Exhibit 10.2

EXPRESS SCRIPTS, INC.

EXECUTIVE DEFERRED COMPENSATION PLAN
OF 2005

(As effective January 1, 2005)
 
 
 

TABLE OF CONTENTS
             
Page No.
       
1.
 
PURPOSE...........................................................................................................................................................................................................
  1
       
2.
 
DEFINITIONS...................................................................................................................................................................................................
  1
 
2.1
 
Accounting
Date.........................................................................................................................................................................................
  1
 
2.2
 
Basic Company
Credit................................................................................................................................................................................
  1
 
2.3
 
Beneficiary....................................................................................................................................................................................................
  1
 
2.4
 
Board.............................................................................................................................................................................................................
  1
 
2.5
 
Business
Day...............................................................................................................................................................................................
  2
 
2.6
 
Code..............................................................................................................................................................................................................
  2
 
2.7
 
Committee
...................................................................................................................................................................................................
  2
 
2.8
 
Common
Stock.............................................................................................................................................................................................
  2
 
2.9
 
Common Stock
Fund...................................................................................................................................................................................
  2
 
2.10
 
Company.......................................................................................................................................................................................................
  2
 
2.11
 
Company
Credits.........................................................................................................................................................................................
  2
 
2.12
 
Compensation..............................................................................................................................................................................................
  2
 
2.13
 
Compensation
Account(s).........................................................................................................................................................................
  2
 
2.14
 
Credit
Date....................................................................................................................................................................................................
  3
 
2.15
 
Deferred
Bonus............................................................................................................................................................................................
  3
 
2.16
 
Deferred
Compensation..............................................................................................................................................................................
  3
 
2.17
 
Disability.......................................................................................................................................................................................................
  3
 
2.18
 
Effective
Date...............................................................................................................................................................................................
  3
 
2.19
 
Election.........................................................................................................................................................................................................
  3
 
2.20
 
Employee......................................................................................................................................................................................................
  3
 
2.21
 
Fair Market
Value........................................................................................................................................................................................
  3
 
2.22
 
In-Service
Account.....................................................................................................................................................................................
  4
 
2.23
 
Participant.....................................................................................................................................................................................................
  4
 
2.24
 
Past Service
Credit......................................................................................................................................................................................
  4
 
2.25
 
Plan................................................................................................................................................................................................................
  4
 
2.26
 
Plan
Year.......................................................................................................................................................................................................
  4
 
2.27
 
Retirement.....................................................................................................................................................................................................
  4
 
2.28
 
Retirement
Account....................................................................................................................................................................................
  4
 
2.29
 
Service
Year..................................................................................................................................................................................................
  5
 
2.30
 
Special
Bonus..............................................................................................................................................................................................
  5
 
2.31
 
Stock
Unit(s)................................................................................................................................................................................................
  5
 
2.32
 
Termination..................................................................................................................................................................................................
  5
         
3.
ADMINISTRATION...............................................................................................................................................................................................
  5
         
4.
ELIGIBILITY.............................................................................................................................................................................................................
  5
         
5.
PARTICIPANT
ACCOUNTS.................................................................................................................................................................................
  6
         
6.
ELECTION TO
PARTICIPATE..............................................................................................................................................................................
  7
 
6.1
 
In
General......................................................................................................................................................................................................
  7
 
6.2
 
Investment Alternatives For Existing
Balances......................................................................................................................................
  8
         
7.
COMPANY CREDITS AND SPECIAL AND DEFERRED
BONUSES..............................................................................................................
  8
 
7.1
 
Vesting..........................................................................................................................................................................................................
  8
 
7.2
 
Forfeiture......................................................................................................................................................................................................
  9
         
8.
DISTRIBUTION.......................................................................................................................................................................................................
  9
 
8.1
 
Retirement
Account....................................................................................................................................................................................
  9
 
8.2
 
In-Service
Account.....................................................................................................................................................................................
  9
 
8.3
 
Termination or
Disability............................................................................................................................................................................
10
 
8.4
 
Death.............................................................................................................................................................................................................
10
 
8.5
 
Form of
Distribution....................................................................................................................................................................................
10
         
9.
FINANCIAL
HARDSHIP........................................................................................................................................................................................
10
   
10.
BENEFICIARY
DESIGNATION.............................................................................................................................................................................
11
   
11.
UNSECURED GENERAL CREDITOR STATUS OF
EMPLOYEE.....................................................................................................................
12
   
12.
SHARES; ADJUSTMENTS IN EVENT OF CHANGES IN
CAPITALIZATION............................................................................................
12
   
13.
INALIENABILITY OF
BENEFITS.........................................................................................................................................................................
12
   
14.
CLAIMS
PROCEDURE...........................................................................................................................................................................................
12
   
15.
GOVERNING
LAW..................................................................................................................................................................................................
15
   
16.
AMENDMENTS......................................................................................................................................................................................................
15
   
17.
TIME FOR
PAYMENT............................................................................................................................................................................................
15
         

 

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EXPRESS SCRIPTS, INC.
EXECUTIVE DEFERRED COMPENSATION PLAN OF 2005

1. PURPOSE
 
    The purpose of this Express Scripts, Inc. Executive Deferred Compensation
Plan of 2005 (the “Plan”) is to provide eligible key employees of the Company
with an opportunity to defer compensation to be earned by them from the Company
as a means of saving for retirement or other future purposes and to provide such
employees with competitive retirement and capital accumulation benefits. In
addition, the Plan is intended to provide eligible key employees additional
incentive to remain employed by the Company and to attract certain
executive-level employees.
 
    The Company previously adopted the Express Scripts, Inc. Executive Deferred
Compensation Plan, as amended and restated effective January 1, 2003 (“Prior
Plan”). Effective December 31, 2004, the Company amended the Prior Plan to cease
future deferrals thereunder after December 31, 2004, and the Prior Plan is
intended to be grandfathered for purposes of Section 409A of the Code. By this
instrument, effective January 1, 2005, the Company intends to set forth in a
separate document the terms of the Plan, which shall apply to amounts deferred
or that first become vested hereunder after December 31, 2004. The Prior Plan
and the Plan shall be considered one plan set forth in two separate documents.
 
2. DEFINITIONS
 
    The following definitions shall be applicable throughout the Plan:
 
    2.1 Accounting Date.
 
    “Accounting Date” means each Business Day on which a calculation concerning
a Participant's Compensation Account is performed, or as otherwise defined by
the Committee.
 
    2.2 Basic Company Credit.
 
    “Basic Company Credit” means an amount, if any, credited to a Participant’s
Retirement Account as described in Section 7.
 
    2.3 Beneficiary.
 
    “Beneficiary” means the person or persons designated by the Participant in
accordance with Section 10, or if no person or persons are so designated, the
estate of a deceased Participant.
 
    2.4 Board.
 
    “Board” means the Board of Directors of Express Scripts, Inc. or its
designee.
 
    2.5 Business Day.
 
    “Business Day” means a day on which the New York Stock Exchange is open for
trading activity.
 
    2.6 Code.
 
    “Code” means the Internal Revenue Code of 1986, as amended.
 
    2.7 Committee.
 
    “Committee” means the Compensation Committee of the Board.
 
    2.8 Common Stock.
 
    “Common Stock” means the Common Stock, $0.01 par value, of Express Scripts,
Inc.
 
    2.9 Common Stock Fund.
 
    “Common Stock Fund” means that investment option, approved by the Committee,
in which a Participant's Compensation Accounts may be deemed to be invested and
may earn income (or incur losses) based on a hypothetical investment in Common
Stock.
 
    2.10 Company.
 
    “Company” means Express Scripts, Inc., its divisions, subsidiaries and
affiliates.
 
    2.11 Company Credits.
 
    “Company Credits” means amounts credited as either Basic Company Credits or
Past Service Credits by the Company to Compensation Accounts, in the sole
discretion of the Committee, pursuant to Section 7.
 
    2.12 Compensation.
 
    “Compensation” means all (a) salary, commissions, payments under the
Company’s Annual Bonus Plan (but not expense or other reimbursement or
allowances) currently payable by the Company to a Participant, and (b)
compensation in the form of Common Stock which the Employee may elect to convert
to Stock Units if permitted by, and in accordance with, the terms of the grant
of such compensation. For purposes of this Plan, the Committee may determine the
amounts that will be considered Compensation with respect to any Participant.
 
    2.13 Compensation Account(s).
 
    “Compensation Account(s)” means the Retirement Account and/or the In-Service
Accounts.
 
    2.14 Credit Date.
 
    “Credit Date” means each date on which Deferred Compensation is credited to
Compensation Accounts in accordance with rules prescribed by the Committee.
 
    2.15 Deferred Bonus.
 
    “Deferred Bonus” means an amount, if any, designated as such by the
Committee and credited to a Participant’s Compensation Account.
 
    2.16 Deferred Compensation.
 
    “Deferred Compensation” means the Compensation elected by the Participant to
be deferred pursuant to the Plan.
 
    2.17 Disability.
 
    “Disability” means the Participant (a) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment that can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months, or (b) is, by reason of
any medically determinable physical or mental impairment which can be expected
to result in death or can be expected to last for a continuous period of not
less than 12 months, receiving income replacement benefits for a period of not
less than 3 months under an accident and health plan covering employees of the
Company.
 
    2.18 Effective Date.
 
    “Effective Date” means the effective date of the Plan, January 1, 2005.
 
    2.19 Election.
 
    “Election” means a Participant's delivery of a written notice of election to
the Committee or its designee electing to defer payment of a specified
percentage of his or her Compensation (in accordance with rules prescribed by
the Committee) either until Retirement, death or such other time as further
permitted by the Committee.
 
    2.20 Employee.
 
    “Employee” means an individual classified by the Committee as a full-time,
regular salaried employee of the Company.
 
    2.21 Fair Market Value.
 
    “Fair Market Value” means, as of any specified date, the closing sales price
of a share of Common Stock, as reported on the Nasdaq National Market on that
date (or, if there are no sales on that date, the last preceding date on which
there was a sale), or, in the event the Common Stock is listed on a stock
exchange, the closing sales price of a share of Common Stock, as reported on
such exchange on that date (or, if there are no sales on that date, the last
preceding date on which there was a sale). In the absence of any listing of the
Common Stock on the Nasdaq National Market or on any established stock exchange,
Fair Market Value means the fair market value of the Common Stock on any
specified date as determined in good faith by the Committee.
 
    2.22 In-Service Account.
 
    “In-Service Account” means the account or accounts to which a Participant
elects to contribute Deferred Compensation and, to the extent permitted in an
award as described in Section 5, Special Bonuses and/or Deferred Bonuses, and
from which, pursuant to Section 8.2, distributions are made. The portion of any
In-Service Account which was not vested under the Prior Plan as of December 31,
2004 shall be hypothetically transferred and credited to the In-Service Account
under this Plan and shall be subject to the vesting provisions hereunder from
the date first credited under the Prior Plan.
 
    2.23 Participant.
 
    “Participant” means an Employee selected by the Committee to be eligible to
participate in the Plan.
 
    2.24 Past Service Credit.
 
    “Past Service Credit” means an amount, if any, credited to a Participant’s
Retirement Account as described in Section 7.
 
    2.25 Plan.
 
    “Plan” means this Express Scripts, Inc. Executive Deferred Compensation Plan
of 2005, as amended from time to time.
 
    2.26 Plan Year.
 
    “Plan Year” means the annual period commencing January 1 and ending the
following December 31.
 
    2.27 Retirement.
 
    “Retirement” means a Participant’s termination of employment after attaining
age 55 and having a combination of full years of age plus Service Years totaling
at least 65.
 
    2.28 Retirement Account.
 
    “Retirement Account” means the account to which a Participant elects to
contribute Deferred Compensation and to which Company Credits, Special Bonuses
and/or Deferred Bonuses (subject to any election described in Section 5) are
made, and from which, pursuant to Section 8.1, distributions are made. The
portion of any Retirement Account which was not vested under the Prior Plan as
of December 31, 2004 shall be hypothetically transferred and credited to the
Retirement Account under this Plan and shall be subject to the vesting
provisions hereunder from the date first credited under the Prior Plan.
 
    2.29 Service Year.
 
    “Service Year” means, as designated by the Committee, such year or portion
thereof during which the services have been rendered by a Participant for which
Compensation is payable.
 
    2.30 Special Bonus.
 
    “Special Bonus” means an amount, if any, designated as such by the Committee
and credited to a Participant’s Compensation Account.
 
    2.31 Stock Unit(s).
 
    “Stock Unit(s)” means the share equivalents credited to the Common Stock
Fund of a Participant's Compensation Account in accordance with Sections 5, 6
and 7.
 
    2.32 Termination.
 
    “Termination” means termination of services as an Employee for any reason
other than Retirement. Such determination of whether a Termination has occurred
shall be made in a manner consistent with Section 409A of the Code and the
regulations and other guidance issued thereunder to avoid adverse tax
consequences thereunder.
 
3. ADMINISTRATION
 
    Full power and authority to construe, interpret and administer the Plan
shall be vested in the Committee. This power and authority includes, but is not
limited to, selecting which Employees are eligible to participate in the Plan,
selecting Compensation eligible for deferral, selecting investment indices,
establishing the level of Company Credits (if any) to the Plan, establishing
deferral terms and conditions, receiving and approving beneficiary designation
forms, and adopting modifications, amendments and procedures as may be deemed
necessary, appropriate or convenient by the Committee. Decisions of the
Committee shall be final, conclusive and binding upon all parties. The
Committee, in its sole discretion, may delegate day-to-day administration of the
Plan to an employee or employees of the Company or to a third-party
administrator. The Committee may also rely on outside counsel, independent
accountants or other consultants or advisors for advice and assistance in
fulfilling its administrative duties under the Plan.
 
4. ELIGIBILITY
 
    Employees at the vice-president level or higher shall be eligible to
participate in the Plan commencing on the first date they are employed by the
Company in such capacity; provided that if such date is on or after November 1
in any Plan Year or if such Employee already participates in a deferred
compensation arrangement that would be aggregated with this Plan for purposes of
Section 409A of the Code and the regulations and guidance issued thereunder,
such Employee shall not be eligible to participate in the Plan until the
following January 1. The Committee shall have the ability to impose restrictions
on the eligibility of new Employees as it considers appropriate.
 
5. PARTICIPANT ACCOUNTS
 
    Upon a Participant’s initial election to participate in the Plan, there
shall be established a Retirement Account and an In-Service Account, as
designated by the Participant, to which there shall be credited any Deferred
Compensation on or after January 1, 2005 with respect to services performed
subsequent to such election as of each Credit Date. In addition, Company
Credits, if any, made pursuant to Section 7 shall be allocated to a
Participant’s Retirement Account in accordance with rules prescribed by the
Committee. Each such Compensation Account shall be credited (or debited) on each
Accounting Date with income (or loss) based upon a hypothetical investment in
any one or more of the investment options available under the Plan, as
prescribed by the Committee for the particular Compensation credited, which may
include a Common Stock Fund. A Participant shall make two separate investment
elections, one with respect to his or her Retirement Account and one with
respect to his or her In-Service Accounts; provided, however, that earnings and
losses on Deferred Compensation which relates to Compensation which would have
been paid (absent the Election) in Common Stock shall initially be measured by
reference to a hypothetical investment in the Common Stock Fund and shall be
further subject to the terms of the grant of such Compensation.
 
    A Participant’s Special Bonus and/or Deferred Bonus, if any, to the extent
not yet deferred and vested under the Prior Plan as of December 31, 2004, shall
be credited to the Participant’s Retirement Account, unless the Agreement or
award providing for such bonus(es) provides that the Participant may elect to
credit any or all of such amounts to his or her In-Service Account and the
Participant so elects prior to the Plan Year in which such bonus(es) is earned
and otherwise in accordance with rules prescribed by the Committee.
 
    Each Participant at any time may have no more than two In-Service Accounts
under this Plan and the Prior Plan, in the aggregate.
 
    If all or any portion of a Participant’s Compensation Account(s) is measured
by a hypothetical investment in the Common Stock Fund, that portion of the
Participant’s Compensation Account(s) shall be credited on the first day of the
calendar quarter following each Credit Date with Stock Units equal to the number
of shares of Common Stock (including fractions of a share) that could have been
purchased with the amount of such Deferred Compensation (plus earnings and less
losses determined in accordance with the next sentence) at the Fair Market Value
on such first day of such calendar quarter. For the period between such Credit
Date and the first day of such calendar quarter, earnings and losses shall be
measured by reference to a hypothetical investment selected by the Committee. As
of any date for the payment of cash dividends on the Common Stock, the portion
of the Participant’s Compensation Account(s) invested in the Common Stock Fund
as of the dividend record date shall be credited with additional Stock Units
calculated by dividing (i) the product of (a) the dollar value of the dividend
declared in respect of a share of Common Stock multiplied by (b) the number of
Stock Units credited to the Participant’s Compensation Account(s) as of the
dividend record date by (ii) the Fair Market Value of a share of Common Stock on
the dividend payment date.
 
6. ELECTION TO PARTICIPATE
 
    6.1 In General.
 
    Any Employee selected by the Committee to participate in the Plan may elect
to do so by delivering to the Committee or its designee an Election on a form
prescribed by the Committee, designating the Compensation Account to which the
Deferred Compensation is to be credited, electing the timing and form of
distribution (if applicable), and setting forth the manner in which such
Deferred Compensation shall be invested in accordance with Section 5. A
Participant’s initial Election must be filed at such time as designated by the
Committee, but in no event later than the day immediately preceding the first
day of the Plan Year to which such Election relates. A Participant may submit a
new Election for any subsequent year in order to change the election previously
made. Such subsequent Election must be filed at such time as designated by the
Committee, but in no event later than 15 days preceding the first day of the
Plan Year to which such subsequent Election relates. If a specific election has
not been made with respect to any Plan Year, the Election (if any) effective
with respect to the immediately preceding Plan Year shall remain in effect. An
effective Election may not be revoked or modified during a Plan Year with
respect to that Plan Year.
 
    Subject to Section 4, newly employed or eligible Employees who are eligible
to participate in the Plan may elect to participate for the current Plan Year
within the first 30 days after commencing employment or becoming eligible. Such
election shall be effective on the first day of the month following the end of
such 30-day period and shall apply only with respect to Compensation earned
after the effective date of such election. Elections for subsequent Plan Years
shall be made in accordance with the preceding paragraph.
 
    Notwithstanding anything herein to the contrary, for the Plan Year beginning
January 1, 2005, a Participant may elect to defer Compensation for such Plan
Year by delivering to the Committee or its designee an Election on a form
prescribed by the Committee on or before March 15, 2005 with respect to such
Compensation that has not been paid or become payable at the time of delivery of
such Election. Notwithstanding the provisos in Sections 8.1 and 8.2 or anything
else herein to the contrary, a Participant may change an Election as to the
timing and form of distribution (if applicable) under the Plan if such Election
is filed no later than December 31, 2007 in accordance with the rules
established by the Committee or its designee; provided, however, with respect to
an Election on or after January 1, 2006 and on or before December 31, 2006, the
Election may change the time and form of distribution only with respect to
amounts that would not otherwise be payable in 2006 and may not cause an amount
to be paid in 2006 that would not otherwise be payable in 2006; and, provided,
further, with respect to an Election on or after January 1, 2007 and on or
before December 31, 2007, the Election may change the time and form of
distribution only with respect to amounts that would not otherwise be payable in
2007 and may not cause an amount to be paid in 2007 that would not otherwise be
payable in 2007.
 
    6.2 Investment Alternatives For Existing Balances.
 
    A Participant may elect to change an existing selection as to the investment
alternatives in effect with respect to an existing Compensation Account (in
increments prescribed by the Committee) as often, and with such restrictions, as
determined by the Committee.
 
7. COMPANY CREDITS AND SPECIAL AND DEFERRED BONUSES
 
    In the sole discretion of the Committee, in a given Plan Year the Company
may credit a specified percentage of a Participant’s Compensation to the
Participant’s Retirement Account as a Basic Company Credit. The Committee, in
its sole discretion, may cause the Company to credit such Basic Company Credit
for all or any portion of the Participants in the Plan in such Plan Year.
Further, the Committee may cause the Company to credit a Deferred Bonus and/or a
Special Bonus to recognize significant efforts by Plan Participants as the
Committee, in its sole discretion, deems appropriate. In addition, the Committee
may cause the Company to credit a Past Service Credit to recognize past service
as the Committee, in its sole discretion, deems appropriate. Such Basic Company
Credit, Past Service Credit, Special Bonus and Deferred Bonus, if any, shall be
credited to a Participant’s Retirement Account (except as provided in any
election described in Section 5) and shall be subject to the limitations
determined appropriate by the Committee, including the limitation contained in
Section 8.3 and the limitations described below in this Section 7.
 
    7.1 Vesting.
 
    A Participant’s Deferred Compensation shall be immediately one-hundred
percent (100%) nonforfeitable upon being credited to such Participant’s
Retirement or In-Service Account; provided, however, that Deferred Compensation
which relates to restricted shares of Common Stock shall vest in accordance with
the terms of the restricted stock agreement to which they relate.
 
    A Participant’s Basic Company Credit for a Plan Year shall become
nonforfeitable three (3) years after the end of the Plan Year to which such
Basic Company Credit relates.
 
    A Participant’s Past Service Credit shall be fifty-percent (50%)
nonforfeitable upon being credited to his or her Retirement Account. The
remaining fifty-percent (50%) shall become nonforfeitable as follows: one (1)
year after the end of the Plan Year in which the Past Service Credit is credited
to the Participant’s Retirement Account, the Participant shall be one-third
(1/3) vested in the remaining fifty percent (50%); two (2) years after the end
of the Plan Year in which the Past Service Credit is credited to the
Participant’s Retirement Account, the Participant shall be two-thirds (2/3)
vested in the remaining fifty percent (50%); and three (3) years after the end
of the Plan Year in which the Past Service Credit is credited to the
Participant’s Retirement Account, the Participant shall be one-hundred percent
(100%) vested in the remaining fifty percent (50%). A Participant’s Special
Bonus and/or Deferred Bonus shall become vested in accordance with the terms of
the Agreement or award providing for such bonus(es).
 
    Upon a Participant’s Termination for any reason other than death, Disability
or Retirement, he or she shall forfeit any nonvested benefits. Except as
otherwise provided in an award, a Participant shall have a one-hundred percent
(100%) nonforfeitable right to Basic Company Credits, Past Service Credits,
Special Bonuses and Deferred Bonuses upon becoming eligible for Retirement or
upon Termination due to death or Disability.
 
    7.2 Forfeiture.
 
    Upon a Participant’s Termination or Retirement, the Company reserves the
right to withhold payment of a portion of a Participant’s Retirement Account
attributable to Basic Company Credits, Past Service Credits, Special Bonuses
and/or Deferred Bonuses made under Section 7 (and earnings thereon) in the event
the Committee determines that the Participant has violated the Company’s
standard noncompetition and nondisclosure agreement or any other employment
agreement executed by the Participant, or otherwise acts against the interests
of the Company, as determined by the Committee in its sole discretion.
 
 8. DISTRIBUTION
 
    8.1 Retirement Account.
 
    In the event of a Participant’s Retirement, the Participant’s Retirement
Account shall be distributed at the time and in the manner elected by the
Participant in his or her Election. If no Election is made by a Participant as
to the timing of distribution or form of payment of his or her Retirement
Account, upon the Participant’s Retirement such account shall be paid in a
single lump sum. A Participant may change this election to provide for a later
distribution date; provided, that such election is filed in accordance with
rules established by the Committee, and (a) such election shall not take effect
until at least 12 months after the date on which such election is properly
filed, (b) the first payment with respect to which such election is made shall
be deferred for a period of not less than 5 years from the date such payment
would otherwise have been made, and (c) any election related to a payment that
was otherwise to be made at a specified time may not be made less than 12 months
prior to the date of the first scheduled payment. Subject to the foregoing, the
Election most recently accepted by the Committee shall govern the payout of any
benefits under the Plan.
 
    8.2 In-Service Account.
 
    Deferred Compensation, Special Bonuses and/or Deferred Bonuses credited to a
Participant's In-Service Account shall be distributed at the time and in the
manner elected by the Participant in his or her Election. A Participant may
extend the deferral period by notifying the Company in accordance with the terms
of the Plan and procedures established by the Committee. A previously elected
deferral period for an In-Service Account may be extended only one time;
provided, that such election is filed in accordance with rules established by
the Committee, and (a) such election shall not take effect until at least 12
months after the date on which such election is properly filed, (b) the first
payment with respect to which such election is made shall be deferred for a
period of not less than 5 years from the date such payment would otherwise have
been made, and (c) any election related to a payment that was otherwise to be
made at a specified time may not be made less than 12 months prior to the date
of the first scheduled payment. Subject to the foregoing, the Election most
recently accepted by the Committee shall govern the payout of any benefits under
the Plan.
 
    8.3 Termination or Disability.
 
    In the event of a Participant's Termination or Disability, the Participant's
vested Compensation Accounts shall be distributed in a single lump sum to such
Participant 30 days after his or her Termination or Disability. Upon
Termination, all unvested amounts shall be immediately forfeited and removed
from the Participant’s Accounts.
 
    8.4 Death.
 
    In the event of the Participant’s death (a) while in the employment of the
Company or (b) after the Participant’s Termination but prior to the payment of
such Participant’s Compensation Accounts pursuant to Section 8.3, the Company
shall pay the following amounts to the Participant’s Beneficiary in a single
lump sum 30 days after the Participant’s date of death:
 

(1)   
the remaining amounts, if any, in a Participant’s In-Service Account; and

 

(2)   
the amounts in the Participant’s Retirement Account.

 
    In the event of the Participant’s death following Retirement, the Company
shall pay the amount in the Participant’s Retirement Account to the
Participant’s Beneficiary in the form and at the time elected by the Participant
pursuant to Section 6.1.
 
    8.5 Form of Distribution.
 
    Distribution of a Participant’s Compensation Accounts shall be made in cash;
provided that, any amounts in a Participant’s Compensation Accounts invested in
the Common Stock Fund shall be distributed to the Participant in whole shares of
Common Stock with fractional shares paid in cash.
 
    When required, the Company shall withhold from any distribution of cash or
Common Stock to a Participant or other person under this Plan an amount
sufficient to cover any required withholding taxes, including the Participant’s
social security and Medicare taxes (FICA) and federal, state and local income
tax with respect to income arising from payment of the Award. The Company shall
have the right to require the payment of any such taxes before issuing any
Common Stock comprising a part of such distribution. In lieu of all or any part
of a cash payment from a person receiving Common Stock under this Plan, the
Committee may permit a person to cover all or any part of the required
withholdings, and to cover any additional withholdings up to the amount needed
to cover the person’s full FICA and federal, state and local income tax with
respect to income arising from payment the Common Stock portion of such
distribution, through a reduction of the numbers of shares of Common Stock
delivered to such person or a delivery or tender to the Company of other shares
of Common Stock held by such person, in each case valued in the same manner as
used in computing the withholding taxes under applicable laws.
 
9. FINANCIAL HARDSHIP
 
    Upon the written request of a Participant or a Participant's legal
representative and a finding that continued deferral will result in an
unforeseeable financial emergency to the Participant, the Committee (in its sole
discretion) may authorize (a) the payment of all or a part of a Participant's
Compensation Accounts representing Deferred Compensation and earnings thereon in
a single lump sum prior to his or her ceasing to be a Participant, or (b) a
Participant to cease contributing Deferred Compensation to the Plan during a
Plan Year. It is intended that the Committee's determinations as to whether the
Participant has suffered an “unforeseeable financial emergency” shall be made
consistent with the requirements under Section 409A of the Code and the
regulations and guidance thereunder. An “unforeseeable financial emergency”
means a severe financial hardship to the Participant, the Participant’s spouse,
the Participant’s beneficiary or the Participant’s dependent (as defined in Code
Section 152, without regard to Sections 152(b), (b)(2) and (d)(1)(B)); loss of
the Participant’s property due to casualty; or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant. Any amounts distributed with respect to an emergency shall not
exceed the amounts necessary to satisfy such emergency plus amounts necessary to
pay taxes reasonably anticipated as a result of the distribution, after taking
into account the extent to which such hardship is or may be relieved by the
cancellation of the Participant’s deferral election under this Plan or through
reimbursement or compensation by insurance or otherwise or by liquidation of the
Participant’s assets (to the extent the liquidation of such assets would not
itself cause severe financial hardship). The Committee may adopt procedures for
determining when a hardship situation exists, including the use of independent
advisors to make such determinations.
 
    Any Participant receiving a hardship distribution may have no further
amounts deferred under this Plan for a period of one year from the date of such
distribution, and any subsequent deferral may only begin at the beginning of a
subsequent Plan Year and in accordance with the procedures in Section 6. The
Participant shall not repay to the Company amounts distributed pursuant to this
Section 9.
 
10. BENEFICIARY DESIGNATION
 
    A Participant may designate one or more persons (including a trust) to whom
or to which payments are to be made if the Participant dies before receiving
distribution of all amounts due under the Plan. A Beneficiary designation made
under the Prior Plan shall apply to this Plan, unless subsequently changed as
provided herein. A Participant may, at any time, elect to change the designation
of a Beneficiary. A designation of Beneficiary will be effective only after the
signed designation of Beneficiary is filed with the Committee or its designee
while the Participant is alive and will cancel all designations of Beneficiary
signed and filed earlier, including any designations of Beneficiary made under
the Prior Plan. If the Participant fails to designate a Beneficiary as provided
above or if all of a Participant's Beneficiaries predecease him or her and he or
she fails to designate a new Beneficiary, the remaining unpaid amounts shall be
paid in one lump sum to the estate of such Participant. If all Beneficiaries of
the Participant die after the Participant but before complete payment of all
amounts due hereunder, the remaining unpaid amounts shall be paid in one lump
sum to the estate of the last to die of such Beneficiaries.
 
11. UNSECURED GENERAL CREDITOR STATUS OF EMPLOYEE
 
    The payments to Participants and their Beneficiaries hereunder shall be made
from the general corporate assets of the Company. No person shall have any
interest in any such assets by virtue of the provisions of this Plan. The
Company's obligation hereunder shall be an unfunded and unsecured promise to pay
money in the future. To the extent that any person acquires a right to receive
payments from the Company under the provisions hereof, such right shall be no
greater than the right of any unsecured general creditor of the Company; no such
person shall have nor acquire any legal or equitable right, interest or claim in
or to any property or assets of the Company. Any accounts maintained under this
Plan shall be hypothetical in nature and shall be maintained for bookkeeping
purposes only. Neither the Plan nor any account shall hold any actual funds or
assets.
 
12. SHARES; ADJUSTMENTS IN EVENT OF CHANGES IN CAPITALIZATION
 
    An aggregate of 100,000 split-adjusted shares of Common Stock were initially
allocated to the Prior Plan and reserved for the distribution of Compensation
Accounts as described in Section 8.5 thereof. An additional 750,000 shares were
subsequently allocated to the Prior Plan, subject to adjustment under Section 12
thereof. Any shares allocated under the terms of the Prior Plan shall be deemed
allocated under this Plan since the Prior Plan and this Plan are considered one
plan set forth in two separate documents. The Company may, in its discretion,
use shares held in the Treasury under this Plan in lieu of authorized but
unissued shares of Common Stock.
 
    In the event of any change in the outstanding Common Stock of the Company by
reason of any stock split, share dividend, recapitalization, merger,
consolidation, reorganization, combination, or exchange or reclassification of
shares, split-up, split-off, spin-off, liquidation or other similar change in
capitalization, or any distribution to common shareholders other than cash
dividends, the number or kind of shares or Stock Units that may be credited
under the Plan shall be automatically adjusted so that the proportionate
interest of the Participants shall be maintained as before the occurrence of
such event. Such adjustment shall be conclusive and binding for all purposes of
the Plan.
 
13. INALIENABILITY OF BENEFITS
 
    The interests of the Participants and their Beneficiaries under the Plan may
not in any way be voluntarily or involuntarily transferred, alienated or
assigned, nor subject to attachment, execution, garnishment or other such
equitable or legal process. A Participant or Beneficiary cannot waive the
provisions of this Section 13.
 
14. CLAIMS PROCEDURE 
 
    Any Participant, Beneficiary or any other person claiming benefits,
eligibility, participation or any other right or interest under this Plan may
file a written claim setting forth the basis of the claim with the Chief
Executive Officer of the Company (“CEO”). A written notice of the CEO’s
disposition of any such claim shall be furnished to the claimant within a
reasonable time (not to exceed ninety (90) days) after the claim is received by
the CEO. Notwithstanding the foregoing, the CEO may have additional time (not to
exceed ninety (90) days) to decide the claim if special circumstances exist,
provided that he advises the claimant, in writing and prior to the end of the
initial ninety (90) day period, of the special circumstances giving rise to the
need for additional time and the date on which he expects to decide the claim.
If the claim is denied, in whole or in part, the notice of disposition shall
include the specific reason for the denial, identify the specific provisions of
the Plan upon which the denial is based, describe any additional material or
information necessary to perfect the claim, explain why that material or
information is necessary and describe the Plan’s review procedures, including
the timeframes thereunder for a claimant to file a request for review and for
the Committee to decide the claim. The notice shall also include a statement
advising the claimant of his right to bring a civil action if his claim is
denied, in whole or in part, upon review.
 
    Within sixty (60) days after receiving the written notice of the CEO’s
disposition of the claim, the claimant may request, in writing, review by the
Committee of the CEO’s decision regarding his claim. Upon written request, the
claimant shall be entitled to a review meeting with the Committee to present
reasons why the claim should be allowed. The claimant or his authorized
representative may submit a written statement in support of his claim, together
with such comments, information and material relating to the claim, as he deems
necessary or appropriate. The claimant or his duly authorized representative
shall be provided, upon request and free of charge, reasonable access to, and
copies of, all documents, records and other information which are relevant to
the claimant’s claim and its review. If the claimant does not request review
within sixty (60) days after receiving written notice of the CEO’s disposition
of the claim, the claimant shall be deemed to have accepted the CEO’s written
disposition.
 
    The Committee shall make its decision on review and provide written notice
thereof to the claimant within a reasonable time (not to exceed sixty (60) days)
after the claim is received by the Committee. Notwithstanding the foregoing, the
Committee may have additional time (not to exceed sixty (60) days) to decide the
claim if special circumstances exist provided that the Committee advises the
claimant, in writing, prior to the end of the initial sixty (60) day period, of
the special circumstances giving rise to the need for additional time and the
date on which it expects to decide the claim. In no event shall the Committee
have more than one hundred twenty (120) days following its receipt of the
claimant’s request for review to provide the claimant with written notice of its
decision. The Committee shall have the right to request of and receive from
claimant such additional information, documents or other evidence as the
Committee may reasonably require. In the event that the Committee requests such
additional information from the claimant, the period for making the benefit
determination on review shall not take into account the period beginning on the
date on which the Committee notifies the claimant in writing of the need for
additional information and ending on the date on which the claimant responds to
the request for additional information.
 
    If the claim is denied upon review, in whole or in part, the notice of
disposition shall include the specific reason for the denial, identify the
specific provision of the Plan upon which the denial is based, include a
statement advising the claimant of his right to receive, upon written request
and free of charge, reasonable access to and copies of all documents, records
and other information which are relevant to the claimant’s claim and include a
statement advising the claimant of his right to bring a civil action under
Section 502(a) of the Act if his claim is denied, in whole or in part, upon
review.
 
    Notwithstanding anything herein, if a claimant is denied a benefit because
he or she is determined not to be disabled and he or she makes a claim pursuant
to such denial, the provisions of this paragraph shall apply. Upon receipt of a
claim, the reply period shall be forty-five (45) days. If, prior to the end of
such 45-day period, the claims reviewer determines that, due to matters beyond
the control of the Plan, a decision cannot be rendered, the period for making
the determination may be extended for up to thirty (30) days, and the claims
reviewer shall notify the claimant, prior to the expiration of such 45-day
period, of the circumstances requiring an extension and the date by which the
Plan expects to render a decision. If, prior to the end of the first 30-day
extension period, the claims reviewer determines that, due to matters beyond the
control of the Plan, a decision cannot be rendered within that extension period,
the period for making the determination may be extended for up to an additional
thirty (30) days, and the claims reviewer shall notify the claimant, prior to
the expiration of the first 30-day extension period, of the circumstances
requiring the extension and the date by which the Plan expects to render a
decision. In the case of any extension described in this paragraph, the notice
of extension shall specifically explain the standards on which entitlement to a
benefit is based, the unresolved issues that prevent a decision on the claim and
the additional information needed to resolve those issues, and the claimant
shall be afforded forty-five (45) days within which to provide the specified
information. If information is requested, the period for making the benefit
determination shall be tolled from the date on which notification of an
extension is sent to the claimant until the date on which the claimant responds
to the request for information. Within one hundred eighty (180) days after
receiving the written notice of an adverse disposition of the claim, the
claimant may request in writing, and shall be entitled to, a review of the
benefit determination. In deciding an appeal of any adverse benefit
determination that is based in whole or in part on a medical judgment, the Plan
shall consult with a health care professional who has appropriate training and
experience in the field of medicine involved in the medical judgment. Such
health care professional shall be an individual who is neither an individual who
was consulted in connection with the adverse benefit determination that is the
subject of the appeal nor the subordinate of any such individual. The medical or
vocational experts whose advice was obtained on behalf of the Plan in connection
with the claimant’s adverse benefit determination will be identified to the
claimant. If the claimant does not request a review within one hundred eighty
(180) days after receiving written notice of the original’s disposition of the
claim, the claimant shall be deemed to have accepted the original written
disposition. A decision on review shall be rendered in writing by the Plan
within a reasonable period of time, but ordinarily not later than forty-five
(45) days after receipt of the claimant’s request for review by the Plan, unless
the Plan determines that special circumstances require an extension of time for
processing the claim. If the Plan determines that an extension of time for
processing is required, written notice of the extension shall be furnished to
the claimant prior to the termination of the initial forty-five (45) period. In
no event shall such extension exceed a period of forty-five (45) days from the
end of the initial period. The extension notice shall indicate the special
circumstances requiring an extension of time and the date by which the Plan
expects to render the determination on review. In the event the extension is due
to a claimant’s failure to submit information necessary to decide the claim, the
claimant shall be afforded forty-five (45) days within which to provide the
specified information, and the period for making the benefit determination on
review shall be tolled from the date on which notification of the extension is
sent to the claimant until the date on which the claimant responds to the
request for additional information.
 
    For purposes of this Section, a document, record or information will be
considered “relevant’ if it (a) was relied upon by the CEO or Committee, as
applicable, in making the benefit decision, (b) was submitted, considered or
generated in the course of making such decision, even if it was not relied upon
in making those decisions, or (c) demonstrates compliance with the
administrative processes and safeguards established by the Plan to insure that
the terms of the Plan have been followed and applied consistently.
 
    To the extent permitted by law, a decision on review by the Committee shall
be binding and conclusive upon all persons whomsoever. Completion of the claims
procedure described in this Section shall be a mandatory precondition that must
be complied with prior to commencement of a legal or equitable action in
connection with the Plan by a person claiming rights under the Plan, or by
another person claiming rights through such a person. The Committee may, in its
sole discretion, waive these procedures as a mandatory precondition to such an
action.
 
15. GOVERNING LAW
 
    The provisions of this plan shall be interpreted and construed in accordance
with the laws of the State of Missouri, except to the extent preempted by
Federal law.
 
16. AMENDMENTS
 
    The Committee may amend, alter or terminate this Plan at any time without
the prior approval of the Board; provided, however, that the Committee may not,
without approval by the Board, materially increase the benefits accruing to
Participants under the Plan.
 
17. TIME FOR PAYMENT
 
    Notwithstanding anything herein to the contrary, in the event that a
Participant is determined to be a specified employee in accordance with Section
409A of the Code and the regulations and other guidance issued thereunder for
purposes of any payment on termination of employment under this Plan, such
payment(s) shall be made or begin, as applicable, on the first payroll date
which is more than six months following the date of separation from service, to
the extent required to avoid the adverse tax consequences to the Participant
under Section 409A of the Internal Revenue Code of 1986, as amended.
 
    All payments due and payable under the Plan on a fixed date shall be deemed
to be made upon such fixed date if such payment is made on such date or a later
date within the same calendar year or, if later, by the fifteenth day of the
third calendar month following the specified date (provided the Participant is
not entitled, directly or indirectly, to designate the taxable year of the
payment). In addition, a payment is treated as made upon a fixed date under the
Plan if the payment is made no earlier than 30 days before the designated
payment date and the service provider is not permitted, directly or indirectly,
to designate the taxable year of the payment.
 
    IN WITNESS WHEREOF, this Plan is effective as of January 1, 2005.
 
                                                      

   
   EXPRESS SCRIPTS, INC.

 

    By:
  /s/ George
Paz                                                                               
                                             
    Title:   President, Chief Executive Officer and Chairman