Document:

exhibitperformanceshare.htm

    Exhibit
10.2

    

    
      PERFORMANCE
SHARE AWARD AGREEMENT

    

    UNDER
THE

    EXPRESS
SCRIPTS, INC.

    2000
LONG-TERM INCENTIVE PLAN

    

    

    THIS AWARD AGREEMENT is made
and entered into _______________ (the "Date of Grant"), by and between Express
Scripts, Inc. (the "Company"), and ______________
("Employee").

     

    BACKGROUND

     

    
      	
               
      

            	
              A.

            	
              The
      Board of Directors of the Company (the "Board of Directors") has adopted,
      and the Company's shareholders have approved, the Express Scripts, Inc.
      2000 Long-Term Incentive Plan (the "Plan"), pursuant to which performance
      share incentive awards may be granted to employees of the Company and its
      subsidiaries and certain other
individuals.

            

    

     

    
      	
               
      

            	
              B.

            	
              The
      Board of Directors intends to amend the Plan, subject to approval of the
      shareholders of the Company, to revise the performance measures
      thereunder.

            

    

     

    
      	
               
      

            	
              C.

            	
              The
      Company desires to grant to Employee a performance share award under the
      terms of the Plan.

            

    

     

    D.           Pursuant
to the Plan, the Company and Employee agree as follows:

     

    AGREEMENT

     

    
      	
               
      

            	
              1.

            	
              Grant
      of Award.  Pursuant to
      action of the Committee (as defined herein) which was taken on the Date of
      Grant, the Company grants to Employee _______ performance
      shares ("Performance Shares"), subject to the terms, conditions, and
      adjustments set forth in this Award Agreement and Exhibit A
      hereto.  The Performance Shares granted under this Section 1 are
      referred to in this Award Agreement as the "Target
  Grant."

            

    

     

    
      	
               
      

            	
              2.

            	
              Award
      Subject to Plan.  This award
      is granted under, and is expressly subject to, the terms and provisions of
      the Plan, as amended from time to time, which terms are incorporated
      herein by reference, and this Award Agreement.  The Committee
      described in Section 3 of the Plan (the "Committee") has been appointed by
      the Board of Directors, and designated by it, as the Committee to make
      awards.

            

    

     

    
      	
               
      

            	
              3.

            	
              Performance
      Period.  The performance period for this award shall be
      as set forth on Exhibit A hereto (the "Performance
    Period").

            

    

     

    
      	
               
      

            	
              4.

            	
              Payment.  Subject to
      early termination of this Award Agreement pursuant to Section 6 below,
      following the end of the Performance Period and during the calendar year
      in which such Performance Period ends, the Company will deliver to
      Employee one share of the Company's Stock for each then-outstanding
      Performance Share under this Award Agreement; except that, fractional
      Shares shall be rounded down to the nearest whole Share and that a portion
      of the payment shall be withheld to satisfy the payment of taxes required
      by law or to take such other action as may be necessary in the opinion of
      the Company to satisfy all obligations for withholding of such taxes as
      provided in Section 7.

            

    

     

    
      	
               
      

            	
              5.

            	
              Performance
      Criteria and Adjustments.  The Target
      Grant shall be adjusted pursuant to the Company’s performance against
      certain criteria (the “Performance Criteria”) as further set out on
      Exhibit A hereto.

            

    

     

    
      	
               
      

            	
              6.

            	
              Termination
      of Award.
      

            

    

     

    
      	
               
      

            	
              a.

            	
              Except
      as otherwise specifically set forth in this Section 6, this Award
      Agreement will terminate and be of no further force or effect on the date
      that Employee is no longer actively employed by the Company or any of its
      Affiliates prior to the date on which the Performance Period
      ends.  Employee will, however, be entitled to receive any Stock
      payable under Section 4 of this Award Agreement if Employee's employment
      terminates after the Performance Period but before Employee's receipt of
      such Stock.

            

    

     

    
      	
               
      

            	
              b.

            	
              If
      Employee’s employment terminates before the end of the Performance Period
      on account of death, Disability or Retirement, any portion of this award
      which has not yet vested shall vest at such time, but only to the extent
      the Performance Criteria are ultimately achieved and any payment under
      Section 4 hereof shall be prorated for the portion of the Performance
      Period during which Employee was employed by the Company or any
      Affiliate.

            

    

     

    
      	
               
      

            	
              c.

            	
              If
      Employee’s employment is terminated by the Company without Cause before
      the end of the Performance Period, a portion of this award which has not
      yet vested shall vest at such time, which portion shall be equal to the
      lesser of:

            

    

     

    
      	
               
      

            	
               (i)

            	
              the
      portion of the award which would have vested and been paid had the
      Employee’s employment been terminated due to death, Disability or
      Retirement, as determined under Section 6(b) above (after taking into
      account the pro-ration for the portion of the Performance Period during
      which Employee was employed by the Company or any Affiliate);
      or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      portion of the award which would have vested and been paid, based on the
      extent the Performance Criteria had been achieved, if the Performance
      Period had ended as of the date on which the Employee’s employment is
      terminated, which amount shall also be prorated for the portion of the
      actual Performance Period during which Employee was employed by the
      Company or any Affiliate.

            

    

     

    
      	
               
      

            	
              d.

            	
              Without
      limiting the foregoing, in the event Employee’s employment terminates
      before the end of the Performance Period on account of death, Disability,
      Retirement or termination by the Company without Cause, any portion of the
      award which vests in accordance with either Section 6(b) or 6(c) above
      shall be payable at the time and in the manner set forth in Section 4
      after the end of the Performance
Period.

            

    

     

    
      	
               
      

            	
              e.

            	
              Notwithstanding
      the foregoing or any provision of the Plan to the contrary, upon a Change
      in Control prior to the date on which the Performance Period ends, the
      following shall occur:

            

    

     

    
      	
               
      

            	
               (i)

            	
              if
      Employee continues to be actively employed by the Company or any Affiliate
      on the date of such Change in Control, Employee shall receive in cash the
      value of one share of Company Stock on the last trading day before the
      Change in Control Date multiplied by the greater of the following: (A) the
      total number of Performance Shares awarded pursuant to this Agreement
      (without pro-ration), or (B) the portion of the award which would have
      vested and been paid, based on the extent the Performance Criteria had
      been achieved, if the Performance Period had ended as of the day
      immediately preceding the Change in Control Date (without
      pro-ration).

            

    

     

    
      	
               
      

            	
              (ii)

            	
              if
      Employee’s employment was terminated on account of death, Disability or
      Retirement prior to such Change in Control, Employee shall receive in cash
      the value of one share of Company Stock on the last trading day before the
      Change in Control multiplied by the number of Performance Shares awarded
      pursuant to this Agreement (without
pro-ration),

            

    

     

    
      	
               
      

            	
              (iii)

            	
              if
      the Employee’s employment was terminated by the Company without Cause
      prior to such Change in Control, Employee shall receive in cash the value
      of one share of Company Stock on the last trading day before the Change in
      Control multiplied by the lesser of (A) the total number of Performance
      Shares awarded pursuant to this Agreement, prorated for the portion of the
      Performance Period during which Employee was employed by the Company or
      any Affiliate, or (B) the number of Performance Shares which would have
      been paid under Section 6(c)(ii)
above.

            

    

     

    
      	
               
      

            	
              The
      amount payable under this Section 6(e) shall be subject to applicable
      withholding taxes.  This Award shall terminate immediately
      following payment upon a Change in Control, and no further payment shall
      be made hereunder.

            

    

     

    
      	
               
      

            	
              f.

            	
              With
      respect to any provisions of this Agreement which require the calculation
      of the portion of the award which would have vested and been paid based on
      the extent the Performance Criteria had been achieved as of a date other
      than the original ending date for the Performance Period (e.g. Sections
      6(c)(ii), 6(e)(i) and 6(e)(iii)), to the extent applicable to the selected
      Performance Criteria, such calculations shall be made as
      follows:

            

    

    

    (i)           Performance
Criteria based on factors which are readily measurable as of the calculation
date or the preceding business day (e.g. those based on publicly-reported
trading price) shall be determined (for both the Company and any peer companies)
as if the Performance Period ended on such calculation date;

    

    (ii)           Performance
Criteria which are not readily measurable as of the calculation date or the
preceding business day, but which may be measured based on regularly-reported
quarterly financial statements, shall be measured for both the Company and any
peer companies based on each such company’s most recently reported quarterly (or
year-end) financial results; and

    

    (iii)           for
any Performance Criteria which may not be measured pursuant to preceding
paragraphs (i) and (ii), the Company shall retain an independent consultant to
determine the extent to which such Performance Criteria have been achieved as of
the calculation date.

    

    
      	
               
      

            	
              7.

            	
              Tax
      Withholding.
      Employee must pay, or make arrangements acceptable to the Company
      for the payment of, any and all federal, state, and local income and
      payroll tax withholding that in the opinion of the Company is required by
      law.  Unless Employee satisfies any such tax withholding
      obligation by paying the amount in cash or by check, the Company will
      withhold cash and/or shares of Stock having a Fair Market Value on the
      date of withholding sufficient to cover the withholding
      obligation.

            

    

     

    
      	
               
      

            	
              8.

            	
              Non-Transferability.  Neither
      this award nor any rights under this Award Agreement may be assigned,
      transferred, or in any manner encumbered except by will or the laws of
      descent and distribution, and any attempted assignment, transfer,
      mortgage, pledge or encumbrance except as herein authorized, will be void
      and of no effect.

            

    

     

    
      	
               
      

            	
              9.

            	
              Definitions:
      Copy of Plan and Plan Prospectus.  To the
      extent not specifically defined in this Award Agreement, all capitalized
      terms used in this Award Agreement will have the same meanings ascribed to
      them in the Plan.  By signing this Award Agreement, Employee
      acknowledges receipt of a copy of the Plan and the related Plan
      Prospectus.

            

    

     

    
      	
               
      

            	
              10.

            	
              Choice
      of Law.  To the
      extent that federal laws do not otherwise control, this Award Agreement
      and all determinations made and actions taken hereunder shall be governed
      by the laws of the State of Delaware, without giving effect to principles
      of conflicts of laws, and construed
accordingly.

            

    

     

    

     

    ***********

     

    An
authorized representative of the Company has signed this Award Agreement, and
Employee has signed this Award Agreement to evidence Employee's acceptance of
the award on the terms specified in this Award Agreement, all as of the Date of
Grant.

     

    
      
        	 	EXPRESS
      SCRIPTS, INC.	 
	 	 	 	 
	
                Date

              	
                By:
      

              	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 
	 	 	 	 
	 	 	 
	 	Employeeexhibitoptionagreement.htm

    Exhibit
10.3

    

    

    EXPRESS
SCRIPTS, INC.

    2000
LONG-TERM INCENTIVE PLAN

    STOCK OPTION GRANT
NOTICE

    

    Notice is hereby given of the following
option grant (the “Option”) to purchase shares of common stock, $0.01 par value
per share, of Express Scripts, Inc. (the “Company”) pursuant to the following
terms and conditions:

    

    
      	
              ·  

            	
              Optionee:                                                                                            

            

    

    

    
      	
              ·  

            	
              Grant
      Date:                                                                                            

            

    

    

    
      	
              ·  

            	
              Vesting Commencement
      Date:                                                                                

            

    

    

    
      	
              ·  

            	
              Exercise Price Per
      Share:                                                                      $                                           

            

    

    

    
      	
              ·  

            	
              Number of Option
      Shares:                                                                                 

            

    

    

    
      	
              ·  

            	
              Term/Expiration Date
      of
      Option:                                                                     

            

    

    

    
      	
              ·  

            	
              Type of
      Option:                                                ____   Incentive
      Stock Option

            

    

    

       X      Nonstatutory
Stock Option

    

    
      	
              ·  

            	
              Vesting
      Schedule:  The shares of common stock granted pursuant to
      the Option shall be vested and exercisable in accordance with the
      following vesting schedule:

            

    

    

    -  One-third
(1/3) vests and becomes exercisable on _____________.

    -  An
additional one-third (1/3) vests and becomes exercisable on
_____________.

    -  The
final one-third (1/3) vests and becomes exercisable on
_______________.

    

    
      	
              ·  

            	
              Other
      Provisions:  The Option is granted subject to, and in
      accordance with, the terms of the Stock Option Agreement (the “Option
      Agreement”) attached hereto as Exhibit A and the
      Express Scripts, Inc. 2000 Long-Term Incentive Plan (the “Plan”) attached
      hereto as Exhibit
      B.

            

    

    

    

    This
Option is granted under, and governed by, the terms and conditions of this Grant
Notice, the Plan and the Option Agreement.

    

    DATED:  _________________

    

     

     

     

    
      
        	 	EXPRESS
      SCRIPTS, INC.	 
	 	 	 	 
	
                Date

              	
                By:
      

              	/s/	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Attachments:

    Exhibit
A— Stock Option Agreement

    Exhibit
B—Express Scripts, Inc. 2000 Long-Term Incentive Plan

    EXHIBIT
A

    

    EXPRESS
SCRIPTS, INC.

    2000
LONG-TERM INCENTIVE PLAN

    STOCK OPTION
AGREEMENT

    

    

    Express Scripts, Inc., a Delaware
corporation (“Company”), has granted you (“Optionee”) an option (“Option”) to
purchase shares of common stock of the Company, $0.01 par value per share
(“Common Stock”), pursuant to the terms and conditions set forth in your Stock
Option Grant Notice (“Grant Notice”) and this Stock Option Agreement (“Option
Agreement”).

    

    The Option is granted pursuant to the
Express Scripts, Inc. 2000 Long-Term Incentive Plan (the “Plan”), pursuant to
which options, and other awards, may be granted to key personnel of the Company
or an Affiliate.

    

    The details of your Option are as
follows:

    

    1.           Grant of
Option.  The committee appointed by the Board of Directors of
the Company to administer the Plan (the “Committee”) has approved your
Option.  The number of shares of Common Stock subject to your Option
and the Exercise Price Per Share are set forth in the Grant
Notice.  The Option shall be subject to the terms and conditions of
the Plan, which is incorporated herein by reference.  If designated in
the Grant Notice as an Incentive Stock Option  (“ISO”), this Option is
intended to qualify as an Incentive Stock Option under Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”).  However, if
this Option is intended to be an Incentive Stock Option, to the extent that it
exceeds the $100,000 rule of Code Section 422(d), it shall nevertheless be
treated as a Nonstatutory Stock Option (“NSO”).

    

    2.           Term of
Option.  This Option may be exercised only within the Term set
forth in the Grant Notice, and may be exercised during such Term only in
accordance with the Plan and the terms of this Option Agreement.

    

    3.           Exercise of
Option.

    (a)           Right to
Exercise.  This Option is exercisable during its Term in
accordance with the Vesting Schedule set forth in the Grant Notice and the
applicable provisions of the Plan and this Option Agreement.  In the
event of a Change in Control (as defined in the Plan) or Optionee’s death,
Disability (as defined in the Plan) or other termination of Optionee as an
employee, Non-Employee Director (as defined in the Plan) or consultant, the
exercisability of the Option is governed by the applicable provisions of the
Plan.

    

    (b)           Method of
Exercise.  This Option is exercisable pursuant to the
procedures for exercise provided from time to time  by the Company
and/or by a third-party vendor selected by the Company.  The Option
exercise shall require payment of the aggregate exercise price as to all
exercised shares.  The method of payment of the aggregate exercise
price shall be in a form approved by the Company in accordance with Section
7(a)(ii) of the Plan.  This Option shall be deemed to be exercised
upon receipt and approval by the Company (or the appropriate third party) of all
required exercise notices, together with full payment of the exercise price and
such additional documents as the Company (or the third-party vendor) may then
require.

    

    4.           Non-Transferability of
Option.  This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be
exercised during the lifetime of Optionee only by Optionee.  The terms
of the Plan and this Option Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of Optionee.

    

    5.           Stockholder
Rights.  Optionee shall not have any stockholder rights with
respect to the shares of Common Stock granted pursuant to this Option until
Optionee shall have exercised the Option in accordance with Section 3
hereof.

    

    6.           Adjustments Upon Changes in
Capitalization or Corporate Acquisitions.  Should any change be
made to the Common Stock by reason of any Fundamental Change (as defined in the
Plan), reorganization, recapitalization, reclassification, stock dividend, stock
split, reverse stock split, stock combination, rights offering, spin-off or
other relevant change, appropriate adjustments shall be made to (a) the total
number and/or class of securities subject to this Option, and (b) the Exercise
Price Per Share set forth in the Grant Notice in order to reflect such change
and thereby preclude a dilution or enlargement of benefits
hereunder.

    

    7.           Compliance with Laws and
Regulations.  Notwithstanding anything herein to the contrary,
no shares of Common Stock shall be issued pursuant to the exercise of this
Option unless such issuance and exercise complies with all relevant provisions
of law and the requirements of any stock exchange or quotation service upon
which the shares of Common Stock are then listed.

    

    8.           Committee
Discretion.  The Committee shall have plenary authority to (a)
interpret any provision of this Option Agreement, (b) make any determinations
necessary or advisable for the administration of this Option Agreement, and (c)
modify or amend any provision hereof in any manner which does not materially and
adversely affect any right granted to Optionee by the express terms hereof,
unless required as a matter of law.

    

    9.           Withholding
Obligations.  At the time Optionee exercises his or her Option,
in whole or in part, or at any time thereafter requested by the Company,
Optionee must authorize withholding from payroll, and any other amounts payable
to Optionee, and must otherwise make adequate provision for any sums required to
satisfy the federal, state and local tax withholding obligations of the Company
or an Affiliate, if any, which arise in connection with the
Option.  Upon Optionee’s request, Optionee may elect to have any such
withholding obligations satisfied by: (i) delivering cash; (ii) delivering part
or all of the withholding payment in previously owned shares (which have been
held by Optionee for at least six months) of Common Stock (whether or not
acquired through the prior exercise of an option; provided, however, if the
Common Stock used was acquired in connection with the exercise of an ISO, then
the ISO holding periods must be met before such Common Stock can be used to
satisfy Optionee’s withholding obligations in connection with this Option);
and/or (iii) irrevocably directing the Company to withhold from the vested
shares of Common Stock that would otherwise be issued to Optionee upon the
exercise of the Option that number of whole shares of Common Stock having a fair
market value, determined by the Company, in its sole discretion, equal to the
amount of tax required to be withheld, but not to exceed the Company’s required
minimum statutory withholding.  If the Option is an ISO, Optionee must
immediately notify the Company in writing in the event Common Stock received
pursuant to the Option is sold on or before the later of (a) two years after the
Grant Date (as set forth in the Grant Notice), or (b) one year after the
exercise date of the Option.  Optionee may be subject to income tax
withholding by the Company in accordance with this Section 9 hereof with
respect to the compensation income recognized from such early
disposition.

    

    10.           Governing
Law.  To the extent federal law does not otherwise control,
this Agreement shall be governed by the laws of the State of Delaware, without
giving effect to principles of conflicts of laws.

    

    11.           Option Not A
Service/Employment Contract.  Neither the Grant Notice nor this
Option Agreement creates a service or employment contract and in no way
obligates Optionee to remain in the employ of the Company or an Affiliate, or in
no way obligates the Company or an Affiliate to continue Optionee’s
employment.  In addition, neither the Grant Notice nor this Option
Agreement obligates the Company or an Affiliate, or their respective
stockholders, boards of directors, officers or employees to continue any
relationship that Optionee might have as a Non-Employee Director or consultant
for the Company or an Affiliate.

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