control

over financial reporting (as defined in Rule 13a-15 under the 1934 Act) (“internal controls”). Such internal

controls are sufficient to provide reasonable assurance regarding the reliability of the Company’s financial

reporting and the preparation of the Company’s financial statements for external purposes in accordance with

GAAP. The Company’s principal executive officer and principal financial officer have disclosed, based on their

most recent evaluation of such internal controls prior to the date of this Agreement, to the Company’s auditors

and the audit committee of the Board of Directors of the Company (x) all significant deficiencies and material

weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the

Company’s ability to record, process, summarize and report financial information and (y) any fraud, whether or

not material, that involves management or other employees who have a significant role in internal controls. The

Company has made available to Parent prior to the date of this Agreement a true and complete summary of any

disclosure of the type described in the preceding sentence made by management to the Company’s auditors and

audit committee since January 1, 2015.

CVS Health Corporation PLAN OF MERGER — page 27

(g) Since January 1, 2015, each of the principal executive officer and principal financial officer of

the Company (or each former principal executive officer and principal financial officer of the Company, as

applicable) has made all certifications required by Rules 13a-14 and 15d-14 under the 1934 Act and Sections

302 and 906 of the Sarbanes-Oxley Act and any related rules and regulations promulgated by the SEC and the

NYSE, and the statements contained in any such certifications are true and complete.

Section 4.08. Financial Statements and Financial Matters.

(a) The audited consolidated financial statements and unaudited consolidated interim financial

statements of the Company included or incorporated by reference in the Company SEC Documents present

fairly in all material respects, in conformity with GAAP applied on a consistent basis during the periods

involved (except as may be indicated in the notes thereto), the consolidated financial position of the Company

and its Subsidiaries as of the dates thereof and their consolidated results of operations and cash flows for the

periods then ended (subject to normal and recurring year-end audit adjustments in the case of any unaudited

interim financial statements). Such consolidated financial statements have been prepared from, and are in

accordance with, the books and records of the Company and its Subsidiaries.

(b) From January 1, 2015 to the date of this Agreement, the Company has not received written

notice from the SEC or any other Governmental Authority indicating that any of its accounting policies or

practices are or may be the subject of any review, inquiry, investigation or challenge by the SEC or any other

Governmental Authority.

Section 4.09. Disclosure Documents. The information relating to the Company and its

Subsidiaries that is provided by the Company, any of its Subsidiaries or any of their respective Representatives

for inclusion or incorporation by reference in the Registration Statement or the Joint Proxy

Statement/Prospectus will not (i) in the case of the Registration Statement, at the time the Registration Statement

or any amendment or supplement thereto becomes effective and at the time of the Company Shareholder

Meeting and the Parent Stockholder Meeting, and (ii) in the case of the Joint Proxy Statement/Prospectus, at the

time the

Joint Proxy Statement/Prospectus or any amendment or supplement thereto is first mailed to the shareholders of

the Company and the stockholders of Parent and at the time of the Company Shareholder Meeting and the

Parent Stockholder Meeting, contain any untrue statement of a material fact or omit to state any material fact

necessary in order to make the statements made therein, in light of the circumstances under which they were

made, not misleading.

Section 4.10. Statutory Financial Statements. The audited statutory financial statements for the

year ended December 31, 2016, and the unaudited statutory financial statements for the quarters ended

March 31, 2017, June 30, 2017 and September 30, 2017 filed by the Company’s Regulated Subsidiaries that are

licensed as insurance companies or health maintenance organizations prior to the date hereof with the applicable

Governmental Authorities (the “Company Statutory Filings”) and the respective statements of assets, liabilities,

capital and surplus, revenues and expenses and cash flows included or incorporated therein (i) were prepared

from the books and records of the applicable Regulated Subsidiary, (ii) present fairly in all material respects the

statutory financial condition and results of operations of the applicable Regulated Subsidiary as of the date and

for the periods then ended (subject to normal and recurring year-end adjustments in the case of any interim

statements), and (iii) were prepared in all material respects in accordance with SAP applied on a consistent basis

(except as may be indicated in the notes thereto).

Section 4.11. Reserves. The loss reserves and other actuarial amounts of the Regulated

Subsidiaries of the Company as of December 31, 2016 recorded in the Company Statutory Filings: (i) were

determined in all material respects in accordance with ASOPs in effect on that date (except as may be indicated

in the notes thereto), (ii) were computed on the basis of methodologies consistent in all material respects with

those used in computing the corresponding reserves in the prior fiscal year (except as may be indicated in the

notes thereto) and (iii) include provisions for all actuarial reserves that were required at that time to be

established in accordance with Applicable Laws based on facts known to the Company as of such date;

provided

that, notwithstanding the foregoing, it is acknowledged and agreed by Parent and Merger Sub that with respect

to the adequacy or sufficiency of the reserves of the Company or any of the Company’s Regulated Subsidiaries,

the Company is not making any representation or warranty in this Agreement, and nothing contained in this

CVS Health Corporation PLAN OF MERGER — page 28

Agreement or any other agreement, document or instrument to be delivered in connection with this Agreement

is intended or shall be construed to be a representation or warranty of the Company in respect of the adequacy or

sufficiency of the reserves of the Company or any of the Company’s Regulated Subsidiaries.

Section 4.12. Capital or Surplus Maintenance. As of the date of this Agreement, no Regulated

Subsidiary of the Company is subject to any requirement imposed by a Governmental Authority to maintain

capital or surplus amounts or levels or is subject to any restriction on the payment of dividends or other

distributions on its shares of capital stock, except for any such requirements or restrictions under Applicable

Laws of general application.

Section 4.13. Absence of Certain Changes.

(a) Since the Company Balance Sheet Date through the date of this Agreement, (i) the business of

the Company and its Subsidiaries has been conducted in all material respects in the ordinary course of business

consistent with past practice and (ii) there

has not been any event, change, effect, development or occurrence that has had or would reasonably be expected

to have, individually or in the aggregate, a Company Material Adverse Effect.

(b) Since the Company Balance Sheet Date through the date of this Agreement, there has not been

any action taken by the Company or any of its Subsidiaries that, if taken during the period from the date of this

Agreement through the Effective Time without Parent’s consent, would constitute a breach of Section 6.01.

Section 4.14. No Undisclosed Material Liabilities. There are no liabilities or obligations of the

Company or any of its Subsidiaries of any kind whatsoever, whether accrued, contingent, absolute, determined,

determinable or otherwise, other than (i) liabilities or obligations disclosed and provided for in the Company

Balance Sheet or in the notes thereto, (ii) liabilities or obligations incurred in the ordinary course of business

consistent with past practice since the Company Balance Sheet Date, (iii) liabilities arising in connection with

the transactions contemplated hereby, and (iv) other liabilities or obligations that have not had and would not

reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. There are

no off-balance sheet arrangements of any type pursuant to any off-balance sheet arrangement required to be

disclosed pursuant to Item 303(a)(4) of Regulation S-K promulgated under the 1933 Act (“Regulation S-K”)

that have not been so described in the Company SEC Documents.

Section 4.15. Litigation. There is no claim, action, suit, investigation or proceeding pending or, to

the knowledge of the Company, threatened against or affecting the Company, any of its Subsidiaries, any

present or former officers, directors or employees of the Company or any of its Subsidiaries in their respective

capacities as such, or any of the respective properties of the Company or any of its Subsidiaries, before (or, in

the case of threatened claims, actions, suits, investigations or proceedings, that would be before) any arbitrator

or Governmental Authority, that has had or would reasonably be expected to have, individually or in the

aggregate, a Company Material Adverse Effect or that in any manner challenges or seeks to prevent, enjoin,

alter or materially delay the Merger or any of the other transactions contemplated hereby. There is no Order

outstanding or threatened against or affecting the Company, any of its Subsidiaries, any present or former

officers, directors or employees of the Company or any of its Subsidiaries in their respective capacities as such,

or any of the respective properties of any of the Company or any of its Subsidiaries, that has had or would

reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect or that

would prevent, enjoin, alter or materially delay the Merger or any of the other transactions contemplated hereby.

Section 4.16. Permits. Except as has not had and would not reasonably be expected to have,

individually or in the aggregate, a Company Material Adverse Effect, the Company and each of its Subsidiaries

hold all governmental licenses and Consents necessary for the operation of its respective businesses (the

“Company Permits”). The Company and each of its Subsidiaries is and since January 1, 2015, has been in

compliance with the terms of the Company Permits, except for failures to comply that have not had and would

not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. There

is no claim, action, suit, investigation or proceeding pending, or, to the knowledge of the Company,

CVS Health Corporation PLAN OF MERGER — page 29

threatened that seeks, or, to the knowledge of the Company, any existing condition, situation or set of

circumstances that would reasonably be expected to result in, the revocation, cancellation, termination, non-

renewal or adverse modification of any Company Permit except where such revocation, cancellation,

termination, non-renewal or adverse modification has not had and would not reasonably be expected to have,

individually or in the aggregate, a Company Material Adverse Effect.

Section 4.17. Compliance with Applicable Laws.

(a) The Company and each of its Subsidiaries is, and since January 1, 2015 has been, in

compliance with all Applicable Laws, except for failures to comply that have not had and would not reasonably

be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(b) Since January 1, 2015, neither the Company nor any of its Subsidiaries has entered into any

agreement or settlement with any Governmental Authority with respect to any actual or alleged violation of any

Applicable Law, except for agreements and settlements that have not had and would not reasonably be expected

to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would

not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, none

of the Company or any of its Subsidiaries is, to the knowledge of the Company, subject to an ongoing

investigation by a Governmental Authority or has received any written notice, citation, suspension, revocation,

limitation, warning, or request for repayment or refund issued by a Governmental Authority which alleges or

asserts that the Company or any of its Subsidiaries has violated any Applicable Laws or which requires or seeks

to adjust, modify or alter the Company’s or any of its Subsidiaries’ operations, activities, services or financial

condition that has not been fully and finally resolved without further liability to the Company and its

Subsidiaries.

Statutory Filings and all other material Filings (including Filings with respect to premium rates, rating plans,

policy terms and other terms established or used by any Subsidiaries of the Company), together with any

amendments required to be made with respect thereto, that it was required to file with any Governmental

Authority, including CMS, state insurance departments, state departments of health, other applicable state

Medicaid authorities, and any other agencies with jurisdiction over the Health Care Programs and including

Filings that it was required to file under the Patient Protection and Affordable Care Act (Pub. L. 111-148) as

amended by the Health Care and Education Reconciliation Act of 2010 (Pub. L. 111-152), except where the

failure to make such Company Statutory Filings and other Filings has not had and would not reasonably be

expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(d) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries have adopted and

implemented policies, procedures or programs reasonably designed to assure that their respective directors,

officers, employees, agents, brokers, producers,

contractors, vendors, field marketing organizations, Third Party marketing organizations and similar entities

with which they do business are in compliance with all Applicable Laws.

(e) With respect to participation in Government Sponsored Health Care Programs, except as has

not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material

Adverse Effect, each of the Regulated Subsidiaries of the Company that participates in such a Government

Sponsored Health Care Program (i) meets the requirements for participation in, and receipt of payment from, the

Government Sponsored Health Care Programs in which such Regulated Subsidiary currently participates, and

(ii) is a party to one or more valid agreements with the appropriate Governmental Authority, including CMS or

applicable state entities.

(f) Since January 1, 2015, except as has not had and would not reasonably be expected to have,

individually or in the aggregate, a Company Material Adverse Effect, none of the Company, any of its

Subsidiaries or any director, officer or employee of the Company or any of its Subsidiaries has been or is

currently suspended, excluded or debarred from contracting with the federal or any state government or from

participating in any Government Sponsored Health Care Program or subject to an investigation or proceeding by

any Governmental Authority that could result in such suspension, exclusion or debarment.

CVS Health Corporation PLAN OF MERGER — page 30

(g) Since January 1, 2015, except as has not had and would not reasonably be expected to have,

individually or in the aggregate, a Company Material Adverse Effect, none of the Company or any of its

Subsidiaries (i) has been assessed a civil monetary penalty under Section 1128A of the Social Security Act,

(ii) has been excluded from participation in any federal health care program or state health care program (as

such terms are defined by the Social Security Act), (iii) has been convicted of any criminal offense relating to

the delivery of any item or service under a federal health care program, or (iv) has been or is a party to or

subject to any action or proceeding concerning any of the matters described in the foregoing clauses (i) through

(iii) of this Section 4.17(g).

Section 4.18. Material Contracts.

(a) Section 4.18(a) of the Company Disclosure Schedule sets forth a list as of the date of this

Agreement of each of the following Contracts to which the Company or any of its Subsidiaries is a party or by

which it is bound (each such Contract listed or required to be so listed, and each of the following Contracts to

which the Company or any of its Subsidiaries becomes a party or by which it becomes bound after the date of

this Agreement, a “Company Material Contract”):

(i) (A) the 25 largest Contracts of the Company and its Subsidiaries, taken as a whole, with

Providers, (B) the 25 largest service vendor Contracts of the Company and its Subsidiaries, taken as a

whole, and (C) the 15 largest commercial customer Contracts of the Company and its Subsidiaries, in each

of (A) through (C) measured in terms of payments made or received (as applicable) by the Company and

its Subsidiaries, taken as a whole, during the twelve (12)-month period ended December 31, 2016;

(ii) any Medicaid, Medicare, CHIP or TRICARE Contract or any national Office of

Personnel Management Contract with a Governmental Authority;

(iii) any Contracts of the Company and its Subsidiaries with brokers, agents, or producers

for which payments made by the Company and its Subsidiaries during the twelve (12)-month period ended

December 31, 2016 exceeded $10,000,000.

(iv) any Contract or policy for reinsurance ceded to or assumed from a Third Party

involving payments in excess of $7,500,000 in any fiscal year;

(v) any pharmacy benefit management agreement with any entity other than Parent or one of

its Subsidiaries;

(vi) any Contracts between the Company and its Subsidiaries with a pharmaceutical

manufacturer involving payments during the twelve (12)-month period ended December 31, 2016 in

excess of (A) $30,000,000 in the case of Contracts for formulary or pharmacy rebates or (B) $10,000,000

in the case of all other such Contracts;

(vii) any Contract that (A) limits or purports to limit, in any material respect, the freedom of

the Company or any of its Subsidiaries to engage or compete in any line of business or with any Person or

in any area or that would so limit or purport to limit, in any material respect, the freedom of Parent, the

Company or any of their respective Affiliates after the Effective Time or (B) contains exclusivity or “most

favored nation” obligations or restrictions or other provisions restricting or purporting to restrict the ability

of the Company or any of its Subsidiaries to contract or establish prices for health care or other services,

to sell products directly or indirectly through third parties or to solicit any potential employee, Provider or

customer that would so restrict or purport to restrict Parent or any of its Affiliates after the Effective Time

in any material respect;

(viii) any Contract reasonably expected to result in payments made or received by the

Company and its Subsidiaries in excess of $50,000,000 in any year and for which the execution, delivery

and performance by the Company of this Agreement or the consummation of the transactions

contemplated hereby would require any consent or other action by any Person (including notice by the

Company) thereunder, constitute a default, or an event that, with or without notice or lapse of time or

both, would constitute a default, thereunder, or cause or permit the termination, cancellation, acceleration

or other change of any right or obligation (including triggering of a price adjustment, right of renegotiation

or other remedy) or the loss of any benefit to which the Company or any of its Subsidiaries is entitled

thereunder;

CVS Health Corporation PLAN OF MERGER — page 31

(ix) promissory notes, loan agreements, indentures, evidences of indebtedness or other

instruments providing for or relating to the lending of money, (A) if as borrower or guarantor, in excess of

$25,000,000, and (B) if as lender, in excess of $5,000,000 (in each case, other than (1) any such Contract,

as lender, with any Provider, as borrower, so long as such Contract was entered into in the ordinary course

of business consistent with past practice, or (2) any such Contracts among the Company and its wholly

owned Subsidiaries or among the Company’s wholly owned Subsidiaries);

(x) any Contract restricting the payment of dividends or the making of distributions to

shareholders or the repurchase of stock or other equity;

(xi) any collective bargaining agreements;

(xii) any material joint venture, profit-sharing, partnership or other similar agreements;

(xiii) other than with respect to any transactions involving investments in securities under

the Company’s investment portfolio consistent with the Company’s investment policy in effect as of the

date hereof, any Contracts or series of related Contracts relating to the pending acquisition or disposition

of the assets or securities of any Person or any business for a price in excess of $15,000,000 (in each case,

whether by merger, sale of stock, sale of assets or otherwise);

(xiv) any lease or sublease for real or personal property for which annual rental payments

made by the Company and its Subsidiaries during the twelve (12) month period ended December 31, 2016

or expected to be made by the Company and its Subsidiaries during the twelve (12) month period ending

December 31, 2017 are greater than $1,500,000;

(xv) all material Contracts pursuant to which the Company or any of its Subsidiaries

(A) receives or is granted any license or sublicense to, or covenant not to be sued under, any Intellectual

Property (other than licenses to Software that is commercially available on non-discriminatory pricing

terms) or (B) grants any license or sublicense to, or covenant not to be sued under, any Intellectual

Property (other than immaterial, non-exclusive licenses granted in the ordinary course of business);

(xvi) any Contracts or other transactions with any (A) executive officer or director of the

Company, (B) record or, to the knowledge of the Company, beneficial owner of five percent (5%) or more

of the voting securities of the Company, or (C) affiliate (as such term is defined in Rule 12b-2

promulgated under the 1934 Act) or “associates” (or members of any of their “immediate family”) (as

such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the 1934 Act) of any such executive

officer, director or beneficial owner; and

(xvii) any other Contract required to be filed by the Company pursuant to Item 601(b)(10)

of Regulation S-K.

(b) All of the Company Material Contracts are, subject to the Bankruptcy and Equity Exceptions,

(i) valid and binding obligations of the Company or a Subsidiary of the Company (as the case may be) and, to

the knowledge of the Company, each of the other parties thereto, and (ii) in full force and effect and enforceable

in accordance with their respective terms against the Company or its Subsidiaries (as the case may be) and, to

the knowledge of the Company, each of the other parties thereto (except for such Company Material Contracts

that are terminated after the date of this Agreement in accordance with their respective terms), except where the

failure to be valid and binding obligations and in full force and effect and enforceable has not had and would not

reasonably be expected to have, individually or in the aggregate, a

Company Material Adverse Effect. To the knowledge of the Company, no Person is seeking to terminate or

challenging the validity or enforceability of any Company Material Contract, except such terminations or

challenges which have not had and would not reasonably be expected to have, individually or in the aggregate, a

Company Material Adverse Effect. Neither the Company nor any of its Subsidiaries, nor to the knowledge of the

Company, any of the other parties thereto has violated any provision of, or committed or failed to perform any

act which (with or without notice, lapse of time or both) would constitute a default under any provision of, and

neither the Company nor any of its Subsidiaries has received written notice that it has violated or defaulted

under, any Company Material Contract, except for those violations and defaults (or potential defaults) which

CVS Health Corporation PLAN OF MERGER — page 32

have not had and would not reasonably be expected to have, individually or in the aggregate, a Company

Material Adverse Effect.

the date of this Agreement of each executory contract, offer or other undertaking that is outside of the ordinary

course of business consistent with past practice executed by the Company or any of its Subsidiaries that, if

accepted or executed and delivered by the applicable Third Party would constitute a Company Material

Contract.

Section 4.19. Taxes. Except as has not had and would not reasonably be expected to have,

individually or in the aggregate, a Company Material Adverse Effect:

(a) All Tax Returns required by Applicable Law to be filed with any Taxing Authority by, or on

behalf of, the Company or any of its Subsidiaries have been filed when due (giving effect to all extensions) in

accordance with all Applicable Law, and all such Tax Returns are true and complete.

(b) The Company and each of its Subsidiaries has paid (or has had paid on its behalf) or has

withheld and remitted to the appropriate Taxing Authority all Taxes due and payable, or (i) where payment is

not yet due, has established (or has had established on its behalf and for its sole benefit and recourse) in

accordance with GAAP or SAP, as applicable, an adequate accrual or (ii) where payment is being contested in

good faith pursuant to appropriate procedures, has established (or has had established on its behalf and for its

sole benefit and recourse) in accordance with GAAP or SAP, as applicable, an adequate reserve, in each case for

all Taxes through the end of the last period for which the Company and its Subsidiaries ordinarily record items

on their respective books and records.

common parent through the Tax year ended December 31, 2015 have been examined and closed or are Tax

Returns with respect to which the applicable period for assessment under Applicable Law, after giving effect to

extensions or waivers, has expired, and (ii) neither the Company nor any of its Subsidiaries (or any member of

any affiliated, consolidated, combined or unitary group of which the Company or any of its Subsidiaries is or

has been a member) has granted any extension or waiver of the limitation period applicable to the assessment or

collection of any federal income Tax.

(d) There is no claim, action, suit, proceeding or investigation (including an audit) pending or, to

the Company’s knowledge, threatened in writing against or with respect to the Company or its Subsidiaries in

respect of any Tax or Tax asset.

(e) There are no requests for rulings or determinations in respect of any Tax or Tax asset pending

between the Company or any of its Subsidiaries and any Taxing Authority.

(f) During the two (2)-year period ending on the date of this Agreement, the Company was not a

distributing corporation or a controlled corporation in a transaction purported or intended to be a spin-off

governed by Section 355 or Section 361 of the Code.

(g) There are no Liens for Taxes (other than Permitted Liens) upon any of the assets of the

Company or any of its Subsidiaries.

(h) No claim has been made in writing by any Taxing Authority in a jurisdiction where the

Company and/or the Company’s Subsidiaries do not file Tax Returns that the Company or any of its

Subsidiaries is or may be subject to taxation by, or required to file any Tax Return in, that jurisdiction.

(i) None of the Company or its Subsidiaries has “participated” in a “listed transaction” within the

meaning of Treasury Regulations Section 1.6011-4(b)(2).

(j) Neither the Company nor any of its Subsidiaries (i) has been a member of an affiliated,

consolidated, combined or unitary group other than one of which the Company or any of its Subsidiaries was the

common parent, (ii) is party to any Tax Sharing Agreement (other than any such agreement solely between the

Company and its Subsidiaries), or (iii) has any liability for the Taxes of any Person (other than the Company or

CVS Health Corporation PLAN OF MERGER — page 33

any of its Subsidiaries) under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or

non-U.S. law) or any Tax Sharing Agreement or as a transferee or successor.

Section 4.20. Employees and Employee Benefit Plans.

(a) Section 4.20 of the Company Disclosure Schedule sets forth a true and complete list as of the

date of this Agreement of each material Company Employee Plan and each Company Employee Plan that is

subject to ERISA. For each material Company Employee Plan and each Company Employee Plan that is subject

to ERISA, the Company has made available to Parent a copy of such plan (or a description, if such plan is not

written) and all amendments thereto and material written interpretations thereof, together with a copy of (if

applicable) (i) each trust, insurance or other funding arrangement, (ii) each summary plan description and

summary of material modifications, (iii) the most recently filed Internal Revenue Service Forms 5500, (iv) the

most recent favorable determination or opinion letter from the Internal Revenue Service, (v) the most recently

prepared actuarial reports and financial statements in connection with each such Company Employee Plan,

(vi) all documents and correspondence relating thereto received from or provided to the Department of Labor,

the PBGC, the Internal Revenue Service or any other Governmental Authority during the past year, and (vii) all

current employee handbooks, manuals and policies.

(b) Neither the Company nor any of its ERISA Affiliates (nor any predecessor of any such entity)

sponsors, maintains, administers or contributes to (or has any obligation to contribute to), or has since January 1,

2011, sponsored, maintained, administered or contributed to (or had any obligation to contribute to), any plan

subject to Title IV of ERISA, including any multiemployer plan, as defined in Section 3(37) of ERISA.

aggregate, a Company Material Adverse Effect, each Company Employee Plan that is intended to be qualified

under Section 401(a) of the Code has received a favorable determination or opinion letter from the Internal

Revenue Service or has applied to the Internal Revenue Service for such a letter within the applicable remedial

amendment period or such period has not expired and, to the knowledge of the Company, no circumstances exist

that would reasonably be expected to result in any such letter being revoked or not being reissued or a penalty

under the Internal Revenue Service Closing Agreement Program if discovered during an Internal Revenue

Service audit or investigation. Except as has not had and would not reasonably be expected to have, individually

or in the aggregate, a Company Material Adverse Effect, each trust created under any such Company Employee

Plan is exempt from tax under Section 501(a) of the Code and has been so exempt since its creation.

(d) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Company Material Adverse Effect, since January 1, 2015, each Company Employee Plan has been

maintained in compliance with its terms and all Applicable Law, including ERISA and the Code. Except as has

not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material

Adverse Effect, no claim (other than routine claims for benefits), action, suit, investigation or proceeding

(including an audit) is pending against or involves or, to the Company’s knowledge, is threatened against or

reasonably expected to involve, any Company Employee Plan before any court or arbitrator or any

Governmental Authority, including the Internal Revenue Service, the Department of Labor or the PBGC. To the

knowledge of the Company, since January 1, 2015, no events have occurred with respect to any Company

Employee Plan that would reasonably be expected to result in the assessment of any excise taxes or penalties

against the Company or any of its Subsidiaries, except for events that have not had and would not reasonably be

expected to have, individually or in the aggregate, a Company Material Adverse Effect.

(e) With respect to each director, officer, employee or independent contractor (including each

former director, officer, employee or independent contractor) of the Company or any of its Subsidiaries, the

consummation of the transactions contemplated by this Agreement will not, either alone or together with any

other event: (i) entitle any such individual to any payment or benefit, including any bonus, retention, severance,

retirement or job security payment or benefit, (ii) accelerate the time of payment or vesting or trigger any

payment or funding (through a grantor trust or otherwise) of compensation or benefits under, or increase the

amount payable or trigger any other obligation under, any Company Employee Plan or (iii) limit or restrict the

right of the Company or any of its Subsidiaries or, after the Closing, Parent to merge, amend or terminate any

Company Employee Plan.

CVS Health Corporation PLAN OF MERGER — page 34

(f) Neither the Company nor any of its Subsidiaries has any current or projected liability for, and

no Company Employee Plan provides or promises, any post-

employment or post-retirement medical, dental, disability, hospitalization, life or similar benefits (whether

insured or self-insured) to any director, officer, employee or individual independent contractor (including any

former director, officer, employee or individual independent contractor) of the Company or any of its

Subsidiaries (other than coverage mandated by Applicable Law).

(g) There has been no amendment to, written interpretation of or announcement (whether or not

written) by the Company or any of its Affiliates relating to, or making a change in employee participation or

coverage under, any Company Employee Plan that would materially increase the expense of maintaining such

plan above the level of expense incurred in respect thereof for the fiscal year ended on the Company Balance

Sheet Date, except as required in order to comply with Applicable Law.

(h) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Company Material Adverse Effect, no Company Employee Plan or other compensation benefit or

arrangement, individually or collectively, would reasonably be expected to result in the payment of any amount

that would not be deductible under Section 280G of the Code. Neither the Company nor any of its Subsidiaries

has any obligation to gross-up, indemnify or otherwise reimburse any Person for any tax incurred by such

Person, including under Section 409A or 4999 of the Code.

(i) Each Company Employee Plan, and any award thereunder, that is or forms part of a

“nonqualified deferred compensation plan” within the meaning of Section 409A of the Code has been timely

amended (if applicable) to comply and has been operated in compliance with, and the Company and its

Subsidiaries have complied in practice and operation with, all applicable requirements of Section 409A of the

Code in all material respects.

(j) With respect to any Company Employee Plan covered by Subtitle B, Part 4 of Title I of ERISA

or Section 4975 of the Code, no non-exempt prohibited transaction has occurred that has caused or would

reasonably be expected to cause the Company or any of its Subsidiaries to incur any material liability under

ERISA or the Code.

Section 4.21. Labor Matters.

(a) Except as has not had or would not reasonably be expected to have, individually or in the

aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries are, and since January 1, 2015

have been, in compliance with all Applicable Laws relating to labor and employment, including those relating to

labor management relations, wages, hours, overtime, employee classification, discrimination, sexual harassment,

civil rights, affirmative action, work authorization, immigration, safety and health, information privacy and

security, workers compensation, continuation coverage under group health plans, wage payment and the

payment and withholding of taxes.

(b) Neither the Company nor any of its Subsidiaries is, or since January 1, 2015 has been, a party

to or subject to, or is currently negotiating in connection with entering into, any collective bargaining agreement,

and, to the Company’s knowledge, there has not been any organizational campaign, card solicitation, petition or

other unionization activity seeking

recognition of a collective bargaining unit relating to any director, officer, employee or individual independent

contractor of the Company or any of its Subsidiaries. Except as has not had and would not reasonably be

expected to have, individually or in the aggregate, a Company Material Adverse Effect, there are no unfair labor

practice complaints pending or, to the Company’s knowledge, threatened against the Company or any of its

Subsidiaries before the National Labor Relations Board or any other Governmental Authority or any current

union representation questions involving any director, officer, employee or individual independent contractor

(including any former director, officer, employee or individual independent contractor) of the Company or any

of its Subsidiaries with respect to the Company or its Subsidiaries. There is no labor strike, slowdown, stoppage,

CVS Health Corporation PLAN OF MERGER — page 35

picketing, interruption of work or lockout pending or, to the Company’s knowledge, threatened against or

affecting the Company or any of its Subsidiaries.

Section 4.22. Intellectual Property.

(a) Section 4.22(a) of the Company Disclosure Schedule sets forth a list as of the date of this

Agreement of all registrations (including patents and domain name registrations) and applications for

registration for Owned Intellectual Property that is Company Intellectual Property (the “Company Registered

IP”). Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a

Company Material Adverse Effect, none of the Company Registered IP has lapsed, expired, been abandoned or

been adjudged invalid or unenforceable, and, to the knowledge of the Company, all Company Registered IP is

valid, enforceable and subsisting.

(b) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Company Material Adverse Effect, (i) the Company and its Subsidiaries are the sole and exclusive

owners of all Owned Intellectual Property included in the Company Intellectual Property and hold all of their

right, title and interest in and to all of the Company Intellectual Property free and clear of all Liens (other than

non-exclusive licenses granted by the Company or one of its Subsidiaries in the ordinary course of business),

(ii) to the knowledge of the Company, the Company’s Owned Intellectual Property and the Company’s Licensed

Intellectual Property constitutes all of the Intellectual Property necessary to, or used or held for use in, the

conduct of the respective businesses of the Company and its Subsidiaries as currently conducted, and (iii) to the

knowledge of the Company, there exist no material restrictions on the use of any of the Company’s Owned

Intellectual Property.

aggregate, a Company Material Adverse Effect, (i) to the knowledge of the Company, neither the Company nor

any of its Subsidiaries nor the conduct of their respective businesses has infringed, misappropriated, diluted or

otherwise violated any Intellectual Property rights of any Third Party, (ii) there is no claim, action, suit,

investigation or proceeding pending or, to the knowledge of the Company, threatened against or affecting the

Company or any of its Subsidiaries (A) alleging that the Company or any of its Subsidiaries has infringed,

misappropriated, diluted or otherwise violated any Intellectual Property rights of any Third Party or (B) based

upon, or challenging or seeking to deny or restrict, the rights of the Company or any of its Subsidiaries in any of

the Company Intellectual Property, and (iii) to the knowledge of the Company, no Third Party has infringed,

misappropriated, diluted or otherwise violated any Company Intellectual Property.

(d) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Company Material Adverse Effect, (i) the Company and its Subsidiaries have provided reasonable

notice of its privacy and personal data collection and use policies on its websites and other customer and public

communications and the Company and its Subsidiaries have complied with such policies and all Applicable

Laws relating to (A) the privacy of the users of the Company’s and its Subsidiaries’ respective products,

services and websites and (B) the collection, use, storage and disclosure of any personally-identifiable

information (including personal health information) and other data or information collected or stored by the

Company or any of its Subsidiaries, (ii) there is no claim, action, suit, investigation or proceeding pending or, to

the knowledge of the Company, threatened against the Company or any of its Subsidiaries alleging any violation

of such policies or Applicable Laws, (iii) neither this Agreement nor the consummation of the transactions

contemplated hereby will violate any such policy, and (iv) the Company and its Subsidiaries have taken

commercially reasonable steps consistent with normal industry practice to protect the types of information

referred to in this Section 4.22(d) against loss and unauthorized access, use, modification, disclosure or other

misuse, and, to the knowledge of the Company, there has been no unauthorized access, use, modification,

disclosure or other misuse of such data or information.

(e) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Company Material Adverse Effect, (i) the Company’s IT Assets operate in accordance with their

specifications and related documentation and perform in a manner that permits the Company and its Subsidiaries

to conduct their respective businesses as currently conducted, (ii) the Company and its Subsidiaries take

commercially reasonable actions, consistent with current industry standards, to protect the confidentiality,

integrity and security of the Company’s IT Assets (and all information and transactions stored or contained

CVS Health Corporation PLAN OF MERGER — page 36

therein or transmitted thereby) against any unauthorized use, access, interruption, modification or corruption,

including the implementation of commercially reasonable data backup, disaster avoidance and recovery

procedures and business continuity procedures, and (iii) there has been no unauthorized use, access,

interruption, modification or corruption of the Company’s IT Assets (or any information or transactions stored

or contained therein or transmitted thereby).

Section 4.23. Properties. Except as has not had and would not reasonably be expected to have,

individually or in the aggregate, a Company Material Adverse Effect, (i) the Company and each of its

Subsidiaries has good, valid and marketable fee simple title to, or valid leasehold interests in, as the case may

be, each parcel of real property of the Company or any of its Subsidiaries, free and clear of all Liens, except for

Permitted Liens, (ii) each lease, sublease or license (each, a “Lease”) under which the Company or any of its

Subsidiaries leases, subleases or licenses any real property is, subject to the Bankruptcy and Equity Exceptions,

a valid and binding obligation of the Company or a Subsidiary of the Company (as the case may be) and, to the

knowledge of the Company, each of the other parties thereto, and in full force and effect and enforceable in

accordance with its terms against the Company or its Subsidiaries (as the case may be) and, to the knowledge of

the Company, each of the other parties thereto (except for such Leases that are terminated after the date of this

Agreement in accordance with their respective terms), (iii) neither the Company nor any of its Subsidiaries, nor,

to the knowledge of the

Company, any of the other parties thereto has violated or committed or failed to perform any act which (with or

without notice, lapse of time or both) would constitute a default under any provision of any Lease, and

(iv) neither the Company nor any of its Subsidiaries has received written notice that it has violated or defaulted

under any Lease.

Section 4.24. Environmental Matters. Except as has not had and would not reasonably be expected

to have, individually or in the aggregate, a Company Material Adverse Effect:

(a) no notice, notification, demand, request for information, citation, summons or order has been

received, no complaint has been filed, no penalty has been assessed, and no claim, action, suit, proceeding or

investigation (including a review) is pending or, to the knowledge of the Company, threatened by any

Governmental Authority or other Person relating to the Company or any of its Subsidiaries that relates to, or

arises under, any Environmental Law, Environmental Permit or Hazardous Substance;

(b) the Company and its Subsidiaries are, and since January 1, 2015 have been, in compliance

with all Environmental Laws and all Environmental Permits and hold all applicable Environmental Permits; and

whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise arising under or

relating to any Environmental Law, Environmental Permit or Hazardous Substance and there is no existing

condition, situation or set of circumstances that could reasonably be expected to result in any such liability or

obligation.

Section 4.25. Insurance. The Company has made available to Parent, prior to the date of this

Agreement, a list and summaries of all material insurance policies and fidelity bonds for which the Company or

any of its Subsidiaries is a policyholder or which covers the business, operations, employees, officers, directors

or assets of the Company or any of its Subsidiaries (the “Company Insurance Policies”). The Company and its

Subsidiaries maintain insurance coverage with reputable insurers in such amounts and covering such risks as the

Company reasonably believes, based on past experience, is adequate for the businesses and operations of the

Company and its Subsidiaries (taking into account the cost and availability of such insurance). Except as has not

had and would not reasonably be expected to have, individually or in the aggregate, a Company Material

Adverse Effect, the Company Insurance Policies (i) are sufficient for compliance by the Company and its

Subsidiaries with all Company Material Contracts and (ii) will not terminate or lapse by their terms by reason of

the consummation of the transactions contemplated by this Agreement. Section 4.25 of the Company Disclosure

Schedule sets forth the amount per annum the Company paid in its last full fiscal year ending prior to the date of

this Agreement for the Company’s existing directors’ and officers’ insurance policies.

Section 4.26. Transactions with Affiliates. To the knowledge of the Company and as of the date of

this Agreement, since January 1, 2015, there have been no transactions, or series of related transactions,

CVS Health Corporation PLAN OF MERGER — page 37

agreements, arrangements or understandings in effect, nor are there any currently proposed transactions, or

series of related transactions,

agreements, arrangements or understandings, that would be required to be disclosed under Item 404 of

Regulation S-K that have not been otherwise disclosed in the Company SEC Documents filed prior to the date

hereof.

Section 4.27. Antitakeover Statutes. Assuming the representation and warranty set forth in

Section 5.23 is true and correct, neither the restrictions set forth in Subchapter F of Chapter 25 of Pennsylvania

Law nor any other “control share acquisition,” “fair price,” “moratorium” or other antitakeover laws enacted

under U.S. state or federal laws apply to this Agreement or any of the transactions contemplated hereby.

Section 4.28. Opinions of Financial Advisors. The Board of Directors of the Company has

received the separate opinions of each of Lazard Frères & Co. LLC and Allen & Company LLC, financial

advisors to the Company, to the effect that, as of the date of such opinion and based upon and subject to the

various assumptions, limitations, qualifications and other matters set forth therein, the Merger Consideration to

be paid to the holders of Company Common Stock pursuant to this Agreement is fair, from a financial point of

view, to such holders.

Section 4.29. Finders’ Fees. Except for Lazard Frères & Co. LLC, Allen & Company LLC and

Evercore Group L.L.C., a copy of each of whose engagement agreements has been provided to Parent prior to

the date of this Agreement, there is no investment banker, broker, finder or other intermediary that has been

retained by or is authorized to act on behalf of the Company or any of its Subsidiaries who might be entitled to

any fee or commission from the Company or any of its Affiliates in connection with the transactions

contemplated by this Agreement.

Section 4.30. No Ownership of Parent Common Stock. Neither the Company nor any of its

Subsidiaries beneficially owns, directly or indirectly, any shares of Parent Common Stock or other securities

convertible into, exchangeable for or exercisable for shares of Parent Common Stock, and neither the Company

nor any of its Subsidiaries has any rights to acquire any shares of Parent Common Stock (other than any such

securities owned by the Company or any of its Subsidiaries in a fiduciary, representative or other capacity on

behalf of other Persons, whether or not held in a separate account). There are no voting trusts or other

agreements or understandings to which the Company or any of its Subsidiaries is a party with respect to the

voting of the capital stock or other equity interest of Parent or any of its Subsidiaries.

Section 4.31. No Other Company Representations and Warranties. Except for the representations

and warranties made by the Company in this Article IV (as qualified by the applicable items disclosed in the

Company Disclosure Schedule in accordance with Section 11.05 and the introduction to this Article IV), neither

the Company nor any other Person makes or has made any representation or warranty, expressed or implied, at

law or in equity, with respect to or on behalf of the Company or its Subsidiaries, their businesses, operations,

assets, liabilities, financial condition, results of operations, future operating or financial results, estimates,

projections, forecasts, plans or prospects (including the reasonableness of the assumptions underlying such

estimates, projections, forecasts, plans or prospects) or the accuracy or completeness of any information

regarding the Company or its Subsidiaries or any other

matter furnished or provided to Parent or made available to Parent in any “data rooms,” “virtual data rooms,”

management presentations or in any other form in expectation of, or in connection with, this Agreement or the

transactions contemplated hereby. The Company and its Subsidiaries disclaim any other representations or

warranties, whether made by the Company or any of its Subsidiaries or any of their respective Affiliates or

Representatives. Without limiting the generality of the foregoing, except for the representations and warranties

made by the Company in this Article IV (as qualified by the applicable items disclosed in the Company

Disclosure Schedule in accordance with Section 11.05 and the introduction to this Article IV), neither the

Company nor any other Person makes or has made any representation or warranty, expressed or implied, at law

or in equity, with respect to or on behalf of the Company or its Subsidiaries with respect to (a) the adequacy or

sufficiency of reserves, (b) the effect of the adequacy or sufficiency of reserves on any line item, asset, liability

or equity amount on any financial or other document, (c) whether or not reserves were determined in accordance

CVS Health Corporation PLAN OF MERGER — page 38

with any actuarial, statutory, regulatory or other standard, or (d) the collectability of any amounts under any

reinsurance Contract. The Company acknowledges and agrees that, except for the representations and warranties

made by Parent in Article V (as qualified by the applicable items disclosed in the Parent Disclosure Schedule in

accordance with Section 11.05 and the introduction to Article V), neither Parent nor any other Person is making

or has made any representations or warranty, expressed or implied, at law or in equity, with respect to or on

behalf of Parent or its Subsidiaries, their businesses, operations, assets, liabilities, financial condition, results of

operations, future operating or financial results, estimates, projections, forecasts, plans or prospects (including

the reasonableness of the assumptions underlying such estimates, projections, forecasts, plans or prospects) or

the accuracy or completeness of any information regarding Parent or its Subsidiaries or any other matter

furnished or provided to Parent or made available to the Company in any “data rooms,” “virtual data rooms,”

management presentations or in any other form in expectation of, or in connection with, this Agreement, or the

transactions contemplated hereby or thereby. The Company specifically disclaims that it is relying upon or has

relied upon any such other representations or warranties that may have been made by any Person, and

acknowledges and agrees that Parent and its Affiliates have specifically disclaimed and do hereby specifically

disclaim any such other representations and warranties. Notwithstanding the foregoing, this Section 4.31 shall

not limit Parent’s, Merger Sub’s or the Company’s remedies in the case of fraud.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF PARENT

Subject to Section 11.05, except (i) other than with respect to the representations and warranties in

Section 5.01, Section 5.02, Section 5.05, Section 5.06, Section 5.20, Section 5.21 and Section 5.22, as disclosed

in any publicly available Parent SEC Document filed after December 31, 2016 and before the date of this

Agreement or in Parent’s annual report on Form 10-K for the fiscal year ended December 31, 2015 or in

Parent’s proxy statement for the 2016 annual meeting of Parent’s stockholders or (ii) as set forth in the Parent

Disclosure Schedule, Parent represents and warrants to the Company that:

Section 5.01. Corporate Existence and Power. Parent is a corporation duly incorporated, validly

existing and in good standing under the laws of the State of Delaware and

Merger Sub is a corporation duly incorporated and validly subsisting under the laws of the Commonwealth of

Pennsylvania. Each of Parent and Merger Sub has all corporate powers required to own or lease all of its

properties or assets and to carry on its business as now conducted. Each of Parent and Merger Sub is duly

qualified to do business and is in good standing in each jurisdiction where such qualification is necessary,

except for those jurisdictions where failure to be so qualified has not had and would not reasonably be expected

to have, individually or in the aggregate, a Parent Material Adverse Effect. As of the date hereof, Parent

indirectly owns all of the outstanding shares of capital stock of Merger Sub. Prior to the date of this Agreement,

Parent has made available to the Company true and complete copies of the certificate of incorporation and

bylaws of Parent and the articles of incorporation and bylaws of Merger Sub, as in effect on the date of this

Agreement (the “Parent Organizational Documents”). Since the date of its formation, Merger Sub has not

engaged in any activities other than in connection with or as contemplated by this Agreement.

Section 5.02. Corporate Authorization.

(a) The execution, delivery and performance by each of Parent and Merger Sub of this Agreement

and the consummation by Parent and Merger Sub of the transactions contemplated by this Agreement are within

the corporate powers of each of Parent and Merger Sub and, except for the Parent Stockholder Approval and the

required approval of the shareholder of Merger Sub in connection with the consummation of the Merger, have

been duly authorized by all necessary corporate action on the part of Parent and Merger Sub. The affirmative

vote of a majority of all votes cast by holders of outstanding shares of Parent Common Stock at a duly called

and held meeting of Parent’s stockholders at which a quorum is present approving the issuance of shares of

Parent Common Stock in connection with the Merger (the “Parent Share Issuance”) is the only vote of the

holders of any of Parent’s capital stock necessary in connection with the consummation of the Merger (the

“Parent Stockholder Approval”). This Agreement has been duly executed and delivered by each of Parent and

Merger Sub and (assuming due authorization, execution and delivery by the Company) constitutes a valid and

CVS Health Corporation PLAN OF MERGER — page 39

binding agreement of each of Parent and Merger Sub enforceable against Parent and Merger Sub in accordance

with its terms (subject to the Bankruptcy and Equity Exceptions).

(b) At a meeting duly called and held, the Board of Directors of Parent unanimously adopted

resolutions (i) determining that this Agreement and the transactions contemplated hereby (including the Parent

Share Issuance) are fair to and in the best interests of Parent’s stockholders, (ii) approving, adopting and

declaring advisable this Agreement and the transactions contemplated hereby (including the Parent Share

Issuance), (iii) directing that the approval of the Parent Share Issuance be submitted to a vote at a meeting of

Parent’s stockholders and (iv) recommending approval of the Parent Share Issuance by Parent’s stockholders

(such recommendation, the “Parent Board Recommendation”).

that this Agreement and the transactions contemplated hereby (including the Merger) are fair to and in the best

interests of Merger Sub and its shareholder, (ii) approving, adopting and declaring advisable this Agreement and

the transactions contemplated hereby (including the Merger), (iii) directing that this Agreement be submitted to

a vote of

Merger Sub’s shareholder and (iv) recommending approval and adoption of this Agreement by Merger Sub’s

shareholder. Except as permitted by Section 7.02, the Board of Directors of each of Parent and Merger Sub has

not subsequently rescinded, modified or withdrawn any of the foregoing resolutions.

Section 5.03. Governmental Authorization. The execution, delivery and performance by each of

Parent and Merger Sub of this Agreement and the consummation by each of Parent and Merger Sub of the

transactions contemplated hereby require no action by or in respect of, Consents of, or Filing with, any

Governmental Authority other than (i) the filing of the Statement of Merger with the Pennsylvania Department

of State and appropriate documents with the relevant authorities of other states in which Parent or Merger Sub is

qualified to do business, (ii) compliance with any applicable requirements of the HSR Act, (iii) compliance with

any applicable requirements of the 1933 Act, the 1934 Act and any other applicable U.S. state or federal

securities laws or pursuant to the rules of the NYSE, (iv) Consents of, and Filings with, the state insurance

departments, federal and state departments of health and other Consents and Filings required under the Health

Care Laws, Government Sponsored Health Care Programs or Insurance Laws that are listed on Section 5.03 of

the Parent Disclosure Schedule (the Consents and Filings required under or in connection with this clause (iv),

collectively, the “Parent Required Governmental Authorizations”), and (v) any other actions, Consents or

Filings the absence of which has not had and would not reasonably be expected to have, individually or in the

aggregate, a Parent Material Adverse Effect.

Section 5.04. Non-contravention. The execution, delivery and performance by each of Parent and

Merger Sub of this Agreement and the consummation of the transactions contemplated hereby do not and will

not (i) contravene, conflict with, or result in any violation or breach of any provision of the Parent

Organizational Documents, (ii) assuming compliance with the matters referred to in Section 5.03 and receipt of

the Parent Stockholder Approval, contravene, conflict with or result in any violation or breach of any provision

of any Applicable Law, (iii) assuming compliance with the matters referred to in Section 5.03 and receipt of the

Parent Stockholder Approval, require any Consent or other action by any Person under, constitute a default, or

an event that, with or without notice or lapse of time or both, would constitute a default, under, or cause or

permit the termination, cancellation, acceleration or other change of any right or obligation or the loss of any

benefit to which Parent or any of its Subsidiaries is entitled under, any provision of any Contract binding upon

Parent or any of its Subsidiaries or any governmental Consents (including Consents required by Contract)

affecting, or relating in any way to, the assets or business of Parent and its Subsidiaries, or (iv) result in the

creation or imposition of any Lien on any asset of Parent or any of its Subsidiaries, with such exceptions, in the

case of each of clauses (ii) through (iv), as has not had and would not reasonably be expected to have,

individually or in the aggregate, a Parent Material Adverse Effect.

Section 5.05. Capitalization.

(a) The authorized capital stock of Parent consists of (i) 3,200,000,000 shares of Parent Common

Stock, (ii) 120,619 shares of cumulative preferred stock, par value $0.01 per share (“Parent Preferred Stock”)

and (iii) 50,000,000 shares of preference stock, par value $1.00 per share (“Parent Preference Stock”). As of

November 30, 2017, there were outstanding

CVS Health Corporation PLAN OF MERGER — page 40

(i) 1,013,088,658 shares of Parent Common Stock, (ii) no shares of Parent Preferred Stock, (iii) no shares of

Parent Preference Stock, (iv) options to purchase shares of Parent Common Stock (“Parent Stock Options”) with

respect to an aggregate of 20,940,443 shares of Parent Common Stock (of which, Parent Stock Options with

respect to 11,604,106 shares of Parent Common Stock were exercisable), (v) 5,577,549 restricted stock units

under Parent’s equity compensation plans, assuming target performance levels for any performance-based

restricted stock units (“Parent Restricted Stock Units”) and (vi) 865,100 shares of Parent Common Stock subject

to long-term incentive plan awards, at target performance levels (together with Parent Stock Options, Parent

Restricted Stock Units and any other equity or equity-linked awards granted after November 30, 2017, “Parent

Equity Awards”). The shares of Parent Common Stock to be issued as part of the Merger Consideration have

been duly authorized and, when issued and delivered in accordance with the terms of this Agreement, will have

been validly issued and will be fully paid and nonassessable and the issuance thereof will be free of preemptive

right. Parent directly or indirectly owns all of the issued and outstanding capital stock of Merger Sub. Except as

set forth in this Section 5.05(a) and for changes since November 30, 2017 resulting from (x) the exercise or

vesting and settlement of Parent Equity Awards outstanding on such date or issued after such date, or (y) the

issuance of Parent Equity Awards after such date, there are no issued, reserved for issuance or outstanding

(A) shares of capital stock or other voting securities of, or other ownership interest in, Parent, (B) securities of

Parent convertible into or exchangeable for shares of capital stock or other voting securities of, or other

ownership interests in, Parent, (C) warrants, calls, options or other rights to acquire from Parent, or other

obligations of Parent to issue, any capital stock or other voting securities of, or other ownership interests in, or

securities convertible into or exchangeable for capital stock or other voting securities of, or other ownership

interests in, Parent, or (D) restricted shares, stock appreciation rights, performance units, contingent value rights,

“phantom” stock or similar securities or rights issued by or with the approval of Parent that are derivative of, or

provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or other voting

securities of, or other ownership interests in, Parent (the items in clauses (A) through (D) being referred to

collectively as the “Parent Securities”).

(b) All outstanding shares of capital stock of Parent have been, and all shares that may be issued

pursuant to any employee stock option or other compensation plan or arrangement will be, when issued in

accordance with the respective terms thereof, duly authorized and validly issued, fully paid and nonassessable

and free of preemptive rights. No Subsidiary of Parent owns any shares of capital stock of Parent (other than any

such shares owned by Subsidiaries of Parent in a fiduciary, representative or other capacity on behalf of other

Persons, whether or not held in a separate account). There are no outstanding bonds, debentures, notes or other

indebtedness of Parent having the right to vote (or convertible into, or exchangeable for, securities having the

right to vote) on any matters on which stockholders of Parent may vote. There are no outstanding obligations of

Parent or any of its Subsidiaries to repurchase, redeem or otherwise acquire any Parent Securities. Neither

Parent nor any of its Subsidiaries is a party to any agreement with respect to the voting of any Parent Securities.

Section 5.06. Subsidiaries.

(a) Each Major Subsidiary of Parent is a corporation or other entity duly incorporated or

organized, validly existing and in good standing under the laws of its jurisdiction

of incorporation or organization and has all corporate or other organizational powers, as applicable, required to

carry on its business as now conducted, except for those jurisdictions where failure to be so organized, validly

existing and in good standing or to have such power has not had and would not reasonably be expected to have,

individually or in the aggregate, a Parent Material Adverse Effect. Each such Major Subsidiary is duly qualified

to do business and is in good standing in each jurisdiction where such qualification is necessary, except for those

jurisdictions where failure to be so qualified has not had and would not reasonably be expected to have,

individually or in the aggregate, a Parent Material Adverse Effect.

(b) All of the outstanding capital stock or other voting securities of, or ownership interests in, each

Subsidiary of Parent are owned by Parent, directly or indirectly, free and clear of any Lien. There are no issued,

reserved for issuance or outstanding (i) securities of Parent or any of its Subsidiaries convertible into or

exchangeable for shares of capital stock or other voting securities of, or other ownership interests in, any

Subsidiary of Parent, (ii) warrants, calls, options or other rights to acquire from Parent or any of its Subsidiaries,

CVS Health Corporation PLAN OF MERGER — page 41

or other obligations of Parent or any of its Subsidiaries to issue, any capital stock or other voting securities of, or

other ownership interests in, or any securities convertible into or exchangeable for any capital stock or other

voting securities of, or other ownership interests in, any Subsidiary of Parent or (iii) restricted shares, stock

appreciation rights, performance units, contingent value rights, “phantom” stock or similar securities or rights

issued by or with the approval of Parent or any of its Subsidiaries that are derivative of, or provide economic

benefits based, directly or indirectly, on the value or price of, any capital stock or other voting securities of, or

other ownership interests in, any Subsidiary of Parent. There are no outstanding obligations of Parent or any of

its Subsidiaries to repurchase, redeem or otherwise acquire any securities described in the foregoing clauses

(i) through (iii) of this Section 5.06(b). Except for the capital stock or other voting securities of, or other

ownership interests in, its Subsidiaries and publicly traded securities held for investment which do not exceed

5% of the outstanding securities of any entity, Parent does not own, directly or indirectly, any capital stock or

other voting securities of, or other ownership interests in, any Person.

Section 5.07. SEC Filings and the Sarbanes-Oxley Act.

(a) Parent has timely filed with or furnished to the SEC all reports, schedules, forms, statements,

prospectuses, registration statements and other documents required to be filed with or furnished to the SEC by

Parent since January 1, 2015. No Subsidiary of Parent is required to file any report, schedule, form, statement,

prospectus, registration statement or other document with the SEC.

(b) As of its filing date, each report, schedule, form, statement, prospectus, registration statement

and other document filed with or furnished to the SEC by Parent since January 1, 2015 (collectively, together

with any exhibits and schedules thereto and other information incorporated therein, the “Parent SEC

Documents”) filed prior to the date of this Agreement complied, and each Parent SEC Document filed

subsequent to the date of this Agreement (assuming, in the case of each of the Registration Statement and the

Joint Proxy Statement/Prospectus, that the representation and warranty set forth in Section 4.09 is true and

correct) will comply, in all material respects with the applicable requirements of the NYSE, the 1933 Act, the

1934 Act and the Sarbanes-Oxley Act, as the case may be.

Agreement, on the date of such amended or superseding filing), each Parent SEC Document filed prior to the

date of this Agreement did not, and each Parent SEC Document filed subsequent to the date of this Agreement

(assuming, in the case of each of the Registration Statement and the Joint Proxy Statement/Prospectus, that the

representation and warranty set forth in Section 4.09 is true and correct) will not, contain any untrue statement

of a material fact or omit to state any material fact necessary in order to make the statements made therein, in

light of the circumstances under which they were made, not misleading.

(d) Parent is, and since January 1, 2015 has been, in compliance in all material respects with

(i) the applicable provisions of the Sarbanes-Oxley Act and (ii) the applicable listing and corporate governance

rules and regulations of the NYSE.

(e) Parent and its Subsidiaries have established and maintain disclosure controls and procedures

(as defined in Rule 13a-15 under the 1934 Act). Such disclosure controls and procedures are designed to ensure

that material information relating to Parent, including its consolidated Subsidiaries, is made known to Parent’s

principal executive officer and its principal financial officer by others within those entities, particularly during

the periods in which the periodic reports required under the 1934 Act are being prepared. Such disclosure

controls and procedures are effective in timely alerting Parent’s principal executive officer and principal

financial officer to material information required to be included in Parent’s periodic and current reports required

under the 1934 Act.

(f) Parent and its Subsidiaries have established and maintain a system of internal controls. Such

internal controls are sufficient to provide reasonable assurance regarding the reliability of Parent’s financial

reporting and the preparation of Parent’s financial statements for external purposes in accordance with GAAP.

Parent’s principal executive officer and principal financial officer have disclosed, based on their most recent

evaluation of internal controls prior to the date of this Agreement, to Parent’s auditors and the audit committee

of the Board of Directors of Parent (x) all significant deficiencies and material weaknesses in the design or

operation of internal controls which are reasonably likely to adversely affect Parent’s ability to record, process,

summarize and report financial information and (y) any fraud, whether or not material, that involves

CVS Health Corporation PLAN OF MERGER — page 42

management or other employees who have a significant role in internal controls. Parent has made available to

the Company prior to the date of this Agreement a true and complete summary of any disclosure of the type

described in the preceding sentence made by management to Parent’s auditors and audit committee since

January 1, 2015.

(g) Since January 1, 2015, each of the principal executive officer and principal financial officer of

Parent (or each former principal executive officer and principal financial officer of Parent, as applicable) has

made all certifications required by Rules 13a-14 and 15d-14 under the 1934 Act and Sections 302 and 906 of the

Sarbanes-Oxley Act and any related rules and regulations promulgated by the SEC and the NYSE, and the

statements contained in any such certifications are true and complete.

Section 5.08. Financial Statements and Financial Matters.

(a) The audited consolidated financial statements and unaudited condensed consolidated interim

financial statements of Parent included or incorporated by reference in the Parent SEC Documents present fairly

in all material respects, in conformity with GAAP applied on a consistent basis during the periods involved

(except as may be indicated in the notes thereto), the consolidated financial position of Parent and its

Subsidiaries as of the dates thereof and their consolidated results of operations and cash flows for the periods

then ended (subject to normal and recurring year-end audit adjustments in the case of any unaudited interim

financial statements). Such consolidated financial statements have been prepared from, and are in accordance

with, the books and records of Parent and its Subsidiaries.

(b) From January 1, 2015 to the date of this Agreement, Parent has not received written notice

from the SEC or any other Governmental Authority indicating that any of its accounting policies or practices are

or may be the subject of any review, inquiry, investigation or challenge by the SEC or any other Governmental

Authority.

Section 5.09. Disclosure Documents. The information relating to Parent and its Subsidiaries that is

provided by Parent, any of its Subsidiaries or any of their respective Representatives for inclusion or

incorporation by reference in the Registration Statement or the Joint Proxy Statement/Prospectus will not (i) in

the case of the Registration Statement, at the time the Registration Statement or any amendment or supplement

thereto becomes effective and at the time of the Company Shareholder Meeting and the Parent Stockholder

Meeting, and (ii) in the case of the Joint Proxy Statement/Prospectus, at the time the Joint Proxy

Statement/Prospectus or any amendment or supplement thereto is first mailed to the shareholders of the

Company and the stockholders of Parent and at the time of the Company Shareholder Meeting and Parent

Stockholder Meeting, contain any untrue statement of a material fact or omit to state any material fact necessary

in order to make the statements made therein, in light of the circumstances under which they were made, not

misleading.

Section 5.10. Absence of Certain Changes.

(a) Since the Parent Balance Sheet Date through the date of this Agreement, (i) the business of

Parent and its Subsidiaries has been conducted in all material respects in the ordinary course of business

consistent with past practice and (ii) there has not been any event, change, effect, development or occurrence

that has had or would reasonably be expected to have, individually or in the aggregate, a Parent Material

Adverse Effect.

(b) Since the Parent Balance Sheet Date through the date of this Agreement, there has not been

any action taken by Parent or any of its Subsidiaries that, if taken during the period from the date of this

Agreement through the Effective Time without the Company’s consent, would constitute a breach of

Section 7.01.

Section 5.11. No Undisclosed Material Liabilities. There are no liabilities or obligations of Parent

or any of its Subsidiaries of any kind whatsoever, whether accrued, contingent, absolute, determined,

determinable or otherwise, other than (i) liabilities or obligations disclosed and provided for in the Parent

Balance Sheet or in the notes thereto,

CVS Health Corporation PLAN OF MERGER — page 43

(ii) liabilities or obligations incurred in the ordinary course of business consistent with past practice since the

Parent Balance Sheet Date, (iii) liabilities arising in connection with the transactions contemplated hereby, and

(iv) other liabilities or obligations that have not had and would not reasonably be expected to have, individually

or in the aggregate, a Parent Material Adverse Effect. There are no off-balance sheet arrangements of any type

pursuant to any off-balance sheet arrangement required to be disclosed pursuant to Item 303(a)(4) of Regulation

S-K that have not been so described in the Parent SEC Documents.

Section 5.12. Litigation. There is no claim, action, suit, investigation or proceeding pending or, to

the knowledge of Parent, threatened against or affecting Parent, any of its Subsidiaries, any present or former

officers, directors or employees of Parent or any of its Subsidiaries in their respective capacities as such or any

of the respective properties of Parent or any of its Subsidiaries, before (or, in the case of threatened claims,

actions, suits, investigations or proceedings, that would be before) any arbitrator or Governmental Authority,

that has had or would reasonably be expected to have, individually or in the aggregate, a Parent Material

Adverse Effect or that in any manner challenges or seeks to prevent, enjoin, alter or materially delay the Merger

or any of the other transactions contemplated hereby. There is no Order outstanding or threatened against or

affecting Parent, any of its Subsidiaries, any present or former officers, directors or employees of Parent or any

of its Subsidiaries in their respective capacities as such or any of the respective properties of any of Parent or

any of its Subsidiaries, that has had or would reasonably be expected to have, individually or in the aggregate, a

Parent Material Adverse Effect or that would prevent, enjoin, alter or materially delay the Merger or any of the

other transactions contemplated hereby.

Section 5.13. Permits. Except as has not had and would not reasonably be expected to have,

individually or in the aggregate, a Parent Material Adverse Effect, Parent and each of its Subsidiaries hold all

governmental licenses and Consents necessary for the operation of its respective businesses (the “Parent

Permits”). Parent and each of its Subsidiaries is and since January 1, 2015, has been in compliance with the

terms of the Parent Permits, except for failures to comply that have not had and would not reasonably be

expected to have, individually or in the aggregate, a Parent Material Adverse Effect. There is no claim, action,

suit, investigation or proceeding pending, or, to the knowledge of Parent, threatened that seeks, or, to the

knowledge of Parent, any existing condition, situation or set of circumstances that would reasonably be expected

to result in, the revocation, cancellation, termination, non-renewal or adverse modification of any Parent Permit

except where such revocation, cancellation, termination, non-renewal or adverse modification has not had and

would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

Section 5.14. Compliance with Applicable Laws.

(a) Parent and each of its Subsidiaries is, and since January 1, 2015 has been, in compliance with

all Applicable Laws, except for failures to comply that have not had and would not reasonably be expected to

have, individually or in the aggregate, a Parent Material Adverse Effect.

(b) Since January 1, 2015, neither Parent nor any of its Subsidiaries has entered into any

agreement or settlement with any Governmental Authority with respect to any

actual or alleged violation of any Applicable Law, except for agreements and settlements that have not had and

would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Parent

Material Adverse Effect, none of Parent or any of its Subsidiaries is, to the knowledge of Parent, subject to an

ongoing investigation by a Governmental Authority or has received any written notice, citation, suspension,

revocation, limitation, warning, or request for repayment or refund issued by a Governmental Authority which

alleges or asserts that Parent or any of its Subsidiaries has violated any Applicable Laws or which requires or

seeks to adjust, modify or alter Parent’s or any of its Subsidiaries’ operations, activities, services or financial

condition that has not been fully and finally resolved without further liability to Parent and its Subsidiaries.

(including Filings with respect to premium rates, rating plans, policy terms and other terms established or used

by any Subsidiaries of Parent), together with any amendments required to be made with respect thereto, that it

was required to file with any Governmental Authority, including CMS, state insurance departments, state

departments of health, other applicable state Medicaid authorities, and any other agencies with jurisdiction over

CVS Health Corporation PLAN OF MERGER — page 44

the Health Care Programs and including Filings that it was required to file under the Patient Protection and

Affordable Care Act (Pub. L. 111-148) as amended by the Health Care and Education Reconciliation Act of

2010 (Pub. L. 111-152), except where the failure to make such Filings has not had and would not reasonably be

expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

(d) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Parent Material Adverse Effect, Parent and its Subsidiaries have adopted and implemented policies,

procedures or programs reasonably designed to assure that their respective directors, officers, employees,

agents, brokers, producers, contractors, vendors, field marketing organizations, Third Party marketing

organizations and similar entities with which they do business are in compliance with all Applicable Laws.

(e) With respect to participation in Government Sponsored Health Care Programs, except as has

not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material

Adverse Effect, each of the Subsidiaries of Parent that participates in such a Government Sponsored Health Care

Program (i) meets the requirements for participation in, and receipt of payment from, the Government

Sponsored Health Care Programs in which such Subsidiary currently participates and (ii) is a party to one or

more valid agreements with the appropriate Governmental Authority, including CMS or applicable state entities.

(f) Since January 1, 2015, except as has not had and would not reasonably be expected to have,

individually or in the aggregate, a Parent Material Adverse Effect, none of Parent, any of its Subsidiaries, or any

director, officer or employee of Parent or any of its Subsidiaries has been or is currently suspended, excluded or

debarred from contracting with the federal or any state government or from participating in any Government

Sponsored Health Care Program or subject to an investigation or proceeding by any Governmental Authority

that could result in such suspension, exclusion or debarment.

(g) Since January 1, 2015, except as has not had and would not reasonably be expected to have,

individually or in the aggregate, a Parent Material Adverse Effect, none of Parent or any of its Subsidiaries

(i) has been assessed a civil monetary penalty under Section 1128A of the Social Security Act, (ii) has been

excluded from participation in any federal health care program or state health care program (as such terms are

defined by the Social Security Act), (iii) has been convicted of any criminal offense relating to the delivery of

any item or service under a federal health care program or (iv) has been or is a party to or subject to any action

or proceeding concerning any of the matters described in the foregoing clauses (i) through (iii) of this

Section 5.14(g).

Section 5.15. Taxes. Except as has not had and would not reasonably be expected to have,

individually or in the aggregate, a Parent Material Adverse Effect:

(a) All Tax Returns required by Applicable Law to be filed with any Taxing Authority by, or on

behalf of, Parent or any of its Subsidiaries have been filed when due (giving effect to all extensions) in

accordance with all Applicable Law, and all such Tax Returns are true and complete.

(b) Parent and each of its Subsidiaries has paid (or has had paid on its behalf) or has withheld and

remitted to the appropriate Taxing Authority all Taxes due and payable, or (i) where payment is not yet due, has

established (or has had established on its behalf and for its sole benefit and recourse) in accordance with GAAP

an adequate accrual or (ii) where payment is being contested in good faith pursuant to appropriate procedures,

has established (or has had established on its behalf and for its sole benefit and recourse) in accordance with

GAAP an adequate reserve, in each case for all Taxes through the end of the last period for which Parent and its

Subsidiaries ordinarily record items on their respective books and records.

parent through the Tax year ended December 31, 2015 have been examined and closed or are Tax Returns with

respect to which the applicable period for assessment under Applicable Law, after giving effect to extensions or

waivers, has expired, and (ii) neither Parent nor any of its Subsidiaries (or any member of any affiliated,

consolidated, combined or unitary group of which Parent or any of its Subsidiaries is or has been a member) has

granted any extension or waiver of the limitation period applicable to the assessment or collection of any federal

income Tax.

CVS Health Corporation PLAN OF MERGER — page 45

(d) There is no claim, action, suit, proceeding or investigation (including an audit) pending or, to

Parent’s knowledge, threatened in writing against or with respect to Parent or its Subsidiaries in respect of any

Tax or Tax asset.

(e) There are no requests for rulings or determinations in respect of any Tax or Tax asset pending

between Parent or any of its Subsidiaries and any Taxing Authority.

(f) During the two (2)-year period ending on the date of this Agreement, Parent was not a

distributing corporation or a controlled corporation in a transaction purported or intended to be a spin-off

governed by Section 355 or Section 361 of the Code.

(g) There are no Liens for Taxes (other than Permitted Liens) upon any of the assets of Parent or

any of its Subsidiaries.

(h) No claim has been made in writing by any Taxing Authority in a jurisdiction where Parent

and/or Parent’s Subsidiaries do not file Tax Returns that Parent or any of its Subsidiaries is or may be subject to

taxation by, or required to file any Tax Return in, that jurisdiction.

(i) None of Parent or its Subsidiaries has “participated” in a “listed transaction” within the

meaning of Treasury Regulations Section 1.6011-4(b)(2).

(j) Neither Parent nor any of its Subsidiaries (i) has been a member of an affiliated, consolidated,

combined or unitary group other than one of which Parent or any of its Subsidiaries was the common parent,

(ii) is party to any Tax Sharing Agreement (other than any such agreement solely between Parent and its

Subsidiaries), or (iii) has any liability for the Taxes of any Person (other than Parent or any of its Subsidiaries)

under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or non-U.S. law) or any

Tax Sharing Agreement or as a transferee or successor.

Section 5.16. Employees and Employee Benefit Plans.

(a) Neither Parent nor any of its ERISA Affiliates (nor any predecessor of any such entity)

sponsors, maintains, administers or contributes to (or has any obligation to contribute to), or has since January 1,

2011, sponsored, maintained, administered or contributed to (or had any obligation to contribute to), any plan

subject to Title IV of ERISA, including any multiemployer plan, as defined in Section 3(37) of ERISA.

(b) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Parent Material Adverse Effect, each Parent Employee Plan that is intended to be qualified under

Section 401(a) of the Code has received a favorable determination or opinion letter from the Internal Revenue

Service or has applied to the Internal Revenue Service for such a letter within the applicable remedial

amendment period or such period has not expired and, to the knowledge of Parent, no circumstances exist that

would reasonably be expected to result in any such letter being revoked or not being reissued or a penalty under

the Internal Revenue Service Closing Agreement Program if discovered during an Internal Revenue Service

audit or investigation. Except as has not had and would not reasonably be expected to have, individually or in

the aggregate, a Parent Material Adverse Effect, each trust created under any such Parent Employee Plan is

exempt from tax under Section 501(a) of the Code and has been so exempt since its creation.

aggregate, a Parent Material Adverse Effect, since January 1, 2015, each Parent Employee Plan has been

maintained in compliance with its terms and all Applicable Law, including ERISA and the Code. Except as has

not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material

Adverse Effect, no claim (other than routine claims for benefits), action, suit, investigation or proceeding

(including an audit) is pending against or involves or, to Parent’s knowledge, is threatened against or reasonably

expected to involve, any Parent Employee Plan before any court or arbitrator or any Governmental Authority,

including the Internal Revenue Service, the Department of Labor or the PBGC. To the knowledge of Parent,

since January 1, 2015, no events have occurred with respect to any Parent Employee Plan that would reasonably

CVS Health Corporation PLAN OF MERGER — page 46

be expected to result in the assessment of any excise taxes or penalties against Parent or any of its Subsidiaries,

except for events that have not had and would not reasonably be expected to have, individually or in the

aggregate, a Parent Material Adverse Effect.

(d) Neither Parent nor any of its Subsidiaries has any current or projected liability for, and no

Parent Employee Plan provides or promises, any post-employment or post-retirement medical, dental, disability,

hospitalization, life or similar benefits (whether insured or self-insured) to any director, officer, employee or

individual independent contractor (including any former director, officer, employee or individual independent

contractor) of Parent or any of its Subsidiaries (other than coverage mandated by Applicable Law).

(e) There has been no amendment to, written interpretation of or announcement (whether or not

written) by Parent or any of its Affiliates relating to, or making a change in employee participation or coverage

under, any Parent Employee Plan that would materially increase the expense of maintaining such plan above the

level of expense incurred in respect thereof for the fiscal year ended on the Parent Balance Sheet Date, except as

required in order to comply with Applicable Law.

Section 5.17. Labor Matters.

(a) Except as has not had or would not reasonably be expected to have, individually or in the

aggregate, a Parent Material Adverse Effect, Parent and its Subsidiaries are, and since January 1, 2015 have

been, in compliance with all Applicable Laws relating to labor and employment, including those relating to

labor management relations, wages, hours, overtime, employee classification, discrimination, sexual harassment,

civil rights, affirmative action, work authorization, immigration, safety and health, information privacy and

security, workers compensation, continuation coverage under group health plans, wage payment and the

payment and withholding of taxes.

(b) Neither Parent nor any of its Subsidiaries is, or since January 1, 2015 has been, a party to or

subject to, or is currently negotiating in connection with entering into, any collective bargaining agreement, and,

to Parent’s knowledge, there has not been any organizational campaign, card solicitation, petition or other

unionization activity seeking recognition of a collective bargaining unit relating to any director, officer,

employee or individual independent contractor of Parent of any of its Subsidiaries. Except as has not had and

would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect,

there are no unfair labor practice complaints pending or, to Parent’s knowledge, threatened against Parent or any

of its Subsidiaries before the National Labor Relations Board or any other Governmental Authority or any

current union representation questions involving any director, officer, employee or individual independent

contractor (including any former director, officer, employee or individual independent contractor) of Parent or

any of its Subsidiaries with respect to Parent or its Subsidiaries. There is no labor strike, slowdown, stoppage,

picketing, interruption of work or lockout pending or, to Parent’s knowledge, threatened against or affecting

Parent or any of its Subsidiaries.

Section 5.18. Intellectual Property.

(a) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Parent Material Adverse Effect, none of the registrations (including patents and domain name

registrations) and applications for registration for Owned Intellectual Property that is Parent Intellectual

Property (the “Parent Registered IP”) has lapsed, expired, been abandoned or been adjudged invalid or

unenforceable, and, to the knowledge of Parent, all Parent Registered IP is valid, enforceable and subsisting.

(b) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Parent Material Adverse Effect, (i) Parent and its Subsidiaries are the sole and exclusive owners of

all Owned Intellectual Property included in the Parent Intellectual Property and hold all of their right, title and

interest in and to all of the Parent Intellectual Property free and clear of all Liens (other than non-exclusive

licenses granted by Parent or one of its Subsidiaries in the ordinary course of business), (ii) to the knowledge of

Parent, Parent’s Owned Intellectual Property and Parent’s Licensed Intellectual Property constitutes all of the

Intellectual Property necessary to, or used or held for use in, the conduct of the respective businesses of Parent

and its Subsidiaries as currently conducted, and (iii) to the knowledge of Parent, there exist no material

restrictions on the use of any of Parent’s Owned Intellectual Property.

CVS Health Corporation PLAN OF MERGER — page 47

aggregate, a Parent Material Adverse Effect, (i) to the knowledge of Parent, neither Parent nor any of its

Subsidiaries nor the conduct of their respective businesses has infringed, misappropriated, diluted or otherwise

violated any Intellectual Property rights of any Third Party, (ii) there is no claim, action, suit, investigation or

proceeding pending or, to the knowledge of Parent, threatened against or affecting Parent or any of its

Subsidiaries (A) alleging that Parent or any of its Subsidiaries has infringed, misappropriated, diluted or

otherwise violated any Intellectual Property rights of any Third Party or (B) based upon, or challenging or

seeking to deny or restrict, the rights of Parent or any of its Subsidiaries in any of Parent Intellectual Property,

and (iii) to the knowledge of Parent, no Third Party has infringed, misappropriated, diluted or otherwise violated

any Parent Intellectual Property.

(d) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Parent Material Adverse Effect, (i) Parent and its Subsidiaries have provided reasonable notice of

its privacy and personal data collection and use policies on its websites and other customer and public

communications and Parent and its Subsidiaries have complied with such policies and all Applicable Laws

relating to (A) the privacy of the users of Parent’s and its Subsidiaries’ respective products, services and

websites and (B) the collection, use, storage and disclosure of any personally-identifiable information (including

personal health information) and other data or information collected or stored by Parent or any of its

Subsidiaries, (ii) there is no claim, action, suit, investigation or proceeding pending or, to the knowledge of

Parent, threatened against Parent or any of its Subsidiaries alleging any violation of such policies or Applicable

Laws, (iii) neither this Agreement nor the consummation of the

transactions contemplated hereby will violate any such policy, and (iv) Parent and its Subsidiaries have taken

commercially reasonable steps consistent with normal industry practice to protect the types of information

referred to in this Section 5.18(d) against loss and unauthorized access, use, modification, disclosure or other

misuse and, to the knowledge of Parent, there has been no unauthorized access, use, modification, disclosure or

other misuse of such data or information.

(e) Except as has not had and would not reasonably be expected to have, individually or in the

aggregate, a Parent Material Adverse Effect, (i) Parent’s IT Assets operate in accordance with their

specifications and related documentation and perform in a manner that permits Parent and its Subsidiaries to

conduct their respective businesses as currently conducted, (ii) Parent and its Subsidiaries take commercially

reasonable actions, consistent with current industry standards, to protect the confidentiality, integrity and

security of Parent’s IT Assets (and all information and transactions stored or contained therein or transmitted

thereby) against any unauthorized use, access, interruption, modification or corruption, including the

implementation of commercially reasonable data backup, disaster avoidance and recovery procedures and

business continuity procedures, and (iii) there has been no unauthorized use, access, interruption, modification

or corruption of Parent’s IT Assets (or any information or transactions stored or contained therein or transmitted

thereby).

Section 5.19. Environmental Matters. Except as has not had and would not reasonably be expected

to have, individually or in the aggregate, a Parent Material Adverse Effect:

(a) no notice, notification, demand, request for information, citation, summons or order has been

received, no complaint has been filed, no penalty has been assessed, and no claim, action, suit, proceeding or

investigation (including a review) is pending or, to the knowledge of Parent, threatened by any Governmental

Authority or other Person relating to Parent or any of its Subsidiaries that relates to, or arises under, any

Environmental Law, Environmental Permit or Hazardous Substance;

(b) Parent and its Subsidiaries are, and since January 1, 2015 have been, in compliance with all

Environmental Laws and all Environmental Permits and hold all applicable Environmental Permits; and

whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise arising under or

relating to any Environmental Law, Environmental Permit or Hazardous Substance and there is no existing

condition, situation or set of circumstances that could reasonably be expected to result in any such liability or

obligation.

CVS Health Corporation PLAN OF MERGER — page 48

Section 5.20. Antitakeover Statutes. Assuming the representations and warranties set forth in

Sections 4.27 and 4.30 are true and correct, no “control share acquisition,” “fair price,” “moratorium” or other

antitakeover laws enacted under U.S. state or federal laws apply to this Agreement or any of the transactions

contemplated hereby.

Section 5.21. Opinions of Financial Advisors. The Board of Directors of Parent has received

separate opinions of each of Barclays Capital Inc., Goldman Sachs & Co. LLC, and Centerview Partners LLC,

financial advisors to Parent, to the effect that, as of the date of such opinions and based upon and subject to the

limitations, qualifications and assumptions set forth therein, the Merger Consideration to be paid by Parent

pursuant to this Agreement is fair, from a financial point of view, to Parent.

Section 5.22. Finders’ Fees. Except for Barclays Capital Inc., Goldman, Sachs & Co., and

Centerview Partners LLC, there is no investment banker, broker, finder or other intermediary that has been

retained by or is authorized to act on behalf of Parent or any of its Subsidiaries who might be entitled to any fee

or commission from Parent or any of its Affiliates in connection with the transactions contemplated by this

Agreement.

Section 5.23. No Ownership of Company Common Stock. Neither Parent nor any of its

Subsidiaries beneficially owns, directly or indirectly, any shares of Company Common Stock or other securities

convertible into, exchangeable for or exercisable for shares of Company Common Stock, and neither Parent nor

any of its Subsidiaries has any rights to acquire any shares of Company Common Stock (other than any such

securities owned by Parent or any of its Subsidiaries in a fiduciary, representative or other capacity on behalf of

other Persons, whether or not held in a separate account). There are no voting trusts or other agreements or

understandings to which Parent or any of its Subsidiaries is a party with respect to the voting of the capital stock

or other equity interest of the Company or any of its Subsidiaries.

Section 5.24. Financing.

(a) Parent has delivered to the Company a complete and correct copy of a fully executed

commitment letter from the Financing Sources (including all exhibits, schedules, and annexes to such letters as

and to the extent delivered to the Company on or prior to the date of this Agreement, the “Debt Commitment

Letter”), pursuant to which the Financing Sources have committed, upon the terms and subject to the conditions

set forth therein, to provide the debt financing described therein in connection with the transactions

contemplated hereby. The Debt Commitment Letter and any other debt commitment letter (including any

replacement of the Debt Commitment Letter in connection with any Alternative Financing) executed in

accordance with Section 7.06, as replaced, amended, supplemented, modified or waived in accordance with

Section 7.06, including all exhibits, schedules, and annexes to such letters, are hereinafter referred to together as

the “Debt Commitment Letters”. The financing contemplated pursuant to the Debt Commitment Letters is

hereinafter referred to as the “Debt Financing”.

(b) As of the date of this Agreement, the Debt Commitment Letters are in full force and effect and

are legal, valid and binding obligations of Parent, and to the knowledge of Parent, the other parties thereto, and

enforceable in accordance with their respective terms against Parent, and to the knowledge of Parent, each of the

other parties thereto, subject to the Bankruptcy and Equity Exceptions. All commitment fees required to be paid

under the Debt Commitment Letters have been paid in full or will be duly paid in full as and when due, and

Parent and Merger Sub have otherwise satisfied all of the other items and conditions required to be satisfied by

them, and within their control, pursuant to the terms of the Debt Commitment Letters on or prior to the date of

this Agreement. None of the Debt Commitment Letters have

been amended, modified or terminated on or prior to the date of this Agreement, and no Debt Commitment

Letter will be amended, modified or terminated by Parent or Merger Sub except as consistent with Section 7.06.

As of the date of this Agreement, assuming the accuracy of the Company’s representations and warranties set

forth in this Agreement, no event has occurred which, with or without notice, lapse of time or both, would

constitute a breach or default by Parent or Merger Sub under any Debt Commitment Letter. None of Parent or

Merger Sub is, as of the date of this Agreement, aware of any fact, occurrence or condition that makes any of

the representations or warranties of Parent or Merger Sub set forth in any Debt Commitment Letter inaccurate

CVS Health Corporation PLAN OF MERGER — page 49

(assuming the accuracy of the Company’s representations and warranties set forth in this Agreement) in any

material respect, that would cause the commitments provided in the Debt Commitment Letter to be terminated

or ineffective or any of the conditions contained therein not to be met. The consummation of the Debt Financing

is subject to no conditions precedent other than those expressly set forth in the copies of the Debt Commitment

Letters delivered to the Company, and there are no contingencies that would permit the Financing Sources to

reduce the total amount of the Debt Financing other than those expressly set forth in the copies of the Debt

Commitment Letters delivered to the Company. Except for fee letters relating to fees with respect to the Debt

Financing (redacted copies of which, removing only fee amounts, market “flex” provisions and certain other

terms (none of which would adversely affect the amounts, availability, timing or conditionality of the Debt

Financing), have been provided to the Company on or prior to the date of this Agreement) and any engagement

letters or fee discount letters related to the permanent financing referred to in the Debt Commitment Letters,

there are no side letters or other agreements, contracts or arrangements to which Parent or Merger Sub or any of

their respective Affiliates are a party related to the funding of the Debt Financing, other than as expressly set

forth in the Debt Commitment Letters delivered to the Company on or prior to the date of this Agreement. As of

the date of this Agreement, assuming no breach by the Company of its representations and warranties under this

Agreement (and cooperation and assistance by the Company as required by the terms of this Agreement) and no

breach or default by the Company of its obligations under this Agreement (in either case such that the conditions

set forth in Section 9.01 or Section 9.02 would fail to be satisfied), and based upon facts and events known by

Parent as of the date of this Agreement, none of Parent or Merger Sub have any reason to believe that any of the

conditions to the Debt Financing will not be satisfied or that the Debt Financing will not be available to Parent

or Merger Sub as contemplated in the Debt Commitment Letters on or prior to the Closing Date. Subject to the

terms and conditions of the Debt Commitment Letters, the aggregate proceeds of the Debt Financing, together

with cash or cash equivalents held by Parent and the other sources of funds referenced in the copies of the Debt

Commitment Letters delivered to the Company on or prior to the date of this Agreement, as of the Effective

Time, will be sufficient to enable Parent to pay in cash all amounts required to be paid by it in cash in

connection with the transactions contemplated hereby, including the Merger Consideration and all payments,

fees and expenses payable by it related to or arising out of the consummation of the transactions contemplated

by this Agreement.

Section 5.25. No Other Parent Representations and Warranties. Except for the representations and

warranties made by Parent in this Article V (as qualified by the applicable items disclosed in the Parent

Disclosure Schedule in accordance with Section 11.05 and the introduction to this Article V), neither Parent nor

any other Person makes or has made any representation or warranty, expressed or implied, at law or in equity,

with respect to or on behalf of Parent or its Subsidiaries, their businesses, operations, assets, liabilities, financial

condition, results of operations, future operating or financial results, estimates, projections, forecasts, plans or

prospects (including the reasonableness of the assumptions underlying such estimates, projections, forecasts,

plans or prospects) or the accuracy or completeness of any information regarding Parent or its Subsidiaries or

any other matter furnished or provided to the Company or made available to the Company in any “data rooms,”

“virtual data rooms,” management presentations or in any other form in expectation of, or in connection with,

this Agreement or the transactions contemplated hereby. Parent and its Subsidiaries disclaim any other

representations or warranties, whether made by Parent or any of its Subsidiaries or any of their respective

Affiliates or Representatives. Without limiting the generality of the foregoing, except for the representations and

warranties made by Parent in this Article V (as qualified by the applicable items disclosed in the Parent

Disclosure Schedule in accordance with Section 11.05 and the introduction to this Article V), neither Parent nor

any other Person makes or has made any representation or warranty, expressed or implied, at law or in equity,

with respect to or on behalf of Parent or its Subsidiaries with respect to (a) the adequacy or sufficiency of

reserves, (b) the effect of the adequacy or sufficiency of reserves on any line item, asset, liability or equity

amount on any financial or other document, (c) whether or not reserves were determined in accordance with any

actuarial, statutory, regulatory or other standard, or (d) the collectability of any amounts under any reinsurance

Contract. Parent acknowledges and agrees that, except for the representations and warranties made by the

Company in Article IV (as qualified by the applicable items disclosed in the Company Disclosure Schedule in

accordance with Section 11.05 and the introduction to Article IV), neither the Company nor any other Person is

making or has made any representations or warranty, expressed or implied, at law or in equity, with respect to or

on behalf of the Company or its Subsidiaries, their businesses, operations, assets, liabilities, financial condition,

results of operations, future operating or financial results, estimates, projections, forecasts, plans or prospects

(including the reasonableness of the assumptions underlying such estimates, projections, forecasts, plans or

prospects) or the accuracy or completeness of any information regarding the Company or its Subsidiaries or any

CVS Health Corporation PLAN OF MERGER — page 50

other matter furnished or provided to Parent or made available to Parent in any “data rooms,” “virtual data

rooms,” management presentations or in any other form in expectation of, or in connection with, this

Agreement, or the transactions contemplated hereby or thereby. Parent specifically disclaims that it is relying

upon or has relied upon any such other representations or warranties that may have been made by any Person,

and acknowledges and agrees that the Company and its Affiliates have specifically disclaimed and do hereby

specifically disclaim any such other representations and warranties. Notwithstanding the foregoing, this

Section 5.25 shall not limit Parent’s, Merger Sub’s or the Company’s remedies in the case of fraud.

ARTICLE VI

COVENANTS OF THE COMPANY

The Company agrees that:

Section 6.01. Conduct of the Company. From the date of this Agreement until the earlier of the

Effective Time and the termination of this Agreement, except (x) as prohibited or required by Applicable Law,

(y) as set forth in Section 6.01 of the Company Disclosure Schedule, or (z) as otherwise required or expressly

contemplated by this Agreement, unless Parent shall otherwise consent (which consent shall not be

unreasonably withheld,

conditioned or delayed), the Company shall, and shall cause each of its Subsidiaries to, conduct its business in

the ordinary course of business consistent with past practice and use its commercially reasonable efforts to

preserve intact its business organization and relationships with customers, members, suppliers, Providers,

licensors, licensees and other Third Parties and keep available the services of its present officers and employees;

provided

that (i) no action by the Company or any of its Subsidiaries permitted by an exception to any of

Section 6.01(a) through Section 6.01(q) will be a breach of this sentence and (ii) the Company’s or any of its

Subsidiaries’ failure to take any action prohibited by any of Section 6.01(a) through Section 6.01(q) will not be

a breach of this sentence. Without limiting the generality of the foregoing, except (x) as prohibited or required

by Applicable Law, (y) as set forth in Section 6.01 of the Company Disclosure Schedule, or (z) as otherwise

required or expressly contemplated by this Agreement, without Parent’s prior written consent (which consent

shall not be unreasonably withheld, conditioned or delayed (other than with respect to Section 6.01(a),

Section 6.01(c) or Section 6.01(d)), the Company shall not, and shall cause each of its Subsidiaries not to:

(a) adopt or propose any change to its articles of incorporation, bylaws or other organizational

documents (whether by merger, consolidation or otherwise) (including the Company Organizational

Documents);

(b) (i) merge or consolidate with any other Person, (ii) acquire (including by merger,

consolidation, or acquisition of stock or assets) any interest in any corporation, partnership, other business

organization or any division thereof or any assets, securities or property, other than (A) acquisitions of assets,

securities or property in an amount not to exceed $100,000,000 individually or $200,000,000 in the aggregate

for all such acquisitions taking into account the acquisitions listed on Section 6.01(b) of the Company

Disclosure Schedule, together with all capital contributions permitted by Section 6.01(h)(i)(B), (B) acquisitions

of securities under the Company’s investment portfolio consistent with the Company’s investment policy in

effect as of the date hereof and (C) transactions (1) solely among the Company and one or more of its wholly

owned Subsidiaries or (2) solely among the Company’s wholly owned Subsidiaries, or (iii) adopt a plan of

complete or partial liquidation, dissolution, recapitalization or restructuring;

among the Company and one or more of its wholly owned Subsidiaries or (2) solely among the Company’s

wholly owned Subsidiaries), (ii) amend any term or alter any rights of any of its outstanding equity securities,

(iii) declare, set aside or pay any dividend or make any other distribution (whether in cash, stock, property or

any combination thereof) in respect of any shares of its capital stock or other securities, other than (A) in the

case of the Company, regular cash dividends in the ordinary course of business consistent with past practice in

an amount not to exceed $0.50 per share of Company Common Stock per quarter (appropriately adjusted to

reflect any stock dividends, subdivisions, splits, combinations or other similar events relating to Company

Common Stock), or (B) dividends or distributions by a Subsidiary of the Company to the Company or a wholly

CVS Health Corporation PLAN OF MERGER — page 51

owned Subsidiary of the Company, or (iv) redeem, repurchase, cancel or otherwise acquire or offer to redeem,

repurchase, or otherwise acquire any of its securities or any securities of any Subsidiary of the Company, other

than repurchases of shares of Company Common Stock in connection with the exercise of

Company Stock Appreciation Rights or the vesting or settlement of Company RSU Awards or Company PSU

Awards (including in satisfaction of any amounts required to be deducted or withheld under Applicable Law), in

each case outstanding as of the date of this Agreement in accordance with the present terms of such Company

Equity Awards or granted after the date of this Agreement to the extent permitted by this Agreement;

(d) issue, deliver or sell, or authorize the issuance, delivery or sale of, any shares of its capital

stock or any securities convertible into or exercisable for, or any rights, warrants or options to acquire, any such

capital stock or any such convertible securities, other than (i) the issuance of any shares of Company Common

Stock upon the exercise of Company Stock Appreciation Rights or the vesting or settlement of Company RSU

Awards or Company PSU Awards, in each case outstanding as of the date of this Agreement in accordance with

the present terms of such Company Equity Awards or granted after the date of this Agreement to the extent

permitted by this Agreement, (ii) in connection with the exercise of rights to purchase shares of Company

Common Stock under the Company ESPP in the Company ESPP Offering Period as permitted by

Section 2.06(d), (iii) with respect to capital stock or securities of any Subsidiary of the Company, in connection

with transactions (A) solely among the Company and one or more of its wholly owned Subsidiaries or (B) solely

among the Company’s wholly owned Subsidiaries, (iv) the grant of Company Equity Awards to employees of

the Company or any of its Subsidiaries in connection with the Company’s annual equity award grant procedures

or in connection with promotions or new hires, in each case, conducted in the ordinary course of business and

consistent with past practice, including with respect to timing;

provided

that any such grants issued under this

clause (iv) shall be subject to the limitations set forth in Section 6.01(d)(iv) of the Company Disclosure

Schedule, or (v) the grant of Company Equity Awards to non-employee directors in the ordinary course of

business, consistent with past practice;

(e) authorize, make or incur any capital expenditures or obligations or liabilities in connection

therewith, other than as set forth in Section 6.01(e) of the Company Disclosure Schedule;

(f) sell, lease, license or otherwise dispose of any Subsidiary or any division thereof or of the

Company or any assets, securities or property, other than (i) in the ordinary course of business consistent with

past practice for fair market value in an amount not to exceed $30,000,000 in the aggregate, (ii) dispositions of

securities under the Company’s investment portfolio consistent with the Company’s investment policy in effect

as of the date hereof, or (iii) transactions (A) solely among the Company and one or more of its wholly owned

Subsidiaries or (B) solely among the Company’s wholly owned Subsidiaries;

(g) sell, assign, license, sublicense, abandon, allow to lapse, transfer or otherwise dispose of, or

create or incur any Lien (other than a Permitted Lien) on, any Owned Intellectual Property or Licensed

Intellectual Property, other than in the ordinary course of business consistent with past practice (i) pursuant to

non-exclusive licenses or (ii) for the purpose of disposing of obsolete or worthless assets;

(h) (i) make any material loans, advances or capital contributions to any other Person, other than

(A) loans, advances or capital contributions (1) by the Company to one or

more of its wholly owned Subsidiaries or (2) by any Subsidiary of the Company to the Company or any wholly

owned Subsidiary of the Company, (B) capital contributions required under the terms of Contracts in effect as of

the date hereof in an amount not to exceed $200,000,000 in the aggregate for all such capital contributions,

together with all acquisitions permitted by Section 6.01(b)(ii)(A), (C) extensions of loans or advances to

Providers in the ordinary course of business consistent with past practice or (D) extensions of loans or advances

to business associates other than Providers in the ordinary course of business consistent with past practice, so

long as the amount of such loans and advances to business associates other than Providers outstanding at any

time does not exceed $20,000,000 in the aggregate (it being understood and agreed that upon repayment of any

loan or advance permitted by this clause (D), the amount of such repayment shall be available for future loans or

advances pursuant to this clause (D), subject to the foregoing restriction on the aggregate amount of all such

loans or advances that may be outstanding at any time) or (ii) incur, assume, guarantee or repurchase any

CVS Health Corporation PLAN OF MERGER — page 52

indebtedness for borrowed money, other than additional borrowings under the facilities set forth in

Section 6.01(h) of the Company Disclosure Schedule (

provided

that all such indebtedness for borrowed money

permitted to be incurred in this clause (ii) must be prepayable at any time by the Company without penalty);

(i) create or incur any Lien (except for a Permitted Lien) on any material asset;

(j) (i) enter into any Company Material Contract (including by amendment of any Contract that is

not a Company Material Contract such that such Contract becomes a Company Material Contract), other than in

the ordinary course of business consistent with past practice (except that no Company Material Contract

pursuant to clause (vii) of Section 4.18(a) shall be entered into), or (ii) terminate, renew, extend or amend in any

material respect any Company Material Contract or waive any material right thereunder, other than in the

ordinary course of business consistent with past practice;

(k) terminate, suspend, abrogate, amend or modify (i) any certificate of authority to conduct

business as an insurance company or health maintenance organization issued by the applicable insurance or

health regulatory Governmental Authority or (ii) any other material Company Permit, in each case of (i) and (ii)

in a manner material and adverse to the Company and its Subsidiaries, taken as a whole;

(l) except as required by Applicable Law or Company Employee Plans or other contracts as in

effect as of the date hereof, (i) grant any change in control, severance or termination pay to (or amend any

existing arrangement with) any of their respective directors, officers, employees or individual independent

contractors (including former directors, officers, employees or individual independent contractors) other than

severance or termination pay in the ordinary course of business consistent with past practice for terminated

employees in exchange for a general release of claims or other customary covenants, (ii) enter into any

employment, deferred compensation or other similar agreement (or any amendment to any such existing

agreement) with any of their respective current or former directors, executive officers (as defined in the 1934

Act), employees or individual independent contractors, other than offer letters (and related compensation

arrangements set forth in such offer letters) with any newly hired directors, employees or individual independent

contractors of the Company who are not considered to be

executive officers (as defined in the 1934 Act) and who are not members of the executive leadership team that

are entered into in the ordinary course of business consistent with past practice, (iii) establish, adopt or amend

any Company Employee Plan or labor agreement, other than in the ordinary course of business consistent with

past practice (

provided

, for the avoidance of doubt, that this clause (iii) shall not prohibit the Company from

paying cash incentive awards for any fiscal years of the Company ending prior to the Closing and establishing

cash incentive program terms for any fiscal years of the Company commencing prior to the Closing under its

existing incentive plans and arrangements in the ordinary course of business consistent with past practice,

subject to the limitations set forth in clause (iv) below) or any immaterial amendment that would not increase

the cost to the Company or any of its Subsidiaries of maintaining such Company Employee Plan, or (iv) increase

the compensation, bonus opportunity or other benefits payable to any of their respective directors, officers,

employees or individual independent contractors (including former directors, officers, employees or individual

independent contractors), other than (A) increases in base compensation and bonus opportunity to current

directors, individual independent contractors or employees who are not considered to be executive officers (as

defined in the 1934 Act) and who are not members of the executive leadership team in the ordinary course of

business (1) consistent with past practice or (2) in connection with a promotion or change in role (it being

understood that the amount of bonus actually paid may be higher or lower than prior years based on actual

performance and such payment shall not be considered an increase) and (B) increases in employee welfare

benefits in the ordinary course of business consistent with past practice for employees generally;

provided

that

any such base compensation increases shall not in the aggregate exceed 3.0% of the aggregate base

compensation levels as of the date hereof of the Company’s directors and employees who are not considered to

be executive officers (as defined in the 1934 Act) and who are not members of the executive leadership team

(with those base salary increases previously disclosed to Parent, which were approved in the ordinary course of

business consistent with past practice prior to the date hereof but are not yet effective as of the date hereof, to be

excluded from being counted against such limitation);

(m) make any material change in any method of financial or statutory accounting or financial or

statutory accounting principles or practice, except for any such change required by reason of (or, in the

CVS Health Corporation PLAN OF MERGER — page 53

reasonable good-faith judgment of the Company, advisable under) a change in GAAP, SAP, ASOP or

Regulation S-X under the 1934 Act (“Regulation S-X”), as approved by its independent public accountants;

(n) make any material change in investment, hedging, underwriting or claims administration

principles or practices or in methodologies for estimating and providing for medical costs and other liabilities, in

each case with respect to the Company or any of its “significant subsidiaries” (as defined in Rule 102(w) of

Regulation S-X), except, to the extent applicable, for any such changes required by reason of a change in

GAAP, SAP, ASOP or Regulation S-X, as approved by its independent public accountants;

(o) (i) make or change any material Tax election; (ii) change any annual Tax accounting period;

(iii) adopt or change any material method of Tax accounting; (iv) enter into any material closing agreement with

respect to Taxes; (v) settle or surrender any material Tax claim, audit or assessment; or (vi) enter into any

intercompany transaction within the meaning of Treasury Regulations Section 1.1502-13 that (x) is outside the

ordinary course of business and (y) results in a material amount of deferred income or gain that would be taken

into account pursuant to Treasury Regulations Section 1.1502-13(d) as a result of the Merger;

(p) settle or compromise, or propose to settle or compromise, any claim, action, suit, investigation

or proceeding involving or against the Company or any of its Subsidiaries, other than (i) in the ordinary course

of business consistent with past practice, including in connection with the processing and paying of claims to

members or Providers or risk sharing arrangements with Providers (

provided

that any individual settlement or

compromise or any series of related settlements or compromises involving payments by the Company and its

Subsidiaries in excess of $25,000,000, other than any such settlements or compromises with Providers that do

not relate to sequestration matters, shall not be deemed to be in the ordinary course of business), or (ii) involving

only a monetary payment by the Company or any of its Subsidiaries in an amount not to exceed $10,000,000

individually or $30,000,000 in the aggregate;

(q) reduce in any material respect the budget or scope of the Company’s and its Subsidiaries’

program for, or otherwise reduce in any material respect the resources or efforts specifically dedicated by the

Company and its Subsidiaries to, the maintenance and improvement of their respective Medicare star ratings; or

(r) agree, commit or propose to do any of the foregoing.

Section 6.02. No Solicitation by the Company.

(a) From the date of this Agreement until the earlier of the Effective Time and the termination of

this Agreement, except as otherwise set forth in this Section 6.02, the Company shall not, and shall cause its

Subsidiaries not to, and shall use its reasonable best efforts to cause its and its Subsidiaries’ officers, directors,

employees, investment bankers, attorneys, accountants, consultants and other agents, advisors and

representatives (collectively, “Representatives”) not to, directly or indirectly, (i) solicit, initiate or take any

action to knowingly facilitate or knowingly encourage the submission of any Company Acquisition Proposal,

(ii) enter into or participate in any discussions or negotiations with, furnish any information relating to the

Company or any of its Subsidiaries or afford access to the business, properties, assets, books or records of the

Company or any of its Subsidiaries to, otherwise cooperate in any way with, or knowingly assist, participate in,

knowingly facilitate or knowingly encourage any effort by, any Third Party that the Company knows is seeking

to make, or has made, a Company Acquisition Proposal, (iii) (A) fail to make or withdraw or qualify, amend or

modify in any manner adverse to Parent, the Company Board Recommendation, (B) fail to include the Company

Board Recommendation in the Joint Proxy Statement/Prospectus or (C) recommend, adopt or approve or

publicly propose to recommend, adopt or approve any Company Acquisition Proposal (any of the foregoing in

this clause (iii), a “Company Adverse Recommendation Change”), (iv) take any action to make any

“moratorium,” “control share acquisition,” “fair price,” “supermajority,” “affiliate transactions” or “business

combination statute or regulation” or other similar anti-takeover laws and regulations of the Commonwealth of

Pennsylvania, including Subchapter F of Chapter 25 of Pennsylvania Law, inapplicable to any Third Party or

any Company Acquisition Proposal or (v) fail to enforce or grant any waiver or release under any standstill or

similar agreement with respect to any class of equity securities of

CVS Health Corporation PLAN OF MERGER — page 54

the Company or any of its Subsidiaries unless the Board of Directors of the Company determines after

consulting with its outside legal counsel that the failure to waive such provision would be inconsistent with its

fiduciary duties under Applicable Law (

provided

that the obligation not to fail to enforce any such standstill or

similar agreement under this Section 6.02(a)(v) shall apply with respect to known breaches of such agreements

only).

(b) Notwithstanding the foregoing, if at any time prior to the receipt of the Company Shareholder

Approval (the “Company Approval Time”) (and in no event after the Company Approval Time), the Board of

Directors of the Company receives a

bona fide

written Company Acquisition Proposal made after the date

hereof which has not resulted from a violation of this Section 6.02, the Board of Directors of the Company,

directly or indirectly through its Representatives, may (x) contact the Third Party that has made such Company

Acquisition Proposal in order to ascertain facts or clarify terms for the sole purpose of the Board of Directors of

the Company informing itself about such Company Acquisition Proposal and such Third Party and (y) subject to

compliance with this Section 6.02(b), Section 6.02(c) and Section 6.02(e), (i) engage in negotiations or

discussions with any Third Party that, subject to the Company’s compliance with Section 6.02(a), has made after

the date of this Agreement a Company Superior Proposal or an unsolicited

bona fide

written Company

Acquisition Proposal that the Board of Directors of the Company determines in good faith, after consultation

with its financial advisor and outside legal counsel, is reasonably likely to lead to a Company Superior Proposal,

(ii) furnish to such Third Party and its Representatives and financing sources nonpublic information relating to

the Company or any of its Subsidiaries pursuant to (x) a confidentiality agreement between the Company and

such Third Party in existence on or prior to the date hereof or (y) a confidentiality agreement with

confidentiality terms in the aggregate no less favorable to the Company than those contained in the

Confidentiality Agreement, a copy of which shall be provided, promptly after its execution, to Parent for

informational purposes;

provided

that all such non-public information (to the extent that such information has

not been previously provided or made available to Parent) is provided or made available to Parent, as the case

may be, substantially concurrently with the time it is provided or made available to such Third Party, and

(iii) following receipt of a Company Superior Proposal after the date of this Agreement, (A) make a Company

Adverse Recommendation Change and/or (B) terminate this Agreement to enter into a definitive agreement

providing for such Company Superior Proposal in accordance with Section 10.01(d)(v), but in each case referred

to in the foregoing clauses (i) through (iii) only if the Board of Directors of the Company determines in good

faith, after consultation with the Company’s outside legal counsel and financial advisor, that the failure to take

such action would be reasonably likely to be inconsistent with its fiduciary duties under Applicable Law.

Nothing contained herein shall prevent the Board of Directors of the Company from (x) complying with Rule

14e-2(a) under the 1934 Act with regard to a Company Acquisition Proposal, so long as any action taken or

statement made to so comply is consistent with this Section 6.02; or (y) making any required disclosure to the

shareholders of the Company if the Board of Directors of the Company determines in good faith, after

consultation with its outside legal counsel, that the failure to take such action would be reasonably likely to be

inconsistent with Applicable Law;

provided

that any Company Adverse Recommendation Change involving or

relating to a Company Acquisition Proposal may only be made in accordance with the provisions of this

Section 6.02(b), Section 6.02(c) and Section 6.02(e). For the avoidance of doubt, a “stop, look and listen”

disclosure or similar communication of the type contemplated by Rule 14d-9(f) under the 1934 Act shall not be

a Company Adverse Recommendation Change.

Company shall not take any of the actions referred to in clauses (i) through (iii) of Section 6.02(b) unless the

Company shall have first delivered to Parent written notice advising Parent that the Company intends to take

such action, and the Company shall continue to advise Parent, on a current basis, after taking such action of the

status and material terms of any discussions and negotiations with the applicable Third Party. In addition, the

Company shall notify Parent promptly (but in no event later than twenty-four (24) hours) after receipt by the

Company (or any of its Representatives) of any Company Acquisition Proposal, any indication that a Third

Party is considering making a Company Acquisition Proposal or any request for information relating to the

Company or any of its Subsidiaries or for access to the business, properties, assets, books or records of the

Company or any of its Subsidiaries by any Third Party that, to the knowledge of the Company or any member of

its Board of Directors, is considering making, is reasonably likely to make or has made, a Company Acquisition

Proposal, which notice shall be provided in writing and shall identify the Third Party making, and the material

terms and conditions of, any such Company Acquisition Proposal, indication or request (including any material

changes thereto). The Company shall keep Parent fully informed, on a current basis, of the status and details of

any such Company Acquisition Proposal, indication or request (including any changes thereto) and shall

CVS Health Corporation PLAN OF MERGER — page 55

promptly (but in no event later than twenty-four (24) hours after receipt) provide to Parent copies of all material

correspondence and written materials sent or provided to the Company or any of its Subsidiaries that describes

any terms or conditions of any Company Acquisition Proposal (as well as written summaries of any material

oral communications addressing such matters).

(d) Notwithstanding anything in this Agreement to the contrary, at any time prior to the Company

Approval Time (and in no event after the Company Approval Time), the Board of Directors of the Company

may effect a Company Adverse Recommendation Change involving or relating to a Company Intervening Event

if the Board of Directors of the Company determines in good faith, after consultation with its outside legal

counsel, that the failure to take such action would be reasonably likely to be inconsistent with its fiduciary duties

under Applicable Law;

provided

that (i) the Company shall (A) promptly notify Parent in writing of its intention

to take such action and (B) negotiate in good faith with Parent for three (3) Business Days following such notice

regarding revisions to the terms of this Agreement proposed by Parent, and (ii) the Board of Directors of the

Company shall not effect any Company Adverse Recommendation Change involving or relating to a Company

Intervening Event unless, after the three (3) Business Day period described in the foregoing clause (B), the

Board of Directors of the Company determines in good faith, after consultation with its outside legal counsel,

that the failure to take such action would be reasonably likely to be inconsistent with its fiduciary duties under

Applicable Law.

(e) Without limiting or affecting Section 6.02(a), Section 6.02(b) or Section 6.02(c), the Board of

Directors of the Company shall not make a Company Adverse Recommendation Change involving or relating to

a Company Superior Proposal or terminate this Agreement in order to enter into a definitive agreement with

respect to a Company Superior Proposal unless (i) the Company promptly notifies Parent, in writing at least

three (3) Business Days before taking such action, that the Company intends to take such action, which notice

attaches the most current version of any proposed agreement or a detailed summary of all material terms of such

Company Superior Proposal and the identity of the offeror, (ii) if

requested by Parent, during such three (3) Business Day period, the Company and its Representatives have

discussed and negotiated in good faith with Parent regarding any proposal by Parent to amend the terms of this

Agreement in response to such Company Superior Proposal and (iii) after such three (3) Business Day period,

the Board of Directors of the Company determines in good faith, taking into account any proposal by Parent to

amend the terms of this Agreement, that such Company Acquisition Proposal continues to constitute a Company

Superior Proposal (it being understood and agreed that in the event of any amendment to the financial terms or

other material terms of any such Company Superior Proposal, a new written notification from the Company

consistent with that described in clause (i) of this Section 6.02(e) shall be required, and a new notice period

under clause (i) of this Section 6.02(e) shall commence, during which notice period the Company shall be

required to comply with the requirements of this Section 6.02(e) anew, except that such new notice period shall

be for two (2) Business Days (as opposed to three (3) Business Days)). After delivery of such written notice

pursuant to the immediately preceding sentence, the Company shall promptly keep Parent informed of all

material developments affecting the material terms of any such Company Superior Proposal (and the Company

shall provide Parent with copies of any additional written materials received that relate to such Company

Superior Proposal).

(f) “Company Superior Proposal” means any

bona fide

, written Company Acquisition Proposal

(other than a Company Acquisition Proposal which has resulted from a violation of this Section 6.02) (with all

references to “20%” in the definition of Company Acquisition Proposal being deemed to be references to

“50%”) on terms that the Board of Directors of the Company determines in good faith, after consultation with its

financial advisor and outside legal counsel, and taking into account all the terms and conditions of the Company

Acquisition Proposal that the Board of Directors of the Company considers to be appropriate (including the

identity of the Person making the Company Acquisition Proposal and the expected timing and likelihood of

consummation, any governmental or other approval requirements (including divestitures and entry into other

commitments and limitations), break-up fees, expense reimbursement provisions, conditions to consummation

and availability of necessary financing), would result in a transaction (i) that, if consummated, is more favorable

to the Company’s shareholders from a financial point of view than the Merger (taking into account any proposal

by Parent to amend the terms of this Agreement), (ii) that is reasonably capable of being completed on the terms

proposed, taking into account the identity of the Person making the Company Acquisition Proposal, any

approval requirements and all other financial, regulatory, legal and other aspects of such Company Acquisition

Proposal and (iii) for which financing, if a cash transaction (whether in whole or in part), is then fully committed

CVS Health Corporation PLAN OF MERGER — page 56

in a manner comparable to Parent’s and Merger Sub’s financing (or which is reasonably determined to be

available by the Board of Directors of the Company).

(g) “Company Intervening Event” means any material event, change, effect, development or

occurrence occurring or arising after the date of this Agreement that (i) was not known or reasonably

foreseeable, or the material consequences of which were not known or reasonably foreseeable, in each case to

the Board of Directors or executive officers of the Company as of or prior to the date of this Agreement, and

(ii) does not relate to or involve any Company Acquisition Proposal;

provided

that (A) in no event shall any

action taken by either party pursuant to the affirmative covenants set forth in Section 8.02, or the consequences

of any such action, constitute, be deemed to contribute to or otherwise be taken into account in

determining whether there has been a Company Intervening Event, and (B) in no event shall any event, change,

effect, development or occurrence that would fall within any of the exceptions to the definition of “Parent

Material Adverse Effect” constitute, be deemed to contribute to or otherwise be taken into account in

determining whether there has been a Company Intervening Event.

(h) The Company shall, and shall cause its Subsidiaries to, and shall use its reasonable best efforts

to cause its and its Subsidiaries’ respective Representatives to, cease immediately and cause to be terminated

any and all existing activities, discussions or negotiations, if any, with any Third Party conducted prior to the

date of this Agreement with respect to any Company Acquisition Proposal and shall use its reasonable best

efforts to cause any such party (or its agents or advisors) in possession of confidential information about the

Company that was furnished by or on behalf of the Company to return or destroy all such information.

(i) Notwithstanding (i) any Company Adverse Recommendation Change, (ii) the making of any

Company Acquisition Proposal or (iii) anything in this Agreement to the contrary, until termination of this

Agreement (x) in no event may the Company or any of its Subsidiaries (A) enter into any agreement in

principle, letter of intent, term sheet, merger agreement, acquisition agreement, option agreement, joint venture

agreement, partnership agreement or other similar instrument constituting or relating to a Company Acquisition

Proposal (other than a confidentiality agreement), (B) except as required by Applicable Law or permitted

pursuant to the remainder of this Section 6.02, make, facilitate or provide information in connection with any

SEC or other Filings in connection with the transactions contemplated by any Company Acquisition Proposal or

and (y) the Company shall otherwise remain subject to all of its obligations under this Agreement.

Section 6.03. Financing Assistance.

(a) Prior to the Closing, the Company shall, and shall cause its Subsidiaries to use its and their

commercially reasonable efforts to provide such cooperation as may be reasonably requested by Parent in

connection with the arrangement of the Debt Financing (which term shall include, for purposes of this

Section 6.03(a), any of the permanent financing referred to in the Debt Commitment Letters) (

provided

that such

requested cooperation does not unreasonably interfere with the ongoing operations of the Company and its

Subsidiaries). Without limiting the generality of the foregoing sentence, prior to the Closing, the Company shall,

and shall cause its Subsidiaries to use its and their commercially reasonable efforts to: (i) as promptly as

reasonably practicable provide information (financial or otherwise) relating to the Company to Parent and to the

Financing Sources (including information to be used in the preparation of an information package regarding the

business, operations, financial condition, financial projections and prospects of Parent and the Company

customary or reasonably necessary for the completion of such financing) to the extent reasonably requested by

Parent in connection with Parent’s preparation of customary offering or information documents to be used for

the completion of the Debt Financing, (ii) cooperate and assist with the due diligence, rating agency processes

and marketing efforts of Parent, its Representatives and the Financing Sources, including participating in a

reasonable number of meetings, due diligence sessions and road

shows, at times and at locations reasonably acceptable to the Company, (iii) reasonably assist Parent in

preparing customary offering memoranda, rating agency presentations, lender and investor presentations,

confidential information memoranda, financial statements, private placement memoranda, prospectuses, filings

with the SEC and other similar documents, including delivery and consenting to the inclusion or incorporation

CVS Health Corporation PLAN OF MERGER — page 57

in any SEC filing related to the Debt Financing or the Alternative Financing of (A) audited consolidated balance

sheets and related audited statements of income, comprehensive income, shareholders’ equity and cash flows of

the Company for each of the three fiscal years most recently ended more than 60 days prior to the Closing Date

(and audit reports for such financial statements shall not be subject to any “going concern” qualifications),

(B) unaudited consolidated balance sheets and related unaudited statements of income, comprehensive income,

shareholders’ equity and cash flows of the Company for each subsequent fiscal quarter ended more than 40 days

prior to the Closing Date and (C) all other historical financial and other information regarding the Company

reasonably necessary to permit Parent to prepare pro forma financial statements customary for the bank

financing and the debt securities offering contemplated by the Debt Financing or the Alternative Financing,

(iv) make available, on a customary and reasonable basis and upon reasonable notice, appropriate personnel,

including Representatives of the Company and its Subsidiaries, documents and information relating to the

Company and its Subsidiaries, in each case, as may be reasonably requested by Parent, the Financing Sources,

or as may be requested by the SEC in connection with the completion of the financing, (v) provide to Parent and

the Financing Sources promptly, and in any event at least five (5) Business Days prior to the Closing Date, all

documentation and other information about the Company and its Affiliates required by the Financing Sources or

regulatory authorities with respect to the Debt Financing under applicable “know your customer” and anti-

money laundering rules and regulations, including the PATRIOT Act, that is required under the Debt

Commitment Letters to the extent such documentation and other information is requested in writing to the

Company at least 10 Business Days prior to the Closing Date, (vi) obtain any necessary consents from the

Company’s independent public accounting firm in connection with any filings with the SEC, (vii) in connection

with any securities offering contemplated as part of the Debt Financing or the Alternative Financing, (A) obtain

customary comfort letters from the Company’s independent public accounting firm, (B) cause the Company’s

independent public accounting firm to consent to the inclusion or incorporation of their audit reports with

respect to the financial statements of the Company provided pursuant to Section 6.03(a)(iii) in any filing or

registration statement of Parent with the SEC or any prospectus, offering memoranda, private placement

memoranda, marketing material or similar documentation, including by providing customary representation

letters and (C) cause the Company’s independent public accounting firm to cooperate with Parent and its

Representatives, including by participating in accounting due diligence sessions at times and at locations

reasonably acceptable to the Company and its independent accounting firm, (viii) subject to customary

confidentiality provisions, provide customary authorization letters to the Financing Sources authorizing the

distribution of information to prospective lenders or investors, (ix) deliver notices of prepayment and/or notices

for termination of commitments within the time periods required by the Credit Agreement and obtain customary

payoff letters and instruments of discharge to be delivered at Closing to allow for the payoff, discharge and

termination in full on the Closing Date of the Credit Agreement, (x) reasonably assist with the preparation of the

definitive documentation for the Debt Financing, including by providing information reasonably necessary for

the completion of any schedules thereto, in each case to the

extent, and solely to the extent, such materials relate to information concerning the Company and its

Subsidiaries, (xi) provide or cause to be provided any customary certificates, or other customary closing

documents as may reasonably be requested in connection with the Debt Financing and the Alternative Financing

and (xii) consent to the use of the trademarks, service marks and logos of the Company or any of its Subsidiaries

in connection with the Debt Financing;

provided

that such trademarks, service marks and logos are used solely

in a manner that is not intended to or is reasonably likely to harm or disparage the Company or any of its

Subsidiaries. Notwithstanding the foregoing, (1) neither the Company nor any of its Subsidiaries shall be

required to pay any commitment or other similar fee or incur prior to the Closing any other liability or obligation

in connection with the Debt Financing, unless Parent reimburses or is required to reimburse or indemnify the

Company and its Subsidiaries pursuant to this Agreement or otherwise agrees to do so, (2) none of the

Company, its Subsidiaries or their respective officers, directors or employees shall be required to execute or

enter into or perform any agreement with respect to the Debt Financing that is not contingent upon the Closing

occurring or that would be effective prior to the Closing (other than authorization letters contemplated by clause

(viii) of this Section 6.03(a) and for the avoidance of doubt, the boards of directors or other equivalent

governing bodies of Parent, Merger Sub, and/or the Surviving Corporation shall enter into or provide any

resolutions, consents, approvals or other closing arrangements on behalf of the Company and its Subsidiaries as

may be required by the Financing Sources pursuant to the Debt Commitment Letter at, or as of, the Closing),

and (3) nothing shall obligate the Company or any of its Subsidiaries to provide, or cause to be provided, any

legal opinion by its counsel, or to provide, or cause to be provided, any information or take, or cause to be taken,

any action to the extent it would reasonably be expected, in the reasonable judgment of the Company, to result

in a violation of Applicable Law or loss of any privilege.

CVS Health Corporation PLAN OF MERGER — page 58

(b) Parent shall, promptly upon written request by the Company, reimburse the Company for all

reasonable and documented out-of-pocket costs and expenses (including reasonable attorneys’ fees) incurred by

the Company or any of its Subsidiaries in satisfying its obligations under this Section 6.03. Parent and Merger

Sub shall, on a joint and several basis, indemnify and hold harmless the Company and its Subsidiaries and their

respective Representatives from and against any and all losses, claims, damages, liabilities, costs, reasonable

attorneys’ fees, judgments, fines, penalties and amounts paid in settlement (including all interest, assessments

and other charges paid or payable in connection with or in respect of any thereof) suffered or incurred in

connection with any action taken by the Company, any of its Subsidiaries or any of their respective

Representatives pursuant to this Section 6.03 (other than the use of any information provided by the Company,

any of its Subsidiaries or any of their respective Representatives in writing for use in connection with the Debt

Financing), except in the event such losses, claims, damages, liabilities, costs, reasonable attorneys’ fees,

judgments, fines, penalties and amounts paid in settlement are determined by a final non-appealable judgment of

a court of competent jurisdiction to have arisen out of, or resulted from, the gross negligence or willful

misconduct of the Company, any of its Subsidiaries or any of their respective Representatives.

Section 6.04. Indentures. The Company shall use its reasonable best efforts to timely provide or

cause to be provided, in accordance with the provisions of the Company’s indenture, dated March 2, 2001 (the

“2001 Indenture”), relating to the Company’s Floating Rate Senior Notes due December 2017, 1.7% Senior

Notes due June 2018, 2.2% Senior Notes due

March 2019, 4.125% Senior Notes due June 2021, 2.75% Senior Notes due November 2022, 2.8% Senior Notes

due June 2023, 3.5% Senior Notes due November 2024, 6.625% Senior Notes due June 2036, 6.75% Senior

Notes due December 2037, 4.5% Senior Notes due May 2042, 4.125% Senior Notes due November 2042,

4.75% Senior Notes due March 2044 and 3.875% Senior Notes due June 2047 (collectively, the “Company

Notes”) and the provisions of the indenture, dated as of March 20, 2007 (the “2007 Indenture”, and together

with the 2001 Indenture, the “Indentures”), entered into by Coventry Health Care, Inc., a subsidiary of the

Company, for the issuance by it of 5.45% Senior Notes due June 2021 (together with the Company Notes, the

“Existing Notes”), to the trustee under each of the Indentures, any notices, announcements, certificates or legal

opinions required by the applicable Indenture to be provided in connection with the Merger prior to the

Effective Time. Parent and its counsel shall be given a reasonable opportunity to review and comment on any

such notice, announcement, certificate or legal opinion, in each case before such document is provided to such a

trustee, and the Company shall give reasonable and good faith consideration to any comments made by Parent

and its counsel.

Section 6.05. 280G Calculation. As soon as practicable, but in no event later than thirty

(30) Business Days after the date hereof, the Company will make available to Parent true and correct copies of

preliminary Section 280G calculations (based on the assumptions set forth in the applicable calculations) with

respect to each “disqualified individual” (within the meaning of Section 280G of the Code and determined as of

the date of this Agreement).

ARTICLE VII

COVENANTS OF PARENT

Parent agrees that:

Section 7.01. Conduct of Parent. From the date of this Agreement until the earlier of the Effective

Time and the termination of this Agreement, (A) except (x) as prohibited or required by Applicable Law, (y) as

set forth in Section 7.01 of the Parent Disclosure Schedule, or (z) as otherwise required or expressly

contemplated by this Agreement, unless the Company shall otherwise consent (which consent shall not be

unreasonably withheld, conditioned or delayed), Parent shall, and shall cause each of its Subsidiaries to, conduct

its business in the ordinary course of business consistent with past practice and use its commercially reasonable

efforts to preserve intact its business organization and relationships with customers, members, suppliers,

Providers, licensors, licensees and other Third Parties and keep available the services of its present officers and

employees;

provided

that (i) no action by Parent or any of its Subsidiaries permitted by an exception to any of

Section 7.01(a) through Section 7.01(e) will be a breach of this sentence and (ii) Parent’s or any of its

Subsidiaries’ failure to take any action prohibited by any of Section 7.01(a) through Section 7.01(e) will not be a

CVS Health Corporation PLAN OF MERGER — page 59

breach of this sentence and (B) Parent shall, and shall cause each of its Subsidiaries to, conduct its business in

accordance with the restriction set forth in Section 7.01(B) of the Parent Disclosure Schedule. Without limiting

the generality of the foregoing, except (x) as prohibited or required by Applicable Law, (y) as set forth in

Section 7.01 of the Parent Disclosure Schedule or (z) as otherwise required or expressly contemplated by this

Agreement, without the Company’s prior

written consent (which consent shall not be unreasonably withheld, conditioned or delayed), Parent shall not,

and shall cause each of its Subsidiaries not to:

(a) adopt or propose any change to the Parent Organizational Documents in a manner that would

be materially adverse to the Company’s shareholders (whether by merger, consolidation or otherwise);

(b) (i) acquire (including by merger, consolidation or acquisition of stock or assets) any interest in

any corporation, partnership, other business organization or any division thereof or any assets, securities or

property, other than (A) acquisitions of any of the foregoing in an amount not to exceed $2,000,000,000

individually or $5,000,000,000 in the aggregate, (B) acquisitions of securities under Parent’s investment

portfolio consistent with Parent’s investment policy and (C) transactions (1) solely among Parent and one or

more of its wholly owned Subsidiaries or (2) solely among Parent’s wholly owned Subsidiaries, or (ii) adopt a

plan of complete or partial liquidation or dissolution with respect to Parent or Merger Sub;

among Parent and one or more of its wholly owned Subsidiaries or (2) solely among Parent’s wholly owned

Subsidiaries), (ii) amend any term or alter any rights of any of its outstanding equity securities, (iii) declare, set

aside or pay any dividend or make any other distribution (whether in cash, stock, property or any combination

thereof) in respect of any shares of its capital stock or other securities, other than (A) in the case of Parent,

regular cash dividends in the ordinary course of business, consistent with past practice, in an amount not to

exceed $0.50 per share of Parent Common Stock per quarter (appropriately adjusted to reflect any stock

dividends, subdivisions, splits, combinations or other similar events relating to Parent Common Stock),

(B) dividends or distributions by a Subsidiary of Parent to Parent or a wholly owned Subsidiary of Parent, or

(iv) redeem, repurchase, cancel or otherwise acquire or offer to redeem, repurchase, or otherwise acquire any of

its securities or any securities of any Subsidiary of Parent, other than in the ordinary course of business,

consistent with past practice, including repurchases of shares of Parent Common Stock (A) pursuant to

accelerated share repurchase programs or agreements in the ordinary course of business, consistent with past

practice, and (B) in connection with the exercise or the vesting and settlement of Parent Equity Awards

(including in satisfaction of any amounts required to be deducted or withheld under Applicable Law), in each

case in this clause (B) outstanding as of the date of this Agreement in accordance with the present terms of such

Parent Equity Awards or granted after the date of this Agreement;

(d) issue, deliver or sell, or authorize the issuance, delivery or sale of, any shares of its capital

stock or any securities convertible into or exercisable for, or any rights, warrants or options to acquire, any such

capital stock or any such convertible securities, other than (i) the issuance of any shares of Parent Common

Stock upon the exercise of Parent Equity Awards or other equity and equity-linked awards that are outstanding

on the date of this Agreement or are granted after the date of this Agreement, (ii) with respect to capital stock or

securities of any Subsidiary of Parent, in connection with transactions (A) solely among Parent and one or more

of its wholly owned Subsidiaries or (B) solely among Parent’s wholly owned Subsidiaries, (iii) the grant of

Parent Equity Awards or other equity and equity-linked awards to employees, directors or individual

independent contractors of Parent or any of its Subsidiaries pursuant to Parent’s equity compensation plans, or

(iv) in connection with the Parent Share Issuance;

(e) sell, lease, license or otherwise dispose of any Subsidiary or any division thereof or of Parent

or any assets, securities or property, other than (i) dispositions of any of the foregoing in an amount not to

exceed $3,000,000,000 individually or $6,000,000,000 in the aggregate, (ii) dispositions of securities under

Parent’s investment portfolio consistent with Parent’s investment policy or (iii) transactions (A) solely among

Parent and one or more of its wholly owned Subsidiaries or (B) solely among Parent’s wholly owned

Subsidiaries; or

CVS Health Corporation PLAN OF MERGER — page 60

(f) agree, commit or propose to do any of the foregoing.

Section 7.02. No Solicitation by Parent.

(a) From the date of this Agreement until the earlier of the Effective Time and the termination of

this Agreement, except as otherwise set forth in this Section 7.02, Parent shall not, and shall cause its

Subsidiaries not to, and shall use its reasonable best efforts to cause its and its Subsidiaries’ Representatives not

to, directly or indirectly, (i) solicit, initiate or take any action to knowingly facilitate or knowingly encourage the

submission of any Parent Acquisition Proposal, (ii) enter into or participate in any discussions or negotiations

with, furnish any information relating to Parent or any of its Subsidiaries or afford access to the business,

properties, assets, books or records of Parent or any of its Subsidiaries to, otherwise cooperate in any way with,

or knowingly assist, participate in, knowingly facilitate or knowingly encourage any effort by, any Third Party

that Parent knows is seeking to make, or has made, a Parent Acquisition Proposal, (iii) (A) fail to make or

withdraw or qualify, amend or modify in any manner adverse to the Company, the Parent Board

Recommendation, (B) fail to include the Parent Board Recommendation in the Joint Proxy

Statement/Prospectus or (C) recommend, adopt or approve or publicly propose to recommend, adopt or approve

any Parent Acquisition Proposal (any of the foregoing in this clause (iii), a “Parent Adverse Recommendation

Change”), (iv) take any action to make any “moratorium,” “control share acquisition,” “fair price,”

“supermajority,” “affiliate transactions” or “business combination statute or regulation” or other similar anti-

takeover laws and regulations of the State of Delaware, including Section 203 of Delaware Law, inapplicable to

any Third Party or any Parent Acquisition Proposal, (v) approve any transaction (other than transactions

contemplated by this Agreement) under, or any Person becoming a “Related Person” under, the Fifth Article of

the certificate of incorporation of Parent as in effect on the date hereof, (vi) take any action to make any other

antitakeover provision in the certificate of incorporation of Parent inapplicable to any Third Party or any Parent

Acquisition Proposal or (vii) fail to enforce or grant any waiver or release under any standstill or similar

agreement with respect to any class of equity securities of Parent or any of its Subsidiaries unless the Board of

Directors of Parent determines after consulting with its outside legal counsel that the failure to waive such

provision would be inconsistent with its fiduciary duties under Applicable Law (

provided

that the obligation not

to fail to enforce any such standstill or similar agreement under this Section 7.02(a)(vii) shall apply with respect

to known breaches of such agreements only).

(b) Notwithstanding the foregoing, if at any time prior to the receipt of the Parent Stockholder

Approval (the “Parent Approval Time”) (and in no event after the Parent

Approval Time), the Board of Directors of Parent receives a

bona fide

written Parent Acquisition Proposal made

after the date hereof which has not resulted from a violation of this Section 7.02, the Board of Directors of

Parent, directly or indirectly through its Representatives, may (x) contact the Third Party that has made such

Parent Acquisition Proposal in order to ascertain facts or clarify terms for the sole purpose of the Board of

Directors of Parent informing itself about such Parent Acquisition Proposal and such Third Party and (y) subject

to compliance with this Section 7.02(b), Section 7.02(c) and Section 7.02(e), (i) engage in negotiations or

discussions with any Third Party that, subject to Parent’s compliance with Section 7.02(a), has made after the

date of this Agreement a Parent Superior Proposal or an unsolicited

bona fide

written Parent Acquisition

Proposal that the Board of Directors of Parent determines in good faith, after consultation with its financial

advisor and outside legal counsel, is reasonably likely to lead to a Parent Superior Proposal, (ii) furnish to such

Third Party and its Representatives and financing sources nonpublic information relating to Parent or any of its

Subsidiaries pursuant to (x) a confidentiality agreement between Parent and such Third Party in existence on or

prior to the date hereof or (y) a confidentiality agreement with confidentiality terms in the aggregate no less

favorable to Parent than those contained in the Confidentiality Agreement, a copy of which shall be provided,

promptly after its execution, to the Company for informational purposes;

provided

that all such non-public

information (to the extent that such information has not been previously provided or made available to the

Company) is provided or made available to the Company, as the case may be, substantially concurrently with

the time it is provided or made available to such Third Party and (iii) following receipt of a Parent Superior

Proposal after the date of this Agreement, (A) make a Parent Adverse Recommendation Change and/or

(B) terminate this Agreement to enter into a definitive agreement providing for such Parent Superior Proposal in

accordance with Section 10.01(c)(iv), but in each case referred to in the foregoing clauses (i) through (iii) only if

the Board of Directors of Parent determines in good faith, after consultation with Parent’s outside legal counsel

and financial advisor, that the failure to take such action would be reasonably likely to be inconsistent with its

fiduciary duties under Applicable Law. Nothing contained herein shall prevent the Board of Directors of Parent

CVS Health Corporation PLAN OF MERGER — page 61

from (x) complying with Rule 14e-2(a) under the 1934 Act with regard to a Parent Acquisition Proposal, so long

as any action taken or statement made to so comply is consistent with this Section 7.02; or (y) making any

required disclosure to the stockholders of Parent if the Board of Directors of Parent determines in good faith,

after consultation with its outside legal counsel, that the failure to take such action would be reasonably likely to

be inconsistent with Applicable Law;

provided

that any Parent Adverse Recommendation Change involving or

relating to a Parent Acquisition Proposal may only be made in accordance with the provisions of this

Section 7.02(b), Section 7.02(c) and Section 7.02(e). For the avoidance of doubt, a “stop, look and listen”

disclosure or similar communication of the type contemplated by Rule 14d-9(f) under the 1934 Act shall not be

a Parent Adverse Recommendation Change.

shall not take any of the actions referred to in clauses (i) through (iii) of Section 7.02(b) unless Parent shall have

first delivered to the Company written notice advising the Company that Parent intends to take such action, and

Parent shall continue to advise the Company, on a current basis, after taking such action of the status and

material terms of any discussions and negotiations with the applicable Third Party. In addition, Parent shall

notify the Company promptly (but in no event later than twenty-four (24) hours) after receipt by Parent (or any

of its Representatives) of any Parent Acquisition Proposal, any indication that a Third Party

is considering making a Parent Acquisition Proposal or any request for information relating to Parent or any of

its Subsidiaries or for access to the business, properties, assets, books or records of Parent or any of its

Subsidiaries by any Third Party that, to the knowledge of Parent or any member of its Board of Directors, is

considering making, is reasonably likely to make or has made, a Parent Acquisition Proposal, which notice shall

be provided in writing and shall identify the Third Party making, and the material terms and conditions of, any

such Parent Acquisition Proposal, indication or request (including any material changes thereto). Parent shall

keep the Company fully informed, on a current basis, of the status and details of any such Parent Acquisition

Proposal, indication or request (including any changes thereto) and shall promptly (but in no event later than

twenty-four (24) hours after receipt) provide to the Company copies of all material correspondence and written

materials sent or provided to Parent or any of its Subsidiaries that describes any terms or conditions of any

Parent Acquisition Proposal (as well as written summaries of any material oral communications addressing such

matters).

(d) Notwithstanding anything in this Agreement to the contrary, at any time prior to the Parent

Approval Time (and in no event after the Parent Approval Time), the Board of Directors of Parent may effect a

Parent Adverse Recommendation Change involving or relating to a Parent Intervening Event if the Board of

Directors of Parent determines in good faith, after consultation with its outside legal counsel, that the failure to

take such action would be reasonably likely to be inconsistent with its fiduciary duties under Applicable Law;

provided

that (i) Parent shall (A) promptly notify the Company in writing of its intention to take such action and

(B) negotiate in good faith with the Company for three (3) Business Days following such notice regarding

revisions to the terms of this Agreement proposed by the Company, and (ii) the Board of Directors of Parent

shall not effect any Parent Adverse Recommendation Change involving or relating to a Parent Intervening Event

unless, after the three (3) Business Day period described in the foregoing clause (B), the Board of Directors of

Parent determines in good faith, after consultation with its outside legal counsel, that the failure to take such

action would be reasonably likely to be inconsistent with its fiduciary duties under Applicable Law.

(e) Without limiting or affecting Section 7.02(a), Section 7.02(b) or Section 7.02(c), the Board of

Directors of Parent shall not make a Parent Adverse Recommendation Change involving or relating to a Parent

Superior Proposal or terminate this Agreement in order to enter into a definitive agreement with respect to a

Parent Superior Proposal unless (i) Parent promptly notifies the Company, in writing at least three (3) Business

Days before taking such action, that Parent intends to take such action, which notice attaches the most current

version of any proposed agreement or a detailed summary of all material terms of such Parent Superior Proposal

and the identity of the offeror, (ii) if requested by the Company, during such three (3) Business Day period,

Parent and its Representatives have discussed and negotiated in good faith with the Company regarding any

proposal by the Company to amend the terms of this Agreement in response to such Parent Superior Proposal

and (iii) after such three (3) Business Day period, the Board of Directors of Parent determines in good faith,

taking into account any proposal by the Company to amend the terms of this Agreement, that such Parent

Acquisition Proposal continues to constitute a Parent Superior Proposal (it being understood and agreed that in

the event of any amendment to the financial terms or other material terms of any such Parent Superior Proposal,

a new written notification from Parent consistent with that described in clause (i) of this Section 7.02(e) shall be

CVS Health Corporation PLAN OF MERGER — page 62

required, and a new notice period under clause (i) of this Section 7.02(e) shall commence, during which notice

period Parent shall be

required to comply with the requirements of this Section 7.02(e) anew, except that such new notice period shall

be for two (2) Business Days (as opposed to three (3) Business Days)). After delivery of such written notice

pursuant to the immediately preceding sentence, Parent shall promptly keep the Company informed of all

material developments affecting the material terms of any such Parent Superior Proposal (and Parent shall

provide the Company with copies of any additional written materials received that relate to such Parent Superior

Proposal).

(f) “Parent Superior Proposal” means any

bona fide

, written Parent Acquisition Proposal (other

than a Parent Acquisition Proposal which has resulted from a violation of this Section 7.02) (with all references

to “20%” in the definition of Parent Acquisition Proposal being deemed to be references to “50%”) on terms

that the Board of Directors of Parent determines in good faith, after consultation with its financial advisor and

outside legal counsel, and taking into account all the terms and conditions of the Parent Acquisition Proposal

that the Board of Directors of Parent considers to be appropriate (including the identity of the Person making the

Parent Acquisition Proposal and the expected timing and likelihood of consummation, any governmental or

other approval requirements (including divestitures and entry into other commitments and limitations), break-up

fees, expense reimbursement provisions, conditions to consummation and availability of necessary financing),

would result in a transaction (i) that, if consummated, is more favorable to Parent’s stockholders from a

financial point of view than the Merger (taking into account any proposal by the Company to amend the terms

of this Agreement), (ii) that is reasonably capable of being completed on the terms proposed, taking into account

the identity of the Person making the Parent Acquisition Proposal, any approval requirements and all other

financial, regulatory, legal and other aspects of such Parent Acquisition Proposal and (iii) for which financing, if

a cash transaction (whether in whole or in part), is then fully committed in a manner comparable to Parent’s and

Merger Sub’s financing (or which is reasonably determined to be available by the Board of Directors of Parent).

(g) “Parent Intervening Event” means any material event, change, effect, development or

occurrence occurring or arising after the date of this Agreement that (i) was not known or reasonably

foreseeable, or the material consequences of which were not known or reasonably foreseeable, in each case to

the Board of Directors or executive officers of Parent as of or prior to the date of this Agreement, and (ii) does

not relate to or involve any Parent Acquisition Proposal;

provided

that (A) in no event shall any action taken by

either party pursuant to the affirmative covenants set forth in Section 8.02, or the consequences of any such

action, constitute, be deemed to contribute to or otherwise be taken into account in determining whether there

has been a Parent Intervening Event, and (B) in no event shall any event, change, effect, development or

occurrence that would fall within any of the exceptions to the definition of “Company Material Adverse Effect”

constitute, be deemed to contribute to or otherwise be taken into account in determining whether there has been

a Parent Intervening Event.

(h) Parent shall, and shall cause its Subsidiaries to, and shall use its reasonable best efforts to

cause its and its Subsidiaries’ respective Representatives to, cease immediately and cause to be terminated any

and all existing activities, discussions or negotiations, if any, with any Third Party conducted prior to the date of

this Agreement with respect to any Parent Acquisition Proposal and shall use its reasonable best efforts to cause

any such party (or its agents or advisors) in possession of confidential information about Parent that was

furnished by or on behalf of Parent to return or destroy all such information.

(i) Notwithstanding (i) any Parent Adverse Recommendation Change, (ii) the making of any

Parent Acquisition Proposal or (iii) anything in this Agreement to the contrary, until termination of this

Agreement (x) in no event may Parent or any of its Subsidiaries (A) enter into any agreement in principle, letter

of intent, term sheet, merger agreement, acquisition agreement, option agreement, joint venture agreement,

partnership agreement or other similar instrument constituting or relating to a Parent Acquisition Proposal (other

than a confidentiality agreement), (B) except as required by Applicable Law or permitted pursuant to the

remainder of this Section 7.02, make, facilitate or provide information in connection with any SEC or other

Filings in connection with the transactions contemplated by any Parent Acquisition Proposal or (C) seek any

Consents in connection with the transactions contemplated by any Parent Acquisition Proposal and (y) Parent

shall otherwise remain subject to all of its obligations under this Agreement.

CVS Health Corporation PLAN OF MERGER — page 63

Section 7.03. Obligations of Merger Sub. Until the Effective Time, Parent shall at all times be the

direct or indirect owner of all of the outstanding shares of capital stock of Merger Sub. Parent shall take all

action necessary to cause Merger Sub to perform its obligations under this Agreement and to consummate the

Merger on the terms and conditions set forth in this Agreement. Promptly following the execution of this

Agreement, Parent shall cause the sole shareholder of Merger Sub to execute and deliver a written consent

adopting this Agreement in accordance with Pennsylvania Law and provide copies of such written consent to

the Company.

Section 7.04. Director and Officer Liability.

(a) Without limiting any additional rights that any director, officer or employee may have under

any indemnification agreement or under the Company Organizational Documents or similar organizational

documents of the Company’s Subsidiaries, from and after the Effective Time, Parent shall, and shall cause the

Surviving Corporation or any applicable Subsidiary thereof (collectively, the “D&O Indemnifying Parties”), to

the fullest extent each such D&O Indemnifying Party is so authorized or permitted by Applicable Law, as now

or hereafter in effect, to: (i) indemnify and hold harmless each person who is at the date hereof, was previously

or during the period from the date hereof through the date of the Effective Time will be serving as a director,

officer or employee of the Company or any of its Subsidiaries or, at the request or for the benefit of the

Company or any of its Subsidiaries, as a director, trustee, officer or employee of any other entity or any benefit

plan maintained by the Company or any of its Subsidiaries (collectively, the “D&O Indemnified Parties”), as

now or hereafter in effect, in connection with any D&O Claim and any losses, claims, damages, liabilities, costs,

Claim Expenses, judgments, fines, penalties and amounts paid in settlement (including all interest, assessments

and other charges paid or payable in connection with or in respect of any thereof) relating to or resulting from

such D&O Claim; and (ii) promptly pay on behalf of or, within ten (10) Business Days after any request for

advancement by a D&O Indemnified Party, advance to such D&O Indemnified Party, any Claim Expenses

incurred in defending, serving as a witness with respect to or otherwise participating with respect to any D&O

Claim in advance of the final disposition of such D&O Claim, including payment on behalf of or advancement

to the D&O

Indemnified Party of any Claim Expenses incurred by such D&O Indemnified Party in connection with

enforcing any rights with respect to such indemnification and/or advancement, in each case without the

requirement of any bond or other security, but subject to the D&O Indemnifying Party’s receipt of a written

undertaking by or on behalf of such D&O Indemnified Party to repay such Claim Expenses if it is ultimately

determined under Applicable Law that such D&O Indemnified Party is not entitled to be indemnified. The

indemnification and advancement obligations of the Surviving Corporation pursuant to this Section 7.04(a) shall

extend to acts or omissions occurring at or before the Effective Time, and any D&O Claim relating thereto

(including with respect to any acts, facts, events or omissions occurring in connection with the approval of this

Agreement, the Merger and the consummation of the other transactions contemplated by this Agreement,

including the consideration and approval thereof and the process undertaken in connection therewith and any

D&O Claim relating thereto), and all rights to indemnification and advancement conferred hereunder shall

continue as to a person who has ceased to be a director, officer or employee of the Company or any of its

Subsidiaries after the date hereof and shall inure to the benefit of such Person’s heirs, successors, executors and

personal and legal representatives. As used in this Section 7.04: (x) the term “D&O Claim” means any

threatened, asserted, pending or completed claim, action, suit, proceeding, inquiry or investigation, whether

instituted by any party hereto, any Governmental Authority or any other Person, whether civil, criminal,

administrative, investigative or other, including any arbitration or other alternative dispute resolution

mechanism, arising out of or pertaining to matters that relate to such D&O Indemnified Party’s duties or service

(A) as a director, officer or employee of the Company or the applicable Subsidiary thereof at or prior to the

Effective Time (including with respect to any acts, facts, events or omissions occurring in connection with the

approval of this Agreement, the Merger and/or the consummation of the other transactions contemplated by this

Agreement, including the consideration and approval thereof and the process undertaken in connection

therewith and any D&O Claim relating thereto) or (B) as a director, trustee, officer or employee of any other

entity or any benefit plan maintained by the Company or any of its Subsidiaries (for which such D&O

Indemnified Party is or was serving at the request or for the benefit of the Company or any of its Subsidiaries) at

or prior to the Effective Time; and (y) the term “Claim Expenses” means reasonable attorneys’ fees and all other

reasonable out-of-pocket costs, expenses and obligations (including experts’ fees, travel expenses, court costs,

retainers, transcript fees, legal research, duplicating, printing and binding costs, as well as telecommunications,

postage and courier charges) paid or incurred in connection with investigating, defending, being a witness in or

CVS Health Corporation PLAN OF MERGER — page 64

participating in (including on appeal), or preparing to investigate, defend, be a witness in or participate in

(including on appeal), any D&O Claim for which indemnification is authorized pursuant to this Section 7.04(a),

including any action relating to a claim for indemnification or advancement brought by a D&O Indemnified

Party. No D&O Indemnifying Party shall settle, compromise or consent to the entry of any judgment in any

actual or threatened D&O Claim in respect of which indemnification has been sought by such D&O Indemnified

Party hereunder unless such settlement, compromise or judgment includes an unconditional release of such

D&O Indemnified Party from all liability arising out of such D&O Claim, or such D&O Indemnified Party

otherwise consents thereto.

(b) Without limiting the foregoing, Parent agrees that all rights to indemnification, advancement

of expenses and exculpation from liabilities for acts or omissions occurring at or prior to the Effective Time now

existing in favor of the current or former directors, officers or employees of the Company or any of its

Subsidiaries as provided in the

Company Organizational Documents, similar organizational documents of the Company’s Subsidiaries and

indemnification agreements of the Company and its Subsidiaries shall survive the Merger and shall continue in

full force and effect in accordance with their terms. For a period of six (6) years from the Effective Time, the

organizational documents of the Surviving Corporation and its Subsidiaries shall contain provisions no less

favorable with respect to indemnification, advancement of expenses and limitations on liability of directors and

officers than are set forth in the Company Organizational Documents, which provisions shall not be amended,

repealed or otherwise modified for a period of six (6) years from the Effective Time in any manner that would

affect adversely the rights thereunder of individuals who, at or prior to the Effective Time, were directors,

officers or employees of the Company or any of its Subsidiaries, unless such modification shall be required by

Applicable Law and then only to the minimum extent required by Applicable Law. At the Company’s option

and expense, prior to the Effective Time, the Company may purchase (and pay in full the aggregate premium

for) a six (6)-year prepaid “tail” insurance policy (which policy by its express terms shall survive the Merger) of

at least the same coverage and amounts and containing terms and conditions that are no less favorable to the

directors, officers, employees, agents or fiduciaries of the Company or any of its Subsidiaries as the Company’s

and its Subsidiaries’ existing directors’ and officers’ insurance policy or policies with a claims period of six

(6) years from the Effective Time for D&O Claims arising from facts, acts, events or omissions that occurred on

or prior to the Effective Time;

provided

that the premium for such tail policy shall not exceed three hundred

percent (300%) of the aggregate annual amounts currently paid by the Company and its Subsidiaries for such

insurance (such amount being the “Maximum Premium”). If the Company fails to obtain such tail policy prior to

the Effective Time, Parent or the Surviving Corporation shall obtain such a tail policy;

provided

that the

premium for such tail policy shall not exceed the Maximum Premium; and

provided

further

, that if such tail

policy cannot be obtained or can be obtained only by paying aggregate annual premiums in excess of the

Maximum Premium, Parent, the Company or the Surviving Corporation shall only be required to obtain as much

coverage as can be obtained by paying an annual premium equal to the Maximum Premium. Parent and the

Surviving Corporation shall cause any such policy (whether obtained by Parent, the Company or the Surviving

Corporation) to be maintained in full force and effect, for its full term, and Parent shall cause the Surviving

Corporation to honor all its obligations thereunder.

(i) consolidates with or merges with or into any other Person and shall not be the continuing or surviving

company, partnership or other Person of such consolidation or merger or (ii) liquidates, dissolves or winds-up,

or transfers or conveys all or substantially all of its properties and assets to any Person, then, and in each such

case, proper provision shall be made so that the successors and assigns of Parent or the Surviving Corporation,

as applicable, assume the obligations set forth in this Section 7.04.

Section 7.05. Employee Matters.

(a) During the Benefits Continuation Period, the Surviving Corporation shall provide, and Parent

shall cause the Surviving Corporation to provide, to each individual who is employed by the Company or any of

its Subsidiaries immediately prior to the Effective Time and continues as an employee of the Surviving

Corporation, Parent or any of Parent’s Subsidiaries (including Subsidiaries of the Surviving Corporation) during

all or a portion of the Benefits

CVS Health Corporation PLAN OF MERGER — page 65

Continuation Period (each, an “Affected Employee”) (x) base salary, bonus and other cash incentive

compensation opportunities that are no less favorable than the base salary, bonus and other cash incentive

compensation opportunities provided to such Affected Employee immediately prior to the Effective Time,

(y) employee benefits no less favorable in the aggregate than the employee benefits provided to such Affected

Employee under the Company Employee Plans immediately prior to the Effective Time,

provided

that, for

purposes of determining that such employee benefits are no less favorable in the aggregate, equity incentive

awards, defined benefit pension plan benefits, retention or change in control payments or awards or any similar

compensation or benefit, shall not be taken into account, and (z) equity incentive awards with a target value no

less favorable than the target value of the equity incentive awards provided to such Affected Employee

immediately prior to the Effective Time. Notwithstanding any other provision of this Section 7.05(a), for the

period from the Closing Date through the second anniversary of the Closing Date, each individual who is

employed by the Company or any of its Subsidiaries immediately prior to the Effective Time shall be provided

with severance benefits in amounts and on terms and conditions that are no less favorable than those provided to

such individual immediately prior to the Effective Time, as set forth in the Company’s Severance Pay Plan as

amended in accordance with Section 6.01(l) of the Company Disclosure Schedule.

(b) With respect to any employee benefit plan in which any Affected Employee first becomes

eligible to participate on or after the Effective Time (the “New Company Plans”), Parent shall: (i) waive all pre-

existing conditions, exclusions and waiting periods with respect to participation and coverage requirements

applicable to such Affected Employee under any New Company Plan that is a health and welfare plan in which

such Affected Employee may be eligible to participate after the Effective Time, (ii) recognize service of all

Affected Employees (to the extent credited by the Company or its Subsidiaries) accrued prior to the Effective

Time for all purposes under (but not for the purposes of benefit accrual under any defined benefit pension plan)

any New Company Plan in which any such Affected Employee may be eligible to participate after the Effective

Time;

provided

however

, that in no event shall any credit be given to the extent it would result in the

duplication of benefits for the same period of service and (iii) if applicable, cause to be credited, in any New

Company Plan that is a health plan in which Affected Employees participate, any deductibles or out-of-pocket

expenses incurred by such Affected Employees and their beneficiaries and dependents during the portion of the

calendar year in which the Closing Date occurs prior to their participation in Parent’s health plans with the

objective that there be no double counting during the year in which the Effective Time occurs of such

deductibles or out-of-pocket expenses, including through adjustments to health savings accounts.

definition of “change in control” or “change of control” (or language having a similar meaning), the Closing

shall be deemed to constitute a “change in control” or “change of control” (or language having a similar

meaning).

(d) Parent agrees that, with respect to the annual cash incentive plans set forth on Section 7.05(d)

of the Company Disclosure Schedule (the “Annual Incentive Plans”), it shall, or shall cause the Surviving

Corporation to, provide each participant in an Annual Incentive Plan (each an “Incentive Plan Participant”) who

remains employed with the Surviving Corporation through the end of the year during which the Closing occurs,

with an annual cash incentive

award for the year during which the Closing occurs, the amount of which shall be determined as the sum of the

following: (i) a pro-rated portion of the bonus with respect to the portion of the year of the Closing that occurs

prior to the Closing, which bonus shall be determined based upon actual performance through and including the

Closing Date, as determined by the Company in accordance with the applicable Annual Incentive Plan

plus

(ii) a

pro-rated portion of the bonus with respect to the portion of the year of the Closing that occurs after the Closing,

which bonus shall be at the applicable Incentive Plan Participant’s target incentive level under such Annual

Incentive Plan;

provided

that, if an Incentive Plan Participant’s employment is terminated by Parent or the

Surviving Corporation or any Subsidiary of Parent or the Surviving Corporation for any reason following the

Closing Date and through the end of the year during which the Closing occurs (other than for “cause” (as

defined in Section 7.05(d) of the Company Disclosure Schedule) or, for the avoidance of doubt, any voluntary

termination of employment), such Incentive Plan Participant shall be entitled to the sum of (A) the prorated

payment set forth in clause (i) above

plus

(B) an amount equal to the Incentive Plan Participant’s target value

prorated by a ratio equal to the quotient of the number of days worked between the Closing Date and the

Incentive Plan Participant’s termination date

divided by

365, and such total amount shall be paid as soon as

CVS Health Corporation PLAN OF MERGER — page 66

practicable following such termination of employment; and

provided

further

, that in no event shall payment of

any amounts under the Annual Incentive Plans (or any pro-rated portion thereof) pursuant to this Section 7.05(d)

result in the duplication of payments to any Incentive Plan Participant under any other incentive, severance or

other similar arrangement.

(e) Nothing contained in this Section 7.05 or elsewhere in this Agreement, express or implied

(i) shall cause either Parent or any of its Affiliates to be obligated to continue to employ any Person, including

any Affected Employees, for any period of time following the Effective Time, (ii) shall prevent Parent or its

Affiliates from revising, amending or terminating any Company Employee Plan or any other employee benefit

plan, program or policy in effect from time to time, (iii) shall be construed as an amendment of any Company

Employee Plan, Parent Employee Plan or (iv) shall create any third-party beneficiary rights in any director,

officer, employee or individual Person, including any present or former employee, officer, director or individual

independent contractor of the Company or any of its Subsidiaries (including any beneficiary or dependent of

such individual).

Section 7.06. Financing.

(a) Each of Parent and Merger Sub shall take, or shall cause to be taken, all actions and do, or

cause to be done, all things necessary to arrange the Debt Financing on the terms and conditions described in the

Debt Commitment Letters, including: (i) to negotiate and enter into the definitive agreements with respect

thereto on the terms and conditions contained in the Debt Commitment Letters (including, as necessary, the

“flex” provisions contained in any related fee letter) (or on other terms and conditions agreed by Parent, the

Company and the Financing Sources) by the Closing Date, and (ii) to satisfy or cause to be satisfied (or, if

determined advisable by Parent, obtain the waiver of) on a timely basis all conditions to obtaining the Debt

Financing within Parent’s control and to comply or cause to be complied with all of its obligations pursuant to

the Debt Commitment Letters and the definitive agreements related thereto to the extent the failure to comply

with such obligations would adversely impact the timing of the Closing or the availability at Closing of

sufficient aggregate proceeds of the Debt Financing to consummate the transactions contemplated by this

Agreement. In the event

that all conditions to funding the commitments contained in the Debt Commitment Letters have been satisfied,

each of Parent and Merger Sub shall use its reasonable best efforts to cause the Financing Sources to fund the

Debt Financing required to consummate the transactions contemplated by this Agreement and to pay related fees

and expenses on the Closing Date (including by taking enforcement action to cause the Financing Sources to

provide the Debt Financing). Each of Parent and Merger Sub shall use its reasonable best efforts to enforce all

of its rights under the Debt Commitment Letters. Parent shall give the Company prompt notice of any material

breach by any party to the Debt Commitment Letters or the definitive agreements related thereto of which

Parent has become aware or any termination of any of the Debt Commitment Letters or such definitive

agreements, to the extent such breach or termination could reasonably be expected to prevent or materially delay

the Closing or otherwise result in sufficient proceeds of the Debt Financing to consummate the transactions

contemplated by this Agreement not being available at the Closing. In the event that any portion of the Debt

Financing becomes unavailable and such portion is necessary to consummate the transactions contemplated by

this Agreement (except in accordance with the express terms set forth in the Debt Commitment Letters or unless

concurrently replaced on a dollar-for-dollar basis by commitments subject to substantially the same conditions

as those set forth in the Debt Commitment Letter from other financing sources or from proceeds of other sources

of financing or cash), Parent and Merger Sub shall (1) use their reasonable best efforts to obtain, as promptly as

practicable following the occurrence of such event, alternative debt financing for any such portion from

alternative debt sources (“Alternative Financing”) in an amount that will enable Parent and Merger Sub to

consummate the transactions contemplated by this Agreement and that does not contain additional (or changes

to the) conditions set forth in the Debt Commitment Letter delivered to the Company on or prior to the date of

this Agreement that, in each case, could reasonably be expected to adversely affect the ability of Parent or

Merger Sub to timely consummate the transactions contemplated by this Agreement and (2) promptly notify the

Company of such unavailability and the reason therefor. If obtained, Parent shall deliver to the Company true

and complete copies of all agreements (including redacted copies of engagement and fee letters, removing only

fee amounts, market “flex” provisions and certain other terms (none of which concern or would adversely affect

the amounts, availability, timing or conditionality of the Debt Financing)) pursuant to which any such

alternative source shall have committed to provide Parent or the Surviving Corporation with Alternative

Financing. Parent and Merger Sub shall not, without the Company’s prior written consent, permit any

CVS Health Corporation PLAN OF MERGER — page 67

amendment or modification to, or any waiver of any provision or remedy under, any Debt Commitment Letter

or any definitive agreements related thereto unless the terms of such Debt Commitment Letter or definitive

agreements related thereto, in each case as so amended, modified or waived, are substantially similar to those in

such Debt Commitment Letter or definitive agreement related thereto, prior to giving effect to such amendment,

modification or waiver (other than economic terms, which shall be as good as or better for Parent and Merger

Sub than those in the Debt Commitment Letter or definitive agreement relating thereto prior to giving effect to

such amendment, modification or waiver);

provided

that, in the case of amendments or modifications of any

Debt Commitment Letter or a definitive agreement relating thereto, the foregoing shall only apply if such

amendment or modification (x) could reasonably be expected to (I) adversely affect the ability or likelihood of

Parent or Merger Sub timely consummating the transactions contemplated by this Agreement or (II) make the

timely funding of the Debt Financing or the satisfaction of the conditions to obtaining the Debt Financing less

likely to occur, (y) reduces the

aggregate amount of the Debt Financing or (z) materially and adversely affects the ability of Parent or Merger

Sub to enforce their rights against other parties to the Debt Commitment Letters, it being understood and agreed

that in any event, Parent may amend the Debt Commitment Letters or the definitive agreements relating thereto

to (x) add lenders, arrangers, bookrunners, agents, managers or similar entities that have not executed the Debt

Commitment Letters as of the date of this Agreement and consent to the assignment after the date of this

Agreement of lending commitments under the Debt Commitment Letters to other lenders, or (y) increase the

aggregate amount of the Debt Financing. Parent shall provide the Company with prompt written notice of the

receipt of any notice or other communication from any Financing Source with respect to such Financing

Source’s failure or anticipated failure to fund its commitments under any Debt Commitment Letters or definitive

agreement in connection therewith. Parent shall keep the Company reasonably informed on a current basis of the

status of its efforts to consummate the Debt Financing.

(b) Notwithstanding anything contained in this Agreement to the contrary, Parent expressly

acknowledges and agrees that Parent’s and Merger Sub’s obligations hereunder are not conditioned in any

manner upon Parent or Merger Sub obtaining any financing. The failure, for any reason, other than as a result of

any material breach of this Agreement by the Company, of Parent and Merger Sub to have sufficient cash

available on the date that the Closing is required to occur pursuant to Section 2.01 hereof, and/or the failure to

pay the aggregate Cash Consideration on the date that the Closing is required to occur pursuant to Section 2.01

hereof, shall constitute a Willful Breach of this Agreement by Parent and Merger Sub.

ARTICLE VIII

COVENANTS OF PARENT AND THE COMPANY

The parties hereto agree that:

Section 8.01. Access to Information; Confidentiality.

(a) Upon reasonable notice and subject to Applicable Law, each of the Company and Parent shall,

and each shall cause its Subsidiaries to, afford to the other party and its Representatives, reasonable access,

during normal business hours during the period from the date of this Agreement to the earlier of the Effective

Time or the termination of this Agreement, to all of its properties, books, contracts and records, and, during such

period, each of the Company and Parent shall, and each shall cause its Subsidiaries to, make available to the

other party all other information concerning its businesses, properties and personnel as the other may reasonably

request, and instruct its Representatives to reasonably cooperate with the other party in its investigation. All

information furnished pursuant to this Agreement shall be subject to the confidentiality agreement, dated as of

June 7, 2017, between Parent and the Company, as supplemented by that certain Clean Team Confidentiality

Agreement, dated October 31, 2017, between Parent and the Company, and the Joint Defense Agreement,

effective as of October 18, 2017, between Parent and the Company (collectively, the “Confidentiality

Agreement”). No information or knowledge obtained in any investigation pursuant to this Section 8.01 shall

affect or be deemed to modify any representation or warranty made by the Company or Parent pursuant to this

Agreement.

CVS Health Corporation PLAN OF MERGER — page 68

(b) Notwithstanding anything to the contrary in this Section 8.01, Section 8.02 or Section 8.03,

none of the Company, Parent or any of their respective Subsidiaries shall be required to provide access to its

properties, books, contracts, records or personnel if such access would unreasonably disrupt its operations, or

provide access to or to disclose information where such access or disclosure would jeopardize the attorney-client

privilege of such party or any of its Subsidiaries or contravene any Applicable Law, fiduciary duty or binding

agreement entered into prior to the date of this Agreement;

provided

that each of the Company and Parent shall,

and each shall cause its Subsidiaries to, use reasonable best efforts to make appropriate substitute disclosure

arrangements under circumstances in which such restrictions apply (including redacting such information (i) to

remove references concerning valuation, (ii) as necessary to comply with contractual arrangements in effect on

or after the date hereof and (iii) as necessary to address reasonable attorney-client or other privilege or

confidentiality concerns);

provided

however

, that in no event shall either party have access to individual

performance or evaluation records, medical histories or other similar information that, in the reasonable opinion

of the applicable party, is sensitive or the disclosure of which would reasonably be expected to subject such

party or any of its Subsidiaries to risk of liability. Each of the Company and Parent may, as each deems

advisable and necessary, reasonably designate any competitively sensitive material provided to the other under

this Section 8.01 or Section 8.02 as “Outside Counsel Only Material.” Such materials and the information

contained therein shall be given only to the outside counsel of the recipient and, subject to any additional

confidentiality or joint defense agreement the parties may mutually propose and enter into, will not be disclosed

by such outside counsel to employees, officers or directors of the recipient unless express permission is obtained

in advance from the source of the materials (the Company or Parent, as the case may be) or its legal counsel.

Section 8.02. Reasonable Best Efforts.

(a) Subject to the terms and conditions of this Agreement, including Section 8.02(b), each of the

Company and Parent shall, and each shall cause its Subsidiaries to, use their respective reasonable best efforts to

take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable

under Applicable Law to consummate the Merger and other transactions contemplated hereby as promptly as

practicable, (x) including (i) preparing and filing as promptly as practicable with any Governmental Authority or

other Third Party all documentation to effect all necessary Filings, (ii) obtaining as promptly as practicable and

thereafter maintaining all Consents required to be obtained from any Governmental Authority or other Third

Party that are necessary, proper or advisable to consummate the Merger or other transactions contemplated

hereby, and complying with the terms and conditions of each Consent and (iii) cooperating to the extent

reasonable with the other parties hereto in their efforts to comply with their obligations under this Agreement,

including in seeking to obtain as promptly as practicable any required Consents and (y) which includes

contesting (which includes by litigation) any (i) action, suit, investigation or proceeding brought by any

Governmental Authority in a federal, state or administrative court seeking to enjoin, restrain, prevent, prohibit or

make illegal consummation of the Merger or other transactions contemplated hereby or seeking damages or to

impose any terms or conditions in connection

with the Merger or (ii) Order that has been entered by a federal, state or administrative court that enjoins,

restrains, prevents, prohibits or makes illegal consummation of the Merger or other transactions contemplated

hereby or imposes any damages, terms or conditions in connection with the Merger or other transactions

contemplated hereby. The parties understand and agree that Parent’s obligation to use its reasonable best efforts

set forth in this Section 8.02(a) includes taking all actions and doing all things necessary, proper or advisable

under Applicable Law (including divestitures, hold separate arrangements, the termination, assignment,

novation or modification of Contracts (or portions thereof) or other business relationships, the acceptance of

restrictions on business operations and the entry into other commitments and limitations) to obtain the

governmental approvals described in clauses (x), (y) and (z) of the first sentence of Section 8.02(b) to

consummate the Merger and the other transactions contemplated hereby, so long as such actions would not have

and would not reasonably be expected to have, individually or in the aggregate, a Regulatory Material Adverse

Effect on Parent or on the Company.

(b) Notwithstanding Section 8.02(a) or anything else in this Agreement to the contrary, nothing in

this Agreement will obligate or require Parent, Merger Sub or any of their respective Subsidiaries to take or

cause to be taken any action (or refrain or cause to refrain from taking any action) or agree or cause to agree to

any term, condition or limitation (including, in each case, any of the actions or items referred to in the last

sentence of Section 8.02(a)) as a condition to, or in connection with, (x) the expiration or termination of any

CVS Health Corporation PLAN OF MERGER — page 69

applicable waiting period relating to the Merger under the HSR Act, (y) any other Antitrust Law or (z) obtaining

any Parent Required Governmental Authorization or Company Required Governmental Authorization or any

other Consent from a Governmental Authority or otherwise, in each case if such action (or refraining from such

action), term, condition or limitation would have or would reasonably be expected to have, individually or in the

aggregate, a Regulatory Material Adverse Effect on Parent or on the Company. “Regulatory Material Adverse

Effect” means, with respect to any Person, a material adverse effect on the financial condition, business, revenue

or EBITDA of such Person and its Subsidiaries, taken as a whole;

provided

that, for purposes of determining

whether any action, term or condition would have or would reasonably be expected to have a Regulatory

Material Adverse Effect on the Company, the Company and its Subsidiaries will collectively be deemed to be a

company the size of (and with revenue and EBITDA equal to those of) Parent and its Subsidiaries, taken as a

whole (excluding, for the avoidance of doubt, the Company and its Subsidiaries);

provided

further

, that, for

purposes of determining whether any action, term or condition would have or would reasonably be expected to

have a Regulatory Material Adverse Effect on Parent or on the Company, impacts on Parent, the Company or

any of their respective Subsidiaries will be aggregated. “EBITDA” means, with respect to any Person, the sum

of (1) consolidated net income, determined in accordance with GAAP,

plus

(2) without duplication and to the

extent deducted in determining such consolidated net income, the sum of (I) consolidated interest expense,

(II) consolidated income tax expense and (III) all amounts attributed to depreciation or amortization, in each

case of such Person and its Subsidiaries.

indirectly (whether by merger, consolidation or otherwise), acquire, purchase, lease or license (or agree to

acquire, purchase, lease or license) any business, corporation, partnership, association or other business

organization or division or part thereof, or any securities or collection of assets, if doing so would reasonably be

expected to: (i) impose any

material delay in the obtaining of, or materially increase the risk of not obtaining, any Consent of any

Governmental Authority necessary to consummate the Merger or any of the other transactions contemplated

hereby or the expiration or termination of any applicable waiting period; (ii) materially increase the risk of any

Governmental Authority entering an Order prohibiting the consummation of the Merger or any of the other

transactions contemplated hereby; (iii) materially increase the risk of not being able to remove any such Order

on appeal or otherwise; or (iv) otherwise prevent or materially delay the consummation of the Merger or any of

the other transactions contemplated hereby.

(d) Parent shall have principal responsibility for directing, devising, and implementing the

strategy for obtaining any necessary approval of, for responding to any request from, inquiry by, or investigation

by (including directing the timing, nature, and substance of all such responses), and for leading all meetings and

communications with any Governmental Authority that has authority to enforce any Antitrust Law.

(e) In furtherance and not in limitation of the foregoing, each of the Company and Parent shall,

and each shall cause its Subsidiaries to, as promptly as practicable following the date of this Agreement, make

all Filings with all Governmental Authorities that may be or may become reasonably necessary, proper or

advisable under this Agreement or Applicable Law to consummate and make effective the Merger and the other

transactions contemplated hereby, including: (i) not later than thirty (30) Business Days following the date of

this Agreement, Parent filing, or causing to be filed, “Form A Statements” or similar change of control

applications, with the insurance commissioners or regulators or departments of health or other Governmental

Authorities in each jurisdiction where required by Applicable Law, seeking approval of Parent’s acquisition of

control of each of the Regulated Subsidiaries which results from the Merger; (ii) as promptly as practicable

following the date of this Agreement, Parent filing, or causing to be filed, any pre-acquisition notifications on

“Form E” or similar market share notifications to be filed in each jurisdiction where required by Applicable

Laws with respect to the Merger and the other transactions contemplated hereby; (iii) not later than twenty

(20) Business Days following the date of this Agreement (unless the parties otherwise agree to another time

period), the Company and Parent each making an appropriate Filing of a notification and report form pursuant to

the HSR Act with the Federal Trade Commission and the Antitrust Division of the United States Department of

Justice with respect to the Merger and the other transactions contemplated hereby and requesting early

termination of the waiting period under the HSR Act; (iv) the Company and Parent each making any other

Filing that may be required under any other Antitrust Laws or by any Governmental Authority having antitrust

jurisdiction under Applicable Law; (v) not later than thirty (30) Business Days following the date of this

Agreement, the Company and Parent filing any required notices to CMS, with a separate notice to the CMS

CVS Health Corporation PLAN OF MERGER — page 70

Medicare Drug Benefit Group and Central Office Medicare Advantage plan manager, if applicable; and (vi) the

Company and Parent each promptly following the date hereof making any other Filing that may be required

under any Health Care Laws, Insurance Laws or other Applicable Laws or by any Governmental Authority with

jurisdiction over enforcement of any of the foregoing.

(f) To the extent permitted by Applicable Law, the Company and Parent shall, as promptly as

practicable, (i) upon the reasonable request of the other party, furnish to such party and, upon any reasonable

request from a Governmental Authority, furnish to such

Governmental Authority, any information or documentation concerning themselves, their Affiliates, directors,

officers and shareholders or stockholders, as applicable, information or documentation concerning the Merger

and the other transactions contemplated hereby and such other matters as may be requested and (ii) make

available their respective Representatives to each other and, upon reasonable request, any Governmental

Authority, in connection with (A) the preparation of any Filing made by or on their behalf to any Governmental

Authority in connection with the Merger or the other transactions contemplated hereby or (B) any Governmental

Authority investigation, review or approval process.

(g) Subject to Applicable Laws relating to the sharing of information and the terms and conditions

of the Confidentiality Agreement and all other agreements entered into by the parties to this Agreement, each of

the Company and Parent shall, and each shall cause its Subsidiaries to: (i) (A) as far in advance as practicable,

notify the other party of and consult the other party with respect to any Filing or material or substantive

communication or inquiry it or any of its Affiliates intends to make with any Governmental Authority relating to

the matters that are the subject of this Agreement, (B) prior to submitting any such Filing or making any such

communication or inquiry, the submitting or making party shall provide the other party and its counsel a

reasonable opportunity to review, and shall consider in good faith the comments of the other party in connection

with any such Filing, communication or inquiry, and (C) promptly following the submission of such Filing or

making of such communication or inquiry, provide the other party and its counsel with a copy of any such

Filing, communication or inquiry or, if such communication or inquiry is made in oral form, a summary of any

such oral communication or inquiry; (ii) as promptly as practicable following receipt, furnish the other party

with a copy of any Filing or, if in written form, material or substantive communication or inquiry, it or any of its

Affiliates receives from any Governmental Authority relating to matters that are the subject of this Agreement;

provided

that, if any such communication or inquiry is not in written form, the receiving party shall provide the

other party with a written summary of such communication or inquiry; (iii) coordinate and cooperate fully with

the other party in exchanging such information and providing such assistance as the other party may reasonably

request in connection with this Section 8.02; and (iv) consult with each other in connection with any inquiry,

hearing, investigation or litigation by, or negotiations with, any Governmental Authority relating to the

transactions contemplated hereby or any Filings with respect thereto under Applicable Law, including the

scheduling of, and strategic planning for, any meetings with any Governmental Authority relating thereto. None

of the Company, Parent or their respective Representatives shall agree to participate in any material or

substantive meeting or conference (including by telephone) with any Governmental Authority, or any member

of the staff of any Governmental Authority, in respect of any Filing, proceeding, investigation (including the

settlement of any investigation), litigation or other inquiry regarding the Merger unless it consults with the other

party in advance and, to the extent permitted by such Governmental Authority, allows the other party to

participate.

(h) Notwithstanding anything in this Agreement to the contrary, in no event shall (i) Parent or any

of its Affiliates or the Company or any of its Affiliates be required to agree to take or enter into any action

which is not conditioned upon the Closing, or (ii) the Company or any of its Affiliates agree to any obligation,

restriction, requirement, limitation, qualification, condition, remedy or other action relating to Consents required

to be obtained by the parties or their respective Subsidiaries in connection with the Merger without the prior

written consent of

Parent (which consent shall not be withheld, delayed or conditioned if doing so would be inconsistent with

Parent’s obligations under this Section 8.02). The Company further covenants and agrees not to voluntarily

extend any waiting period associated with any Consent of any Governmental Authority (including under the

CVS Health Corporation PLAN OF MERGER — page 71

HSR Act) or enter into any agreement with any Governmental Authority or other Third Party not to consummate

the Merger and the other transactions contemplated hereby, except with the prior written consent of Parent.

Section 8.03. Certain Filings; SEC Matters.

(a) As promptly as practicable following the date of this Agreement, (i) the Company and Parent

shall jointly prepare and file with the SEC a proxy statement relating to the Company Shareholder Meeting and

the Parent Stockholder Meeting (together with all amendments and supplements thereto, the “Joint Proxy

Statement/Prospectus”) in preliminary form, and (ii) Parent shall prepare and file with the SEC a Registration

Statement on Form S-4 which shall include the Joint Proxy Statement/Prospectus (together with all amendments

and supplements thereto, the “Registration Statement”) relating to the registration of the shares of Parent

Common Stock to be issued to the shareholders of the Company pursuant to the Parent Share Issuance. The

Joint Proxy Statement/Prospectus and Registration Statement shall comply as to form in all material respects

with the applicable provisions of the 1933 Act and the 1934 Act and other Applicable Law.

(b) Each of the Company and Parent shall use its reasonable best efforts to have the Joint Proxy

Statement/Prospectus cleared by the SEC as promptly as practicable after its filing, and Parent shall use its

reasonable best efforts to have the Registration Statement declared effective under the 1933 Act as promptly as

practicable after its filing and keep the Registration Statement effective for so long as necessary to consummate

the Merger. Each of the Company and Parent shall, as promptly as practicable after the receipt thereof, provide

the other party with copies of any written comments and advise the other party of any oral comments with

respect to the Joint Proxy Statement/Prospectus and the Registration Statement received by such party from the

SEC, including any request from the SEC for amendments or supplements to the Joint Proxy

Statement/Prospectus and the Registration Statement, and shall provide the other with copies of all material or

substantive correspondence between it and its Representatives, on the one hand, and the SEC, on the other hand.

Notwithstanding the foregoing, prior to filing the Registration Statement or mailing the Joint Proxy

Statement/Prospectus or responding to any comments of the SEC with respect thereto, each of the Company and

Parent shall provide the other party and its counsel a reasonable opportunity to review such document or

response (including the proposed final version of such document or response) and consider in good faith the

comments of the other party in connection with any such document or response. None of the Company, Parent

or any of their respective Representatives shall agree to participate in any material or substantive meeting or

conference (including by telephone) with the SEC, or any member of the staff thereof, in respect of the

Registration Statement or the Joint Proxy Statement/Prospectus unless it consults with the other party in

advance and, to the extent permitted by the SEC, allows the other party to participate. Parent shall advise the

Company, promptly after receipt of notice thereof, of the time of effectiveness of the Registration Statement,

and the issuance of any stop order relating thereto or the suspension of the qualification of shares of Parent

Common Stock for offering or sale in any jurisdiction, and each of the Company and Parent shall use its

reasonable best efforts to have any such stop order or suspension lifted, reversed or otherwise terminated.

Each of the Company and Parent shall use its reasonable best efforts to take any other action required to be

taken by it under the 1933 Act, the 1934 Act, Delaware Law (solely in the case of Parent), Pennsylvania Law

(solely in the case of the Company) and the rules of the NYSE in connection with the filing and distribution of

the Joint Proxy Statement/Prospectus and the Registration Statement, and the solicitation of proxies from the

shareholders of the Company and the stockholders of Parent thereunder. Subject to Section 6.02, the Joint Proxy

Statement/Prospectus shall include the Company Board Recommendation, and, subject to Section 7.02, the Joint

Proxy Statement/Prospectus shall include the Parent Board Recommendation.

cause to be done all things, necessary, proper or advisable under Applicable Laws and the rules and policies of

the NYSE and the SEC to enable the listing of the Parent Common Stock being registered pursuant to the

Registration Statement on the NYSE no later than the Effective Time, subject to official notice of issuance.

Parent shall also use its reasonable best efforts to obtain all necessary state securities law or “blue sky” permits

and approvals required to carry out the transactions contemplated by this Agreement (

provided

that in no event

shall Parent be required to qualify to do business in any jurisdiction in which it is not now so qualified or file a

general consent to service of process).

(d) Each of the Company and Parent shall, upon request, furnish to the other all information

concerning itself, its Subsidiaries, directors, officers and (to the extent reasonably available to the applicable

CVS Health Corporation PLAN OF MERGER — page 72

party) shareholders or stockholders (as applicable) and such other matters as may be reasonably necessary or

advisable in connection with any statement, Filing, notice or application made by or on behalf of the Company,

Parent or any of their respective Subsidiaries, to the SEC or the NYSE in connection with the Merger and the

other transactions contemplated by this Agreement, including the Registration Statement and the Joint Proxy

Statement/Prospectus. In addition, each of the Company and Parent shall use its reasonable best efforts to

provide information concerning it necessary to enable the Company and Parent to prepare required pro forma

financial statements and related footnotes in connection with the preparation of the Registration Statement

and/or the Joint Proxy Statement/Prospectus.

(e) If at any time prior to the later of the Company Approval Time and the Parent Approval Time,

any information relating to the Company or Parent, or any of their respective Affiliates, officers or directors,

should be discovered by the Company or Parent that should be set forth in an amendment or supplement to

either of the Registration Statement or the Joint Proxy Statement/Prospectus, so that either of such documents

would not include any misstatement of a material fact or omit to state any material fact necessary to make the

statements therein, in light of the circumstances under which they were made, not misleading, the party that

discovers such information shall promptly notify the other party hereto and an appropriate amendment or

supplement describing such information shall promptly be prepared and filed with the SEC and, to the extent

required under Applicable Law, disseminated to the shareholders of the Company and the stockholders of

Parent.

Section 8.04. Shareholder and Stockholder Meetings.

(a) As promptly as practicable following the effectiveness of the Registration Statement, the

Company shall, in consultation with Parent, in accordance with Applicable Law and the Company

Organizational Documents, (i) establish a record date (the “Company Record Date”) for, duly call and give

notice of a meeting of the shareholders of the Company entitled to vote on the Merger (the “Company

Shareholder Meeting”) at which meeting the Company shall seek the Company Shareholder Approval, which

record date shall be no later than ten (10) days after the date on which the Registration Statement is declared

effective under the 1933 Act, (ii) cause the Joint Proxy Statement/Prospectus (and all other proxy materials for

the Company Shareholder Meeting) to be mailed to its shareholders and (iii) within forty (40) days after the

Company Record Date, duly convene and hold the Company Shareholder Meeting. Subject to Section 6.02, the

Company shall use its reasonable best efforts to take, or cause to be taken, all actions, and do or cause to be

done all things, necessary, proper or advisable on its part to cause the Company Shareholder Approval to be

received at the Company Shareholder Meeting or any adjournment or postponement thereof, and shall comply

with all legal requirements applicable to the Company Shareholder Meeting. The Company shall not, without

the prior written consent of Parent, adjourn, postpone or otherwise delay the Company Shareholder Meeting;

provided

that the Company may, without the prior written consent of Parent, adjourn or postpone the Company

Shareholder Meeting, after consultation with Parent, if the Company believes in good faith that such

adjournment or postponement is reasonably necessary to allow reasonable additional time to (x) solicit

additional proxies necessary to obtain the Company Shareholder Approval, or (y) distribute any supplement or

amendment to the Joint Proxy Statement/Prospectus that the Board of Directors of the Company has determined

in good faith after consultation with outside legal counsel is necessary under Applicable Law and for such

supplement or amendment to be reviewed by the Company’s shareholders prior to the Company Shareholder

Meeting.

(b) As promptly as practicable following the effectiveness of the Registration Statement, Parent

shall, in consultation with the Company, in accordance with Applicable Law and the Parent Organizational

Documents, (i) establish a record date (which date shall be the same as the Company Record Date) for, duly call

and give notice of a meeting of the stockholders of Parent entitled to vote on the Parent Share Issuance (the

“Parent Stockholder Meeting”) at which meeting Parent shall seek the Parent Stockholder Approval, (ii) cause

the Joint Proxy Statement/Prospectus (and all other proxy materials for the Parent Stockholder Meeting) to be

mailed to its stockholders and (iii) duly convene and hold the Parent Stockholder Meeting on the same date and

at the same time as the Company Shareholder Meeting. Subject to Section 7.02, Parent shall use its reasonable

best efforts to take, or cause to be taken, all actions, and do or cause to be done all things, necessary, proper or

advisable on its part to cause the Parent Stockholder Approval to be received at the Parent Stockholder Meeting

or any adjournment or postponement thereof, and shall comply with all legal requirements applicable to the

Parent Stockholder Meeting. Parent shall not, without the prior written consent of the Company, adjourn,

postpone or otherwise delay the Parent Stockholder Meeting;

provided

that Parent may, without the prior written

consent of the Company, adjourn or postpone the Parent Stockholder Meeting, after consultation with the

CVS Health Corporation PLAN OF MERGER — page 73

Company, if Parent believes in good faith that such adjournment or postponement is reasonably necessary to

allow reasonable additional time to (x) solicit additional proxies necessary to obtain the Parent Stockholder

Approval, or (y) distribute any supplement or amendment to the Joint Proxy Statement/Prospectus that the

Board

of Directors of Parent has determined in good faith after consultation with outside legal counsel is necessary

under Applicable Law and for such supplement or amendment to be reviewed by Parent’s stockholders prior to

the Parent Stockholder Meeting.

Recommendation Change, (y) the public proposal or announcement or other submission to the Company or any

of its Representatives of a Company Acquisition Proposal or the public proposal or announcement or other

submission to Parent or any of its Representatives of a Parent Acquisition Proposal or (z) anything in this

Agreement to the contrary, unless this Agreement is terminated in accordance with its terms, the obligations of

the Company and Parent under Section 8.03 and this Section 8.04 shall continue in full force and effect.

Section 8.05. Public Announcements. The initial press release concerning this Agreement and the

transactions contemplated hereby shall be a joint press release to be reasonably agreed upon by the Company

and Parent. Following such initial press release, Parent and the Company shall consult with each other before

issuing any additional press release, making any other public statement or scheduling any press conference,

conference call or meeting with investors or analysts with respect to this Agreement or the transactions

contemplated hereby and, except as may be required by Applicable Law or any listing agreement with or rule of

any national securities exchange or association, shall not issue any such press release, make any such other

public statement or schedule any such press conference, conference call or meeting before such consultation

(and, to the extent applicable, shall provide copies of any such press release, statement or agreement (or any

scripts for any conference calls) to the other party and shall consider in good faith the comments of the other

party);

provided

that the restrictions set forth in this Section 8.05 shall not apply to any release or public

statement (a) made or proposed to be made by the Company in compliance with Section 6.02 with respect to the

matters contemplated by Section 6.02, (b) made or proposed to be made by Parent in compliance with

Section 7.02 with respect to the matters contemplated by Section 7.02 or (c) in connection with any dispute

between the parties regarding this Agreement, the Merger or the other transactions contemplated hereby.

Section 8.06. Notices of Certain Events. Each of the Company and Parent shall promptly advise

the other of (a) any notice or other material communication from any Person alleging that the consent of such

Person is or may be required in connection with the transactions contemplated by this Agreement; (b) any notice

or other communication from any Governmental Authority in connection with the transactions contemplated by

this Agreement; (c) any actions, suits, claims, investigations or proceedings commenced or, to its knowledge,

threatened against, relating to or involving or otherwise affecting the Company or any of its Subsidiaries or

Parent or any of its Subsidiaries, as the case may be, that, if pending on the date of this Agreement, would have

been required to have been disclosed pursuant to any Section of this Agreement or that relate to the

consummation of the transactions contemplated by this Agreement; (d) any change or event that has had or

would be reasonably likely to have, individually or in the aggregate, a Company Material Adverse Effect, in the

case of the Company, or a Parent Material Adverse Effect, in the case of Parent; or (e) any change or event that

it believes would or would be reasonably likely to cause or constitute a material breach of any of its

representations, warranties or covenants contained in this Agreement;

provided

that a failure to comply with this

Section 8.06 shall not constitute the failure of any condition set forth in Article IX to be satisfied unless the

underlying change or event would independently result in the failure of a condition set forth in Article IX to be

satisfied.

Section 8.07. Section 16 Matters. Prior to the Effective Time, Parent and the Company shall take

all such steps as may be required (to the extent permitted under Applicable Law) to cause any dispositions of

Company Common Stock (including derivative securities with respect to Company Common Stock) or

acquisitions of Parent Common Stock (including derivative securities with respect to Parent Common Stock)

resulting from the transactions contemplated by this Agreement by each individual who is subject to the

reporting requirements of Section 16(a) of the 1934 Act with respect to the Company, or will become subject to

CVS Health Corporation PLAN OF MERGER — page 74

such reporting requirements with respect to Parent, to be exempt under Rule 16b-3 promulgated under the 1934

Act.

Section 8.08. Transaction Litigation. Each of the Company and Parent shall promptly notify the

other of any shareholder or stockholder (as applicable) demands, litigations, arbitrations or other similar claims,

actions, suits or proceedings (including derivative claims) commenced against it and/or its respective directors

or officers relating to this Agreement or any of the transactions contemplated hereby or any matters relating

thereto (collectively, “Transaction Litigation”) and shall keep the other party informed regarding any

Transaction Litigation. Each of the Company and Parent shall cooperate with the other in the defense or

settlement of any Transaction Litigation and shall give the other party the opportunity to consult with it

regarding the defense or settlement of such Transaction Litigation and shall give the other party’s advice due

consideration with respect to such Transaction Litigation. Prior to the Effective Time, none of the Company or

any of its Subsidiaries shall settle or offer to settle any Transaction Litigation without the prior written consent

of Parent (which consent shall not be unreasonably withheld, conditioned or delayed).

Section 8.09. Stock Exchange Delisting. Each of the Company and Parent agrees to cooperate

with the other party in taking, or causing to be taken, all actions necessary to delist the Company Common

Stock from the NYSE and terminate its registration under the 1934 Act;

provided

that such delisting and

termination shall not be effective until the Effective Time.

Section 8.10. Dividends. Each of the Company and Parent shall coordinate with the other

regarding the declaration and payment of dividends in respect of Company Common Stock and Parent Common

Stock and the record dates and payment dates relating thereto, it being the intention of the Company and Parent

that no holder of Company Common Stock or Parent Common Stock shall receive two dividends, or fail to

receive one dividend, for any single calendar quarter with respect to its shares of Company Common Stock, on

the one hand, and shares of Parent Common Stock any holder of Company Common Stock receives pursuant to

the Merger, on the other.

Section 8.11. Governance and Social Matters.

(a) Parent shall take all necessary corporate action to cause, effective at the Effective Time, (i) the

number of members of the Board of Directors of Parent to be increased by three (3) and (ii) the vacancies

created by the foregoing clause (i) to be filled by Mark T. Bertolini, the Chairman and Chief Executive Officer

of the Company, and two other individuals

who are serving on the Board of Directors of the Company immediately prior to the Effective Time, who are

jointly designated by the Company and Parent prior to the Closing and who meet Parent’s independence criteria

as in effect as of such time.

(b) For at least three years following the Closing, Parent shall preserve Aetna Foundation, Inc. in a

manner consistent in all material respects with the past practice of the Company, including by maintaining its

name as “Aetna Foundation” and its charitable mission.

brand for the insurance businesses of Parent and its Subsidiaries (including the Surviving Corporation and its

Subsidiaries).

Section 8.12. State Takeover Statutes. Each of Parent, Merger Sub and the Company shall (a) take

all action necessary so that no “moratorium,” “control share acquisition,” “fair price,” “supermajority,” “affiliate

transactions” or “business combination statute or regulation” or other similar state anti-takeover laws or

regulations, or any similar provision of the Company Organizational Documents or the Parent Organizational

Documents, as applicable, is or becomes applicable to the Merger or any of the other transactions contemplated

hereby, and (b) if any such anti-takeover law, regulation or provision is or becomes applicable to the Merger or

any other transactions contemplated hereby, cooperate and grant such approvals and take such actions as are

reasonably necessary so that the transactions contemplated hereby may be consummated as promptly as

practicable on the terms contemplated hereby and otherwise act to eliminate or minimize the effects of such

statute or regulation on the transactions contemplated hereby.

CVS Health Corporation PLAN OF MERGER — page 75

ARTICLE IX

CONDITIONS TO THE MERGER

Section 9.01. Conditions to the Obligations of Each Party. The obligations of the Company,

Parent and Merger Sub to consummate the Merger are subject to the satisfaction (or, to the extent permitted by

Applicable Law, waiver) of the following conditions:

(a) the Company Shareholder Approval shall have been obtained in accordance with Pennsylvania

Law;

(b) the Parent Stockholder Approval shall have been obtained in accordance with the rules of the

NYSE;

the U.S. that enjoins, prevents or prohibits the consummation of the Merger;

(d) the Registration Statement shall have been declared effective, no stop order suspending the

effectiveness of the Registration Statement shall be in effect, and no proceedings for such purpose shall be

pending before the SEC; and

(e) the shares of Parent Common Stock to be issued in the Parent Share Issuance shall have been

approved for listing on the NYSE, subject to official notice of issuance.

Section 9.02. Conditions to the Obligations of Parent and Merger Sub. The obligations of Parent

and Merger Sub to consummate the Merger are subject to the satisfaction (or, to the extent permitted by

Applicable Law, waiver by Parent) of the following further conditions:

(a) the Company shall have performed (or any non-performance shall have been cured), in all

material respects, all of its obligations hereunder required to be performed by it prior to the Effective Time;

(b) (i) the representations and warranties of the Company contained in Section 4.05(a) shall be

true and correct, subject only to

de minimis

exceptions, at and as of the date of this Agreement and at and as of

the Closing as if made at and as of the Closing (or, if such representations and warranties are given as of another

specific date, at and as of such date); (ii) the representations and warranties of the Company contained in

Section 4.01 (other than the third sentence thereof), Section 4.02, Section 4.04(i), Section 4.06(b) ((x) other than

the last sentence thereof and (y) solely with respect to the Major Subsidiaries of the Company), Section 4.27,

Section 4.28 and Section 4.29 shall be true and correct in all material respects at and as of the date of this

Agreement and at and as of the Closing as if made at and as of the Closing (or, if such representations and

warranties are given as of another specific date, at and as of such date); and (iii) the other representations and

warranties of the Company contained in this Agreement, disregarding all qualifications and exceptions

contained therein relating to materiality or Company Material Adverse Effect, shall be true and correct at and as

of the date of this Agreement and at and as of the Closing as if made at and as of the Closing (or, if such

representations and warranties are given as of another specific date, at and as of such date), except, in the case of

this clause (iii) only, where the failure of such representations and warranties to be true and correct has not had

and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse

Effect;

development or occurrence that has had or would reasonably be expected to have, individually or in the

aggregate, a Company Material Adverse Effect;

(d) both (i) the early termination or expiration of the waiting period required under the HSR Act

shall have occurred and (ii) the Company Required Governmental Authorizations and the Parent Required

Governmental Authorizations set forth in Section 9.02(d) of the Parent Disclosure Schedule, in each case in this

clause (d), with respect to the consummation of the Merger, shall have been made or obtained, as applicable,

and shall be in full force and effect and, in each case in this clause (d), shall not impose any term or condition

CVS Health Corporation PLAN OF MERGER — page 76

that would have or would reasonably be expected to have, individually or in the aggregate, a Regulatory

Material Adverse Effect on Parent or the Company; and

(e) Parent shall have received a certificate from an executive officer of the Company confirming

the satisfaction of the conditions set forth in Sections 9.02(a), 9.02(b) and 9.02(c).

Section 9.03. Conditions to the Obligations of the Company. The obligations of the Company to

consummate the Merger are subject to the satisfaction (or, to the extent permitted by Applicable Law, waiver by

the Company) of the following further conditions:

(a) each of Parent and Merger Sub shall have performed (or any non-performance shall have been

cured), in all material respects, all of its obligations hereunder required to be performed by it prior to the

Effective Time;

(b) (i) the representations and warranties of Parent contained in Section 5.05(a) shall be true and

correct, subject only to

de minimis

exceptions, at and as of the date of this Agreement and at and as of the

Closing as if made at and as of the Closing (or, if such representations and warranties are given as of another

specific date, at and as of such date); (ii) the representations and warranties of Parent contained in Section 5.01

(other than the third sentence thereof), Section 5.02, Section 5.04(i), Section 5.06(b) ((x) other than the last

sentence thereof and (y) solely with respect to the Major Subsidiaries of Parent), Section 5.20, Section 5.21 and

Section 5.22 shall be true and correct in all material respects at and as of the date of this Agreement and at and

as of the Closing as if made at and as of the Closing (or, if such representations and warranties are given as of

another specific date, at and as of such date); and (iii) the other representations and warranties of Parent

contained in this Agreement, disregarding all qualifications and exceptions contained therein relating to

materiality or Parent Material Adverse Effect, shall be true and correct at and as of the date of this Agreement

and at and as of the Closing as if made at and as of the Closing (or, if such representations and warranties are

given as of another specific date, at and as of such date), except, in the case of this clause (iii) only, where the

failure of such representations and warranties to be true and correct has not had and would not reasonably be

expected to have, individually or in the aggregate, a Parent Material Adverse Effect;

development or occurrence that has had or would reasonably be expected to have, individually or in the

aggregate, a Parent Material Adverse Effect;

(d) both (i) the early termination or expiration of the waiting period required under the HSR Act

shall have occurred, and (ii) the Company Required Governmental Authorizations and the Parent Required

Governmental Authorizations set forth in Section 9.03(d) of the Company Disclosure Schedule, in each case in

this clause (d), to the extent required under Applicable Law to consummate the transactions contemplated

hereby at Closing, shall have been made or obtained, as applicable, and shall be in full force and effect; and

(e) the Company shall have received a certificate from an executive officer of Parent confirming

the satisfaction of the conditions set forth in Section 9.03(a), Section 9.03(b) and Section 9.03(c).

ARTICLE X

TERMINATION

Section 10.01. Termination. This Agreement may be terminated and the Merger and the other

transactions contemplated hereby may be abandoned at any time prior to the Effective Time (notwithstanding

receipt of the Company Shareholder Approval or the Parent Stockholder Approval):

(a) by mutual written agreement of the Company and Parent;

(b) by either the Company or Parent, if:

CVS Health Corporation PLAN OF MERGER — page 77

(i) the Merger has not been consummated on or before December 3, 2018 (as such date may

be extended pursuant to the following proviso, the “End Date”);

provided

that, (A) if on such date,

the conditions to the Closing set forth in Section 9.02(d), Section 9.03(d), or Section 9.01(c) (if the

Applicable Law relates to the matters referenced in Section 9.02(d) or Section 9.03(d)) shall not

have been satisfied, but all other conditions to the Closing shall have been satisfied (or in the case of

conditions that by their terms are to be satisfied at the Closing, shall be capable of being satisfied on

such date) or waived, then the End Date shall be extended to March 3, 2019, if either the Company

or Parent notifies the other party in writing on or prior to December 3, 2018 of its election to extend

the End Date to March 3, 2019 and (B) if on March 3, 2019, the conditions to the Closing set forth

in Section 9.02(d), Section 9.03(d), or Section 9.01(c) (if the Applicable Law relates to the matters

referenced in Section 9.02(d) or Section 9.03(d)) shall not have been satisfied, but all other

conditions to the Closing shall have been satisfied (or in the case of conditions that by their terms

are to be satisfied at the Closing, shall be capable of being satisfied on such date) or waived, then the

End Date shall be further extended to June 3, 2019, if Parent notifies the Company in writing on or

prior to March 3, 2019 of its election to extend the End Date to June 3, 2019;

provided

that the right

to terminate this Agreement or extend the End Date pursuant to this Section 10.01(b)(i) shall not be

available to any party whose breach of any provision of this Agreement results in the failure of the

Merger to be consummated by such time;

(ii) there shall be in effect any Applicable Law enacted, adopted or promulgated after the

date hereof in the U.S. that enjoins, prevents or prohibits the consummation of the Merger and, if

such Applicable Law is an Order, such Order shall have become final and non-appealable;

provided

that the right to terminate this Agreement pursuant to this Section 10.01(b)(ii) shall not be available

to any party who has failed to perform fully its obligations under Section 8.02;

(iii) the Company Shareholder Approval shall not have been obtained upon a vote taken

thereon at the Company Shareholder Meeting (including any adjournment or postponement thereof);

(iv) the Parent Stockholder Approval shall not have been obtained upon a vote taken thereon

at the Parent Stockholder Meeting (including any adjournment or postponement thereof); or

(i) (A) a Company Adverse Recommendation Change shall have occurred or (B) the Board

of Directors of the Company shall have failed to publicly confirm the Company Board

Recommendation within seven (7) Business Days after a written request by Parent that it do so;

(ii) a breach of any representation or warranty or failure to perform any covenant or

agreement on the part of the Company set forth in this Agreement shall have occurred that would

cause any condition set forth in Section 9.02(a) or Section 9.02(b) not to be satisfied, and such

breach or failure to perform (A) is incapable of being cured by the End Date or (B) has not been

cured by the Company within forty-five (45) days following written notice to the Company from

Parent of such breach or failure to perform, but only so long as Parent is not then in breach of its

representations, warranties, covenants or agreements set forth in this Agreement, which breach by

Parent would cause any condition set forth in Section 9.03(a) or Section 9.03(b) not to be satisfied;

(iii) the Company shall have breached any of its obligations under Section 6.02 or 8.04 in

any material respect, other than in the case where (w) such breach is a result of an isolated action by

a Representative of the Company (other than a director or officer of the Company), (x) such breach

was not caused by, or within the knowledge of, the Company, (y) the Company takes appropriate

actions to remedy such breach upon discovery thereof, and (z) Parent is not significantly harmed as

a result thereof;

provided

that in no event shall Parent be entitled to terminate this Agreement on the

basis of any breach of Section 8.04 following the receipt of the Company Shareholder Approval; or

(iv) prior to obtaining the Parent Stockholder Approval, in order to enter into a definitive

agreement providing for a Parent Superior Proposal (which definitive agreement must be entered

into concurrently with, or immediately following, the termination of this Agreement pursuant to this

Section 10.01(c)(iv)) in accordance with, and subject to the terms and conditions of, Section 7.02; or

(d) by the Company, if:

CVS Health Corporation PLAN OF MERGER — page 78

(i) (A) a Parent Adverse Recommendation Change shall have occurred, or (B) the Board of

Directors of Parent shall have failed to publicly confirm the Parent Board Recommendation within

seven (7) Business Days after a written request by the Company that it do so;

(ii) if a breach of any representation or warranty or failure to perform any covenant or

agreement on the part of Parent or Merger Sub set forth in this Agreement shall have occurred that

would cause any condition set forth in

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Section 9.03(a) or Section 9.03(b) not to be satisfied, and such breach or failure to perform (A) is

incapable of being cured by the End Date or (B) has not been cured by Parent or Merger Sub, as

applicable, within forty-five (45) days following written notice to Parent from the Company of such

breach or failure to perform, but only so long as the Company is not then in breach of its

representations, warranties, covenants or agreements set forth in this Agreement, which breach by

the Company would cause any condition set forth in Section 9.02(a) or Section 9.02(b) not to be

satisfied;

(iii) Parent shall have breached any of its obligations under Section 7.02 or 8.04 in any

material respect, other than in the case where (w) such breach is a result of an isolated action by a

Representative of Parent (other than a director or officer of Parent), (x) such breach was not caused

by, or within the knowledge of, Parent, (y) Parent takes appropriate actions to remedy such breach

upon discovery thereof, and (z) the Company is not significantly harmed as a result thereof;

provided

that in no event shall the Company be entitled to terminate this Agreement on the basis of

any breach of Section 8.04 following the receipt of the Parent Stockholder Approval;

(iv) if (A) there shall be in effect any Order in respect of the matters contemplated by

clauses (x), (y) and/or (z) of the first sentence of Section 8.02(b) that shall not have become final

and non-appealable and that enjoins, restrains, prevents, prohibits or makes illegal the

consummation of the Merger, (B) within thirty (30) days after such Order first being in effect,

Parent shall not have instituted appropriate proceedings seeking to have such Order vacated, lifted,

reversed, overturned or terminated and (C) such failure to institute appropriate proceedings shall not

have been cured by Parent within ten (10) days following irrevocable written notice to Parent from

the Company of the Company’s intent to terminate this Agreement pursuant to this

Section 10.01(d)(iv) in respect of such failure (which notice may not be given prior to the expiration

of such thirty (30)-day period and, for the avoidance of doubt, shall not be effective if Parent

institutes such appropriate proceedings within such ten (10)-day period); or

(v) prior to obtaining the Company Shareholder Approval, in order to enter into a definitive

agreement providing for a Company Superior Proposal (which definitive agreement must be entered

into concurrently with, or immediately following, the termination of this Agreement pursuant to this

Section 10.01(d)(v)) in accordance with, and subject to the terms and conditions of, Section 6.02.

The party desiring to terminate this Agreement pursuant to this Section 10.01 (other than pursuant to

Section 10.01(a)) shall give written notice of such termination to the other party.

Section 10.02. Effect of Termination. If this Agreement is terminated pursuant to Section 10.01,

this Agreement shall become void and of no effect without liability of any party (or any shareholder,

stockholder or Representative of such party) to the other party hereto, except as provided in Section 10.03;

provided

that, subject to Section 10.03(e), neither

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Parent nor the Company shall be released from any liabilities or damages arising out of any (i) fraud by any

party, (ii) the Willful Breach by any party of any representation or warranty on the part of such party set forth in

this Agreement or (iii) the Willful Breach of any covenant or agreement set forth in this Agreement. The

provisions of Section 6.03(b), this Section 10.02, Section 10.03 and Article XI (other than Section 11.13) shall

survive any termination hereof pursuant to Section 10.01. In addition, the termination of this Agreement shall

not affect the parties’ respective obligations under the Confidentiality Agreement.

Section 10.03. Termination Fees.

CVS Health Corporation PLAN OF MERGER — page 79

(a) If this Agreement is terminated: (i) by Parent pursuant to Section 10.01(c)(i) or 10.01(c)(iii);

(ii) by the Company pursuant to Section 10.01(d)(v); or (iii) by the Company or Parent pursuant to

Section 10.01(b)(iii), and in the case of clause (iii) of this sentence: (I) at or prior to the Company Shareholder

Meeting a Company Acquisition Proposal shall have been publicly disclosed or announced; and (II) on or prior

to the first (1

) anniversary of such termination of this Agreement: (1) a transaction relating to a Company

Acquisition Proposal is consummated; or (2) a definitive agreement relating to a Company Acquisition Proposal

is entered into by the Company, then, in the case of each of the foregoing clauses (i) through (iii), the Company

shall pay to Parent, in cash at the time specified in the following sentence, a fee in the amount of $2,100,000,000

(the “Company Termination Fee”). The Company Termination Fee shall be paid as follows: (x) in the case of

clause (i) of the preceding sentence, within three (3) Business Days after the date of termination of this

Agreement; (y) in the case of clause (ii) of the preceding sentence, in advance of or concurrently with such

termination; and (z) in the case of clause (iii) of the preceding sentence, within three (3) Business Days after the

earlier of the consummation of the applicable transaction and the date upon which the definitive agreement is

entered into. “Company Acquisition Proposal” for purposes of the foregoing clause (iii)(II) of this

Section 10.03(a) shall have the meaning assigned thereto in the definition thereof set forth in Section 1.01,

except that references in the definition to “20%” shall be replaced by “50%.”

(b) If this Agreement is terminated: (i) by the Company pursuant to Section 10.01(d)(i) or

10.01(d)(iii); (ii) by Parent pursuant to Section 10.01(c)(iv); or (iii) by the Company or Parent pursuant to

Section 10.01(b)(iv), and in the case of clause (iii) of this sentence: (I) at or prior to the Parent Stockholder

Meeting a Parent Acquisition Proposal shall have been publicly disclosed or announced; and (II) on or prior to

the first (1

) anniversary of such termination of this Agreement: (1) a transaction relating to a Parent Acquisition

Proposal is consummated; or (2) a definitive agreement relating to a Parent Acquisition Proposal is entered into

by Parent, then, in the case of each of the foregoing clauses (i) through (iii), Parent shall pay to the Company, in

cash at the time specified in the following sentence, a fee in the amount of $2,100,000,000 (the “Parent

Termination Fee”). The Parent Termination Fee shall be paid as follows: (x) in the case of clause (i) of the

preceding sentence, within three (3) Business Days after the date of termination of this Agreement; (y) in the

case of clause (ii) of the preceding sentence, in advance of or concurrently with such termination; and (z) in the

case of clause (iii) of the preceding sentence, within three (3) Business Days after the earlier of the

consummation of the applicable transaction and the date upon which the definitive agreement is entered into.

“Parent Acquisition Proposal” for purposes of the foregoing clause (iii)(II) of this Section 10.03(b) shall have

the meaning assigned thereto in the definition thereof set forth in Section 1.01 except that references in the

definition to “20%” shall be replaced by “50%.”

102

(solely in respect of any Applicable Law in respect of the matters contemplated by clauses (x), (y) and/or (z) of

the first sentence of Section 8.02(b)) or Section 10.01(d)(iv) and, at the time of such termination, (A) the

condition set forth in Section 9.02(d) has not been satisfied and (B) the conditions set forth in Section 9.01

(other than the condition set forth in Section 9.01(c) solely in respect of any Applicable Law in respect of the

matters contemplated by clauses (x), (y) and/or (z) of the first sentence of Section 8.02(b)) and Section 9.02

(other than the condition set forth in Section 9.02(d)) have been satisfied (or in the case of conditions that by

their nature are to be satisfied at the Closing, are capable of being satisfied if the Closing were to occur on the

date of such termination) or waived, then Parent shall pay or cause to be paid a fee in the amount of

$2,100,000,000 (the “Regulatory Termination Fee”) to the Company as promptly as reasonably practicable (and

in any event within five (5) Business Days following such termination);

provided

that no Regulatory

Termination Fee shall be payable by Parent pursuant to this Section 10.03(c) if the failure of the condition set

forth in Section 9.02(d) to be satisfied is caused by the Company’s Willful Breach of Section 8.02.

(d) Any payment of the Company Termination Fee, the Parent Termination Fee or the Regulatory

Termination Fee shall be made by wire transfer of immediately available funds to an account designated in

writing by Parent or the Company, as applicable.

(e) The parties agree and understand that (x) in no event shall the Company be required to pay the

Company Termination Fee on more than one occasion, and in no event shall Parent be required to pay either the

Parent Termination Fee or the Regulatory Termination Fee on more than one occasion, or more than one of the

Parent Termination Fee or the Regulatory Termination Fee under any circumstances, and (y) in no event shall

Parent be entitled, pursuant to this Section 10.03, to receive an amount greater than the Company Termination

CVS Health Corporation PLAN OF MERGER — page 80

Fee and any applicable additional amounts pursuant the last two sentences of this Section 10.03(e) (“Parent

Additional Amounts”), and in no event shall the Company be entitled, pursuant to this Section 10.03, to receive

an amount greater than the Parent Termination Fee or the Regulatory Termination Fee, as applicable, and any

applicable additional amounts pursuant to Section 6.03(b) or the last two sentences of this Section 10.03(e)

(collectively, “Company Additional Amounts”). Notwithstanding anything to the contrary in this Agreement,

except in the case of fraud, (i) if Parent receives the Company Termination Fee and any applicable Parent

Additional Amounts from the Company pursuant to this Section 10.03, or if the Company receives the Parent

Termination Fee or the Regulatory Termination Fee and any applicable Company Additional Amounts from

Parent pursuant to this Section 10.03, such payment shall be the sole and exclusive remedy of the receiving

party against the paying party and its Subsidiaries and their respective former, current or future partners,

shareholders, stockholders, managers, members, Affiliates and Representatives, and none of the paying party,

any of its Subsidiaries or any of their respective former, current or future partners, shareholders, stockholders,

managers, members, Affiliates or Representatives shall have any further liability or obligation, in each case

relating to or arising out of this Agreement or the transactions contemplated hereby, and (ii) if (A) Parent or

Merger Sub receive any payments from the Company in respect of any breach of this Agreement and thereafter

Parent receives the Company Termination Fee pursuant to this

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Section 10.03 or (B) the Company receives any payments from Parent or Merger Sub in respect of any breach of

this Agreement and thereafter the Company receives the Parent Termination Fee or the Regulatory Termination

Fee pursuant to this Section 10.03, the amount of such Company Termination Fee, Parent Termination Fee or

Regulatory Termination Fee, as applicable, shall be reduced by the aggregate amount of such payments made by

the party paying the Company Termination Fee, Parent Termination Fee or Regulatory Termination Fee, as

applicable, in respect of any such breaches. The parties acknowledge that the agreements contained in this

Section 10.03 are an integral part of the transactions contemplated hereby, that, without these agreements, the

parties would not enter into this Agreement and that any amounts payable pursuant to this Section 10.03 do not

constitute a penalty. Accordingly, if any party fails to promptly pay any amount due pursuant to this

Section 10.03, such party shall also pay any costs and expenses (including reasonable legal fees and expenses)

incurred by the party entitled to such payment in connection with a legal action to enforce this Agreement that

results in a judgment for such amount against the party failing to promptly pay such amount. Any amount not

paid when due pursuant to this Section 10.03 shall bear interest from the date such amount is due until the date

paid at a rate equal to the prime rate as published in

The Wall Street Journal, Eastern Edition

in effect on the

date of such payment.

(f) None of the Financing Sources shall have any liability to the Company or any Person that is an

Affiliate of the Company prior to giving effect to the Merger relating to or arising out of this Agreement or the

Debt Financing, whether at law, or equity, in contract, in tort or otherwise, and neither the Company nor any

Person that is an Affiliate of the Company prior to giving effect to the Merger shall have any rights or claims

directly against any of the Financing Sources hereunder or thereunder. For the avoidance of any doubt, the

foregoing shall not impair, supplement, or otherwise modify any of the commitments and other obligations that

the Financing Sources have under the Debt Commitment Letters to Parent and/or Merger Sub or any of the

rights of Parent and/or Merger Sub against any of the Financing Sources under the Debt Commitment Letters.

ARTICLE XI

MISCELLANEOUS

Section 11.01. Notices. All notices, requests and other communications to any party hereunder

shall be in writing (including facsimile transmission) and shall be given,

If to the Company, to:

Aetna Inc.

151 Farmington Avenue, RC6A

Hartford, Connecticut 06156

Attention: General Counsel

Facsimile: (860) 273-8340

CVS Health Corporation PLAN OF MERGER — page 81

104

with a copy to (which shall not constitute notice):

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, New York 10017

Attention:

H. Oliver Smith

John A. Bick

Harold Birnbaum

Facsimile: (212) 701-5800

Email:

oliver.smith@davispolk.com

john.bick@davispolk.com

harold.birnbaum@davispolk.com

If to Parent, Merger Sub and, post-closing, the Surviving Corporation, to:

CVS Health Corporation

One CVS Drive

Woonsocket, Rhode Island 02895

Attention: General Counsel

Facsimile: (401) 770-3663

with a copy to (which shall not constitute notice):

Shearman & Sterling LLP

599 Lexington Avenue

New York, New York 10022

Attention:

Creighton O’M. Condon

Robert M. Katz

Daniel Litowitz

Facsimile: (212) 848-7179

Email:

CCondon@shearman.com

RKatz@shearman.com

Daniel.Litowitz@shearman.com

or to such other address or facsimile number as such party may hereafter specify for the purpose by notice to the

other parties hereto. All such notices, requests and other communications shall be deemed received on the date

of receipt by the recipient thereof if received prior to 5:00 p.m. on a Business Day. Otherwise, any such notice,

request or communication shall be deemed to have been received on the next succeeding Business Day.

Section 11.02. Survival. The representations, warranties, covenants and agreements contained in

this Agreement and in any certificate or other writing delivered pursuant hereto shall not survive the Effective

Time, except for the covenants and agreements set forth in Article II, Section 7.04, Section 7.05, Section 8.11

and this Article XI.

105

Section 11.03. Amendments and Waivers.

(a) Any provision of this Agreement may be amended or waived prior to the Effective Time if, but

only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this

Agreement or, in the case of a waiver, by each party against whom the waiver is to be effective;

provided

that,

after the Company Shareholder Approval or the Parent Stockholder Approval has been obtained, there shall be

no amendment or waiver that would require the further approval of the shareholders of the Company or the

stockholders of Parent under Applicable Law without such approval having first been obtained.

(b) Notwithstanding anything to the contrary in this Agreement, the provisions in

Section 10.03(f), this Section 11.03(b), Section 11.06(a), Section 11.07, Section 11.08(b) or Section 11.09 may

CVS Health Corporation PLAN OF MERGER — page 82

not be amended in a manner that is material and adverse to the Financing Sources without the prior written

consent of the applicable Financing Source.

operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise

thereof or the exercise of any other right, power or privilege. The rights and remedies provided in this

Agreement shall be cumulative and not exclusive of any rights or remedies provided by Applicable Law.

Section 11.04. Expenses. Except as otherwise provided in this Agreement, all costs and expenses

incurred in connection with this Agreement shall be paid by the party incurring such cost or expense.

Section 11.05. Disclosure Schedule References and SEC Document References.

(a) The parties hereto agree that each section or subsection of the Company Disclosure Schedule

or the Parent Disclosure Schedule, as applicable, shall be deemed to qualify the corresponding section or

subsection of this Agreement, irrespective of whether or not any particular section or subsection of this

Agreement specifically refers to the Company Disclosure Schedule or the Parent Disclosure Schedule, as

applicable. The parties hereto further agree that (other than with respect to any items disclosed in

Section 4.18(a) of the Company Disclosure Schedule, for which an explicit reference in any other section shall

be required in order to apply to such other section) disclosure of any item, matter or event in any particular

section or subsection of either the Company Disclosure Schedule or the Parent Disclosure Schedule shall be

deemed disclosure with respect to any other section or subsection of the Company Disclosure Schedule or the

Parent Disclosure Schedule, as applicable, to which the relevance of such disclosure would be reasonably

apparent, notwithstanding the omission of a cross-reference to such other section or subsections.

(b) The parties hereto agree that in no event shall any disclosure contained in any part of any

Company SEC Document or Parent SEC Document entitled “Risk Factors”, “Forward-Looking Statements”,

“Cautionary Statement Regarding Forward-Looking Statements”, “Special Note on Forward Looking

Statements” or “Forward Looking Information” or containing a description or explanation of “Forward-Looking

Statements” or any other

106

disclosures in any Company SEC Document or Parent SEC Document that are cautionary, predictive or

forward-looking in nature be deemed to be an exception to (or a disclosure for purposes of) any representations

and warranties of any party contained in this Agreement.

Section 11.06. Binding Effect; Benefit; Assignment.

(a) The provisions of this Agreement shall be binding upon and shall inure solely to the benefit of

the parties hereto, except for: (i) only following the Effective Time, the right of the Company’s shareholders and

holders of Company Equity Awards, as applicable, to receive (x) the Merger Consideration in respect of shares

of Company Common Stock pursuant to Section 2.03, (y) the Merger Consideration, Assumed Restricted Unit

Award, Assumed Performance Unit Award or Assumed Stock Appreciation Right payable in respect of

Company RSU Awards pursuant to Section 2.06(a), Company PSU Awards pursuant to Section 2.06(b) and

Company Stock Appreciation Rights pursuant to Section 2.06(c) and (z) the excess of the Equity Award Cash

Consideration over the applicable per share exercise price in respect of Company Stock Appreciation Rights

pursuant to Section 2.06(c), (ii) the right of the Company on behalf of its shareholders to seek equitable relief or

to pursue damages suffered by the Company and its shareholders (including claims for damages based on loss of

the economic benefit of the Merger to the Company’s shareholders (taking into consideration relevant matters,

including other combination opportunities and the time value of money)) in the event of the wrongful

termination of this Agreement or Willful Breach of this Agreement by Parent or Merger Sub (whether or not this

Agreement has been terminated pursuant to Section 10.01), which right is hereby expressly acknowledged and

agreed by Parent and Merger Sub, (iii) the right of the D&O Indemnified Parties to enforce the provisions of

Section 7.04 only and (iv) the right of each of the Financing Sources as an express third-party beneficiary of

Section 10.03(f), Section 11.03(b), this Section 11.06(a), Section 11.07, Section 11.08(b) and Section 11.09.

The third-party beneficiary rights referenced in clause (ii) of the preceding sentence may be exercised only by

the Company (on behalf of its shareholders as their agent) through actions expressly approved by the Board of

Directors of the Company, and no shareholder of the Company, whether purporting to act in its capacity as a

CVS Health Corporation PLAN OF MERGER — page 83

shareholder or purporting to assert any right (derivatively or otherwise) on behalf of the Company, shall have

any right or ability to exercise or cause the exercise of any such right.

(b) No party may assign, delegate or otherwise transfer any of its rights or obligations under this

Agreement without the prior written consent of each other party hereto, except that Parent may transfer or assign

its rights and obligations under this Agreement, in whole or from time to time in part, to any Person after the

Closing, and Merger Sub may transfer or assign its rights and obligations under this Agreement, in whole or

from time to time in part, to any other wholly owned Subsidiary of Parent, which Subsidiary shall be a

Pennsylvania corporation;

provided

that such transfer or assignment shall not (i) relieve Parent or Merger Sub of

its obligations hereunder or enlarge, alter or change any obligation of any other party hereto or due to Parent or

Merger Sub or (ii) materially delay the consummation of the Merger or any of the other transactions

contemplated hereby.

Section 11.07. Governing Law. Other than the provisions of this Agreement related to the Merger

that are exclusively governed by Pennsylvania Law, this Agreement shall be governed by and construed in

accordance with the laws of the State of Delaware, without regard to the conflicts of law rules of such state.

107

Section 11.08. Jurisdiction/Venue.

(a) Each of the parties hereto (i) irrevocably consents to the service of the summons and complaint

and any other process in any action or proceeding relating to the transactions contemplated hereby, on behalf of

itself or its property, in accordance with Section 11.01 or in such other manner as may be permitted by

Applicable Law, and nothing in this Section 11.08 shall affect the right of any party to serve legal process in any

other manner permitted by Applicable Law, (ii) irrevocably and unconditionally consents and submits itself and

its property in any action or proceeding to the exclusive general jurisdiction of the Delaware Court of Chancery

and any state appellate court therefrom within the State of Delaware (or, only if the Delaware Court of Chancery

declines to accept jurisdiction over a particular matter, any federal court within the State of Delaware) in the

event any dispute arises out of this Agreement or the transactions contemplated hereby, or for recognition and

enforcement of any judgment in respect thereof, (iii) agrees that it shall not attempt to deny or defeat such

personal jurisdiction by motion or other request for leave from any such court, (iv) agrees that any actions or

proceedings arising in connection with this Agreement or the transactions contemplated hereby shall be brought,

tried and determined only in the Delaware Court of Chancery (or, only if the Delaware Court of Chancery

declines to accept jurisdiction over a particular matter, any federal court within the State of Delaware),

(v) waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any

such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or

claim the same and (vi) agrees that it shall not bring any action relating to this Agreement or the transactions

contemplated hereby in any court other than the aforesaid courts. Each of Parent, Merger Sub and the Company

agrees that a final judgment in any action or proceeding in such court as provided above shall be conclusive and

may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Applicable

Law.

(b) Notwithstanding anything herein to the contrary, the parties hereto acknowledge and

irrevocably agree (i) that any action or proceeding, whether in law or in equity, whether in contract or tort or

otherwise, involving the Financing Sources arising out of or related to the transactions contemplated hereby, the

Debt Financing or the performance of services thereunder or related thereto shall be subject to the exclusive

jurisdiction of any state or federal court sitting in the Borough of Manhattan, New York, New York, and any

appellate court thereof and each party hereto submits for itself and its property with respect to any such action or

proceeding to the exclusive jurisdiction of such court and (ii) that any such action or proceeding shall be

governed by, and construed in accordance with, the laws of the State of New York, without regard to the

conflicts of law rules of such State that would result in the application of the laws of any other State.

Section 11.09. WAIVER OF JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES

THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO

INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY

HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY

HAVE TO A TRIAL BY

108

CVS Health Corporation PLAN OF MERGER — page 84

JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR

RELATING TO THIS AGREEMENT, THE MERGER OR THE OTHER TRANSACTIONS

CONTEMPLATED HEREBY (INCLUDING WITH RESPECT TO THE FINANCING SOURCES). EACH

PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR

ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT

SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE

FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE

IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND

(iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER

THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.09.

Section 11.10. Counterparts; Effectiveness. This Agreement may be signed in any number of

counterparts, including by facsimile or by email with .pdf attachments, each of which shall be an original, with

the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall

become effective when each party hereto shall have received a counterpart hereof signed and delivered (by

electronic communication, facsimile or otherwise) by all of the other parties hereto. Until and unless each party

has received a counterpart hereof signed by the other party hereto, this Agreement shall have no effect, and no

party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or

other communication).

Section 11.11. Entire Agreement. This Agreement and the Confidentiality Agreement constitute

the entire agreement between the parties with respect to the subject matter thereof and supersede all prior

agreements and understandings, both oral and written, between the parties with respect to the subject matter

thereof.

Section 11.12. Severability. If any term, provision, covenant or restriction of this Agreement is

held by a court of competent jurisdiction or other Governmental Authority to be invalid, void or unenforceable,

the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force

and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of

the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such a

determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original

intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated

hereby be consummated as originally contemplated to the fullest extent possible.

Section 11.13. Specific Performance. The parties acknowledge and agree that irreparable harm

would occur and that the parties would not have any adequate remedy at law (i) for any breach of the provisions

of this Agreement or (ii) in the event that any of the provisions of this Agreement were not performed in

accordance with their specific terms. It is accordingly agreed that, except where this Agreement is terminated in

accordance with Section 10.01, the parties shall be entitled to an injunction or injunctions to prevent breaches of

this Agreement and to specifically enforce the terms and provisions of this Agreement (including Section 7.06),

without proof of actual damages, and each party further agrees to waive any

109

requirement for the securing or posting of any bond in connection with such remedy. The parties further agree

that (x) by seeking the remedies provided for in this Section 11.13, a party shall not in any respect waive its

right to seek any other form of relief that may be available to a party under this Agreement, including, subject to

Section 10.03(e), monetary damages in the event that this Agreement has been terminated or in the event that

the remedies provided for in this Section 11.13 are not available or otherwise are not granted, and (y) nothing

contained in this Section 11.13 shall require any party to institute any proceeding for (or limit any party’s right

to institute any proceeding for) specific performance under this Section 11.13 before exercising any termination

right under Section 10.01 (and pursuing damages after such termination), nor shall the commencement of any

action pursuant to this Section 11.13 or anything contained in this Section 11.13 restrict or limit any party’s

right to terminate this Agreement in accordance with the terms of Section 10.01 or pursue any other remedies

under this Agreement that may be available then or thereafter.

[

Remainder of page intentionally left blank; signature pages follow

]

110

CVS Health Corporation PLAN OF MERGER — page 85

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by

their respective authorized officers as of the day and year first above written.

CVS HEALTH CORPORATION

By:

/s/ Thomas M. Moriarty

Name: Thomas M. Moriarty

Title: Executive Vice President, Chief

Policy and External Affairs Officer,

and General Counsel

HUDSON MERGER SUB CORP.

By:

/s/ Thomas S. Moffatt

Name: Thomas S. Moffatt

Title: Secretary

AETNA INC.

By:

/s/ Shawn M. Guertin

Name: Shawn M. Guertin

Title: Executive Vice President, Chief

Financial Officer and Chief

Enterprise Risk Officer

[Signature Page to Agreement and Plan of Merger]

EXHIBIT A

SECOND AMENDED AND RESTATED

ARTICLES OF INCORPORATION

AETNA INC.

(A Pennsylvania Corporation)

This Second Amended and Restated Articles of Incorporation amends and restates the existing Amended

and Restated Articles of Incorporation of the Corporation and has been duly adopted by the Board of Directors

of the Corporation by unanimous written consent in lieu of a meeting in accordance with Section 1727(b) of the

Pennsylvania Business Corporation Law of 1988, as amended and by the shareholders of the Corporation by

unanimous written consent in lieu of a meeting in accordance with Section 1766 of the Pennsylvania Business

Corporation Law of 1988, as amended.

These Second Amended and Restated Articles of Incorporation supersede the original articles of

incorporation of the Corporation, and all amendments thereto.

The Articles of Incorporation of Aetna Inc., as amended hereby, shall, upon the effectiveness hereof, read

in its entirety, as follows:

Name.

The name of the corporation is Aetna Inc. (the “Corporation”).

Registered Office.

The address of the Corporation’s registered office in the Commonwealth of

Pennsylvania is the Corporation’s principal office at 1425 Union Meeting Road, Blue Bell, PA 19422 (which is

located in Montgomery County).

CVS Health Corporation PLAN OF MERGER — page 86

Incorporation.

The Corporation is incorporated under the provisions of the Pennsylvania Business

Corporation Law of 1988, as amended (the “PA BCL”).

Purpose

. The purpose of the Corporation shall be to engage in any lawful act and activity for which

corporations may be organized and incorporated under the PA BCL.

5. Authorized Capital.

5.1.

Authorized Shares.

The aggregate number of shares of stock that the Corporation shall have

authority to issue is 100 Common Shares, par value $0.01 (“Common Stock”).

5.2.

Common Stock.

The following is a statement of the designations, preferences, qualifications,

limitations, restrictions and special or relative rights granted or imposed upon the shares of Common Stock of

the Corporation:

5.2.1.

Dividends.

Holders of Common Stock shall be entitled to receive ratably such

dividends (payable in cash, stock or otherwise) as may be declared by the board of directors of the Corporation

(the “Board of Directors”) on Common Stock out of funds legally available for the payment thereof.

5.2.2.

Distribution of Assets.

In the event of the voluntary or involuntary liquidation,

dissolution or winding up of the Corporation, the holders of Common Stock will be entitled to receive pro rata

all of the remaining assets of the Corporation.

5.2.3.

Voting Rights.

The holders of Common Stock shall have the general right to vote

for all purposes, including the election of directors, as provided by law. Each holder of Common Stock shall be

entitled to one vote for each share thereof held.

Bylaws.

In furtherance and not in limitation of the powers conferred by law, the Board of Directors is

authorized to adopt, amend or repeal the bylaws of the Corporation (the “Bylaws”), except as otherwise

specifically provided therein, subject to the powers of the shareholders of the Corporation to amend or repeal

any bylaws adopted by the Board of Directors.

Number; Election of Directors.

The

Board of Directors shall consist of at least one director, or such

other number of directors as determined in accordance with the Bylaws of the Corporation. Unless and except to

the extent that the Bylaws shall so require, the election of directors of the Corporation need not be by written

ballot.

8. Indemnification.

8.1.

Indemnification.

The Corporation shall indemnify any person who was or is a party or is

threatened to be made a party to any threatened, pending or completed action or proceeding, including without

limitation actions by or in the right of the Corporation, whether civil, criminal, administrative or investigative,

by reason of the fact that such person is or was a director or officer of the Corporation, or is or was serving

while a director or officer of the Corporation at the request of the Corporation as a director, officer, employee,

agent, fiduciary or other representative of another corporation (for profit or not-for-profit), limited liability

company, partnership, joint venture, trust, employee benefit plan or other enterprise, against all liabilities,

expenses (including without limitation attorneys’ fees), judgments, fines, excise taxes and amounts paid in

settlement in connection with such action or proceeding unless the act or failure to act by such person giving rise

to the claim for indemnification is determined by a court to have constituted willful misconduct or recklessness.

The Corporation shall have the power to indemnify employees and agents of the Corporation on the same basis

as provided above in this Article 8.1, and to advance expenses to employees and agents on the same basis as

provided in Article 8.2, as the Board of Directors may from time to time determine or authorize.

8.2.

Advancement of Expenses.

Expenses (including without limitation attorneys’ fees) incurred

by any person who was or is an officer or director of the Corporation in defending any action or proceeding

referred to in Article 8.1 shall automatically be paid by the Corporation, without the need for action by the

Board of Directors, in advance of the final disposition of the action or proceeding upon receipt of an undertaking

by or on behalf of such person to repay such amount if it shall ultimately be determined that such person is not

entitled to be indemnified by the Corporation.

CVS Health Corporation PLAN OF MERGER — page 87

8.3.

Exception.

Notwithstanding anything in this Article 8 to the contrary, the Corporation shall

not be obligated to indemnify any person under Article 8.1 or advance expenses under Article 8.2 with respect

to proceedings, claims or actions commenced by such person, other than mandatory counterclaims and

affirmative defenses.

8.4.

Interpretation.

The indemnification and advancement of expenses provided by or pursuant

to this Article 8 shall not be deemed exclusive of any other rights to which any person seeking indemnification

or advancement of expenses may be entitled under any insurance policy, agreement, vote of shareholders or

directors, or otherwise, both as to actions in such person’s official capacity and as to actions in another capacity

while holding an office, and shall continue as to a person who has ceased to be a director or officer and shall

inure to the benefit of the heirs, executors and administrators of such person. If the PA BCL is amended to

permit a Pennsylvania corporation to provide greater rights to indemnification and advancement of expenses for

its directors and officers than the express terms of this Article 8, this Article 8 shall be construed to provide for

such greater rights.

8.5.

Contract.

The duties of the Corporation to indemnify and to advance expenses to a director

or officer as provided in this Article 8 shall be in the nature of a contract between the Corporation and each such

person, and no amendment or repeal of any provision of this Article 8 shall alter, to the detriment of such

person, the right of such person to the advancement of expenses or indemnification related to a claim based on

an act or failure to act that took place prior to such amendment or repeal or the termination of the service of the

person as a director or officer, whichever is earlier.

Limitation of Directors’ Liability.

No person who is or was a director of the Corporation shall be

personally liable, as such, for monetary damages (other than under criminal statutes and under federal, state and

local laws imposing liability on directors for the payment of taxes) unless the person’s conduct constitutes self-

dealing, willful misconduct or recklessness. No amendment or repeal of this Article 9 shall apply to or have any

effect on the liability or alleged liability of any person who is or was a director of the Corporation for or with

respect to any acts or omissions of the director occurring prior to the effective date of such amendment or

repeal. If the PA BCL is amended to permit a Pennsylvania corporation to provide greater protection from

personal liability for its directors than the express terms of this Article 9, this Article 9 shall be construed to

provide for such greater protection.

10.

Limitation of Officers’ Liability.

No person who is or was an officer of the Corporation shall be

personally liable, as such, for monetary damages (other than under criminal statutes and under federal, state and

local laws imposing liability on officers for the payment of taxes) unless the person’s conduct constitutes self-

dealing, willful misconduct or recklessness. No amendment or repeal of this Article 10 shall apply to or have

any effect on the liability or alleged liability of any person who is or was an officer of the Corporation for or

with respect to any acts or omissions of the officer occurring prior to the effective date of such amendment or

repeal. If the PA BCL is amended to permit a Pennsylvania corporation to provide greater protection from

personal liability for its officers than the express terms of this Article 10, this Article 10 shall be construed to

provide for such greater protection.

11.

Right to Amend.

Except as otherwise provided herein or by applicable law, the Corporation

reserves the right to amend or repeal any provision contained in this Second Amended and Restated Articles of

Incorporation as the same may from time to time be in effect, in the manner now or hereafter prescribed by law,

and all rights, preferences and privileges conferred on shareholders hereunder are subject to such reservation.

CVS Health Corporation PLAN OF MERGER

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