Document:

Letter Agreement

 Exhibit 10.2 
  
 February 22, 2005 
  
 Mr. David D. Stevens 
 8960 Morning Grove Cove 
 Cordova, TN 38018 
  
 Dear David: 
  
 In connection with the proposed merger of Accredo Health Incorporated (“AHI”) and a Medco Health Solutions, Inc. (“Medco”)
wholly-owned subsidiary (the surviving subsidiary to be referred to herein as “Accredo”), as contemplated by the Agreement and Plan of Merger among Medco, Raptor Merger Sub, Inc. and AHI, dated as of February 22, 2005 (the “Merger
Agreement”), I am delighted to confirm our agreement that you will be employed by Accredo as CEO upon the Effective Time (as defined in the Merger Agreement), reporting to Kenny Klepper. In your position, you will participate in, or be eligible
for the compensation outlined below. All compensation is subject to applicable withholding. 
  
 Base Salary: Your base salary will be $515,052 per year (paid biweekly). Base salary changes are made annually based on your performance and other relevant factors. In 2006, your base salary may be increased,
but shall not be decreased. 
  
 Annual Incentive Bonus: You
will be paid a bonus for the AHI 2005 fiscal year in accordance with the provisions of the AHI bonus plan. For the balance of calendar year 2005, you will be guaranteed a minimum bonus of 30% of your annual base salary, payable in the first quarter
of calendar year 2006, subject to your continued employment through December 31, 2005. For calendar year 2006, you will be eligible for a target bonus of 100% of your base salary in accordance with an Accredo-specific bonus plan to be developed,
payable in the first quarter of calendar year 2007. All bonus payments 

 
payable in 2007 and after are conditioned on your continued employment through the payment date. 
  
 Long-Term Incentive Award: At the Effective Time, you will be granted
restricted stock pursuant to the AHI 2002 Long-Term Incentive Plan in an amount equal to two (2) times your base salary, subject to the applicable grant terms. For purposes of calculating the number of shares of restricted stock, each share of Medco
common stock will be valued at the “Average Closing Price” of Medco’s common stock as defined in the Merger Agreement. The restricted stock will vest on the first anniversary of the Effective Time, provided you are still employed by
Accredo as of such date; provided, however, the restricted stock will vest immediately upon your termination by Accredo other than for Cause or by you for Good Reason, each as defined below in this letter. You will also be granted on or about
September 1, 2005, options to purchase 70,000 shares of Medco’s common stock under the AHI 2002 Long-Term Incentive Plan in accordance with the terms of such plan. You will be eligible for a pro-rated annual long-term stock incentive award in
2006. These annual awards are discretionary and are subject to Board approval. Annual awards are generally made in the first quarter of each year. Grants will only be made if you are an active employee on the grant date. 
  
 The following actions, failures and events by or affecting you shall constitute
“Cause” as used in this letter: (A) your indictment or conviction with respect to having committed a felony; (B) an act of fraud or criminal conduct by you that is detrimental to the financial condition or business reputation of Medco or a
subsidiary; (C ) an act or omission you knew was likely to damage the business of Medco or a subsidiary; (D) your willful and continued failure to perform or willful and continued disregard of any of your obligations hereunder or otherwise relating
to your employment; or (E) your willful and continued 

  

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failure to obey the reasonable and lawful policies or orders of Accredo’s Board of Directors. The following circumstances, unless consented to by you in
writing, shall constitute “Good Reason” for termination as used in this letter: (A) any material breach by Medco or Accredo of any provision of this letter agreement, in either case, other than a breach that is remedied by Medco or Accredo
or any successor within thirty (30) days of receipt of written notice from you describing such breach; or (B) a relocation of you primary workplace without your written consent to any location more than fifty (50) miles from your location as of the
Effective Time. 
  
 Cash Retention Award: To further induce
you to remain employed by Medco or its subsidiary after the Merger, Medco agrees to pay you one year’s base salary in a lump sum within 30 days of the earlier of the date which is twelve (12) months after the Effective Time, or the date you
terminate employment for Good Reason or your employment is terminated by Medco for reasons other than Cause. This payment is subject to the condition that you remain employed by Medco or its subsidiary for twelve (12) months after the Effective Time
(except as noted in the preceding sentence), you fully comply with the terms of your agreements with Medco and its subsidiaries, and you sign a release of claims in a form satisfactory to Medco. 
  
 Employee Benefits: You will be eligible for coverage under all benefit
plans available to executives of Accredo subsequent to the Merger (including medical, dental, vision, life, AD&D, disability and retirement plans) in accordance with the terms of such plans as in effect from time to time. You will continue to be
eligible to participate in the Accredo Deferred Compensation Plan through December 31, 2007 and Accredo will continue to make contribution credits as provided in such plan including the matching contribution for senior executives consistent with
past practice. If you are terminated by 

  

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the company without Cause within two (2) years of the Effective Time, or you resign after the vesting date of the restricted stock referred to above and
before the second anniversary of the Effective Time, you may continue your health benefits on the same terms applicable to active employees (including premium payments and co-payments) as in effect from time to time and in accordance with the terms
of the applicable plans as in effect from time to time for two (2) years, and you will be eligible for COBRA thereafter. 
  
 Restrictive Covenants and Proprietary Rights Agreements: You acknowledge that you have executed and agree that the National Restrictive Covenant
and Confidentiality Agreement between you and AHI and the Proprietary Rights Agreement among you and AHI, Nova Factor, Inc., Hemophilia Health Services, Inc., Accredo Health Group, Inc., Pharmacare Resources, Inc., Hemophilia Resources of America,
Inc., Home Healthcare Resources, Inc., Home Healthcare Resources, Limited and BioPartners In Care, Inc. (together, the “AHI Restrictive Agreements”) are hereby assigned to Medco, and Medco and its subsidiaries are third party beneficiaries
of those agreements. The AHI Restrictive Agreements shall be effective up to the Effective Time. In addition, as a condition of the Merger and Medco’s offer under this letter, you agree to execute and abide by the terms of the National
Restrictive Covenant and Confidentiality Agreement and the Proprietary Rights Agreement attached hereto. These agreements are incorporated by reference into this letter agreement and shall be effective from and after the Effective Time. 

 
 Indemnification: You will be considered an Indemnified Party under
Section 6.12 of the Merger Agreement. 
  
 Former Employment
Agreement: By signing this letter you specifically waive any rights you have under the Amended and Restated Employment Agreement dated 

  

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October 13, 2004 between you and AHI (“Employment Agreement”), including, but not limited to, any payments upon your resignation or the termination
of your employment for any reason. You agree that the Employment Agreement shall be terminated as of the Effective Time (at which time the provisions of this letter agreement shall become effective), and neither Medco nor its subsidiaries will have
any obligation to you under the Employment Agreement. 
  
 This
agreement will be governed by the laws of the State of New Jersey, other than those principles applicable to conflicts or choice of law. Your status as an employee of Medco or any of its subsidiaries will be that of an employee-at-will and you may
resign or be terminated at any time for any reason or for no reason. You will receive no payments or benefits upon termination for any reason other than your rights to compensation and benefits under this letter agreement, and any benefit plans or
programs of AHI, Medco or any of its subsidiaries. It is understood that the arrangements contained in this letter are conditioned upon the consummation of the proposed merger referred to above and will be null and void in the event that the merger
does not take place. 
  

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 David, your experience and background will be an asset to our company, and we look forward to having you
join our management team. If you have any questions or comments please let me know. 
  

	
	 Sincerely,

	
	 /s/ David B. Snow, Jr.

	 David B. Snow, Jr.

	 Chairman, President & CEO

  

			
	 Accepted:
	  	David D. Stevens
		
	Date:	  	February 22, 2005

  

			
	 cc:
	  	K. Klepper
	 	  	K. Princivalle

  

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 “RAPTOR” 2002 LONG-TERM INCENTIVE PLAN 
  
 RESTRICTED STOCK (RS) 
  
 SUMMARY OF RETENTION GRANT TERMS 
  
 This is a summary of the terms applicable to the grant specified on this document. Different
terms may apply to any other grant under the Gold, Inc. 2002 Stock Incentive Plan or the Raptor plans assumed by Gold. 
  

			
	Grant Type:	  	Restricted Stock (RS)
	Grant Code:	  	RAPTOR EXEC
	Grant Date:	  	___________, 2005
		
	Vesting Date	  	Portion that Vests

  

	I.	GENERAL INFORMATION 

  
 Subject to Section III below, this grant becomes vested on the Vesting Date indicated in the accompanying box. If your employment with Gold, Inc. and its subsidiaries (Company) ends for any reason, your right to this
grant will be determined according to the terms in Section II. 
  

	II.	TERMINATION OF EMPLOYMENT 

  
 A. General Rule. If your employment is terminated for any reason other than those specified in the following paragraphs, this grant, if unvested, will be forfeited
on the date your employment ends. 
  
 B. Termination for Other than Cause or
Good Reason. If your employment is terminated by the Company for a reason other than “cause” or if you terminate for “good reason”, you will be considered “separated” and will be offered an agreement containing a
general release of claims in a form acceptable to the Company. If you sign the agreement, this grant shall become fully (100%) vested on the effective date of the agreement containing a general release. If you do not sign the agreement, then you
will be treated as terminated under paragraph A, above. The following actions, failures and events by or affecting you shall constitute “cause”: (A) your indictment or conviction with respect to having committed a felony; (B) acts of fraud
or criminal conduct by you that are detrimental to the financial condition or business reputation of Gold or a subsidiary; (C) acts or omissions you knew were likely to damage the business of Gold or a subsidiary; (D) your willful failure to perform
or willful disregard of your obligations hereunder or otherwise relating to your employment; or (E) your willful failure to obey the reasonable and lawful policies or orders of Gold’s Board of Directors. The following circumstances shall
constitute “good reason” for termination as used in this grant: (A) any material breach by Medco or Accredo of any provision of your employment letter agreement dated as of February         ,
2005, in either case, other than a breach that is remedied by Medco or Accredo or any successor within thirty (30) days of receipt of written notice from you describing such breach; or (B) a relocation of you primary workplace without your written
consent to any location more than fifty (50) miles from your location as of the Effective Time (as defined in your employment letter agreement). 
  
 C. Death. If you die, this grant, if unvested, will vest on the date of your death. 
  
 D. Change in Control. If your employment is terminated by the Company Within Two Years of a Change in Control (as those terms are
defined in the Plan), for any reason other than for cause or as a result of your resignation, this grant, if unvested, will vest on the date of your termination. 
  

	III.	RESTRICTIONS ON COMPETITIVE EMPLOYMENT AND AGAINST SOLICITATION AND INDUCEMENT. 

  
 You acknowledge and agree that as a condition to this grant you have executed and are bound by the terms of the National Restrictive
Covenant and Confidentiality Agreement and the Proprietary Rights Agreement with Gold or one of its subsidiaries (together, the Restrictive Agreements), the terms of which are incorporated into this grant. You acknowledge receipt of a copy of the
Restrictive Agreements. If you violate either of the Restrictive Agreements, this grant will be forfeited immediately. If this grant is vested and sold prior to or during the 12 month period after your termination of employment for any reason, you
will be considered a constructive trustee of any value or income received as a result of such sale and shall return such value or income promptly to the Company if you violate any aspect of the Restrictive Agreements. This grant shall not be
affected by the termination of either of the Restrictive Agreements. In the event either agreement is terminated, the restrictions contained therein shall continue to apply for purposes of this grant. 
  

	IV.	ADJUSTMENTS. 

  
 In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, rights offering, spin off, split off, split up or other event identified by the Board of
Directors, the Board shall make such adjustments, if any, as it may deem appropriate to the number and kind of shares subject to this award (provided that fractions of a share will be rounded down to the nearest whole share). Any such determination
shall be final, binding and conclusive on all parties. 
  
 This
grant is subject to the provisions of the Company’s “RAPTOR” 2002 Long-Term Incentive Plan 
  

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 NATIONAL RESTRICTIVE COVENANT AND 
  
 CONFIDENTIALITY AGREEMENT 
  
 This Agreement is made and entered into this 22nd day of February, 2005 by and between Medco Health Solutions, Inc. (“Company”) and the employee
who has executed this Agreement on the last page hereof (“Employee”). As used herein, “Protected Parties” shall mean Medco Health Solutions, Inc. and any subsidiary or Affiliate thereof. 
  
 WITNESSETH: 
  
 NOW, THEREFORE, for and in exchange of the mutual promises contained herein and for other good and valuable considerations,
the receipt and sufficiency of which are hereby acknowledged, Company, acting for itself and on behalf of all of the Protected Parties, and Employee agree as follows: 
  
 1. Covenant of Non-Disclosure of Confidential Information. Employee recognizes that Employee has had, or will have, access
to, and knowledge of, matters concerning the Business of Protected Parties, including but not limited to, contents of manuals, procedures, methods of doing business, the identity of referral sources and suppliers, patient records, information
contained in the books and records of the Protected Parties, financial information, trade secrets, patient mailing lists, the names and addresses of patients, customer lists, lists of potential customers and details of agreements with customers;
acquisition, expansion, marketing, and other business information and plans of the Protected Parties; research and development; data concerning usage of prescription drugs and any other data compiled by the Protected Parties; computer programs;
sources of supply; identity of specialized customer needs, cost and pricing; employee information (including but not limited to, personnel, payroll, compensation and benefit data and plans); and books and records, methods of doing business,
policies, procedures or trade secrets, including all such information recorded in manuals, memoranda, projections, minutes, plans, drawings, designs, formula books, specifications, computer programs and records, whether 

  

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or not legended or otherwise identified as Confidential Information, as well as such information that is the subject of meetings and discussions and not
recorded. All such information is hereinafter referred to as “Confidential Information.” Employee acknowledges that the Confidential Information is valuable, proprietary and confidential to Protected Parties, and that Protected Parties
have paid substantial consideration and incurred substantial costs to acquire or develop the Confidential Information. Employee agrees that the Confidential Information shall be treated as valuable, proprietary and confidential regardless of whether
third parties would consider it valuable, proprietary and confidential. Employee agrees that Employee will not at any time, disclose, divulge, or make known to any person or entity, use, or otherwise appropriate for Employee’s own benefit or
the benefit of others any Confidential Information, or permit any person to examine or make copies of any documents that contain or are derived from Confidential Information, without the prior written consent of the President of Company. Employee
agrees that upon termination of Employee’s employment, Employee will turn over to Protected Parties all writings and all records of whatever nature, including computer records and mailing lists, containing Confidential Information kept by
Employee or in Employee’s possession, whether originals or copies, it being agreed that said records are the sole and exclusive property of Protected Parties, as applicable. Notwithstanding the preceding restrictions, Employee may use
Confidential Information following reasonable prior notice to Company, to provide any mandatory responses to governmental inquiries. The obligations under this Section 1 are in addition to and not in lieu of any other rights or obligations, at law
or in equity, to maintain the confidentiality of the Confidential Information, including under applicable “trade secret” laws. Confidential Information shall not be deemed to include information which is or becomes generally available to
the public other than as a result of an impermissible disclosure hereunder by Employee. 
  

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 2. Restrictive Covenant. 
  
 (a) Employee hereby acknowledges that the Business conducted by Protected Parties (“Business of
Protected Parties”) is highly competitive and that Employee is, or will become, knowledgeable about the methods of doing business that are and will be employed by Protected Parties, the names and histories of patients, manuals, procedures,
programs, referral sources, and advisors, pricing strategies, patient records, business plans, financial information, and other information which Protected Parties deem to be confidential, proprietary and a trade secret. Employee further
acknowledges that should Employee enter into competition with Protected Parties in the Restricted Area, as defined herein, Employee would have a competitive advantage as a result of Employee’s knowledge, and exposure acquired, concerning the
Business of Protected Parties. Therefore, in consideration of the benefits conveyed hereunder Employee agrees that during the Restricted Period defined below, and within the Restricted Area defined below, Employee shall not in any manner, directly
or indirectly, jointly or individually, on Employee’s own behalf, or in conjunction with or for the benefit of, any other party (whether as agent, employee, owner, partner, joint venturer, shareholder, independent contractor, investor,
consultant, employer or advisor): (i) engage in, or assist others in engaging in, competition with a Protected Party within the meaning of Section 2(d), or (ii) establish or own any financial, beneficial or other interest in (other than any interest
consisting of less than one percent 1% of a class of publicly traded security acquired in a public market free of transfer restriction), make any loan to or for the benefit of, or render any managerial, marketing or other advice or assistance, to
any person engaged in competition with a Protected Party within the meaning of Section 2(d). 
  
 (b) In addition to the preceding covenant, and not in limitation thereof, Employee further agrees that during the Restricted Period,
Employee will not in any manner, directly or indirectly, on Employee’s own behalf, or in conjunction with or for the benefit of any other party, (i) call upon or otherwise solicit or service patients or prospective patients of Protected Parties
or their 

  

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Affiliates within the Restricted Area (collectively, “Restricted Patients”), for the purpose of competing with Protected Parties or their
Affiliates for the business of said Restricted Patients or for the purpose of influencing Restricted Patients to cease using the services of Protected Parties or their Affiliates, (ii) call upon or otherwise solicit customers or targeted potential
customers, or any other party that has a relationship, contractual or otherwise, with a Protected Party or their Affiliates, including without limitation, drug manufacturers or distributors, referral sources or third party payors, for the purpose of
disrupting or attempting to disrupt any such relationships with a Protected Party or their Affiliates in a manner that would adversely affect the Business of Protected Parties in the Restricted Area or for the purpose of assisting or creating such a
relationship for any other party with business or operations engaged in the Business of Protected Parties in the Restricted Area, or (iii) induce or solicit, or attempt to induce or solicit, employees of Protected Parties or their Affiliates to
leave their employment with a Protected Party or their Affiliates or in any way interfere with the relationship between Protected Parties or their Affiliates and any employee thereof. 
  
 (c) Employee agrees that at no time during or after employment with a Protected Party will Employee attempt
to discourage any patient, referral source, payor, or supplier from doing business with Protected Parties or any Affiliate thereof. 
  
 (d) For purposes of this Section 2, a person or entity (including, without limitation, the Employee) shall be deemed to be a competitor of
one or more of the Protected Parties, or a person or entity (including, without limitation, the Employee) shall be deemed to be engaging in competition with one or more of the Protected Parties, if, at the time of determination, such person or
entity (A) engages in any business engaged in or proposed to be engaged in by any of the Protected Parties, (B) in any way conducts, operates, carries out or engages in the business of managing any entity engaged in any business described in clause
(A), in each case, in the Restricted Area, excluding, however, during any period following the termination of the 

  

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Employee’s employment with a Protected Party, any business in which none of the Protected Parties was engaged or had proposed to be engaged at the time
of termination of the Employee’s employment with the Company. Employee acknowledges that the Protected Parties currently engage in business throughout the United States and Puerto Rico. The Business of Protected Parties is: A. the business of
marketing, advertising, selling, distributing or providing (i) those drugs or therapies identified on Exhibit A hereto, or (ii) any blood clotting pharmaceutical, ancillary medical supplies or other related products as prescribed by a physician and
required for the administration of blood clotting pharmaceuticals to hemophilia patients, or (iii) infusables, injectables, or oncology treatments, or (iv) nursing services, or (v) prescribed Premium Drugs distributed or sold pursuant to a contract
whereby the drug manufacturer or distributor has granted the pharmacy an exclusive or preferred right to distribute or act as a dealer, agent or representative for the Premium Drugs, whether or not title to such drug passes to the pharmacy. (A
preferred right is defined as a right granted to ten or fewer entities to distribute drugs from the manufacturer or the manufacturer’s distributor. A Premium Drug is a prescription drug for a chronic disease that lasts either for the life of
the patient or for six months or more, with an average monthly sales price per patient exceeding $500.00), and/or B. (i) the third party prescription drug claims processing business; (ii) the design, development or marketing of or consulting as to
prescription drug benefit plans; (iii) the provision of mail service pharmacy (including all those products and services that are presently or hereafter marketed by the Protected Parties, or that are in the development stage at the time of the
Employee’s termination of employment and are actually marketed by the Protected Parties thereafter); (iv) the collection, analysis and/or sale of data relating to prescription drug utilization; (v) the pharmacy benefit management and disease
management businesses; (vi) the organization and administration of retail pharmacy networks; and (vi) any other business in which the Protected Parties and/or any 

  

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of their affiliates are engaged as to which the Employee has involvement in the course of employment and/or acquired or received Confidential Information.

  
 (e) The Restricted Area shall mean the fifty
states comprising the United States of America and Puerto Rico. 
  
 (f) The Restricted Period shall mean the period beginning on the date hereof and ending twenty-four months after Employee ceases for any reason to be employed by a Protected Party. 
  
 (g) By way of example, and notwithstanding any provision
herein to the contrary, for purposes of Section 2(a), Employee may, after termination of employment with the Protected Parties, be employed to perform services as an employee or consultant (i) at an over the counter walk in retail drugstore owned by
a national retail drugstore chain, such as CVS, or at an inpatient hospital pharmacy; provided that the Employee may not perform services for any such entity which is engaged in the Business of Protected Parties, or (ii) for a drug manufacturer that
is not directly engaged in the distribution of a drug in competition with a Protected Party, or (iii) for a manufacturer of infusion pumps, or (iv) for a distributor of medical supplies, including medical disposables, that is not engaged in the
Business of Protected Parties, or (v) for a licensed Home Health Agency that is not engaged in the Business of Protected Parties, or (vi) for a payor that is not directly or indirectly engaged in the Business of Protected Parties, or (vii) for a
drug wholesaler that only markets, advertises, sells, distributes or provides drugs to retail pharmacies on a wholesale basis and not at retail (such as Cardinal Health and Amerisource Bergen), but specifically excluded from this exception are
Companies or services or activities that are directly or indirectly engaged in or related to the Business of Protected Parties. 
  
 3. Enforcement of, and Acknowledgment of Reasonableness of, Covenants. 
  
 (a) Employee has carefully read and considered the provisions of Sections 1 and 2, and having done so,
agrees that the terms of the covenants are fair and reasonable and are reasonably required for the protection of the interests of Protected Parties, their business, their officers, their 

  

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directors, and their employees. Employee represents that Employee’s experience, capabilities and circumstances are such that these provisions will not
prevent Employee from earning a livelihood. Employee further agrees that Employee has received valuable and adequate consideration in exchange for entering into the restrictions set out in this Agreement. 
  
 (b) Employee acknowledges and agrees that a remedy at law
for any breach or threatened breach of the provisions of Sections 1 and 2 hereof would be inadequate, and, therefore, agrees that Protected Parties, jointly or severally, shall be entitled to injunctive relief, without posting bond or other
security, in addition to any other available rights and remedies in cases of any such breach or threatened breach; provided, however, that nothing contained herein shall be construed as prohibiting a Protected Party from pursuing any other rights
and remedies available for any such breach or threatened breach. 
  
 (c) Employee further agrees that if suit is successfully brought to enforce this Agreement or to seek damages for its breach, Employee will pay to Protected Parties, in addition to any other damages caused to
Protected Parties, all attorney fees incurred by Protected Parties in seeking such relief. 
  
 (d) If Employee shall violate any covenant contained herein with a stated duration, the duration of any such covenant so violated shall
automatically be extended with respect to the Employee for a period equal to the period during which such Employee shall have been in violation of such covenant. 
  
 (e) Employee specifically acknowledges that the Protected Parties are intended third party beneficiaries of
the covenants set out in this Agreement and that any of the Protected Parties suffering harm as a result of a breach of said covenants shall be entitled to enforce the provisions of the covenant without the necessity of joining any of the other
Protected Parties and in such event, the covenants contained in Sections 1 and 2 shall be deemed to have been entered into directly with the Protected Party that has suffered harm. 
  

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 (f) For purposes of this Agreement, “Affiliate” shall mean any association,
unincorporated organization, corporation, partnership, joint venture, joint stock company, limited liability company, business trust or other similar entity organized under the laws of the United States or any state thereof which is now or in the
future controlled by, directly or indirectly, a Protected Party. Control shall mean the ownership of not less than thirty percent (30%) of the voting securities of an entity or the right to designate or elect not less than thirty percent (30%) of
the members of its board of directors or other governing board or body by contract or otherwise. 
  
 4. Waiver. No failure to exercise, and no delay in exercising, by either party hereto, any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof, or the exercise of any other right, power or privilege. 
  
 5. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW JERSEY. Employee further agrees that any service of any process, summons, notice or document sent by U.S. registered mail to his or her last known address as set forth in the Protected Parties personnel
files shall be effective service of process for any action, suit or proceedings brought against Employee. 
  
 6. Effect. This Agreement shall be binding upon, and shall inure to the benefit of, Company and the Employee and their respective heirs, legal
representatives, executors, administrators, successors and assigns and shall inure to the benefit of the now or hereafter existing subsidiaries and Affiliates of the Protected Parties and their respective successors and assigns. 
  
 7. Unenforceability. The parties agree that the provisions of this Agreement
are severable. Should any one or more of the provisions of this Agreement be determined to be illegal or unenforceable, the remainder of this Agreement shall not be affected thereby and each term and 

  

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provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. In particular, in the event the covenants in this
Agreement shall be determined by any court of competent jurisdiction to be invalid or unenforceable by reason of extending for too great a period of time or over too great a geographical area, or by reason of being too extensive in any other
respect, the covenants shall be interpreted to extend only over the maximum period of time, the maximum geographical area and the maximum extent in all other respects that the court shall determine is valid and enforceable. 
  
 8. Headings. All headings herein are for ease of reference only and shall not
be construed to enlarge or limit the provisions of this Agreement. 
  
 9. Employment. No provision contained herein shall be deemed to guarantee Employee any fixed term of employment or continued employment by Company or any subsidiary or affiliate thereof. References in this Agreement to employment by a
Protected Party or a subsidiary or affiliate thereof shall include employment thereby and the status as a leased or loaned employee. 
  
 10. Syntax. As the context of this Agreement requires, the masculine gender shall include the feminine or the neuter. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date and year first above written, Company acting through its duly authorized officer. 
  

			
	 MEDCO HEALTH SOLUTIONS, INC.

		
	 By:
	 	 
		
	 Title:
	 	 
	
	 
	
	 EMPLOYEE

	
	 
	
	 Employee’s Printed Name

  

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 PROPRIETARY RIGHTS AGREEMENT 
  
 THIS PROPRIETARY RIGHTS AGREEMENT (this “Agreement”) is made between the undersigned Employee
(“Employee”) and Medco Health Solutions, Inc., and its subsidiaries and affiliates (collectively, the “Companies”). 
  
 WITNESSETH 
  
 WHEREAS, the Companies desire to have Employee, as a condition of continued employment agree to the terms contained herein, in order to clarify and
protect the Companies’ title to proprietary rights which may be invented or generated by Employee during Employee’s employment with one of the Companies; 
  
 NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, Employee agrees that Employee shall promptly disclose, grant and assign, and hereby assigns, to the Companies for their sole use and benefit all right, title and interest in and to all
inventions, ideas, improvements, technical information, suggestions, products, formula, apparatus, designs, processes, forms, drawings, writings, research, works-of-authorship, trade secrets and all other intellectual property and proprietary rights
relating in any way to the business, products or services of the Companies or capable of beneficial use by the Companies (“Intellectual Property”), which the Employee shall conceive, develop or acquire during the period of Employee’s
employment with any of the Companies (whether or not during usual working hours or at any other time), together with all patent applications, letters patent, copyrights and reissues thereof that may at any time be granted for or upon any such
Intellectual 

  

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Property. In connection therewith, the Employee shall promptly at all times during and after the date hereof: 
  
 (a) execute and deliver such applications, assignments,
descriptions and other instruments as may be necessary or proper in the opinion of the Companies to vest in the Companies’ exclusive title to such Intellectual Property and to enable the Companies to obtain and maintain the entire right and
title thereto throughout the world; and 
  
 (b)
render to the Companies at their expense all such assistance as any of the Companies may require in the prosecution of applications for said patents or reissues thereof in the prosecution or defense of interferences which may be declared involving
any said application or patents and in any litigation in which the Companies may be involved relating to any such patents, inventions, improvements, technical information, copyrights or other Intellectual Property. 
  
 Employee acknowledges and agrees that Employee’s
obligations under Sections (a) and (b) above shall continue in effect after termination of his/her employment, regardless of the reason for termination and whether such termination is voluntary or involuntary, and that the Company is entitled to
communicate Employee’s obligations under this Agreement to any future employer or potential employer. 
  
 It is expressly understood and agreed that this Agreement shall include only those items of Intellectual Property which are invented or generated on or
after the date of this Agreement. In order to determine which Intellectual Properties are invented or generated on or after the date of this Agreement, Employee warrants that he/she has not, either solely or jointly with others, invented or
generated any Intellectual Property at any time prior to the date of this Agreement, except: 
  
 EMPLOYEE AFFIRMS, AGREES AND UNDERSTANDS THAT ANY INTELLECTUAL PROPERTY WHICH IS NOT LISTED IN THE PRECEDING SENTENCE SHALL BE CONCLUSIVELY PRESUMED TO HAVE BEEN GENERATED OR INVENTED AFTER THE DATE OF THIS AGREEMENT,
AND THAT SUCH INTELLECTUAL PROPERTY SHALL BELONG EXCLUSIVELY TO THE COMPANIES. 
  

 18 

 Except as may be authorized or directed in writing by a duly authorized officer of one of the Companies,
Employee agrees that he/she will not at any time hereafter disclose, divulge or communicate or permit to be disclosed, divulged or communicated to any person, firm or company any Intellectual Property. Employee further agrees that he/she will not
make use of said Intellectual Property for his/her own purposes, except as may be authorized in writing by a duly authorized officer of the Companies. 
  
 Employee agrees that both during his/her employment with the Companies and after termination of said employment, he/she will not, without the written
consent of a duly authorized officer of the Companies, copy or remove from the Companies’ business location any drawings, blueprints, bulletins, reports, reproductions, notes, data, memorandum, models, records or other information of a
confidential or proprietary nature pertaining to any of the Companies, or which relate to the business of the Companies or to Employee’s employment therewith. 
  
 Employee agrees that damages caused by a breach of this Agreement would be inadequate. Therefore, in the event of a breach
or threatened breach of the terms of this Agreement, the Companies individually or jointly shall be entitled to injunctive relief without the necessity of posting bond or showing actual damages. 
  

 19 

 This Agreement, the rights and obligations of the parties hereto, and any claims or disputes relating to
this Agreement, is to be governed by and construed in accordance with the laws of the State of New Jersey, excluding the choice of law rules thereof. 
  
 In the event that any provision of this Agreement is found invalid or unenforceable, it will be enforced to the extent permissible, and the remainder of
this Agreement will remain in full force and effect. 
  
 Employee
agrees and understands that this Agreement shall in no way be a guarantee of employment for any specified length of time. 
  
 Executed this              day of
                    , 2005. 
  

			
	 MEDCO HEALTH SOLUTIONS, INC.

		
	 By:
	 	 
		
	 Title:
	 	 
	
	 
	
	 EMPLOYEE

	
	 
	
	 Employee’s Printed Name

  

 20Accredo Health, Incorporated 2002 Long Term Incentive Plan

 Exhibit 10.3 
  
 ACCREDO HEALTH, INCORPORATED 
 2002 LONG-TERM INCENTIVE PLAN 
  
 As amended and restated effective August 18, 2005 
 to reflect the merger (the “Merger”) of Accredo Health, Incorporated
with and into a 
 subsidiary of Medco Health Solutions, Inc. (“Medco”) 
  
 ARTICLE I 
 PURPOSE 
  
 1.1. GENERAL. The purpose of the Accredo
Health, Incorporated 2002 Long-Term Incentive Plan (the “Plan”) is to promote the success, and enhance the value, of Accredo Health, Incorporated (the “Corporation”), and its parent company Medco Health Solutions, Inc.
(“Medco”) by linking the personal interests of its employees to those of Medco’s stockholders and by providing such persons with an incentive for outstanding performance. The Plan is further intended to provide flexibility to the
Corporation in its ability to motivate, attract, and retain the services of employees upon whose judgment, interest, and special effort the successful conduct of the Corporation’s operation is largely dependent. Accordingly, the Plan permits
the grant of incentive awards from time to time to selected employees. 
  
 ARTICLE 2 
 EFFECTIVE DATE 
  
 2.1. EFFECTIVE DATE. The Plan became effective as of the date it was first approved by both the Corporation’s board and its stockholders. The Plan
was subsequently amended and as amended approved by the Corporation’s stockholders on November 22, 2004. In connection with the merger of the Corporation with and into a subsidiary of Medco, the plan was assumed by Medco and shares of Medco
Common Stock were substituted for shares of the Corporation, effective as of August 18, 2005. 
  
 ARTICLE 3 
 DEFINITIONS 
  
 3.1. DEFINITIONS. When a word or phrase appears in this Plan with the initial letter capitalized, and the word or phrase
does not commence a sentence, the word or phrase shall generally be given the meaning ascribed to it in this Section or in Section 1.1 unless a clearly different meaning is required by the context. The following words and phrases shall have the
following meanings: 
  
 (a) “Award”
means any Option, Restricted Stock Award, or any other right or interest relating to Stock or cash, granted to a Participant under the Plan. 
  
 (b) “Award Agreement” means any written agreement, contract, or other instrument or document evidencing an Award. 

 (c) “Board” means the Board of Directors of Medco Health Solutions, Inc.

  
 (d) “Cause” as a reason for a
Participant’s termination of employment shall have the meaning assigned such term in the employment agreement, if any, between such Participant and the Corporation or an affiliated company, provided, however that if there is no such employment
agreement in which such term is defined, “Cause” shall mean any of the following acts by the Participant, as determined by the Board: gross neglect of duty, prolonged absence from duty without the consent of the Corporation, intentionally
engaging in any activity that is in conflict with or adverse to the business or other interests of the Corporation, or willful misconduct, misfeasance or malfeasance of duty which is reasonably determined to be detrimental to the Corporation.

  
 (e) “Change in Control” means and
includes: 
  
 (1) The acquisition by any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the 1934 Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of 25% or more of the combined voting
power of the then outstanding voting securities of Medco entitled to vote generally in the election of directors (the “Outstanding Corporation Voting Securities”); provided, however, that for purposes of this subsection (1), the following
acquisitions shall not constitute a Change of Control: (i) any acquisition by a Person who is on the Effective Date the beneficial owner of 25% or more of the Outstanding Corporation Voting Securities, (ii) any acquisition directly from Medco, (iii)
any acquisition by the Medco, (iv) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Medco or any corporation controlled by Medco, or (v) any acquisition by any corporation pursuant to a transaction which
complies with clauses (i), (ii) and (iii) of subsection (3) of this definition; or 
  
 (2) Individuals who, as of the Effective Time, constitute the Board (the “Incumbent Board”) cease for any reason to constitute
at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Time whose election, or nomination for election by Medco’s stockholders, was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an
actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or 
  
 (3) Consummation of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the assets of Medco (a “Business Combination”), in each case, unless, following such Business Combination, (i) all or substantially all of the individuals and
entities who were 

  

 - 2 - 

 
the beneficial owners of the Outstanding Corporation Voting Securities immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the corporation resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns Medco or all or substantially all of Medco’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such
Business Combination of the Outstanding Corporation Voting Securities, and (ii) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of Medco or such corporation resulting from
such Business Combination) beneficially owns, directly or indirectly, 25% or more of the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business
Combination, and (iii) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board, providing for such Business Combination; or 
  
 (4) Approval by the stockholders of Medco of a complete liquidation or dissolution of Medco. 
  
 (f) “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 (g) “Committee” means the committee of the Board
described in Article 4. 
  
 (h)
“Corporation” means Accredo Health, Incorporated, a Delaware corporation. 
  
 (i) “Covered Employee” means a covered employee as defined in Code Section 162(m)(3). 
  
 (j) “Disability” shall mean any illness or other
physical or mental condition of a Participant that renders the Participant incapable of performing his customary and usual duties for the Corporation, or any medically determinable illness or other physical or mental condition resulting from a
bodily injury, disease or mental disorder which, in the judgment of the Committee, is permanent and continuous in nature. The Committee may require such medical or other evidence as it deems necessary to judge the nature and permanency of the
Participant’s condition. Notwithstanding the above, with respect to an Incentive Stock Option, Disability shall mean Permanent and Total Disability as defined in Section 22(e)(3) of the Code. 
  

 - 3 - 

 (k) “Effective Date” has the meaning assigned such term in Section 2.1.

  
 (l) “Fair Market Value”, with
respect to grants made after the effective time of the Merger, shall mean the average (mean) of the highest and lowest sales prices of a share of Common Stock, as reported on the New York Stock Exchange (or any other reporting system selected by the
Committee, in its sole discretion) on the date as of which the determination is being made or, if no sale of shares of Common Stock is reported on this date, on the next preceding day on which there were sales of shares of Common Stock reported.
Prior to the effective time of the Merger, Fair Market Value means on any date, (i) if the Stock is listed on a securities exchange or is traded over the Nasdaq National Market, the closing sales price on such exchange or over such system on such
date or, in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Stock is not listed on a securities exchange or traded over the Nasdaq National Market,
the mean between the bid and offered prices as quoted by Nasdaq for such date, provided that if the Stock is not quoted on Nasdaq or it is determined that the fair market value is not properly reflected by such Nasdaq quotations, Fair Market Value
will be determined by such other method as the Committee determines in good faith to be reasonable. 
  
 (m) “Incentive Stock Option” means an Option that is intended to meet the requirements of Section 422 of the Code or any
successor provision thereto. 
  
 (n)
“Medco” means Medco Health Solutions, Inc. 
  
 (o) “Non-Qualified Stock Option” means an Option that is not an Incentive Stock Option. 
  
 (p) “Option” means a right granted to a Participant under Article 7 of the Plan to purchase Stock at a specified price during
specified time periods. An Option may be either an Incentive Stock Option or a Non-Qualified Stock Option. 
  
 (q) “Other Stock-Based Award” means a right, granted to a Participant that relates to or is valued by reference to Stock or
other Awards relating to Stock. 
  
 (r)
“Parent” means a corporation which owns or beneficially owns a majority of the outstanding voting stock or voting power of the Corporation. Notwithstanding the above, with respect to an Incentive Stock Option, Parent shall have the meaning
set forth in Section 424(e) of the Code. 
  
 (s)
“Participant” means a person who, as an employee, officer, consultant or director of the Corporation or any Subsidiary, has been granted an Award under the Plan. 
  
 (t) “Plan” means the Accredo Health, Incorporated 2002 Long-Term Incentive Plan, as amended from
time to time. 
  

 - 4 - 

 (u) “Restricted Stock Award” means Stock granted to a Participant under Article
8 that is subject to certain restrictions and to risk of forfeiture. 
  
 (v) “Retirement” means a Participant’s voluntary termination of employment with the Corporation, Parent or Subsidiary after attaining age 55. 
  
 (w) “Stock” means the $.01 par value common stock
of Medco and such other securities of Medco as may be substituted for Stock pursuant to Article 10. 
  
 (x) “Subsidiary” means any corporation, limited liability company, partnership or other entity of which a majority of the
outstanding voting stock or voting power is beneficially owned directly or indirectly by the Corporation. Notwithstanding the above, with respect to an Incentive Stock Option, Subsidiary shall have the meaning set forth in Section 424(f) of the
Code. 
  
 (y) “1933 Act” means the
Securities Act of 1933, as amended from time to time. 
  
 (z) “1934 Act” means the Securities Exchange Act of 1934, as amended from time to time. 
  
 ARTICLE 4 
 ADMINISTRATION 
  
 4.1. COMMITTEE. The Plan shall be administered by a committee appointed by the Board (which Committee shall consist of two
or more directors) or, at the discretion of the Board from time to time, the Plan may be administered by the Board. The Committee shall consist of two or more members of the Board. It is intended that the directors appointed to serve on the
Committee shall be “non-employee directors” (within the meaning of Rule 16b-3 promulgated under the 1934 Act) and “outside directors” (within the meaning of Code Section 162(m) and the regulations thereunder) to the extent that
Rule 16b-3 and, if necessary for relief from the limitation under Code Section 162(m) and such relief is sought by Medco, Code Section 162(m), respectively, are applicable. However, the mere fact that a Committee member shall fail to qualify under
either of the foregoing requirements shall not invalidate any Award made by the Committee which Award is otherwise validly made under the Plan. The members of the Committee shall be appointed by, and may be changed at any time and from time to time
in the discretion of, the Board. During any time that the Board is acting as administrator of the Plan, it shall have all the powers of the Committee hereunder, and any reference herein to the Committee (other than in this Section 4.1) shall include
the Board. 
  
 4.2. ACTION BY THE COMMITTEE. For purposes of
administering the Plan, the following rules of procedure shall govern the Committee. A majority of the Committee shall constitute a quorum. The acts of a majority of the members present at any meeting at which a quorum is present, and acts approved
unanimously in writing by 

  

 - 5 - 

 
the members of the Committee in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in good faith,
rely or act upon any report or other information furnished to that member by any officer or other employee of the Corporation or any Parent or Subsidiary, the Corporation’s independent certified public accountants, or any executive compensation
consultant or other professional retained by the Corporation to assist in the administration of the Plan. 
  
 4.3. AUTHORITY OF COMMITTEE. Except as provided below, the Committee has the exclusive power, authority and discretion to: 
  
 (a) Designate Participants; 
  
 (b) Determine the type or types of Awards to be granted to
each Participant; 
  
 (c) Determine the number of
Awards to be granted and the number of shares of Stock to which an Award will relate; 
  
 (d) Determine the terms and conditions of any Award granted under the Plan, including but not limited to, the exercise price, grant price,
or purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisability of an Award, and accelerations or waivers thereof, based in each case on such considerations as
the Committee in its sole discretion determines; 
  
 (e) Accelerate the vesting or lapse of restrictions of any outstanding Award, based in each case on such considerations as the Committee in its sole discretion determines; 
  
 (f) Determine whether, to what extent, and under what circumstances an Award may be settled in, or the
exercise price of an Award may be paid in, cash, Stock, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered; 
  
 (g) Prescribe the form of each Award Agreement, which need not be identical for each Participant; 
  
 (h) Decide all other matters that must be determined in
connection with an Award; 
  
 (i) Establish,
adopt or revise any rules and regulations as it may deem necessary or advisable to administer the Plan; 
  
 (j) Make all other decisions and determinations that may be required under the Plan or as the Committee deems necessary or advisable to
administer the Plan; 
  

 - 6 - 

 (k) Amend the Plan or any Award Agreement as provided herein; and 
  
 (l) Adopt such modifications, procedures, and subplans as
may be necessary or desirable to comply with provisions of the laws of non-U.S. jurisdictions in which the Corporation or any Parent or Subsidiary may operate, in order to assure the viability of the benefits of Awards granted to participants
located in such other jurisdictions and to meet the objectives of the Plan. 
  
 Notwithstanding the above, the Board or the Committee may and hereby does expressly delegate to the Chief Executive Officer of Medco all of the Committee’s authority under subsections (a), (b) and (c) above;
provided that such delegation shall be limited to a number of Awards specified by the Committee; and provided further that no officer may grant Awards to himself or to eligible Participants who, at the time of grant, are or are anticipated to
become, either (i) Covered Employees or (ii) persons subject to the insider trading restrictions of Section 16 of the 1934 Act. 
  
 4.4. DECISIONS BINDING. The Committee’s interpretation of the Plan, any Awards granted under the Plan, any Award Agreement and all decisions and
determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties. 
  
 ARTICLE 5 
 SHARES SUBJECT TO THE PLAN 
 (Post-Merger) 
  
 5.1. NUMBER OF SHARES. Subject to adjustment as provided in Section 10.1, the aggregate number of shares of Stock reserved and available for Awards shall
be 5,711,695, of which not more than 10% may be granted as Awards of Restricted Stock. As of the Effective Time, Awards under the Plan were outstanding with respect to 3,775,093 shares. 
  
 5.2. LAPSED AWARDS. To the extent that an Award is canceled, terminates, expires or lapses for any reason, any shares of
Stock subject to the Award will again be available for the grant of an Award under the Plan. 
  
 5.3. STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open market. 
  
 5.4. LIMITATION ON AWARDS. Notwithstanding any provision in the Plan to the
contrary (but subject to adjustment as provided in Section 10.1), the maximum number of shares of Stock with respect to one or more Options that may be granted during any one calendar year under the Plan to any one Participant shall be 467,135. The
maximum fair market value (measured as of the date of grant) of any Restricted Stock Awards that may be received by any one Participant (less any consideration paid by the Participant for such Award) during any one calendar year under the Plan shall
be $2,000,000. 
  

 - 7 - 

 ARTICLE 6 
 ELIGIBILITY 
  
 6.1. GENERAL.
Awards may be granted only to individuals who are employees of the Corporation or a Subsidiary. 
  
 ARTICLE 7 
 STOCK OPTIONS 
  
 7.1. GENERAL. The Committee is authorized to grant Options to Participants on the following terms and conditions:

  
 (a) EXERCISE PRICE. The exercise price per
share of Stock under an Option shall be determined by the Committee, provided that the exercise price for any Option shall not be less than the Fair Market Value as of the date of the grant. 
  
 (b) TIME AND CONDITIONS OF EXERCISE. The Committee shall
determine the time or times at which an Option may be exercised in whole or in part, subject to Section 7.1(e). The Committee also shall determine the performance or other conditions, if any, that must be satisfied before all or part of an Option
may be exercised or vested. The Committee may waive any exercise or vesting provisions at any time in whole or in part based upon factors as the Committee may determine in its sole discretion so that the Option becomes exercisable or vested at an
earlier date. The Committee may permit an arrangement whereby receipt of Stock upon exercise of an Option is delayed until a specified future date. 
  
 (c) PAYMENT. The Committee shall determine the methods by which the exercise price of an Option may be paid, the form of payment,
including, without limitation, cash, shares of Stock, or other property (including “cashless exercise” arrangements), and the methods by which shares of Stock shall be delivered or deemed to be delivered to Participants; provided, however,
that if shares of Stock are used to pay the exercise price of an Option, such shares must have been held by the Participant for at least six months. 
  
 (d) EVIDENCE OF GRANT. All Options shall be evidenced by a term sheet summarizing the terms and conditions of the Award. The summary shall
include such provisions, not inconsistent with the Plan, as may be specified by the Committee. 
  
 (e) EXERCISE TERM. In no event may any Option be exercisable for more than ten years from the date of its grant. 
  

 - 8 - 

 7.2. INCENTIVE STOCK OPTIONS. The terms of any Incentive Stock Options granted under the Plan must comply
with the following additional rules: 
  
 (a)
EXERCISE PRICE. The exercise price per share of Stock shall be set by the Committee, provided that the exercise price for any Incentive Stock Option shall not be less than the Fair Market Value as of the date of the grant. 
  
 (b) EXERCISE. In no event may any Incentive Stock Option be
exercisable for more than ten years from the date of its grant. 
  
 (c) LAPSE OF OPTION. An Incentive Stock Option shall lapse under the earliest of the following circumstances; provided, however, that the Committee may, prior to the lapse of the Incentive Stock Option under the
circumstances described in paragraphs (3), (4) and (5) below, provide in writing that the Option will extend until a later date, but if the Option is exercised after the dates specified in paragraphs (3), (4) and (5) below, it will automatically
become a Non-Qualified Stock Option: 
  
 (1) The
Incentive Stock Option shall lapse as of the option expiration date set forth in the Award summary. 
  
 (2) The Incentive Stock Option shall lapse ten years after it is granted, unless an earlier time is set in the Award Agreement.

  
 (3) If the Participant terminates employment
for any reason other than as provided in paragraph (4) or (5) below, the Incentive Stock Option shall lapse, unless it is previously exercised, three months after the Participant’s termination of employment; provided, however, that if the
Participant’s employment is terminated by the Corporation for Cause or by the Participant without the consent of the Corporation, the Incentive Stock Option shall (to the extent not previously exercised) lapse immediately. 
  
 (4) If the Participant terminates employment by reason of
his Disability, the Incentive Stock Option shall lapse, unless it is previously exercised, one year after the Participant’s termination of employment. 
  
 (5) If the Participant dies while employed, or during the three-month period described in paragraph (3) or during the one-year period
described in paragraph (4) and before the Option otherwise lapses, the Option shall lapse one year after the Participant’s death. Upon the Participant’s death, any exercisable Incentive Stock Options may be exercised by the
Participant’s beneficiary, determined in accordance with Section 9.5. 
  
 Unless the exercisability of the Incentive Stock Option is accelerated as provided in Article 9, if a Participant exercises an Option after termination of employment, the Option may be exercised only with respect to
the shares that were otherwise vested on the Participant’s termination of employment. 
  

 - 9 - 

 (d) INDIVIDUAL DOLLAR LIMITATION. The aggregate Fair Market Value (determined as of the
time an Award is made) of all shares of Stock with respect to which Incentive Stock Options are first exercisable by a Participant in any calendar year may not exceed $100,000.00. 
  
 (e) TEN PERCENT OWNERS. No Incentive Stock Option shall be granted to any individual who, at the date of
grant, owns stock possessing more than ten percent of the total combined voting power of all classes of stock of the Corporation or any Parent or Subsidiary unless the exercise price per share of such Option is at least 110% of the Fair Market Value
per share of Stock at the date of grant and the Option expires no later than five years after the date of grant. 
  
 (f) EXPIRATION OF INCENTIVE STOCK OPTIONS. No Award of an Incentive Stock Option may be made pursuant to the Plan after the day
immediately prior to the tenth anniversary of the Effective Date. 
  
 (g) RIGHT TO EXERCISE. During a Participant’s lifetime, an Incentive Stock Option may be exercised only by the Participant or, in the case of the Participant’s Disability, by the Participant’s guardian
or legal representative. 
  
 (h) DIRECTORS. The
Committee may not grant an Incentive Stock Option to a non-employee director. The Committee may grant an Incentive Stock Option to a director who is also an employee of the Corporation or Parent or Subsidiary but only in that individual’s
position as an employee and not as a director. 
  
 ARTICLE 8

 RESTRICTED STOCK AWARDS 
  
 8.1. GRANT OF RESTRICTED STOCK. The Committee is authorized to make Awards of Restricted Stock to Participants in such amounts and subject to such terms
and conditions as may be selected by the Committee. All Awards of Restricted Stock shall be evidenced by a Restricted Stock Award Agreement. 
  
 8.2. ISSUANCE AND RESTRICTIONS. Restricted Stock shall be subject to such restrictions on transferability and other restrictions as the Committee may
impose (including, without limitation, limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock). These restrictions may lapse separately or in combination at such times, under such circumstances,
in such installments, upon the satisfaction of performance goals or otherwise, as the Committee determines at the time of the grant of the Award or thereafter. 
  

8.3. FORFEITURE. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of employment
during the applicable restriction period or upon failure to satisfy a performance goal during the applicable restriction period, Restricted Stock that is at that time subject to restrictions 

  

 - 10 - 

 
shall be forfeited and reacquired by Medco; provided, however, that the Committee may provide in any Award Agreement or summary that restrictions or
forfeiture conditions relating to Restricted Stock will be waived in whole or in part in the event of terminations resulting from specified causes, and the Committee may in other cases waive in whole or in part restrictions or forfeiture conditions
relating to Restricted Stock. 
  
 8.4. CERTIFICATES FOR RESTRICTED
STOCK. Restricted Stock granted under the Plan may be evidenced in such manner as the Committee shall determine. If certificates representing shares of Restricted Stock are registered in the name of the Participant, certificates must bear an
appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock. 
  
 ARTICLE 9 
 PROVISIONS APPLICABLE TO AWARDS 
  
 9.1. STAND-ALONE, TANDEM, AND SUBSTITUTE AWARDS. Awards granted under the
Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for, any other Award granted under the Plan. If an Award is granted in substitution for another Award, the Committee may
require the surrender of such other Award in consideration of the grant of the new Award. Awards granted in addition to or in tandem with other Awards may be granted either at the same time as or at a different time from the grant of such other
Awards. 
  
 9.2. TERM OF AWARD. The term of each Award shall be
for the period as determined by the Committee, provided that in no event shall the term of any Incentive Stock Option exceed a period of ten years from the date of its grant (or, if Section 7.2(e) applies, five years from the date of its grant).

  
 9.3. FORM OF PAYMENT FOR AWARDS. Subject to the terms of the
Plan and any applicable law or Award Agreement, payments or transfers to be made by the Corporation or a Parent or Subsidiary on the grant or exercise of an Award may be made in such form as the Committee determines at or after the time of grant,
including without limitation, cash, Stock, other Awards, or other property, or any combination, and may be made in a single payment or transfer, in installments, or on a deferred basis, in each case determined in accordance with rules adopted by,
and at the discretion of, the Committee. 
  
 9.4. LIMITS ON
TRANSFER. No right or interest of a Participant in any unexercised or restricted Award may be pledged, encumbered, or hypothecated to or in favor of any party other than the Corporation or a Parent or Subsidiary, or shall be subject to any lien,
obligation, or liability of such Participant to any other party other than the Corporation or a Parent or Subsidiary. No unexercised or restricted Award shall be assignable or transferable by a Participant other than by will or the laws of descent
and distribution or, except in the case of an Incentive Stock Option and only to the extent specifically authorized by the Committee, pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A) of the Code if such Section applied
to an Award under the Plan; provided, however, that the Committee may (but need not) permit other 

  

 - 11 - 

 
transfers where the Committee concludes that such transferability (i) does not result in accelerated taxation, (ii) does not cause any Option intended to be
an Incentive Stock Option to fail to be described in Code Section 422(b), and (iii) is otherwise appropriate and desirable, taking into account any factors deemed relevant, including without limitation, any state or federal tax or securities laws or
regulations applicable to transferable Awards. Nothing in this Section 9.4 shall obligate the Committee to allow transfers pursuant to a domestic relations order. 
  
 9.5. BENEFICIARIES. Notwithstanding Section 9.4, a Participant may, in the manner and to the extent determined by the
Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person claiming
any rights under the Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and Award Agreement otherwise provide, and to any additional restrictions deemed
necessary or appropriate by the Committee. If no beneficiary has been designated or survives the Participant, payment shall be made to the Participant’s estate. Subject to the foregoing, a beneficiary designation may be changed or revoked by a
Participant at any time provided the change or revocation is filed with the Committee. Nothing in this Section 9.5 shall obligate the Committee to allow beneficiary designations. 
  
 9.6. STOCK CERTIFICATES. All Stock issuable under the Plan is subject to any stop-transfer orders and other restrictions as
the Committee deems necessary or advisable to comply with federal or state securities laws, rules and regulations and the rules of any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded. The
Committee may place legends on any Stock certificate to reference restrictions applicable to the Stock. 
  
 9.7. ACCELERATION UPON DEATH, RETIREMENT OR DISABILITY. Except as otherwise provided in an Award Agreement, summary of terms or Rules and Regulations
adopted by the Committee, upon the Participant’s death, Retirement or Disability during his employment or service as a consultant or director, all outstanding Options shall become fully exercisable and all restrictions on outstanding Restricted
Stock Awards shall lapse. Any Option shall thereafter continue or lapse in accordance with the other provisions of the Plan and the Award Agreement. To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set
forth in Section 7.2(d), the excess Options shall be deemed to be Non-Qualified Stock Options. 
  
 9.8. ACCELERATION UPON A CHANGE IN CONTROL. Except as otherwise provided in an Award Agreement, summary of terms or Rules and Regulations adopted by the Committee, upon the occurrence of a Change in Control, all
outstanding Options shall become fully exercisable and all restrictions on outstanding Awards shall lapse. To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Section 7.2(d), the excess
Options shall be deemed to be Non-Qualified Stock Options. 
  

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 9.9. ACCELERATION FOR ANY OTHER REASON. Regardless of whether an event has occurred as described in
Section 9.7 or 9.8 above, the Committee may in its sole discretion at any time determine that all or a portion of a Participant’s Options shall become fully or partially exercisable, and/or that all or a part of the restrictions on all or a
portion of the outstanding Restricted Stock Awards shall lapse, in each case, as of such date as the Committee may, in its sole discretion, declare. The Committee may discriminate among Participants and among Awards granted to a Participant in
exercising its discretion pursuant to this Section 9.10. 
  
 9.10.
EFFECT OF ACCELERATION. If an Award is accelerated under Section 9.8 or 9.9, the Committee may, in its sole discretion, provide (i) that the Award will expire after a designated period of time after such acceleration to the extent not then
exercised, (ii) that the Award will be settled in cash rather than Stock, (iii) that, if the Award will be assumed by another party to a transaction giving rise to the acceleration or otherwise be equitably converted or substituted in connection
with such transaction, (iv) that the Award may be settled by payment in cash or cash equivalents equal to the excess of the Fair Market Value of the underlying Stock, as of a specified date associated with the transaction, over the exercise price of
the Award, or (v) any combination of the foregoing. The Committee’s determination need not be uniform and may be different for different Participants whether or not such Participants are similarly situated. 
  
 9.11. PERFORMANCE GOALS. The Committee may determine that any Award granted
pursuant to this Plan to a Participant (including, but not limited to, Participants who are Covered Employees) shall be determined solely on the basis of (a) the achievement by the Corporation or a Parent or Subsidiary of a specified target return,
or target growth in return, on equity or assets, (b) the achievement by the Corporation or a Parent or Subsidiary of a specified target total stockholder return (stock price appreciation plus reinvested dividends), or target growth in total
stockholder return, (c) the Corporation’s, Parent’s or Subsidiary’s stock price, (d) the achievement by an individual or a business unit of the Corporation, Parent or Subsidiary of a specified target, or target growth in, revenues,
net income or earnings per share, or (e) any combination of the goals set forth in (a) through (d) above. If an Award is made on such basis, the Committee shall establish goals prior to the beginning of the period for which such performance goal
relates (or such later date as may be permitted under Code Section 162(m) or the regulations thereunder) and the Committee has the right for any reason to reduce (but not increase) any Award, notwithstanding the achievement of a specified goal. Any
payment of an Award granted with performance goals shall be conditioned on the written certification of the Committee in each case that the performance goals and any other material conditions were satisfied. 
  
 9.14. TERMINATION OF EMPLOYMENT. Whether military, government or other
service or other leave of absence shall constitute a termination of employment shall be determined in each case by the Committee at its discretion, and any determination by the Committee shall be final and conclusive. A termination of employment
shall not occur (i) in a circumstance in which a Participant transfers from the Corporation to one of its Parents or Subsidiaries, transfers from a Parent or Subsidiary to the Corporation, or 

  

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transfers from one Parent or Subsidiary to another Parent or Subsidiary, or (ii) in the discretion of the Committee as specified at or prior to such
occurrence, in the case of a spin-off, sale, or disposition of the Participant’s employer from the Corporation or any Parent or Subsidiary. To the extent that this provision causes Incentive Stock Options to extend beyond three months from the
date a Participant is deemed to be an employee of the Corporation, a Parent or Subsidiary for purposes of Section 424(f) of the Code, the Options held by such Participant shall be deemed to be Non-Qualified Stock Options. 
  
 ARTICLE 10 
 CHANGES IN CAPITAL STRUCTURE 
  
 10.1. GENERAL. In the event of a corporate transaction involving the Corporation (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, split-up, spin-off, combination or exchange of shares), the authorization limits under Section 5.1 and 5.4 shall be adjusted proportionately, and the Committee may adjust Awards to preserve the benefits or potential benefits of the
Awards. Action by the Committee may include: (i) adjustment of the number and kind of shares which may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment of the exercise
price of outstanding Awards; and (iv) any other adjustments that the Committee determines to be equitable. In addition, the Committee may, in its sole discretion, provide (i) that Awards will be settled in cash rather than Stock, (ii) that Awards
will become immediately vested and exercisable and will expire after a designated period of time to the extent not then exercised, (iii) that Awards will be assumed by another party to a transaction or otherwise be equitably converted or substituted
in connection with such transaction, (iv) that outstanding Awards may be settled by payment in cash or cash equivalents equal to the excess of the Fair Market Value of the underlying Stock, as of a specified date associated with the transaction,
over the exercise price of the Award, or (v) any combination of the foregoing. The Committee’s determination need not be uniform and may be different for different Participants whether or not such Participants are similarly situated. Without
limiting the foregoing, in the event a stock dividend or stock split is declared upon the Stock, the authorization limits under Section 5.1 and 5.4 shall be increased proportionately, and the shares of Stock then subject to each Award shall be
increased proportionately without any change in the aggregate purchase price therefor. 
  
 ARTICLE 11 
 AMENDMENT, MODIFICATION AND TERMINATION 
  
 11.1. AMENDMENT, MODIFICATION AND TERMINATION. Subject to Section 11.2, the
Board or the Committee may, at any time and from time to time, amend, modify or terminate the Plan without stockholder approval; provided, however, that the Board or Committee may condition any amendment or modification on the approval of
stockholders of the Corporation if such approval is necessary or deemed advisable with respect to tax, securities, or other applicable laws, policies, or regulations; and provided further that the last sentence of Section 11.2 may not be amended or
modified without stockholder approval. 
  

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 11.2. AWARDS PREVIOUSLY GRANTED. No termination, amendment, or modification of the Plan shall adversely
affect any Award previously granted under the Plan, without the written consent of the Participant. At any time and from time to time, the Committee may amend, modify or terminate any outstanding Award without approval of the Participant; provided,
however, that: 
  
 (a) subject to the terms of
the applicable Award Agreement, such amendment, modification, or termination shall not, without the Participant’s consent, reduce or diminish the value of such Award determined as if the Award had been exercised, vested, cashed in or otherwise
settled on the date of such amendment or termination; 
  
 (b) the original term of any Option may not be extended without the prior approval of the stockholders of Medco; and 
  
 (c) except as otherwise provided in Article 10, the exercise price of any Option may not be reduced, directly or indirectly, without the
prior approval of the stockholders of Medco. 
  
 ARTICLE 12

 GENERAL PROVISIONS 
  
 12.1. NO RIGHTS TO AWARDS. No Participant or any eligible participant shall have any claim to be granted any Award under the Plan, and neither the
Corporation, Medco nor the Committee is obligated to treat Participants or eligible participants uniformly. 
  
 12.2. NO STOCKHOLDER RIGHTS. No Award gives the Participant any of the rights of a stockholder of Medco unless and until shares of Stock are in fact
issued to such person in connection with such Award. 
  
 12.3.
WITHHOLDING. The Corporation or any Parent or Subsidiary shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Corporation, an amount sufficient to satisfy federal, state, and local taxes (including
the Participant’s FICA obligation) required by law to be withheld with respect to any taxable event arising as a result of the Plan. With respect to withholding required upon any taxable event under the Plan, the Committee may, at the time the
Award is granted or thereafter, require or permit that any such withholding requirement be satisfied, in whole or in part, by withholding from the Award shares of Stock having a Fair Market Value on the date of withholding equal to the minimum
amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes. 
  

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 12.4. NO RIGHT TO CONTINUED SERVICE. Nothing in the Plan or any Award Agreement shall interfere with or
limit in any way the right of the Corporation or any Parent or Subsidiary to terminate any Participant’s employment or status as an officer, director or consultant at any time, nor confer upon any Participant any right to continue as an
employee, officer, director or consultant of the Corporation or any Parent or Subsidiary. 
  
 12.5. UNFUNDED STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant pursuant to an Award,
nothing contained in the Plan or any Award Agreement shall give the Participant any rights that are greater than those of a general creditor of the Corporation or any Parent or Subsidiary. 
  
 12.6. INDEMNIFICATION. To the extent allowable under applicable law, each
member of the Committee shall be indemnified and held harmless by Medco from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or resulting from any claim, action, suit, or
proceeding to which such member may be a party or in which he may be involved by reason of any action or failure to act under the Plan and against and from any and all amounts paid by such member in satisfaction of judgment in such action, suit, or
proceeding against him provided he gives Medco an opportunity, at its own expense, to handle and defend the same before he undertakes to handle and defend it on his own behalf. The foregoing right of indemnification shall not be exclusive of any
other rights of indemnification to which such persons may be entitled under Medco’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that Medco may have to indemnify them or hold them harmless. 

 
 12.7. RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan shall be
taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or benefit plan of the Corporation or any Parent or Subsidiary unless provided otherwise in such other plan. 

 
 12.8. EXPENSES. The expenses of administering the Plan shall be borne by
the Corporation and its Parents or Subsidiaries. 
  
 12.9. TITLES
AND HEADINGS. The titles and headings of the Sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 
  
 12.10. GENDER AND NUMBER. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 
  
 12.11. FRACTIONAL SHARES. No fractional shares of Stock shall be issued and the Committee shall determine, in its discretion, whether cash shall be given
in lieu of fractional shares or whether such fractional shares shall be eliminated by rounding up. 
  

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 12.12. GOVERNMENT AND OTHER REGULATIONS. The obligation of Medco to make payment of awards in Stock or
otherwise shall be subject to all applicable laws, rules, and regulations, and to such approvals by government agencies as may be required. Medco shall be under no obligation to register under the 1933 Act, or any state securities act, any of the
shares of Stock issued in connection with the Plan. The shares issued in connection with the Plan may in certain circumstances be exempt from registration under the 1933 Act, and the Corporation may restrict the transfer of such shares in such
manner as it deems advisable to ensure the availability of any such exemption. 
  
 12.13. GOVERNING LAW. To the extent not governed by federal law, the Plan and all Award Agreements shall be construed in accordance with and governed by the laws of the State of Tennessee. 
  
 12.14. ADDITIONAL PROVISIONS. Each Award Agreement may contain such other
terms and conditions as the Committee may determine; provided that such other terms and conditions are not inconsistent with the provisions of this Plan. 
  

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