|   |
|--------|

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

| x       | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 For                the quarterly period ended March 31, 2007.                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| o  | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 For                the transition period from ____________ to                _____________. |

**EXPRESS      SCRIPTS, INC.**

| **Delaware**(State                of Incorporation)                                                      | **43-1420563**(I.R.S.                employer identification no.)  |
|----------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|
| **One                Express Way, St. Louis, MO**(Address                of principal executive offices) | **63121**(Zip                Code)                                      |

| Common                stock outstanding as of March 31, 2007: | 136,215,000 |   | Shares |
|---------------------------------------------------------------|-------------|--------|--------|

**Item      1.**
**Financial      Statements**

|  **EXPRESS                SCRIPTS, INC.**                                                         |                         |
|--------------------------------------------------------------------------------------------------------|------------------------------|
|  **Unaudited                Consolidated Balance Sheet**                                          |                         |
|                                                                                                   |                         |   |   |   |   |
|                                                                                                   | **March                31,** |   | **December                31,** |
| *(in                millions, except share data)*                                                      | **2007**                     |   | **2006** |
| Assets                                                                                                 |                         |   |   |   |   |
| Current                assets:                                                                         |                         |   |   |   |   |
| Cash                and cash equivalents                                                               | $                            | 207.2 |   |   | $ | 131.0 |   |
| Receivables,                net                                                                        |                         | 1,344.5 |   |   |   | 1,334.4 |   |
| Inventories                                                                                            |                         | 203.1 |   |   |   | 194.6 |   |
| Deferred                taxes                                                                          |                         | 103.8 |   |   |   | 90.9 |   |
| Prepaid                expenses and other current assets                                               |                         | 21.3 |   |   |   | 21.2 |   |
| Total                current assets                                                                    |                         | 1,879.9 |   |   |   | 1,772.1 |   |
| Property                and equipment, net                                                             |                         | 193.1 |   |   |   | 201.4 |   |
| Goodwill                                                                                               |                         | 2,686.0 |   |   |   | 2,686.0 |   |
| Other                intangible assets, net                                                            |                         | 368.5 |   |   |   | 378.4 |   |
| Other                assets                                                                            |                         | 72.7 |   |   |   | 70.2 |   |
| Total                assets                                                                            | $                            | 5,200.2 |   |   | $ | 5,108.1 |   |
|                                                                                                   |                         |   |   |   |   |   |   |
| Liabilities                and Stockholders’ Equity                                              |                         |   |   |   |   |   |   |
| Current                liabilities:                                                                    |                         |   |   |   |   |   |   |
| Claims                and rebates payable                                                              | $                            | 1,239.0 |   |   | $ | 1,275.7 |   |
| Accounts                payable                                                                        |                         | 581.1 |   |   |   | 583.4 |   |
| Accrued                expenses                                                                        |                         | 422.1 |   |   |   | 390.2 |   |
| Current                maturities of long-term debt                                                    |                         | 200.1 |   |   |   | 180.1 |   |
| Total                current liabilities                                                               |                         | 2,442.3 |   |   |   | 2,429.4 |   |
| Long-term                debt                                                                          |                         | 1,160.4 |   |   |   | 1,270.4 |   |
| Other                liabilities                                                                       |                         | 309.5 |   |   |   | 283.4 |   |
| Total                liabilities                                                                       |                         | 3,912.2 |   |   |   | 3,983.2 |   |
|                                                                                                   |                         |   |   |   |   |   |   |
| Stockholders’                Equity:                                                             |                         |   |   |   |   |   |   |
| Preferred                stock, 5,000,000 shares authorized, $0.01 par value per                share; |                         |   |   |   |   |   |   |
| and                no shares issued and outstanding                                                    |                         | - |   |   |   | - |   |
| Common                stock, 650,000,000 shares authorized, $0.01 par value per                share;  |                         |   |   |   |   |   |   |
| shares                issued: 159,418,000 and 159,442,000, respectively;                               |                         |   |   |   |   |   |   |
| shares                outstanding: 136,215,000 and 135,650,000, respectively                           |                         | 1.6 |   |   |   | 1.6 |   |
| Additional                paid-in capital                                                              |                         | 506.4 |   |   |   | 495.3 |   |
| Accumulated                other comprehensive income                                                  |                         | 12.3 |   |   |   | 11.9 |   |
| Retained                earnings                                                                       |                         | 2,150.8 |   |   |   | 2,017.3 |   |
|                                                                                                   |                         | 2,671.1 |   |   |   | 2,526.1 |   |
| Common                stock in treasury at cost, 23,203,000 and 23,792,000                             |                         |   |   |   |   |   |   |
| shares,                respectively                                                                    |                         | (1,383.1 | )  |   |   | (1,401.2 | ) |
| Total                stockholders’ equity                                                        |                         | 1,288.0 |   |   |   | 1,124.9 |   |
| Total                liabilities and stockholders’ equity                                        | $                            | 5,200.2 |   |   | $ | 5,108.1 |   |
|                                                                                                   |                         |   |   |   |   |   |   |

*See      accompanying Notes to Unaudited Consolidated Financial Statements*

----

**EXPRESS      SCRIPTS, INC.**

**Unaudited      Consolidated Statement of Operations**

|                                                       | **Three                Months Ended** |    |
|------------------------------------------------------------|---------------------------------------|---------|
|                                                       | **March                31,**          |    |
| *(in                millions)*                             | **2007**                              |    | **2006** |
|                                                       |                                  |    |   |   |   |
| Revenues                1                                  | $                                     | 4,539.5 |   |   | $ | 4,380.0 |   |
| Cost                of revenues 1                     |                                  | 4,113.4 |   |   |   | 4,035.4 |   |
| Gross                profit                                |                                  | 426.1   |   |   |   | 344.6 |   |
| Selling,                general and administrative         |                                  | 172.7   |   |   |   | 161.1 |   |
| Operating                income                            |                                  | 253.4   |   |   |   | 183.5 |   |
| Other                (expense) income:                     |                                  |    |   |   |   |   |   |
| Non-operating                charges, net                  |                                  | (23.0   | ) |   |   | - |   |
| Undistributed                loss from joint venture       |                                  | (0.4    | ) |   |   | (0.5 | ) |
| Interest                income                             |                                  | 2.8     |   |   |   | 5.0 |   |
| Interest                expense                            |                                  | (22.2   | ) |   |   | (20.5 | ) |
|                                                       |                                  | (42.8   | ) |   |   | (16.0 | ) |
| Income                before income taxes                  |                                  | 210.6   |   |   |   | 167.5 |   |
| Provision                for income taxes                  |                                  | 76.9    |   |   |   | 62.8 |   |
| Net                income                                  | $                                     | 133.7   |   |   | $ | 104.7 |   |
|                                                       |                                  |    |   |   |   |   |   |
| Basic                earnings per share:                   | $                                     | 0.98    |   |   | $ | 0.71 |   |
|                                                       |                                  |    |   |   |   |   |   |
| Weighted                average number of common shares    |                                  |    |   |   |   |   |   |
| outstanding                during the period - Basic EPS   |                                  | 135.8   |   |   |   | 146.5 |   |
|                                                       |                                  |    |   |   |   |   |   |
| Diluted                earnings per share:                 | $                                     | 0.97    |   |   | $ | 0.70 |   |
|                                                       |                                  |    |   |   |   |   |   |
| Weighted                average number of common shares    |                                  |    |   |   |   |   |   |
| outstanding                during the period - Diluted EPS |                                  | 137.7   |   |   |   | 149.1 |   |

|  *1* |  *Excludes                estimated retail pharmacy co-payments of $988.2 million and $1,220.8                million for the three months ended March 31, 2007 and 2006, respectively.                These are amounts we instructed retail pharmacies to collect from                members.                We have no information regarding actual co-payments                collected.* |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                                                                                                                                                                |
|      |  *See              accompanying Notes to Unaudited Consolidated Financial Statements*                                                                                                                                                                                                                                                                                                          |

| **EXPRESS                SCRIPTS, INC.**                                                                    |                            |
|-------------------------------------------------------------------------------------------------------------|---------------------------------|
| **Unaudited                Consolidated Statement of Changes in Stockholders’                Equity** |                            |
|                                                                                                        |                            |   |   |   |   |
|                                                                                                        | Number                of Shares |   | Amount |   |
|   *(in                millions)*                                                                  |  CommonStock               |   | Common                Stock |   | AdditionalPaid-inCapital |   | Accumulated                Other Comprehensive Income |   |   Retained                Earnings |   |   TreasuryStock |   |    Total |   |
| Balance                at December 31, 2006                                                                 |                            | 159.4 |   |   | $ | 1.6 |   |   | $ | 495.3 |   |   | $ | 11.9 |   |   | $ | 2,017.3 |   | $ | (1,401.2 | ) |   | $ | 1,124.9 |   |
| Comprehensive                income:                                                                        |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                   |                            | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 133.7 |   |   | - |   |   |   | 133.7 |   |
| Other                comprehensiveincome:                                                                   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                currency                                                                             |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| translation                adjustment                                                                       |                            | - |   |   |   | - |   |   |   | - |   |   |   | 0.1 |   |   |   | - |   |   | - |   |   |   | 0.1 |   |
| Unrealized                gains on                                                                          |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| available-for-sale                securities;                net                of taxes                    |                            | - |   |   |   | - |   |   |   | - |   |   |   | 0.3 |   |   |   | - |   |   | - |   |   |   | 0.3 |   |
| Comprehensive                income                                                                         |                            | - |   |   |   | - |   |   |   | - |   |   |   | 0.4 |   |   |   | 133.7 |   |   | - |   |   |   | 134.1 |   |
| Changes                in stockholders’                                                          |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| equity                  related to employeestock                  plans                                     |                            | - |   |   |   | - |   |   |   | 11.1 |   |   |   | - |   |   |   | - |   |   | 18.1 |   |   |   | 29.2 |   |
| Cumulative                effect of adoptionof                FIN 48                                        |                            | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (0.2 | ) |   | - |   |   |   | (0.2 | ) |
| Balance                at March 31, 2007                                                                    |                            | 159.4 |   |   | $ | 1.6 |   |   | $ | 506.4 |   |   | $ | 12.3 |   |   | $ | 2,150.8 |   | $ | (1,383.1 | ) |   | $ | 1,288.0 |   |
|                                                                                                        |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

*See      accompanying Notes to Unaudited Consolidated Financial Statements*

| **EXPRESS                SCRIPTS, INC.**                             |                                  |
|----------------------------------------------------------------------|---------------------------------------|
| **Unaudited****Consolidated                Statement of Cash Flows** |                                  |
|                                                                 |                                  |
|                                                                 | **Three                Months Ended** |   |   |
|                                                                 | **March                31,**          |   |   |
| *(in                millions)*                                       | **2007**                              |   | **2006** |   |
| Cash                flows from operating activities:                 |                                  |   |   |   |   |   |
| Net                income                                            | $                                     | 133.7 |   |   | $ | 104.7 |   |   |
| Adjustments                to reconcile net income to net cash       |                                  |   |   |   |   |   |   |   |
| provided                by operating activities:                     |                                  |   |   |   |   |   |   |   |
| Depreciation                and amortization                         |                                  | 25.9 |   |   |   | 25.8 |   |   |
| Non-cash                adjustments to net income                    |                                  | 5.7 |   |   |   | 12.6 |   |   |
| Changes                in operating assets and liabilities:          |                                  |   |   |   |   |   |   |   |
| Claims                and rebates payable                            |                                  | (36.8 | ) |   |   | (147.6 | ) |   |
| Other                net changes in operating assets and liabilities |                                  | 27.1 |   |   |   | 45.5 |   |   |
| Net                cash provided by operating activities             |                                  | 155.6 |   |   |   | 41.0 |   |   |
|                                                                 |                                  |   |   |   |   |   |   |   |
| Cash                flows from investing activities:                 |                                  |   |   |   |   |   |   |   |
| Purchases                of property and equipment                   |                                  | (8.7 | ) |   |   | (8.7 | ) |   |
| Other                                                                |                                  | (0.4 | ) |   |   | 0.2 |   |   |
| Net                cash used in investing activities                 |                                  | (9.1 | ) |   |   | (8.5 | ) |   |
|                                                                 |                                  |   |   |   |   |   |   |   |
| Cash                flows from financing activities:                 |                                  |   |   |   |   |   |   |   |
| Repayment                of long-term debt                           |                                  | (40.0 | ) |   |   | (40.0 | ) |   |
| Repayment                of revolving credit line, net               |                                  | (50.0 | ) |   |   | - |   |   |
| Tax                benefit relating to employee stock compensation   |                                  | 6.7 |   |   |   | 21.9 |   |   |
| Net                proceeds from employee stock plans                |                                  | 13.0 |   |   |   | 17.5 |   |   |
| Other                                                                |                                  | - |   |   |   | (0.4 | ) |   |
| Net                cash used in financing activities                 |                                  | (70.3 | ) |   |   | (1.0 | ) |   |
|                                                                 |                                  |   |   |   |   |   |   |   |
| Effect                of foreign currency translation adjustment     |                                  | - |   |   |   | - |   |   |
|                                                                 |                                  |   |   |   |   |   |   |   |
| Net                increase in cash and cash equivalents             |                                  | 76.2 |   |   |   | 31.5 |   |   |
| Cash                and cash equivalents at beginning of period      |                                  | 131.0 |   |   |   | 477.9 |   |   |
| Cash                and cash equivalents at end of period            | $                                     | 207.2 |   |   | $ | 509.4 |   |   |
|                                                                 |                                  |   |   |   |   |   |   |   |

*See      accompanying Notes to Unaudited Consolidated Financial Statements*

**EXPRESS      SCRIPTS, INC.**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS **

**Note      1 - Summary of significant accounting policies**

**Note      2 - Non-operating charges, net **

**Note      3 - Goodwill and other intangibles**

|                                         | **March                31, 2007** |    | **December                31, 2006** |
|----------------------------------------------|-----------------------------------|---------|--------------------------------------|
|                                         | **Gross****Carrying****Amount**   |    |                                 | **Accumulated****Amortization** |   | **Gross****Carrying****Amount** |   | **Accumulated****Amortization** |
| Goodwill                                     |                              |    |                                 |   |   |   |   |   |   |   |   |   |
| PBM                (1)                       | $                                 | 1,509.2 |                                 |   |   | $ | 107.1 |   |   | $ | 1,509.2 |   |   | $ | 107.1 |   |
| SAAS                (1)                      |                              | 1,283.9 |                                 |   |   |   | - |   |   |   | 1,283.9 |   |   |   | - |   |
|                                         | $                                 | 2,793.1 |                                 |   |   | $ | 107.1 |   |   | $ | 2,793.1 |   |   | $ | 107.1 |   |
|                                         |                              |    |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                intangible assets       |                              |    |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PBM                                          |                              |    |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer                contracts            | $                                 | 244.2   |                                 |   |   | $ | 88.3 |   |   | $ | 244.2 |   |   | $ | 85.3 |   |
| Other                                   |                              | 61.4    |                                 |   |   |   | 50.7 |   |   |   | 61.6 |   |   |   | 49.3 |   |
|                                         |                              | 305.6   |                                 |   |   |   | 139.0 |   |   |   | 305.8 |   |   |   | 134.6 |   |
|                                         |                              |    |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SAAS                                         |                              |    |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer                relationships        |                              | 231.5   |                                 |   |   |   | 36.2 |   |   |   | 231.5 |   |   |   | 31.0 |   |
| Other                (2)                     |                              | 9.2     |                                 |   |   |   | 2.6 |   |   |   | 9.9 |   |   |   | 3.2 |   |
|                                         |                              | 240.7   |                                 |   |   |   | 38.8 |   |   |   | 241.4 |   |   |   | 34.2 |   |
| Total                other intangible assets | $                                 | 546.3   |                                 |   |   | $ | 177.8 |   |   | $ | 547.2 |   |   | $ | 168.8 |   |

|  (1)                | We              have two reportable segments:  Pharmacy Benefit Management ("PBM")              and Specialty and Ancillary Services ("SAAS"). |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)   | Changes                in other intangible assets are a result of the write-off of                fully-amortized contractual assets, consisting of non-compete agreements                that are no longer in effect. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Note      4 - Income Taxes**

**Note      5 - Earnings per share **

|                                                                                                                                                                       | **Three                Months Ended****March                31,**  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|--------|
|                                                                                                                                                                       | **2007**                                                                |   | **2006** |   |
|                                                                                                                                                                       |                                                                    |   |   |   |
| Weighted                average number of common shares                                                                                                                    |                                                                    |   |   |   |
| outstanding                during the period - Basic EPS(1)                                                                                                                |  135.8                                                             |   |   |   |  146.5 |   |
| Dilutive                common stock equivalents:                                                                                                                          |                                                                    |   |   |   |   |   |
| Outstanding                stock options, “stock-settled” stock appreciation rights (“SSRs”),                restricted stock units, and executive |                                                                    |   |   |   |   |   |
|      deferred              compensation units(2)                                                                                                  |  1.9                                                               |   |   |   |  2.6 |   |
| Weighted                average number of common shares                                                                                                                    |                                                                    |   |   |   |   |   |
|  outstanding              during the period - Diluted EPS(1)                                                                                                          |    137.7                                                 |   |   |   |  149.1 |   |

| (1)   | The                decrease in weighted average number of common shares outstanding                from the                prior year for Basic and Diluted EPS resulted from 12.0 million treasury                shares repurchased in the last nine months of                2006. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Excludes                SSRs of 0.3 million for the three months ended March 31, 2007. These                were                excluded because their effect was                anti-dilutive. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Note      6 - Stock-based compensation plans **

|                                            |                **Three                Months Ended March 31,** |
|-------------------------------------------------|---------------------------------------------------------------------|
|                                            | **2007**                                                       | **2006** |
|  Expected              life of option      | 3-5                years                                            | 3-5                years |
|  Risk-free              interest rate      | 4.5%-5.2%                                                           | 4.6%-4.7% |
|  Expected              volatility of stock | 31%                                                                 | 34% |
|  Expected              dividend yield      | None                                                                | None |

**Note      7 - Contingencies**

**Note      8 - Segment reporting**

| *(in                millions)*                               | **                      PBM** |    | **                     SAAS** |       | **                         Total** |    |
|--------------------------------------------------------------|-------------------------------------------------------------|---------|--------------------------------------------------------|------------|---------------------------------------------------------------------------------|---------|
| **For                the three months ended March 31, 2007** |                                                        |    |                                                   |       |                                                                            |    |   |   |   |
| Product                revenue:                              |                                                        |    |                                                   |       |                                                                            |    |   |   |   |
| Network                revenues                              | $                                                           | 2,332.1 |                                                   |       | $                                                                               | -       |   |   | $ | 2,332.1 |   |   |
| Home                delivery revenues                        |                                                        | 1,235.9 |                                                   |       |                                                                            | -       |   |   |   | 1,235.9 |   |   |
| Other                revenues                                |                                                        | -       |                                                   |       |                                                                            | 901.1   |   |   |   | 901.1 |   |   |
| Service                revenues                              |                                                        | 40.9    |                                                   |       |                                                                            | 29.5    |   |   |   | 70.4 |   |   |
| Total                revenues                                |                                                        | 3,608.9 |                                                   |       |                                                                            | 930.6   |   |   |   | 4,539.5 |   |   |
| Depreciation                and amortization expense         |                                                        | 16.5    |                                                   |       |                                                                            | 9.4     |   |   |   | 25.9 |   |   |
| Operating                income                              |                                                        | 237.0   |                                                   |       |                                                                            | 16.4    |   |   |   | 253.4 |   |   |
| Non-operating                charges                         |                                                        |    |                                                   |       |                                                                            |    |   |   |   | (23.0 | ) |   |
| Undistributed                loss from joint venture         |                                                        |    |                                                   |       |                                                                            |    |   |   |   | (0.4 | ) |   |
| Interest                income                               |                                                        |    |                                                   |       |                                                                            |    |   |   |   | 2.8 |   |   |
| Interest                expense                              |                                                        |    |                                                   |       |                                                                            |    |   |   |   | (22.2 | ) |   |
| Income                before income taxes                    |                                                        |    |                                                   |       |                                                                            |    |   |   |   | 210.6 |   |   |
| Capital                expenditures                          |                                                        | 4.8     |                                                   |       |                                                                            | 3.9     |   |   |   | 8.7 |   |   |
|                                                         |                                                        |    |                                                   |       |                                                                            |    |
| *(in                millions)*                               | ** PBM**** **** **                           |    | ** SAAS**** **** **                     | ** ** |  **Total**                                                                 |    |
| **For                the three months ended March 31, 2006** |                                                        |    |                                                   |       |                                                                            |    |   |   |   |   |   |   |
| Product                revenue:                              |                                                        |    |                                                   |       |                                                                            |    |   |   |   |   |   |   |
| Network                revenues                              | $                                                           | 2,149.1 |                                                   |       | $                                                                               | -       |   |   | $ | 2,149.1 |   |   |
| Home                delivery revenues                        |                                                        | 1,317.6 |                                                   |       |                                                                            | -       |   |   |   | 1,317.6 |   |   |
| Other                revenues                                |                                                        | -       |                                                   |       |                                                                            | 836.7   |   |   |   | 836.7 |   |   |
| Service                revenues                              |                                                        | 39.9    |                                                   |       |                                                                            | 36.7    |   |   |   | 76.6 |   |   |
| Total                revenues                                |                                                        | 3,506.6 |                                                   |       |                                                                            | 873.4   |   |   |   | 4,380.0 |   |   |
| Depreciation                and amortization expense         |                                                        | 16.6    |                                                   |       |                                                                            | 9.2     |   |   |   | 25.8 |   |   |
| Operating                income                              |                                                        | 158.2   |                                                   |       |                                                                            | 25.3    |   |   |   | 183.5 |   |   |
| Undistributed                loss from joint venture         |                                                        |    |                                                   |       |                                                                            |    |   |   |   | (0.5 | ) |   |
| Interest                income                               |                                                        |    |                                                   |       |                                                                            |    |   |   |   | 5.0 |   |   |
| Interest                expense                              |                                                        |    |                                                   |       |                                                                            |    |   |   |   | (20.5 | ) |   |
| Income                before income taxes                    |                                                        |    |                                                   |       |                                                                            |    |   |   |   | 167.5 |   |   |
| Capital                expenditures                          |                                                        | 6.4     |                                                   |       |                                                                            | 2.3     |   |   |   | 8.7 |   |   |
|                                                         |                                                        |    |                                                   |       |                                                                            |    |   |   |   |   |   |   |
| **As                of March 31, 2007**                      |                                                        |    |                                                   |       |                                                                            |    |   |   |   |   |   |   |
| Total                assets                                  | $                                                           | 2,766.6 |                                                   |       | $                                                                               | 2,433.6 |   |   | $ | 5,200.2 |   |   |
| Investment                in equity method investees         |                                                        | 0.3     |                                                   |       |                                                                            | 3.0     |   |   |   | 3.3 |   |   |
|                                                         |                                                        |    |                                                   |       |                                                                            |    |   |   |   |   |   |   |
| **As                of December 31, 2006**                   |                                                        |    |                                                   |       |                                                                            |    |   |   |   |   |   |   |
| Total                assets                                  | $                                                           | 2,681.5 |                                                   |       | $                                                                               | 2,426.6 |   |   | $ | 5,108.1 |   |   |
| Investment                in equity method investees         |                                                        | 0.2     |                                                   |       |                                                                            | 2.7     |   |   |   | 2.9 |   |   |

----

**Item      2.**
**Management’s      Discussion And Analysis Of Financial Condition And Results Of      Operations**

*Information      we have included or incorporated by reference in this Quarterly Report on Form      10-Q, and information which may be contained in our other filings with the      Securities and Exchange Commission (the “SEC”) and our press releases or other      public statements, contain or may contain forward-looking statements. These      forward-looking statements include, among others, statements of our plans,      objectives, expectations or intentions.*

*Our      forward-looking statements involve risks and uncertainties. Our actual results      may differ significantly from those projected or suggested in any      forward-looking statements. We do not undertake any obligation to release      publicly any revisions to such forward-looking statements to reflect events      or      circumstances occurring after the date hereof or to reflect the occurrence      of      unanticipated events. Factors which might cause such a difference to occur      include, but are not limited to:*

| *·  * | *uncertainties                associated with our acquisitions, which include integration risks                and                costs, uncertainties associated with client retention and repricing                of                client contracts, and uncertainties associated with the operations                of                acquired businesses* |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *costs                and uncertainties of adverse results in litigation, including a number                of                pending class action cases that challenge certain of our business                practices* |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *investigations                of certain PBM practices and pharmaceutical pricing, marketing and                distribution practices currently being conducted by the U.S. Attorney                offices in Philadelphia and Boston, and by other regulatory agencies                including the Department of Labor, and various state attorneys                general* |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *changes                in average wholesale price (“AWP”), which could reduce prices and margins,                including the impact of a proposed settlement in a class action case                involving First DataBank, an AWP reporting                service* |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *uncertainties                regarding the implementation of the Medicare Part D prescription                drug                benefit, including the financial impact to us to the extent that                we                participate in the program on a risk-bearing basis, uncertainties                of                client or member losses to other providers under Medicare Part D,                and                increased regulatory risk* |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *uncertainties                associated with U.S. Centers for Medicare & Medicaid’s (“CMS”)                implementation of the Medicare Part B Competitive Acquisition Program                (“CAP”), including the potential loss of clients/revenues to providers                choosing to participate in the                CAP* |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *our                ability to maintain growth rates, or to control operating or capital                costs* |
|----------------------|----------------------------------------------------------------------------------------------------------------|

| *·  * | *continued                pressure on margins resulting from client demands for lower prices,                enhanced service offerings and/or higher service levels, and the                possible                termination of, or unfavorable modification to, contracts with key                clients                or providers* |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *competition                in the PBM and specialty pharmacy industries, and our ability to                consummate contract negotiations with prospective clients, as well                as                competition from new competitors offering services that may in whole                or in                part replace services that we now provide to our customers* |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *results                in regulatory matters, the adoption of new legislation or regulations                (including increased costs associated with compliance with new laws                and                regulations), more aggressive enforcement of existing legislation                or                regulations, or a change in the interpretation of existing legislation                or                regulations* |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *increased                compliance relating to our contracts with the DoD TRICARE Management                Activity and various state governments and                agencies* |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *the                possible loss, or adverse modification of the terms, of relationships                with                pharmaceutical manufacturers, or changes in pricing, discount or                other                practices of pharmaceutical manufacturers or interruption of the                supply of                any pharmaceutical products* |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *the                possible loss, or adverse modification of the terms, of contracts                with                pharmacies in our retail pharmacy                network* |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *the                use and protection of the intellectual property we use in our business* |
|----------------------|---------------------------------------------------------------------------------------------|

| *·  * | *our                leverage and debt service obligations, including the effect of certain                covenants in our borrowing agreements* |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *our                ability to continue to develop new products, services and delivery                channels* |
|----------------------|-----------------------------------------------------------------------------------------------------------------|

| *·  * | *general                developments in the health care industry, including the impact of                increases in health care costs, changes in drug utilization and cost                patterns and introductions of new drugs* |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *increase                in credit risk relative to our clients due to adverse economic trends* |
|----------------------|-------------------------------------------------------------------------------------------------|

| *·  * | *our                ability to attract and retain qualified personnel* |
|----------------------|------------------------------------------------------------------------|

| *·  * | *other                risks described from time to time in our filings with the                SEC* |
|----------------------|-----------------------------------------------------------------------------------------------------|

*We      do      not undertake any obligation to release publicly any revisions to such      forward-looking statements to reflect events or circumstances after the date      hereof or to reflect the occurrence of unanticipated events.*

*See      the more comprehensive description of risk factors under the captions “Forward      Looking Statements and Associated Risks” contained in Item 1 - “Business” of our      Annual Report on Form 10-K for the year ended December 31,      2006.*

**OVERVIEW**

**EXECUTIVE      SUMMARY AND TREND FACTORS AFFECTING THE BUSINESS**

**CRITICAL        ACCOUNTING POLICIES**

**RESULTS        OF OPERATIONS **

*PBM      OPERATING INCOME*

|                                        | **Three                Months Ended****March                31,** |    |
|---------------------------------------------|-------------------------------------------------------------------|---------|
| ***(in                millions)***          | **2007**                                                          |    | **2006** |
| Product                revenues             |                                                              |    |   |   |   |
| Network                revenues             | $                                                                 | 2,332.1 |   |   | $ | 2,149.1 |   |
| Home                delivery revenues       |                                                              | 1,235.9 |   |   |   | 1,317.6 |   |
| Service                revenues             |                                                              | 40.9    |   |   |   | 39.9 |   |
| Total                PBM revenues           |                                                              | 3,608.9 |   |   |   | 3,506.6 |   |
| Cost                of PBM revenues         |                                                              | 3,240.6 |   |   |   | 3,226.9 |   |
| PBM                gross profit             |                                                              | 368.3   |   |   |   | 279.7 |   |
| PBM                SG&A expenses        |                                                              | 131.3   |   |   |   | 121.5 |   |
| PBM                operating income         | $                                                                 | 237.0   |   |   | $ | 158.2 |   |
|                                        |                                                              |    |   |   |   |   |   |
| Total                adjusted PBM Claims(1) |                                                              | 126.8   |   |   |   | 133.3 |   |

| (1)   | PBM                adjusted claims represent network claims plus home delivery claims,                which                are multiplied by 3, as home delivery claims are typically 90 day                claims                and network claims are generally 30 day claims. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We                experienced an increase of 6.3% in the cost of revenue per adjusted                claim                in the first quarter of 2007 as compared to the same period of 2006,                primarily from ingredient cost inflation and a significant reduction                of                100% co-payment claims as discussed                above. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | This                increase was partially offset by the 4.9% decrease in claims volume,                as                well as better management of ingredient costs resulting from renegotiation                of certain supplier contracts and the increase in the aggregate generic                fill rate, as discussed above. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increased                    spending of $14.7 million in the first quarter of 2007 over the                    same                    period of 2006, partially consisting of increased management                    incentive                    compensation in addition to the effect of                    inflation. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | This                increase was offset by a $7.6 million decrease in professional fees,                primarily due to decreased legal expenses. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

*SAAS      OPERATING INCOME*

|                                 | **Three                Months Ended****March                31,** |   |
|--------------------------------------|-------------------------------------------------------------------|--------|
| ***(in                millions)***   | **2007**                                                          |   | **2006** |
|                                 |                                                              |   |   |   |   |
| Product                revenues      | $                                                                 | 901.1  |   |   | $ | 836.7 |   |
| Service                revenues      |                                                              | 29.5   |   |   |   | 36.7 |   |
| Total                SAAS revenues   |                                                              | 930.6  |   |   |   | 873.4 |   |
| Cost                of SAAS revenues |                                                              | 872.8  |   |   |   | 808.5 |   |
| SAAS                gross profit     |                                                              | 57.8   |   |   |   | 64.9 |   |
| SAAS                SG&A expense |                                                              | 41.4   |   |   |   | 39.6 |   |
| SAAS                operating income | $                                                                 | 16.4   |   |   | $ | 25.3 |   |

*OTHER      (EXPENSE) INCOME*

*PROVISION      FOR INCOME TAXES*

*NET      INCOME AND EARNINGS PER SHARE*

**LIQUIDITY      AND CAPITAL RESOURCES**

*OPERATING      CASH FLOW AND CAPITAL EXPENDITURES*

| ·   | Smaller                payouts of management incentive bonuses in the first quarter of 2007                as                compared to the same quarter 2006. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net                income increased $29.0 million in the first quarter of 2007 as compared                to                the first quarter of 2006. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Timing                of collections and disbursements surrounding the end of 2005 resulted                in                positive cash flows occurring in the fourth quarter of 2005 instead                of the                first quarter of 2006. As such, cash flows in the first quarter of                2006                were lower compared to the first quarter of                2007. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Network                claim volume decreased 7.8% from the fourth quarter of 2005 to the                first                quarter of 2006, resulting in a decrease in claims and rebates payable                (which is a use of cash) which was only partially offset by a                corresponding decrease in accounts receivable (which is a source                of cash).                In contrast, network claim volume only decreased 1.0% in the first                quarter                of 2007 as compared to the fourth quarter of 2006. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*CHANGES      IN BUSINESS*

*STOCK      REPURCHASE PROGRAM*

*BANK      CREDIT FACILITY*

*CONTRACTUAL      OBLIGATIONS*

|                                                                                       |  **Payments                Due by Period as of March 31,**             |
|--------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| ** Contractual              obligations**                                             | **                     Total**** **** ** | **                      2007**** **** ** | **                     2008-2009**** ** | **2010-2011**** **** ** | **After                2011**** **  |
| Long-term                debt                                                              | $                                                                           | 1,360.5 |   | $ | 140.1 |   | $ | 680.1 |   | $ | 540.1 |   | $ | 0.2 |   |
| Future                minimum lease     payments                (1)(2) |                                                                        | 136.6 |   |   | 20.9 |   |   | 41.4 |   |   | 26.4 |   |   | 47.9 |   |
|                                                                                       |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                contractual cash    obligations                        | $                                                                           | 1,497.1 |   | $ | 161.0 |   | $ | 721.5 |   | $ | 566.5 |   | $ | 48.1 |   |
|                                                                                       |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | In                July 2004, we entered into a capital lease with the Camden County                Joint                Development Authority in association with the development of our                Patient                Care Contact Center in St. Marys, Georgia. At March 31, 2007, our                lease                obligation is $13.5 million. In accordance with Financial Accounting                Standards Board (“FASB”) Interpretation Number 39, “Offsetting of Amounts                Related to Certain Contracts” (“FIN 39”), our lease obligation has been                offset against $13.5 million of industrial revenue bonds issued to                us by                the Camden County Joint Development Authority. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | This                table includes a lease agreement we signed during 2005 for a new                corporate                headquarters. We took possession of this building in the first quarter                of                2007. The annual lease commitments will begin at approximately $4.5                million and the term of the lease is ten and a half years. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**OTHER      MATTERS**

**IMPACT      OF INFLATION**

**Item      3.**
**Quantitative      and Qualitative Disclosures About Market Risk**

**Item      4.**
**Controls      and Procedures**
** **

----

**Item      1.**
**Legal      Proceedings**

| ·   | Anthony                Bradley, et al v. First Health Services Corporation, et al                (Case No.BC319292, Superior Court for the State of California, County                of                Los Angeles). Our motion to dismiss the complaint was granted and                the                dismissal was affirmed on appeal. Plaintiffs have filed a petition                for                review with the California Supreme                Court. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Item      2.**
**Unregistered      Sales of Equity Securities and Use of Proceeds**

| Period                              | Sharespurchased |   | Averagepriceper                share |   | Shares                purchasedas                part of a publicly                announced                program |   | Maximum                sharesthat                may yet be purchased                underthe                program |   |
|-------------------------------------|-----------------|--------|--------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|--------|
|                                |            |   |                                 |   |                                                                                                                |   |                                                                                                                 |   |
| 1/1/2007                - 1/31/2007 |            | -      |                                 | $      | -                                                                                                                   |   |                                                                                                                 | -      |   |   | 6.1 |   |
| 2/1/2007                - 2/28/2007 |            | -      |                                 |   | -                                                                                                                   |   |                                                                                                                 | -      |   |   | 6.1 |   |
| 3/1/2007                - 3/31/2007 |            | -      |                                 |   | -                                                                                                                   |   |                                                                                                                 | -      |   |   | 6.1 |   |
| 2007                Total           |            | -      |                                 | $      | -                                                                                                                   |   |                                                                                                                 | -      |   |   |   |   |

**Item      6.**
**Exhibits**

----

**SIGNATURES**

|   | EXPRESS SCRIPTS, INC. |
|--------|-----------------------|
|   | (Registrant)     |

| Date: April              23, 2007  | By:                                                                        |                /s/ George              Paz                                               |
|----------------------------------------------|----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                         | George Paz, President, Chief Executive Officer                and Chairman |

| Date: April              23, 2007  | By:                                                                                             |  /s/              Edward Stiften                                                     |
|----------------------------------------------|-------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                         | Edward                Stiften, Senior Vice President and Chief                Financial Officer |

----

| ExhibitNumber |  Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.11          | Agreement                and Plan of Merger, dated July 21, 2005, by and among the Company,                Pony                Acquisition Corporation, and Priority Healthcare Corporation, incorporated                by reference to Exhibit No. 2.1 to the Company’s Current Report on Form                8-K filed July 22, 2005.                                                                                                                                                                                                                                                                                                |
| 3.1           | Amended                and Restated Certificate of Incorporation of the Company, incorporated                by                reference to the Company’s Annual Report on Form 10-K for the year ending                December 31, 2001.                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.2           | Certificate                of Amendment to the Certificate of Incorporation of the Company dated                June                2, 2004, incorporated by reference to Exhibit No. 3.2 to the Company’s                Quarterly Report on Form 10-Q for the quarter ending June 30,                2004.                                                                                                                                                                                                                                                                                                                            |
| 3.3           | Certificate                of Amendment to the Certificate of Incorporation of the Company dated                May                24, 2006, incorporated by reference to Exhibit No. 3.3 to the Company’s                Quarterly Report on Form 10-Q for the quarter ending June 30,                2006.                                                                                                                                                                                                                                                                                                                            |
| 3.4           | Third                Amended and Restated Bylaws, incorporated by reference to Exhibit                No. 3.2                to the Company’s Annual Report on Form 10-K for the year ending December                31, 2000.                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.1           | Form                of Certificate for Common Stock, incorporated by reference to Exhibit                No.                4.1 to the Company’s Registration Statement on Form S-1 filed June 9, 1992                (No. 33-46974) (the “Registration Statement”).                                                                                                                                                                                                                                                                                                                                                        |
| 4.2           | Stockholder                and Registration Rights Agreement dated as of October 6, 2000 between                the                Company and New York Life Insurance Company, incorporated by reference                to                Exhibit No. 4.2 to the Company's Amendment No. 1 to Registration                Statement                on Form S-3 filed October 17, 2000 (Registration Number                333-47572).                                                                                                                                                                                                        |
| 4.3           | Asset                Acquisition Agreement dated October 17, 2000, between NYLIFE Healthcare                Management, Inc., the Company, NYLIFE LLC and New York Life Insurance                Company, incorporated by reference to Exhibit No. 4.3 to the Company's                amendment No. 1 to the Registration Statement on Form S-3 filed October                17, 2000 (Registration Number 333-47572).                                                                                                                                                                                                                       |
| 4.4           | Amendment                dated April 25, 2003 to the Stockholder and Registration Rights Agreement                dated as of October 6, 2000 between the Company and New York Life                Insurance Company, incorporated by reference to Exhibit No. 4.8 to                the                Company’s Quarterly Report on Form 10-Q for the period ending March 31,                2003.                                                                                                                                                                                                                                    |
| 4.5           | Rights                Agreement, dated as of July 25, 2001, between the Corporation and                American                Stock Transfer & Trust Company, as Rights Agent, which includes the                Certificate of Designations for the Series A Junior Participating                Preferred Stock as Exhibit A, the Form of Right Certificate as Exhibit                B                and the Summary of Rights to Purchase Preferred Shares as Exhibit                C,                incorporated by reference to Exhibit No. 4.1 to the Company's Current                Report on Form 8-K filed July 31, 2001. |
| 4.6           | Amendment                No. 1 to the Rights Agreement between the Corporation and American                Stock                Transfer & Trust Company, as Rights Agent, dated May 25, 2005,                incorporated by reference to Exhibit No. 10.1 to the Company’s Current                Report on Form 8-K filed May 31, 2005.                                                                                                                                                                                                                                                                                          |
| 10.13         | Summary                of Named Executive Officer 2007 Salaries, 2006 Bonus Awards, 2007                Maximum                Bonus Potential and 2007 Equity and Pro Forma Awards, incorporated                by                reference to Exhibit No. 10.1 to the Company’s Current Report on Form 8-K                filed March 1, 2007.                                                                                                                                                                                                                                                                                        |
| 31.12         | Certification                by George Paz, as President, Chief Executive Officer and Chairman                of                Express Scripts, Inc., pursuant to Exchange Act Rule                13a-14(a).                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 31.22         | Certification                by Edward Stiften, as Senior Vice President and Chief Financial Officer                of                Express Scripts, Inc., pursuant to Exchange Act Rule                13a-14(a).                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 32.12         | Certification                by George Paz, as President, Chief Executive Officer and Chairman                of                Express Scripts, Inc., pursuant to 18 U.S.C. § 1350 and Exchange Act Rule                13a-14(b).                                                                                                                                                                                                                                                                                                                                                                                                      |
| 32.22         | Certification                by Edward Stiften, as Senior Vice President and Chief Financial Officer                of                Express Scripts, Inc., pursuant to 18 U.S.C. § 1350 and Exchange Act Rule                13a-14(b).                                                                                                                                                                                                                                                                                                                                                                                                |

|   |
|--------|

|  1   |  The                Company agrees to furnish supplementally a copy of any omitted schedule                to                this agreement to the Commission upon                request. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | Filed                herein. |
|---------------|------------------------------|

| 3   | Management                contract or compensatory plan or                arrangement |
|---------------|---------------------------------------------------------------------------------------|