Document:

EX-10.3

 Exhibit 10.3 
 EXPRESS SCRIPTS, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN

 OF 2005 
 (As amended and restated effective April 2, 2012) 

 TABLE OF CONTENTS 

 

									
	 	 	 	 	 	  	PAGE	 
			
	1.	 	PURPOSE	  	 	1	  
			
	2.	 	DEFINITIONS	  	 	1	  
		 	2.1	 	 Accounting Date
	  	 	1	  
		 	2.2	 	 Basic Company Credit
	  	 	1	  
		 	2.3	 	 Beneficiary
	  	 	1	  
		 	2.4	 	 Board
	  	 	1	  
		 	2.5	 	 Business Day
	  	 	2	  
		 	2.6	 	 Code
	  	 	2	  
		 	2.7	 	 Committee
	  	 	2	  
		 	2.8	 	 Common Stock
	  	 	2	  
		 	2.9	 	 Common Stock Fund
	  	 	2	  
		 	2.10	 	 Company
	  	 	2	  
		 	2.11	 	 Company Credits
	  	 	2	  
		 	2.12	 	 Compensation
	  	 	2	  
		 	2.13	 	 Compensation Account(s)
	  	 	2	  
		 	2.14	 	 Credit Date
	  	 	2	  
		 	2.15	 	 Deferred Bonus
	  	 	3	  
		 	2.16	 	 Deferred Compensation
	  	 	3	  
		 	2.17	 	 Disability
	  	 	3	  
		 	2.18	 	 Effective Date
	  	 	3	  
		 	2.19	 	 Election
	  	 	3	  
		 	2.20	 	 Employee
	  	 	3	  
		 	2.21	 	 Fair Market Value
	  	 	3	  
		 	2.22	 	 In-Service Account
	  	 	4	  
		 	2.23	 	 Participant
	  	 	4	  
		 	2.24	 	 Past Service Credit
	  	 	4	  
		 	2.25	 	 Plan
	  	 	4	  
		 	2.26	 	 Plan Year
	  	 	4	  
		 	2.27	 	 Retirement
	  	 	4	  
		 	2.28	 	 Retirement Account
	  	 	4	  
		 	2.29	 	 Service Year
	  	 	5	  
		 	2.30	 	 Special Bonus
	  	 	5	  
		 	2.31	 	 Stock Unit(s)
	  	 	5	  
		 	2.32	 	 Termination
	  	 	5	  
			
	3.	 	ADMINISTRATION	  	 	5	  
			
	4.	 	ELIGIBILITY	  	 	5	  
			
	5.	 	PARTICIPANT ACCOUNTS	  	 	6	  

									
			
	6.	 	ELECTION TO PARTICIPATE	  	 	7	  
		 	6.1	 	 In General
	  	 	7	  
		 	6.2	 	 Investment Alternatives For Existing Balances
	  	 	7	  
			
	7.	 	COMPANY CREDITS AND SPECIAL AND DEFERRED BONUSES	  	 	8	  
		 	7.1	 	 Vesting
	  	 	8	  
		 	7.2	 	 Forfeiture
	  	 	9	  
			
	8.	 	DISTRIBUTION	  	 	9	  
		 	8.1	 	 Retirement Account
	  	 	9	  
		 	8.2	 	 In-Service Account
	  	 	9	  
		 	8.3	 	 Termination or Disability
	  	 	9	  
		 	8.4	 	 Death
	  	 	10	  
		 	8.5	 	 Form of Distribution
	  	 	10	  
			
	9.	 	FINANCIAL HARDSHIP	  	 	10	  
			
	10.	 	BENEFICIARY DESIGNATION	  	 	11	  
			
	11.	 	UNSECURED GENERAL CREDITOR STATUS OF EMPLOYEE	  	 	11	  
			
	12.	 	SHARES; ADJUSTMENTS IN EVENT OF CHANGES IN CAPITALIZATION	  	 	12	  
			
	13.	 	INALIENABILITY OF BENEFITS	  	 	12	  
			
	14.	 	CLAIMS PROCEDURE	  	 	12	  
			
	15.	 	GOVERNING LAW	  	 	15	  
			
	16.	 	AMENDMENTS	  	 	15	  
			
	17.	 	TIME FOR PAYMENT	  	 	15	  

 EXPRESS SCRIPTS, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN OF 2005 
 1. PURPOSE 

The purpose of this Express Scripts, Inc. Executive Deferred Compensation Plan of 2005 (the “Plan”) is to provide eligible key employees of the
Company with an opportunity to defer compensation to be earned by them from the Company as a means of saving for retirement or other future purposes and to provide such employees with competitive retirement and capital accumulation benefits. In
addition, the Plan is intended to provide eligible key employees additional incentive to remain employed by the Company and to attract certain executive-level employees. 
 Express Scripts, Inc. previously adopted the Express Scripts, Inc. Executive Deferred Compensation Plan, as amended and restated effective January 1, 2003 (“Prior Plan”). Effective
December 31, 2004, Express Scripts, Inc. amended the Prior Plan to cease future deferrals thereunder after December 31, 2004, and the Prior Plan is intended to be grandfathered for purposes of Section 409A of the Code. Effective
January 1, 2005, Express Scripts, Inc. set forth in a separate document the terms of the Plan, which apply to amounts deferred or that first become vested hereunder after December 31, 2004. This document is an amendment and restatement of
the Plan in effect as of April 2, 2012 and reflects, among other things, the assumption of the Plan by Express Scripts Holding Company. The Plan and the Prior Plan shall continue to be set forth in separate documents, and this amendment and
restatement of the Plan does not amend the Prior Plan that is intended to be grandfathered for purposes of Section 409A of the Code. The Prior Plan and the Plan shall be considered one plan set forth in two separate documents. 

2. DEFINITIONS 
 The
following definitions shall be applicable throughout the Plan: 
 2.1 Accounting Date. 

“Accounting Date” means each Business Day on which a calculation concerning a Participant’s Compensation Account is performed, or as
otherwise defined by the Committee. 
 2.2 Basic Company Credit. 
 “Basic Company Credit” means an amount, if any, credited to a Participant’s Retirement Account as described in Section 7. 
 2.3 Beneficiary. 
 “Beneficiary” means the person or persons designated by the
Participant in accordance with Section 10, or if no person or persons are so designated, the estate of a deceased Participant. 
 2.4
Board. 
 “Board” means the Board of Directors of Express Scripts Holding Company or its designee. 

  
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 2.5 Business Day. 
 “Business Day” means a day on which the Nasdaq Global Select Market is open for trading activity. 
 2.6 Code. 
 “Code” means the Internal Revenue Code of 1986, as amended.

 2.7 Committee. 

“Committee” means the Compensation Committee of the Board. 
 2.8 Common Stock. 
 “Common Stock” means the Common Stock, $0.01 par value, of
Express Scripts Holding Company. 
 2.9 Common Stock Fund. 
 “Common Stock Fund” means that investment option, approved by the Committee, in which a Participant’s Compensation Accounts may be deemed to be invested and may earn income (or incur
losses) based on a hypothetical investment in Common Stock. 
 2.10 Company. 
 “Company” means Express Scripts Holding Company, its divisions, subsidiaries and affiliates. 
 2.11 Company Credits. 
 “Company Credits” means amounts credited as either Basic
Company Credits or Past Service Credits by the Company to Compensation Accounts, in the sole discretion of the Committee, pursuant to Section 7. 
 2.12 Compensation. 
 “Compensation” means all (a) salary, commissions,
payments under the Company’s Annual Bonus Plan (but not expense or other reimbursement or allowances) currently payable by the Company to a Participant, and (b) compensation in the form of Common Stock which the Employee may elect to
convert to Stock Units if permitted by, and in accordance with, the terms of the grant of such compensation. For purposes of this Plan, the Committee may determine the amounts that will be considered Compensation with respect to any Participant.

 2.13 Compensation Account(s). 

“Compensation Account(s)” means the Retirement Account and/or the In-Service Accounts. 
 2.14 Credit Date. 

  
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 “Credit Date” means each date on which Deferred Compensation is credited to Compensation Accounts
in accordance with rules prescribed by the Committee. 
 2.15 Deferred Bonus. 
 “Deferred Bonus” means an amount, if any, designated as such by the Committee and credited to a Participant’s Compensation Account. 
 2.16 Deferred Compensation. 
 “Deferred Compensation” means the Compensation
elected by the Participant to be deferred pursuant to the Plan. 
 2.17 Disability. 

“Disability” means the Participant (a) is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (b) is, by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the
Company. 
 2.18 Effective Date. 

“Effective Date” means the effective date of the Plan, January 1, 2005. 
 2.19 Election. 
 “Election” means a Participant’s delivery of a written
notice of election to the Committee or its designee electing to defer payment of a specified percentage of his or her Compensation (in accordance with rules prescribed by the Committee) either until Retirement, death or such other time as further
permitted by the Committee. 
 2.20 Employee. 
 “Employee” means an individual classified by the Committee as a full-time, regular salaried employee of the Company. 
 2.21 Fair Market Value. 
 “Fair Market Value” means, as of any specified date, the
closing sales price of a share of Common Stock, as reported on the Nasdaq Global Select Market on that date (or, if there are no sales on that date, the last preceding date on which there was a sale), or, in the event the Common Stock is listed on a
stock exchange, the closing sales price of a share of Common Stock, as reported on such exchange on that date (or, if there are no sales on that date, the last preceding date on which there was a sale). In the absence of any listing of the Common
Stock on the Nasdaq Global Select Market or on any established stock exchange, Fair Market Value means the fair market value of the Common Stock on any specified date as determined in good faith by the Committee. 

  
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 2.22 In-Service Account. 
 “In-Service Account” means the account or accounts to which a Participant elects to contribute Deferred Compensation and, to the extent permitted in an award as described in Section 5,
Special Bonuses and/or Deferred Bonuses, and from which, pursuant to Section 8.2, distributions are made. The portion of any In-Service Account which was not vested under the Prior Plan as of December 31, 2004 shall be hypothetically
transferred and credited to the In-Service Account under this Plan and shall be subject to the vesting provisions hereunder from the date first credited under the Prior Plan. 
 2.23 Participant. 
 “Participant” means an Employee selected by the Committee to
be eligible to participate in the Plan. 
 2.24 Past Service Credit. 
 “Past Service Credit” means an amount, if any, credited to a Participant’s Retirement Account as described in Section 7. 
 2.25 Plan. 
 “Plan” means this Express Scripts, Inc. Executive Deferred
Compensation Plan of 2005, as amended from time to time. 
 2.26 Plan Year. 
 “Plan Year” means the annual period commencing January 1 and ending the following December 31. 
 2.27 Retirement. 
 “Retirement” means a Participant’s termination of
employment after attaining age 55 and having a combination of full years of age plus Service Years totaling at least 65. 
 2.28 Retirement
Account. 
 “Retirement Account” means the account to which a Participant elects to contribute Deferred Compensation and to which
Company Credits, Special Bonuses and/or Deferred Bonuses (subject to any election described in Section 5) are made, and from which, pursuant to Section 8.1, distributions are made. The portion of any Retirement Account which was not vested
under the Prior Plan as of December 31, 2004 shall be hypothetically transferred and credited to the Retirement Account under this Plan and shall be subject to the vesting provisions hereunder from the date first credited under the Prior Plan.

  
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 2.29 Service Year. 
 “Service Year” means, as designated by the Committee, such year or portion thereof during which the services have been rendered by a Participant for which Compensation is payable. 

2.30 Special Bonus. 
 “Special
Bonus” means an amount, if any, designated as such by the Committee and credited to a Participant’s Compensation Account. 
 2.31
Stock Unit(s). 
 “Stock Unit(s)” means the share equivalents credited to the Common Stock Fund of a Participant’s
Compensation Account in accordance with Sections 5, 6 and 7. 
 2.32 Termination. 
 “Termination” means termination of services as an Employee for any reason other than Retirement. Such determination of whether a Termination has occurred shall be made in a manner consistent
with Section 409A of the Code and the regulations and other guidance issued thereunder to avoid adverse tax consequences thereunder. 
 3. ADMINISTRATION 
 Full power and authority to construe, interpret and administer the Plan
shall be vested in the Committee. This power and authority includes, but is not limited to, selecting which Employees are eligible to participate in the Plan, selecting Compensation eligible for deferral, selecting investment indices, establishing
the level of Company Credits (if any) to the Plan, establishing deferral terms and conditions, receiving and approving beneficiary designation forms, and adopting modifications, amendments and procedures as may be deemed necessary, appropriate or
convenient by the Committee. Decisions of the Committee shall be final, conclusive and binding upon all parties. The Committee, in its sole discretion, may delegate day-to-day administration of the Plan to an employee or employees of the Company or
to a third-party administrator. The Committee may also rely on outside counsel, independent accountants or other consultants or advisors for advice and assistance in fulfilling its administrative duties under the Plan. 

4. ELIGIBILITY 

Employees at the vice-president level or higher shall be eligible to participate in the Plan commencing on the first date they are employed by the
Company in such capacity; provided that if such date is on or after November 1 in any Plan Year or if such Employee already participates in a deferred compensation arrangement that would be aggregated with this Plan for purposes of
Section 409A of the Code and the regulations and guidance issued thereunder, such Employee shall not be eligible to participate in the Plan until the following January 1. The Committee shall have the ability to impose restrictions on the
eligibility of new Employees as it considers appropriate. 

  
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 5. PARTICIPANT ACCOUNTS 
 Upon a Participant’s initial election to participate in the Plan, there shall be established a Retirement Account and an In-Service Account, as designated by the Participant, to which there shall be
credited any Deferred Compensation on or after January 1, 2005 with respect to services performed subsequent to such election as of each Credit Date. In addition, Company Credits, if any, made pursuant to Section 7 shall be allocated to a
Participant’s Retirement Account in accordance with rules prescribed by the Committee. Each such Compensation Account shall be credited (or debited) on each Accounting Date with income (or loss) based upon a hypothetical investment in any one
or more of the investment options available under the Plan, as prescribed by the Committee for the particular Compensation credited, which may include a Common Stock Fund. A Participant shall make two separate investment elections, one with respect
to his or her Retirement Account and one with respect to his or her In-Service Accounts; provided, however, that earnings and losses on Deferred Compensation which relates to Compensation which would have been paid (absent the Election) in Common
Stock shall initially be measured by reference to a hypothetical investment in the Common Stock Fund and shall be further subject to the terms of the grant of such Compensation. 
 A Participant’s Special Bonus and/or Deferred Bonus, if any, to the extent not yet deferred and vested under the Prior Plan as of December 31, 2004, shall be credited to the Participant’s
Retirement Account, unless the Agreement or award providing for such bonus(es) provides that the Participant may elect to credit any or all of such amounts to his or her In-Service Account and the Participant so elects prior to the Plan Year in
which such bonus(es) is earned and otherwise in accordance with rules prescribed by the Committee. 
 Each Participant at any time may have no
more than two In-Service Accounts under this Plan and the Prior Plan, in the aggregate. 
 If all or any portion of a Participant’s
Compensation Account(s) is measured by a hypothetical investment in the Common Stock Fund, that portion of the Participant’s Compensation Account(s) shall be credited on the first day of the calendar quarter following each Credit Date with
Stock Units equal to the number of shares of Common Stock (including fractions of a share) that could have been purchased with the amount of such Deferred Compensation (plus earnings and less losses determined in accordance with the next sentence)
at the Fair Market Value on such first day of such calendar quarter. For the period between such Credit Date and the first day of such calendar quarter, earnings and losses shall be measured by reference to a hypothetical investment selected by the
Committee. As of any date for the payment of cash dividends on the Common Stock, the portion of the Participant’s Compensation Account(s) invested in the Common Stock Fund as of the dividend record date shall be credited with additional Stock
Units calculated by dividing (i) the product of (a) the dollar value of the dividend declared in respect of a share of Common Stock multiplied by (b) the number of Stock Units credited to the Participant’s Compensation Account(s)
as of the dividend record date by (ii) the Fair Market Value of a share of Common Stock on the dividend payment date. 

  
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 6. ELECTION TO PARTICIPATE 
 6.1 In General. 
 Any Employee selected by the Committee to participate in the Plan may
elect to do so by delivering to the Committee or its designee an Election on a form prescribed by the Committee, designating the Compensation Account to which the Deferred Compensation is to be credited, electing the timing and form of distribution
(if applicable), and setting forth the manner in which such Deferred Compensation shall be invested in accordance with Section 5. A Participant’s initial Election must be filed at such time as designated by the Committee, but in no event
later than the day immediately preceding the first day of the Plan Year to which such Election relates. A Participant may submit a new Election for any subsequent year in order to change the election previously made. Such subsequent Election must be
filed at such time as designated by the Committee, but in no event later than 15 days preceding the first day of the Plan Year to which such subsequent Election relates. If a specific election has not been made with respect to any Plan Year, the
Election (if any) effective with respect to the immediately preceding Plan Year shall remain in effect. An effective Election may not be revoked or modified during a Plan Year with respect to that Plan Year. 

Subject to Section 4, newly employed or eligible Employees who are eligible to participate in the Plan may elect to participate for the current Plan
Year within the first 30 days after commencing employment or becoming eligible. Such election shall be effective on the first day of the month following the end of such 30-day period and shall apply only with respect to Compensation earned after the
effective date of such election. Elections for subsequent Plan Years shall be made in accordance with the preceding paragraph. 

Notwithstanding anything herein to the contrary, for the Plan Year beginning January 1, 2005, a Participant may elect to defer Compensation for such
Plan Year by delivering to the Committee or its designee an Election on a form prescribed by the Committee on or before March 15, 2005 with respect to such Compensation that has not been paid or become payable at the time of delivery of such
Election. Notwithstanding the provisos in Sections 8.1 and 8.2 or anything else herein to the contrary, a Participant may change an Election as to the timing and form of distribution (if applicable) under the Plan if such Election is filed no later
than December 31, 2007 in accordance with the rules established by the Committee or its designee; provided, however, with respect to an Election on or after January 1, 2006 and on or before December 31, 2006, the Election may change
the time and form of distribution only with respect to amounts that would not otherwise be payable in 2006 and may not cause an amount to be paid in 2006 that would not otherwise be payable in 2006; and, provided, further, with respect to an
Election on or after January 1, 2007 and on or before December 31, 2007, the Election may change the time and form of distribution only with respect to amounts that would not otherwise be payable in 2007 and may not cause an amount to be
paid in 2007 that would not otherwise be payable in 2007. 
 For the avoidance of doubt, any deferral election in effect under the Plan
immediately prior to this amendment and restatement shall continue and be recognized as an Election hereunder for the year or other applicable period to which it relates. In addition, the amount deemed credited to an account under the Plan
immediately prior to this amendment and restatement shall be credited to the applicable Compensation Account(s) hereunder. 
 6.2 Investment
Alternatives For Existing Balances. 
 A Participant may elect to change an existing selection as to the investment alternatives in effect
with respect to an existing Compensation Account (in increments prescribed by the Committee) as often, and with such restrictions, as determined by the Committee. 

  
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 7. COMPANY CREDITS AND SPECIAL AND DEFERRED BONUSES 

In the sole discretion of the Committee, in a given Plan Year the Company may credit a specified percentage of a Participant’s Compensation to the
Participant’s Retirement Account as a Basic Company Credit. The Committee, in its sole discretion, may cause the Company to credit such Basic Company Credit for all or any portion of the Participants in the Plan in such Plan Year. Further, the
Committee may cause the Company to credit a Deferred Bonus and/or a Special Bonus to recognize significant efforts by Plan Participants as the Committee, in its sole discretion, deems appropriate. In addition, the Committee may cause the Company to
credit a Past Service Credit to recognize past service as the Committee, in its sole discretion, deems appropriate. Such Basic Company Credit, Past Service Credit, Special Bonus and Deferred Bonus, if any, shall be credited to a Participant’s
Retirement Account (except as provided in any election described in Section 5) and shall be subject to the limitations determined appropriate by the Committee, including the limitation contained in Section 8.3 and the limitations described
below in this Section 7. 
 7.1 Vesting. 
 A Participant’s Deferred Compensation shall be immediately one-hundred percent (100%) nonforfeitable upon being credited to such Participant’s Retirement or In-Service Account; provided,
however, that Deferred Compensation which relates to restricted shares of Common Stock shall vest in accordance with the terms of the restricted stock agreement to which they relate. 
 A Participant’s Basic Company Credit for a Plan Year shall become nonforfeitable three (3) years after the end of the Plan Year to which such Basic Company Credit relates. 

A Participant’s Past Service Credit shall be fifty-percent (50%) nonforfeitable upon being credited to his or her Retirement Account. The
remaining fifty-percent (50%) shall become nonforfeitable as follows: one (1) year after the end of the Plan Year in which the Past Service Credit is credited to the Participant’s Retirement Account, the Participant shall be one-third
(1/3) vested in the remaining fifty percent (50%); two (2) years after the end of the Plan Year in which the Past Service Credit is credited to the Participant’s Retirement Account, the Participant shall be two-thirds
(2/3) vested in the remaining fifty percent (50%); and three (3) years after the end of the Plan Year in which the Past Service Credit is credited to the Participant’s Retirement Account, the Participant shall be one-hundred percent
(100%) vested in the remaining fifty percent (50%). A Participant’s Special Bonus and/or Deferred Bonus shall become vested in accordance with the terms of the Agreement or award providing for such bonus(es). 

Upon a Participant’s Termination for any reason other than death, Disability or Retirement, he or she shall forfeit any nonvested benefits. Except
as otherwise provided in an award, a Participant shall have a one-hundred percent (100%) nonforfeitable right to Basic Company Credits, Past Service Credits, Special Bonuses and Deferred Bonuses upon becoming eligible for Retirement or upon
Termination due to death or Disability. 
 For the avoidance of doubt, amounts credited under this Plan prior to April 2, 2012 shall be
subject to the vesting and forfeiture provisions of this Plan after such date. 

  
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 7.2 Forfeiture. 
 Upon a Participant’s Termination or Retirement, the Company reserves the right to withhold payment of a portion of a Participant’s Retirement Account attributable to Basic Company Credits, Past
Service Credits, Special Bonuses and/or Deferred Bonuses made under Section 7 (and earnings thereon) in the event the Committee determines that the Participant has violated the Company’s standard noncompetition and nondisclosure agreement
or any other employment agreement executed by the Participant, or otherwise acts against the interests of the Company, as determined by the Committee in its sole discretion. 
 8. DISTRIBUTION 
 8.1 Retirement Account. 

In the event of a Participant’s Retirement, the Participant’s Retirement Account shall be distributed at the time and in the manner elected by
the Participant in his or her Election. If no Election is made by a Participant as to the timing of distribution or form of payment of his or her Retirement Account, upon the Participant’s Retirement such account shall be paid in a single lump
sum. A Participant may change this election to provide for a later distribution date; provided, that such election is filed in accordance with rules established by the Committee, and (a) such election shall not take effect until at least 12
months after the date on which such election is properly filed, (b) the first payment with respect to which such election is made shall be deferred for a period of not less than 5 years from the date such payment would otherwise have been made,
and (c) any election related to a payment that was otherwise to be made at a specified time may not be made less than 12 months prior to the date of the first scheduled payment. Subject to the foregoing, the Election most recently accepted by
the Committee shall govern the payout of any benefits under the Plan. 
 8.2 In-Service Account. 

Deferred Compensation, Special Bonuses and/or Deferred Bonuses credited to a Participant’s In-Service Account shall be distributed at the time and in
the manner elected by the Participant in his or her Election. A Participant may extend the deferral period by notifying the Company in accordance with the terms of the Plan and procedures established by the Committee. A previously elected deferral
period for an In-Service Account may be extended only one time; provided, that such election is filed in accordance with rules established by the Committee, and (a) such election shall not take effect until at least 12 months after the date on
which such election is properly filed, (b) the first payment with respect to which such election is made shall be deferred for a period of not less than 5 years from the date such payment would otherwise have been made, and (c) any
election related to a payment that was otherwise to be made at a specified time may not be made less than 12 months prior to the date of the first scheduled payment. Subject to the foregoing, the Election most recently accepted by the Committee
shall govern the payout of any benefits under the Plan. 
 8.3 Termination or Disability. 

In the event of a Participant’s Termination or Disability, the Participant’s vested Compensation Accounts shall be distributed in a single lump
sum to such Participant 30 days after his or her Termination or Disability. Upon Termination, all unvested amounts shall be immediately forfeited and removed from the Participant’s Accounts. 

  
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 8.4 Death. 
 In the event of the Participant’s death (a) while in the employment of the Company or (b) after the Participant’s Termination but prior to the payment of such Participant’s
Compensation Accounts pursuant to Section 8.3, the Company shall pay the following amounts to the Participant’s Beneficiary in a single lump sum 30 days after the Participant’s date of death: 

 

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

 

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

 In the event of the Participant’s death following Retirement, the Company shall pay the amount in the Participant’s Retirement Account to the Participant’s Beneficiary in the form and at
the time elected by the Participant pursuant to Section 6.1. 
 8.5 Form of Distribution. 

Distribution of a Participant’s Compensation Accounts shall be made in cash; provided that, any amounts in a Participant’s Compensation Accounts
invested in the Common Stock Fund shall be distributed to the Participant in whole shares of Common Stock with fractional shares paid in cash. 

When required, the Company shall withhold from any distribution of cash or Common Stock to a Participant or other person under this Plan an amount
sufficient to cover any required withholding taxes, including the Participant’s social security and Medicare taxes (FICA) and federal, state and local income tax with respect to income arising from payment of the Award. The Company shall have
the right to require the payment of any such taxes before issuing any Common Stock comprising a part of such distribution. In lieu of all or any part of a cash payment from a person receiving Common Stock under this Plan, the Committee may permit a
person to cover all or any part of the required withholdings, and to cover any additional withholdings up to the amount needed to cover the person’s full FICA and federal, state and local income tax with respect to income arising from payment
the Common Stock portion of such distribution, through a reduction of the numbers of shares of Common Stock delivered to such person or a delivery or tender to the Company of other shares of Common Stock held by such person, in each case valued in
the same manner as used in computing the withholding taxes under applicable laws. 
 9. FINANCIAL HARDSHIP 

Upon the written request of a Participant or a Participant’s legal representative and a finding that continued deferral will result in an
unforeseeable financial emergency to the Participant, the Committee (in its sole discretion) may authorize (a) the payment of all or a part of a Participant’s Compensation Accounts representing Deferred Compensation and earnings thereon in
a single lump sum prior to his or her ceasing to be a Participant, or (b) a Participant to cease contributing Deferred Compensation to the Plan during a Plan Year. It is intended that the Committee’s determinations as to whether the
Participant has suffered an “unforeseeable financial emergency” 

  
 10 

 
shall be made consistent with the requirements under Section 409A of the Code and the regulations and guidance thereunder. An “unforeseeable financial emergency” means a severe
financial hardship to the Participant, the Participant’s spouse, the Participant’s beneficiary or the Participant’s dependent (as defined in Code Section 152, without regard to Sections 152(b), (b)(2) and (d)(1)(B)); loss of the
Participant’s property due to casualty; or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. Any amounts distributed with respect to an emergency shall not exceed
the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved by the cancellation of the
Participant’s deferral election under this Plan or through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe
financial hardship). The Committee may adopt procedures for determining when a hardship situation exists, including the use of independent advisors to make such determinations. 
 Any Participant receiving a hardship distribution may have no further amounts deferred under this Plan for a period of one year from the date of such distribution, and any subsequent deferral may only
begin at the beginning of a subsequent Plan Year and in accordance with the procedures in Section 6. The Participant shall not repay to the Company amounts distributed pursuant to this Section 9. 

10. BENEFICIARY DESIGNATION 
 A Participant may designate one or more persons (including a trust) to whom or to which payments are to be made if the Participant dies before receiving distribution of all amounts due under the Plan. A
Beneficiary designation made under the Prior Plan shall apply to this Plan, unless subsequently changed as provided herein. A Participant may, at any time, elect to change the designation of a Beneficiary. A designation of Beneficiary will be
effective only after the signed designation of Beneficiary is filed with the Committee or its designee while the Participant is alive and will cancel all designations of Beneficiary signed and filed earlier, including any designations of Beneficiary
made under the Prior Plan. If the Participant fails to designate a Beneficiary as provided above or if all of a Participant’s Beneficiaries predecease him or her and he or she fails to designate a new Beneficiary, the remaining unpaid amounts
shall be paid in one lump sum to the estate of such Participant. If all Beneficiaries of the Participant die after the Participant but before complete payment of all amounts due hereunder, the remaining unpaid amounts shall be paid in one lump sum
to the estate of the last to die of such Beneficiaries. 
 11. UNSECURED GENERAL CREDITOR STATUS OF EMPLOYEE 

The payments to Participants and their Beneficiaries hereunder shall be made from the general corporate assets of the Company. No person shall have any
interest in any such assets by virtue of the provisions of this Plan. The Company’s obligation hereunder shall be an unfunded and unsecured promise to pay money in the future. To the extent that any person acquires a right to receive payments
from the Company under the provisions hereof, such right shall be no greater than the right of any unsecured general creditor of the Company; no such person shall have nor acquire any legal or equitable right, interest or claim in or to any property
or assets of the Company. Any accounts maintained under this Plan shall be hypothetical in nature and shall be maintained for bookkeeping purposes only. Neither the Plan nor any account shall hold any actual funds or assets. 

  
 11 

 12. SHARES; ADJUSTMENTS IN EVENT OF CHANGES IN CAPITALIZATION 

An aggregate of 100,000 split-adjusted shares of common stock of Express Scripts, Inc. were initially allocated to the Prior Plan and reserved for the
distribution of Compensation Accounts as described in Section 8.5 thereof. An additional 750,000 shares of Express Scripts, Inc. common stock were subsequently allocated to the Prior Plan, subject to adjustment under Section 12 thereof.
Any shares allocated under the terms of the Prior Plan shall be deemed allocated under this Plan since the Prior Plan and this Plan are considered one plan set forth in two separate documents. Effective April 2, 2012, as a result of the
assumption of the Plan by Express Scripts Holding Company, the shares of common stock of Express Scripts, Inc. were replaced with shares of Common Stock of the Company and an aggregate of 5,893,208 shares of Common Stock of the Company remained
available under the Plan, including any shares allocated under the Prior Plan, as adjusted and subject to adjustment hereunder. The Company may, in its discretion, use shares held in the Treasury under this Plan in lieu of authorized but unissued
shares of Common Stock. 
 In the event of any change in the outstanding Common Stock of the Company by reason of any stock split, share
dividend, recapitalization, merger, consolidation, reorganization, combination, or exchange or reclassification of shares, split-up, split-off, spin-off, liquidation or other similar change in capitalization, or any distribution to common
shareholders other than cash dividends, the number or kind of shares or Stock Units that may be credited under the Plan shall be automatically adjusted so that the proportionate interest of the Participants shall be maintained as before the
occurrence of such event. Such adjustment shall be conclusive and binding for all purposes of the Plan. 
 13. INALIENABILITY
OF BENEFITS 
 The interests of the Participants and their Beneficiaries under the Plan may not in any way be voluntarily or involuntarily
transferred, alienated or assigned, nor subject to attachment, execution, garnishment or other such equitable or legal process. A Participant or Beneficiary cannot waive the provisions of this Section 13. 

14. CLAIMS PROCEDURE 

Any Participant, Beneficiary or any other person claiming benefits, eligibility, participation or any other right or interest under this Plan may file a
written claim setting forth the basis of the claim with the Chief Executive Officer of the Company (“CEO”). A written notice of the CEO’s disposition of any such claim shall be furnished to the claimant within a reasonable time (not
to exceed ninety (90) days) after the claim is received by the CEO. Notwithstanding the foregoing, the CEO may have additional time (not to exceed ninety (90) days) to decide the claim if special circumstances exist, provided that he
advises the claimant, in writing and prior to the end of the initial ninety (90) day period, of the special circumstances giving rise to the need for additional time and the date on which he expects to decide the claim. If the claim is denied,
in whole or in part, the notice of disposition shall include the specific reason for the denial, identify the specific provisions of the Plan upon which the denial is based, describe any additional material or information necessary to perfect the
claim, explain why that material or information is necessary and describe the Plan’s review procedures, including the timeframes thereunder for a claimant to file a request for review and for the Committee to decide the claim. The notice shall
also include a statement advising the claimant of his right to bring a civil action if his claim is denied, in whole or in part, upon review. 

  
 12 

 Within sixty (60) days after receiving the written notice of the CEO’s disposition of the claim,
the claimant may request, in writing, review by the Committee of the CEO’s decision regarding his claim. Upon written request, the claimant shall be entitled to a review meeting with the Committee to present reasons why the claim should be
allowed. The claimant or his authorized representative may submit a written statement in support of his claim, together with such comments, information and material relating to the claim, as he deems necessary or appropriate. The claimant or his
duly authorized representative shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information which are relevant to the claimant’s claim and its review. If the claimant does
not request review within sixty (60) days after receiving written notice of the CEO’s disposition of the claim, the claimant shall be deemed to have accepted the CEO’s written disposition. 

The Committee shall make its decision on review and provide written notice thereof to the claimant within a reasonable time (not to exceed sixty
(60) days) after the claim is received by the Committee. Notwithstanding the foregoing, the Committee may have additional time (not to exceed sixty (60) days) to decide the claim if special circumstances exist provided that the Committee
advises the claimant, in writing, prior to the end of the initial sixty (60) day period, of the special circumstances giving rise to the need for additional time and the date on which it expects to decide the claim. In no event shall the
Committee have more than one hundred twenty (120) days following its receipt of the claimant’s request for review to provide the claimant with written notice of its decision. The Committee shall have the right to request of and receive
from claimant such additional information, documents or other evidence as the Committee may reasonably require. In the event that the Committee requests such additional information from the claimant, the period for making the benefit determination
on review shall not take into account the period beginning on the date on which the Committee notifies the claimant in writing of the need for additional information and ending on the date on which the claimant responds to the request for additional
information. 
 If the claim is denied upon review, in whole or in part, the notice of disposition shall include the specific reason for the
denial, identify the specific provision of the Plan upon which the denial is based, include a statement advising the claimant of his right to receive, upon written request and free of charge, reasonable access to and copies of all documents, records
and other information which are relevant to the claimant’s claim and include a statement advising the claimant of his right to bring a civil action under Section 502(a) of the Act if his claim is denied, in whole or in part, upon review.

 Notwithstanding anything herein, if a claimant is denied a benefit because he or she is determined not to be disabled and he or she makes a
claim pursuant to such denial, the provisions of this paragraph shall apply. Upon receipt of a claim, the reply period shall be forty-five (45) days. If, prior to the end of such 45-day period, the claims reviewer determines that, due to
matters beyond the control of the Plan, a decision cannot be rendered, the period for making the determination may be extended for up to thirty (30) days, and the claims reviewer shall notify the claimant, prior to the expiration of such 45-day
period, of the circumstances requiring an extension and the date by which the Plan expects to render a decision. If, prior to the end of the first 30-day extension period, the 

  
 13 

 
claims reviewer determines that, due to matters beyond the control of the Plan, a decision cannot be rendered within that extension period, the period for making the determination may be extended
for up to an additional thirty (30) days, and the claims reviewer shall notify the claimant, prior to the expiration of the first 30-day extension period, of the circumstances requiring the extension and the date by which the Plan expects to
render a decision. In the case of any extension described in this paragraph, the notice of extension shall specifically explain the standards on which entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim and
the additional information needed to resolve those issues, and the claimant shall be afforded forty-five (45) days within which to provide the specified information. If information is requested, the period for making the benefit determination
shall be tolled from the date on which notification of an extension is sent to the claimant until the date on which the claimant responds to the request for information. Within one hundred eighty (180) days after receiving the written notice of
an adverse disposition of the claim, the claimant may request in writing, and shall be entitled to, a review of the benefit determination. In deciding an appeal of any adverse benefit determination that is based in whole or in part on a medical
judgment, the Plan shall consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment. Such health care professional shall be an individual who is neither an individual
who was consulted in connection with the adverse benefit determination that is the subject of the appeal nor the subordinate of any such individual. The medical or vocational experts whose advice was obtained on behalf of the Plan in connection with
the claimant’s adverse benefit determination will be identified to the claimant. If the claimant does not request a review within one hundred eighty (180) days after receiving written notice of the original’s disposition of the claim,
the claimant shall be deemed to have accepted the original written disposition. A decision on review shall be rendered in writing by the Plan within a reasonable period of time, but ordinarily not later than forty-five (45) days after receipt
of the claimant’s request for review by the Plan, unless the Plan determines that special circumstances require an extension of time for processing the claim. If the Plan determines that an extension of time for processing is required, written
notice of the extension shall be furnished to the claimant prior to the termination of the initial forty-five (45) period. In no event shall such extension exceed a period of forty-five (45) days from the end of the initial period. The
extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the determination on review. In the event the extension is due to a claimant’s failure to submit
information necessary to decide the claim, the claimant shall be afforded forty-five (45) days within which to provide the specified information, and the period for making the benefit determination on review shall be tolled from the date on
which notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information. 
 For purposes of this Section, a document, record or information will be considered “relevant’ if it (a) was relied upon by the CEO or Committee, as applicable, in making the benefit
decision, (b) was submitted, considered or generated in the course of making such decision, even if it was not relied upon in making those decisions, or (c) demonstrates compliance with the administrative processes and safeguards
established by the Plan to insure that the terms of the Plan have been followed and applied consistently. 

  
 14 

 To the extent permitted by law, a decision on review by the Committee shall be binding and conclusive upon
all persons whomsoever. Completion of the claims procedure described in this Section shall be a mandatory precondition that must be complied with prior to commencement of a legal or equitable action in connection with the Plan by a person claiming
rights under the Plan, or by another person claiming rights through such a person. The Committee may, in its sole discretion, waive these procedures as a mandatory precondition to such an action. 

15. GOVERNING LAW 
 The
provisions of this plan shall be interpreted and construed in accordance with the laws of the State of Missouri, except to the extent preempted by Federal law. 
 16. AMENDMENTS 
 The Committee may amend, alter or terminate this Plan at any time without
the prior approval of the Board; provided, however, that the Committee may not, without approval by the Board, materially increase the benefits accruing to Participants under the Plan. 

17. TIME FOR PAYMENT 

Notwithstanding anything herein to the contrary, in the event that a Participant is determined to be a specified employee in accordance with
Section 409A of the Code and the regulations and other guidance issued thereunder for purposes of any payment on termination of employment under this Plan, such payment(s) shall be made or begin, as applicable, on the first payroll date which
is more than six months following the date of separation from service, to the extent required to avoid the adverse tax consequences to the Participant under Section 409A of the Internal Revenue Code of 1986, as amended. 

All payments due and payable under the Plan on a fixed date shall be deemed to be made upon such fixed date if such payment is made on such date or a
later date within the same calendar year or, if later, by the fifteenth day of the third calendar month following the specified date (provided the Participant is not entitled, directly or indirectly, to designate the taxable year of the payment). In
addition, a payment is treated as made upon a fixed date under the Plan if the payment is made no earlier than 30 days before the designated payment date and the service provider is not permitted, directly or indirectly, to designate the taxable
year of the payment. 
 IN WITNESS WHEREOF, this amendment and restatement to the Plan is effective as of April 2, 2012. 

 

			
	 EXPRESS SCRIPTS HOLDING COMPANY

 

	 By:
	 	 
		
	 Title:
	 	 

  
 15EX-10.4

 Exhibit 10.4 
 MEDCO HEALTH SOLUTIONS, INC. 
 2002 STOCK INCENTIVE PLAN 

(As amended and restated May 15, 2003, March 14, 2011, and April 2, 2012 

and approved by shareholders on May 31, 2005, May 24, 2011, and March 29, 2012) 

 1. Purpose 
 The 2002 Stock Incentive Plan (the “Plan”) was previously established effective June 17, 2002. This document is an amendment and restatement of the Medco Health Solutions, Inc. 2002 Stock
Incentive Plan in effect as of April 2, 2012 and reflects, among other things, the assumption of the Plan by Express Scripts Holding Company (the “Company”). The purpose of the Plan is to encourage employees of the Company, its
parent, if any, its subsidiaries, its affiliates and its joint ventures to acquire Common Stock in the Company (“Common Stock”). It is believed that the Plan will serve the interests of the Company and its stockholders because it allows
employees to have a greater personal financial interest in the Company through ownership of, or the right to acquire its Common Stock, which in turn will stimulate employees’ efforts on the Company’s behalf, and maintain and strengthen
their desire to remain with the Company or one of its related entities. It is believed that the Plan will also assist in the recruitment of employees. 
 2. Administration 
 The Plan shall be administered by the Compensation Committee of the
Board of Directors of the Company (the “Committee”). A Director of the Company may serve on the Committee only if he or she (i) is a “Non-Employee Director” for purposes of Rule 16b-3 under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and (ii) satisfies the requirements of an “outside director” for purposes of Section 162(m) of the Internal Revenue Code (the “Code”). The Committee shall be responsible
for the administration of the Plan including, without limitation, determining which Eligible Persons receive Incentives, the types of Incentives they receive under the Plan, the number of shares covered by Incentives granted under the Plan, and the
other terms and conditions of such Incentives. Determinations by the Committee under the Plan including, without limitation, determinations of the Eligible Persons, the form, amount and timing of Incentives, the terms and provisions of Incentives
and the writings evidencing Incentives, need not be uniform and may be made selectively among Eligible Persons who receive, or are eligible to receive, Incentives hereunder, whether or not such Eligible Persons are similarly situated. 

The Committee shall have the responsibility of construing and interpreting the Plan, including the right to construe disputed or doubtful Plan
provisions, and of establishing, amending and construing such rules and regulations as it may deem necessary or desirable for the proper administration of the Plan including adopting sub-plans and special rules to facilitate compliance or achieve
desirable tax results or other Company objectives for grants made to employees outside the U.S. and to determine the consequences of termination of employment or other relationships for grants made to non-employee directors, independent contractors,
leased employees or consultants when the grants are made. In addition, as to any Performance Share Award not intended to constitute “performance-based compensation” under Section 162(m) of the Code, at any time prior to the end of an
Award Period (as defined in Section 9), the Committee may revise the Performance Goals and the computation of payment if unforeseen events occur which have a substantial effect on the performance of the Company, its parent, subsidiary,
division, affiliate or joint venture of the Company and which, in the judgment of the Committee, make the application of the Performance Goals (as defined in Section 9) unfair (as determined in the sole discretion of the Committee) unless a
revision is made. Any decision or action taken or to be taken by the Committee, arising out of or in connection with the construction, administration, interpretation and effect of the Plan and of its

 
rules and regulations, shall, to the maximum extent permitted by applicable law, be within its absolute discretion (except as otherwise specifically provided herein) and shall be final, binding
and conclusive upon the Company, all Eligible Persons and any person claiming under or through any Eligible Person. 
 The Committee may
delegate any or all of its power and authority hereunder to the Chief Executive Officer or President and such other officers as the Committee deems appropriate; provided, however, that the Committee may not delegate its authority with regard to
(i) any matter or action affecting an officer subject to Section 16 of the Exchange Act; (ii) any matter related to Incentives intended to be qualified under Section 162(m) of the Code; or (iii) any matter or action related
to grants of Incentives to Non-Employee Directors. 
 For the purpose of this section and all subsequent sections, the Plan shall be deemed to
include this Plan and any sub-plans which, in the aggregate, shall constitute one Plan governed by the terms set forth herein. 
 3.
Eligibility 
  

	 	(a)	Employees. Any person employed by the Company, its parent, if any, or its subsidiaries, its affiliates and its joint ventures, including officers, whether or not
directors of the Company, and employees of a joint venture partner or affiliate of the Company who provide services to the joint venture with such partner or affiliate (each such person, an “Employee”), shall be eligible to participate in
the Plan if designated by the Committee (“Eligible Persons”). Notwithstanding the foregoing, an individual who was an employee of Express Scripts, Inc. or its subsidiaries as of April 2, 2012 shall not be an Employee eligible to be
designated as an Eligible Person by reason of such employment or continued employment with the Company thereafter. 

  

	 	(b)	Non-employees. The term “Employee” shall not include a non-employee director or a person hired as an independent contractor, leased employee or
consultant, provided, however, that the Committee may determine that any such person is eligible to receive Incentives under the Plan (and, if such a determination is made as to any such person, such person shall be an Eligible Person under the
Plan). Such person shall not participate in this Plan except to the extent that the Committee so determines, even if such person is subsequently determined to be an “employee” by any governmental or judicial authority.

  

	 	(c)	 No Right To Continued Employment. Nothing in the Plan shall interfere with or limit in any way the right of the Company, its parent, its
subsidiaries, its affiliates or its joint ventures to terminate the employment of any participant at any time, nor confer upon any participant the right to continue in the employ of the Company, its parent, its subsidiaries, its affiliates or its
joint ventures. No Eligible Person shall have a right to receive an Incentive or any other benefit under this Plan or having been granted an Incentive or other benefit, to receive any additional Incentive or other benefit. Neither the award of an
Incentive nor any benefits arising under such Incentives shall constitute an employment contract with the Company, its parent, its subsidiaries, its affiliates or its joint ventures, and accordingly, this Plan and the

 
benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Company without giving rise to liability on the part of the Company, its parent, its subsidiaries, its
affiliates or its joint ventures for severance (except as otherwise required under applicable local law). Except as may be otherwise specifically stated in any other employee benefit plan, policy or program, or as required under applicable local
law, neither any Incentive under this Plan nor any amount realized from any such Incentive shall be treated as compensation for any purposes of calculating an employee’s benefit under any such plan, policy or program. 

4. Term of the Plan 
 This Plan was
initially adopted by Medco Health Solutions, Inc. effective on June 17, 2002 and originally approved by shareholders of Medco Health Solutions, Inc. on July 21, 2003. The Plan was extended pursuant to the amendments and restatements made
on March 14, 2011 such that no Incentive shall be granted under the Plan after May 24, 2021, but the term and exercise of Incentives granted theretofore may extend beyond that date. This amendment and restatement is effective upon the
consummation of that certain merger involving the Company, Express Scripts, Inc. and Medco Health Solutions, Inc. on April 2, 2012 and was approved by Express Scripts, Inc. as the sole shareholder of the Company on March 29, 2012. For the
avoidance of doubt, each grant and award that was made under the terms of the Medco Health Solutions, Inc. 2002 Stock Incentive Plan outstanding as of April 2, 2012 has been assumed under this Plan as amended and restated and, to the extent
applicable, such grants and awards that represented awards in respect of common stock of Medco Health Solutions, Inc. shall, upon such assumption, represent awards in respect of Common Stock of the Company, appropriately adjusted. 

5. Incentives 
  

	 	(a)	Types of Incentives. Incentives under the Plan may be granted in any one or a combination of (i) Incentive Stock Options; (ii) Nonqualified Stock
Options; (iii) Stock Appreciation Rights; (iv) Restricted Stock Grants, (v) Performance Shares, (vi) Share Awards and (vii) Phantom Stock Awards (Incentive Stock Options and Nonqualified Stock Options shall be referred to
collectively as “Stock Options” and together with Restricted Stock Grants, Performance Shares, Share Awards and Phantom Stock Awards shall be referred to collectively as “Incentives”) Incentives other than Stock Options and Stock
Appreciation Rights are “Full Value Awards.” All Incentives shall be subject to the terms and conditions set forth herein and to such other terms and conditions as may be established by the Committee. 

 

	 	(b)	No Repricing. Except in connection with a corporate transaction involving the company (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 terms of outstanding awards may not be amended to reduce the option price of outstanding Stock Options
or Stock Appreciation Rights or cancel outstanding Stock Options or in exchange for cash, other awards or Stock Options or with an option price that is less than the option price of the original Stock Options or Stock Appreciation Rights without
stockholder approval. 

 6. Shares Available for Incentives 

 

	 	(a)	Shares Available. Subject to the provisions of Section 6(c), the maximum number of shares of Common Stock of the Company that may be issued under the Plan
as of April 2, 2012 is thirteen million, nine hundred forty two thousand, eight hundred ninety four (13,942,894) which is the equivalent of the number of shares of common stock of Medco Health Solutions, Inc. that was available under the
Medco Health Solutions, Inc. 2002 Stock Incentive Plan as of April 2, 2012, adjusted to reflect Common Stock of the Company. 

 For all grants made after December 31, 2010, the share reserve shall be reduced by (1) one common share for each common share issued with respect to a Stock Option or Stock Appreciation Right;
and (b) 2.16 common shares for each common share issued with respect to Full Value Awards. Upon the exercise of a stock-settled Stock Appreciation Right, the number of shares subject to the Award that are then being exercised shall be counted
against the maximum aggregate number of shares that may be issued under the Plan, on the basis of one share for every share subject thereto, regardless of the actual number of shares used to settle the Stock Appreciation Right upon exercise.

 In addition to the foregoing, the following shares of Common Stock related to Incentives under this Plan may again be used for
the grant of Incentives under the Plan: (i) shares related to Incentives paid in cash; (ii) shares related to Incentives that expire, are forfeited or cancelled or terminate for any other reason without issuance of shares of Common Stock;
and (iii) any shares of Common Stock related to Incentives that are assumed, converted or substituted as a result of the acquisition of another company by the Company or a combination of the Company with another company. Regardless of when
Incentives are granted, effective January 1, 2011, shares tendered in payment of the option price or grant price for Stock Options and Stock Appreciation Rights or shares withheld from Incentives (including Full Value Awards) for tax payments
or withholding for taxes shall not be added back into the Plan. 
 Shares under this Plan may be delivered by the Company from
its authorized but unissued shares of Common Stock or from issued and reacquired Common Stock held as treasury stock, or both. In no event shall fractional shares of Common Stock be issued under the Plan. 

 

	 	(b)	Limit on an Individual’s Incentives. In any calendar year, no Eligible Person may receive (i) Incentives (including Stock Options and Stock
Appreciation Rights) covering more than two million, six hundred ninety four thousand, seven hundred seventy three (2,694,773) shares of the Company’s Common Stock (such number of shares shall be adjusted in accordance with
Section 6(c)), or (ii) any Incentive if such person owns more than ten percent of the stock of the Company within the meaning of Section 422 of the Code, or (iii) any Incentive Stock Option, as defined in Section 422 of the
Code, which would result in such person receiving a grant of Incentive Stock Options for stock that would have an aggregate fair market value in excess of $100,000, determined as of the time that the Incentive Stock Option is granted, that would be
exercisable for the first time by such person during any calendar year. 

	 	(c)	Adjustment of Shares. 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 Committee, the Committee shall make such adjustments, if any, as it may deem appropriate in (i) the number and kind of shares authorized for issuance under the Plan,
(ii) the number and kind of shares subject to outstanding Incentives, and (iii) the option price/grant price of Stock Options and Stock Appreciation Rights. For the purposes of (i) and (ii) above, fractions of a share will be
rounded down to the nearest whole share (other than for Incentive Stock Options). Any such determination shall be final, binding and conclusive on all parties. Without limiting the foregoing, the shares available under this Plan were adjusted
effective April 2, 2012 as reflected in Section 6(a) hereof, and all other references to numbers of shares, including with respect to previously granted awards, share limits and share reductions, are similarly adjusted effective
April 2, 2012 as determined by the Committee and such adjustments shall be deemed to be incorporated herein, in each case, to the extent appropriate. 

  

	 	(d)	Minimum Vesting for Full Value Awards. With respect to at least 95% of Full Value Awards (other than Performance Share Awards) granted after December 31,
2010, vesting of such Incentives will occur over a minimum of three years from the grant date. For Performance Share Awards, at least 95% of these Incentives granted after December 31, 2010 will vest over a minimum of one year from the grant
date. 

 7. Stock Options 
 The Committee may grant options qualifying as Incentive Stock Options as defined in Section 422 of the Code to employees of the Company or a parent or subsidiary corporation within the meaning of
Section 424 of the Code, and options other than Incentive Stock Options (“Nonqualified Options”) (collectively “Stock Options”). Such Stock Options shall be subject to the following terms and conditions and such other terms
and conditions as the Committee may prescribe: 
  

	 	(a)	Stock Option Price. The option price per share with respect to each Stock Option shall be determined by the Committee, but shall not be less than 100% of the
Fair Market Value of the Common Stock (as defined below) on the date the Stock Option is granted, as determined by the Committee. Unless the Committee determines otherwise, “Fair Market Value” shall mean the closing stock price of a share
of Common Stock, as reported on the Nasdaq Global Select Market (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. 

  

	 	(b)	Period of Stock Option. The period of each Stock Option shall be fixed by the Committee, provided that the period for all Stock Options shall not exceed ten
(10) years from the grant. The Committee may, subsequent to the granting of any Stock Option, extend the term thereof, but in no event shall the extended term exceed ten years from the original grant date. 

	 	(c)	Exercise of Stock Option and Payment Therefore. No shares shall be issued until full payment of the option price has been made. The option price may be paid in
cash or, if the Committee determines, in shares of Common Stock or a combination of cash and shares of Common Stock. If the Committee approves the use of shares of Common Stock as a payment method, the Committee shall establish such conditions as it
deems appropriate for the use of Common Stock to exercise a Stock Option. Stock Options awarded under the Plan shall be exercised through such procedure or program as the Committee may establish or define from time to time, which may include a
designated broker that must be used in exercising such Stock Options. 

  

	 	(d)	First Exercisable Date. The Committee shall determine how and when shares covered by a Stock Option may be purchased. The Committee may establish waiting
periods, the dates on which Stock Options become exercisable or “vested” and, subject to paragraph (b) of this section, exercise periods. The Committee may accelerate the exercisability of any Stock Option or portion thereof.

  

	 	(e)	Termination of Employment. Unless determined otherwise by the Committee, upon the termination of a Stock Option grantee’s employment (for any reason other
than gross misconduct), outstanding Stock Options which were not exercisable at the date of such termination shall be immediately forfeited upon termination. The Committee, however, in its discretion, may provide that any Stock Options outstanding
but not yet exercisable upon the termination of a Stock Option grantee’s employment may become exercisable in accordance with a schedule determined by the Committee. Such Stock Options shall expire unless exercised within such period of time
after the date of termination of employment as may be established by the Committee, but in no event later than the expiration date of the Stock Option. 

  

	 	(f)	Termination Due to Misconduct. If a Stock Option grantee’s employment is terminated for gross misconduct, as determined by the Company, all outstanding
Stock Options (regardless of whether vested or not upon termination) shall expire upon the date of such termination. 

  

	 	(g)	Limits on Incentive Stock Options. Except as may otherwise be permitted by the Code, an Eligible Person may not receive a grant of Incentive Stock Options for
stock that would have an aggregate fair market value in excess of $100,000 (or such other amount as the Internal Revenue Service may decide from time to time), determined as of the time that the Incentive Stock Option is granted, that would be
exercisable for the first time by such person during any calendar year. All shares that have been authorized to be issued under the Plan may be used for the grant of Incentive Stock Options. 

 8. Stock Appreciation Rights 
 The Committee may, in its discretion, grant a right to receive the appreciation in the fair market value of shares of Common Stock (“Stock Appreciation Right”) either singly or in combination
with an underlying Stock Option granted hereunder. Such Stock Appreciation Right shall be subject to the following terms and conditions and such other terms and conditions as the Committee may prescribe: 

 

	 	(a)	Time and Period of Grant. If a Stock Appreciation Right is granted with respect to an underlying Stock Option, it may be granted at the time of the Stock Option
grant or at any time thereafter but prior to the expiration of the Stock Option grant. If a Stock Appreciation Right is granted with respect to an underlying Stock Option, at the time the Stock Appreciation Right is granted the Committee may limit
the exercise period for such Stock Appreciation Right, before and after which period no Stock Appreciation Right shall attach to the underlying Stock Option. In no event shall the exercise period for a Stock Appreciation Right granted with respect
to an underlying Stock Option exceed the exercise period for such Stock Option. If a Stock Appreciation Right is granted without an underlying Stock Option, the term of the Stock Appreciation Right shall be set by the Committee, but in no event
shall exceed ten (10) years from the grant. 

  

	 	(b)	Value of Stock Appreciation Right. If a Stock Appreciation Right is granted with respect to an underlying Stock Option, the grantee will be entitled to surrender
the Stock Option which is then exercisable and receive in exchange an amount equal to the excess of the fair market value of the Common Stock on the date the election to surrender is received by the Company in accordance with exercise procedures
established by the Company over the Stock Option price multiplied by the number of shares covered by the Stock Option which is surrendered. If a Stock Appreciation Right is granted without an underlying Stock Option, the grantee will receive upon
exercise of the Stock Appreciation Right an amount equal to the excess of the fair market value of the Common Stock on the date the election to surrender such Stock Appreciation Right is received by the Company in accordance with exercise procedures
established by the Company over the fair market value of the Common Stock on the date of grant multiplied by the number of shares covered by the grant of the Stock Appreciation Right. All Stock Appreciation Rights shall have a grant price that is
not less than 100% of the Fair Market Value of the Common Stock on the date the Stock Appreciation Right is granted. 

  

	 	(c)	Payment of Stock Appreciation Right. Payment of a Stock Appreciation Right shall be in the form of shares of Common Stock, cash or any combination of shares and
cash. The form of payment upon exercise of such a right shall be determined by the Committee either at the time of grant of the Stock Appreciation Right or at the time of exercise of the Stock Appreciation Right. 

9. Performance Share Awards 
 The
Committee may grant awards under which payment may be made in shares of Common Stock, cash or any combination of shares and cash if the performance of the Company or its parent, if any, or any subsidiary, affiliate or joint venture of the Company or
based on an individual grantee’s performance, team, division or group performance or any other defined group that the Committee determines during the Award Period meets certain goals established by the Committee (“Performance Share
Awards”). Such Performance Share Awards shall be subject to the following terms and conditions and such other terms and conditions as the Committee may prescribe: 

	 	(a)	Award Period and Performance Goals. The Committee shall determine and include in a Performance Share Award grant the period of time for which a Performance Share
Award is made (“Award Period”). The Committee shall also establish performance objectives (“Performance Goals”) to be met by the Company, its parent, if any, subsidiary, affiliate or joint venture of the Company or individual
grantee or team, division or group determined by the Committee during the Award Period as a condition to payment of the Performance Share Award. The Performance Goals may include any one or more of the following Company measures, as interpreted by
the Committee, which (to the extent applicable) will be determined in accordance with GAAP: earnings per share; net-new sales; new named sales; client retention; client satisfaction; employee satisfaction; member satisfaction; revenue performance;
corporate earnings performance; return on assets; return on equity; return on invested capital; cash flow; cash balances; market value added; economic value added; earnings before interest, taxes, depreciation and amortization; mail and total
prescription volumes; mail penetration rate; cost and expense controls; drug trend management; clinical program effectiveness; generic dispensing rates; specialty segment performance; covered lives; productivity and growth in new markets, products
and/or services. Performance Measures may be measured before or after taking taxes into consideration, in the discretion of the Committee. The Performance Goals may include minimum and optimum objectives or a single set of objectives. In determining
attainment of Performance Goals, the Committee will exclude unusual or infrequently occurring items, charges for restructurings (employee severance liabilities, asset impairment costs, and exit costs), discontinued operations, extraordinary items
and the cumulative effect of changes in accounting treatment, and may determine no later than ninety (90) days after the commencement of any applicable Award Period to exclude other items, each determined in accordance with GAAP (to the extent
applicable) and as identified in the financial statements, notes to the financial statements or discussion and analysis of management. If the Committee desires that compensation payable pursuant to any Performance Share Award be qualified
performance-based compensation within the meaning of Section 162(m) of the Code for covered employees, the Performance Goals (i) shall be established by the Committee no later than the end of the first quarter of the Award Period (or such
other time designated by the United States Internal Revenue Service) and (ii) shall satisfy all other applicable requirements imposed under United States Treasury Regulations promulgated under Section 162(m) of the Code, including the
requirement that such Performance Goals be stated in terms of an objective formula or standard. 

  

	 	(b)	 Payment of Performance Share Awards. The Committee shall establish the method of calculating the amount of payment to be made under a
Performance Share Award if the Performance Goals are met, including the fixing of a maximum payment. The Performance Share Award shall be expressed in terms of shares of Common Stock and referred to as “Performance Shares.” After the
completion of an Award Period, the performance of the Company, its parent, if any, subsidiary, 

 
affiliate or joint venture of the Company or individual grantee or team, division or group (whichever is relevant under the terms of the Performance Share Award) shall be measured against the
Performance Goals, and the Committee shall determine, in accordance with the terms of such Performance Share Award, whether all, none or any portion of a Performance Share Award shall be paid. The Committee, in its discretion, may elect to make
payment in shares of Common Stock, cash or a combination of shares and cash. Any cash payment shall be based on the Fair Market Value of Performance Shares at the end of the Award Period. 

 

	 	(c)	Requirement of Employment. A grantee of a Performance Share Award must remain in the employ of the Company, its parent, if any, subsidiary, affiliate or joint
venture until the completion of the Award Period in order to be entitled to payment under the Performance Share Award; provided that the Committee may, in its discretion, provide for a full or partial payment where such an exception is deemed
equitable. However, to the extent that the Performance Share Award is intended to constitute performance-based compensation, the Committee shall only make exceptions in the event that the covered employee’s employment terminates due to death,
disability or upon a change of control provided payments are not made until after the completion of the Award Period and certification that the Performance Goals have been attained as required pursuant to Section 162(m).

  

	 	(d)	Dividend Equivalents. Dividend equivalents shall not be paid during the Award Period and may only be paid on vested Performance Shares to the extent determined
by the Committee. 

 10. Restricted Stock Grants 
 The Committee may award shares of Common Stock to an Eligible Person, which shares shall be subject to the following terms and conditions and such other terms and conditions as the Committee may prescribe
(“Restricted Stock Grant”): 
  

	 	(a)	Requirement of Employment. A grantee of a Restricted Stock Grant must remain in the employment of the Company or its parent, if any, its subsidiaries, its
affiliates and its joint ventures during a period designated by the Committee (“Restriction Period”) in order to retain the shares under the Restricted Stock Grant. If the grantee’s employment with the Company or its parent, if any,
its subsidiaries, its affiliates and its joint ventures terminates prior to the end of the Restriction Period, the Restricted Stock Grant shall terminate and the shares of Common Stock shall be returned immediately to the Company provided that the
Committee may, at the time of the grant, provide for the employment restriction to lapse with respect to a portion or portions of the Restricted Stock Grant at different times during the Restriction Period. The Committee may, in its discretion, also
provide for such complete or partial exceptions to the employment restriction as it deems equitable. 

  

	 	(b)	Restrictions on Transfer and Legend on Stock Certificates. During the Restriction Period, the grantee may not sell, assign, transfer, pledge or otherwise dispose
of the shares of Common Stock. Each certificate for shares of Common Stock issued hereunder shall contain a legend giving appropriate notice of the restrictions in the grant. 

	 	(c)	Escrow Agreement. The Committee may require the grantee to enter into an escrow agreement providing that the certificates representing the Restricted Stock Grant
will remain in the physical custody of an escrow holder until all restrictions are removed or expire. 

  

	 	(d)	Lapse of Restrictions. All restrictions imposed under the Restricted Stock Grant shall lapse upon the expiration of the Restriction Period if the conditions as
to employment set forth above have been met. The grantee shall then be entitled to have the legend removed from the certificates and/or request shares to be transferred to him or her from the escrow holder, if any. 

 

	 	(e)	Dividends. The Committee shall, in its discretion, at the time of the Restricted Stock Grant, provide that any dividends declared on the Common Stock during the
Restriction Period shall either be (i) paid to the grantee as soon as practicable after the dividend is declared, or (ii) accumulated for the benefit of the grantee and paid to the grantee only after the expiration of the Restriction
Period. 

  

	 	(f)	Performance Goals. The Committee may designate whether any Restricted Stock Grant is intended to be “performance-based compensation” as that term is
used in Section 162(m) of the Code. Any such Restricted Stock Grant designated to be “performance-based compensation shall be conditioned on the achievement of one or more Performance Goals (as defined in Section 9(a)), to the extent
required by Section 162(m). 

 11. Other Share-Based Awards 

 

	 	(a)	Share Awards. The Committee may grant an award of shares of common stock (a “Share Award”) to any Eligible Person on such terms and conditions as the
Committee may determine in its sole discretion. 

  

	 	(b)	Phantom Stock Awards. The Committee may, in its discretion, grant a right representing a number of hypothetical shares, including restricted stock units (a
“Phantom Stock Award”), to any Eligible Person on such terms and conditions, including whether payment of such Phantom Stock Award will be in cash or shares, as the Committee may determine in its sole discretion. 

12. Transferability 
 Each Incentive,
other than Nonqualified Options, granted under the Plan shall not be transferable or assignable other than by will or the laws of descent and distribution and shall be exercisable during the grantee’s lifetime only by the grantee. Nonqualified
Options shall not be transferable or assignable by the recipient, and may not be made subject to execution, attachment or similar procedures, other than by will or the laws of descent and distribution or pursuant to a domestic relations order within
the meaning of Rule 16a-12 under the Exchange Act. Notwithstanding the foregoing, the Committee, in its discretion, may adopt rules permitting the transfer, solely as gifts 

 
during the grantee’s lifetime, of Stock Options (other than Incentive Stock Options) to trusts or family partnerships for the benefit of immediate family members, but in no event will awards
be transferable for value or consideration. For this purpose, immediate family member means the grantee’s spouse, parent, child, stepchild, grandchild and the spouses of such family members. The terms of a Stock Option shall be final, binding
and conclusive upon the beneficiaries, executors, administrators, heirs and successors of the grantee. 
 13. Discontinuance or Amendment of
the Plan 
 The Board of Directors may discontinue the Plan at any time and may from time to time amend or revise the terms of the Plan as
permitted by applicable statutes, except that it may not, without the consent of the grantees affected, revoke or alter, in a manner unfavorable to the grantees of any Incentives hereunder, any Incentives then outstanding, nor may the Board amend
the Plan without stockholder approval where the absence of such approval would cause the Plan to fail to comply with Rule 16b-3 under the Exchange Act, or any other requirement of applicable law or regulation. 

14. No Constraint on Corporate Action 

Nothing in the Plan shall be construed (i) to limit, impair or otherwise affect the Company’s right or power to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell or transfer all or any part of its business or assets, or (ii) except as provided in Section 13,
to limit the right or power of the Company, its parent, or any subsidiary, affiliate or joint venture to take any action which such entity deems to be necessary or appropriate. 
 15. Withholding Taxes 
 The Company and its parent, if any, its subsidiaries, its affiliates
and its joint ventures shall be entitled to collect income taxes, social insurance contributions, payment on account amounts, any local taxes and any other taxes related to the grant, vesting or exercise of Incentives or acquisition or sale of
shares acquired under the Plan legally due by grantee and required to be withheld by the Company (or one of its affiliates) or grantee’s employer (“Tax Withholding Amounts”) by any of the following methods: (i) withholding from
shares of Common Stock or cash issuable or due under the Incentive; (ii) withholding from compensation, salary, bonuses or any other amounts due to grantee; or (iii) forcing shares of Common Stock to be sold that are issued pursuant to
Incentives and using the proceeds to cover the Tax Withholding Amounts. In addition and in accordance with any applicable administrative guidelines it establishes, the Committee may allow a grantee to pay the Tax Withholding Amounts by withholding
from any payment of Common Stock due as a result of such Incentive, or by permitting the grantee to deliver to the Company, shares of Common Stock having a fair market value, as determined by the Committee, equal to the amount of the Tax Withholding
Amounts. Regardless of when Incentives are granted, effective January 1, 2011, shares tendered in payment of the option price or grant price for Stock Options and Stock Appreciation Rights or withheld from Incentives (including Full Value
Awards) for tax payments or withholding for taxes shall not be added back into the Plan. 

 16. Compliance with Section 16 
 With respect to Eligible Persons subject to Section 16 of the Exchange Act (“Section 16 Officers”), transactions under the Plan are intended to comply with all applicable conditions of Rule
16b-3 or its successor under the Exchange Act. To the extent that compliance with any Plan provision applicable solely to the Section 16 Officers is not required in order to bring a transaction by such Section 16 Officer into compliance
with Rule 16b-3, it shall be deemed null and void as to such transaction, to the extent permitted by law and deemed advisable by the Committee and its delegees. To the extent any provision of the Plan or action by the Plan administrators involving
such Section 16 Officers is deemed not to comply with an applicable condition of Rule 16b-3, it shall be deemed null and void as to such Section 16 Officers, to the extent permitted by law and deemed advisable by the Plan administrators.

 17. Use of Proceeds 
 The
proceeds received by the Company from the sale of stock under the Plan shall be added to the general funds of the Company and shall be used for such corporate purposes as the Board of Directors shall direct. 

18. Change in Control 
 Unless otherwise
provided in an award agreement, or for Incentives that do not constitute deferred compensation under Section 409A of the Code, unless determined by the Committee in its discretion, in the event of a Change in Control (as defined below), each
Incentive outstanding as of the Change in Control shall be assumed, continued, or substituted with a new Incentive that has: (i) an intrinsic value equivalent to that of the original Incentive; and (ii) terms at least as beneficial to the
grantee as those contained in the original award agreement. If within two years following a Change in Control, a grantee is terminated for any reason (or constructively terminated as determined by the Committee in its sole discretion) except for
“Cause” (as defined below) all of the grantee’s outstanding Incentives which have not vested shall immediately vest and become exercisable (if applicable) and all restrictions on such awards or shares shall immediately lapse.

 For purposes of this Section 18, the term “Cause” shall mean that a grantee: (i) has been convicted of, or entered a plea
of nolo contendere to, a crime that constitutes a felony under U.S. Federal or state law or equivalent under any applicable foreign law; (ii) has engaged in willful gross misconduct in the performance of the grantee’s duties to the Company
or a parent, subsidiary or affiliate; or (iii) has committed a material breach of any written agreement with the Company or any parent, subsidiary or affiliate with respect to confidentiality, noncompetition, nonsolicitation or similar
restrictive covenant. The Committee shall have the discretion of determining whether a grantee has been terminated for Cause for the purposes of this Section 18. 

 A “Change in Control” shall mean the occurrence during the term of the Plan of any one of the
following events: 
  

	 	(a)	An acquisition (other than directly from the Company) of any shares of Common Stock or other voting securities of the Company by any “Person” (for purposes of
this Section only, as the term “person” is used for purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of forty percent (40%) or more of either (i) the then outstanding shares of Common Stock or (ii) the combined voting power of the Company’s then outstanding voting securities entitled to vote for the election of
directors (the “Voting Securities”); provided, however, in determining whether a Change in Control has occurred, shares of Common Stock or Voting Securities which are acquired in a “Non-Control Acquisition” (as hereinafter
defined) shall not constitute an acquisition which would cause a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the
Company or (B) any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned, directly or indirectly, by the Company (for purposes of this definition, a “Related
Entity”), (ii) the Company or any Related Entity, or (iii) any Person in connection with a “Non-Control Transaction” (as hereinafter defined); or 

 

	 	(b)	The individuals who, immediately after the acquisition or transaction, are members of the Board of Directors of the Company (the “Incumbent Board”),
(i) cease for any reason to constitute at least a majority of the members of the Board of Directors of the Company, or (ii) following a Merger (as hereinafter defined), do not constitute at least a majority of the board of directors of
(x) the Surviving Corporation (as hereinafter defined), if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly by
a Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation (as hereinafter defined); provided, however, that if the election, or nomination for election by the Company’s common stockholders,
of any new director was approved by a vote of at least a majority of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided, further, however, that no individual shall be
considered a member of the Incumbent Board if such individual initially assumed office as a result of an actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors of the Company (a
“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Proxy Contest; or 

  

	 	(c)	The consummation of: 

  

	 	(i)	A merger, consolidation or reorganization with or into the Company or a direct or indirect subsidiary of the Company or in which securities of the Company are issued (a
“Merger”), unless the Merger is a “Non-Control Transaction.” A “Non-Control Transaction” shall mean: 

	 	(A)	the stockholders of the Company immediately before such Merger own directly or indirectly immediately following the Merger at least fifty percent (50%) of the
outstanding common stock and the combined voting power of the outstanding voting securities of (x) the corporation resulting from such Merger (the “Surviving Corporation”), if fifty percent (50%) or more of the combined voting
power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly by another corporation (a “Parent Corporation”), or (y) if there is one or more Parent Corporations, the
ultimate Parent Corporation; 

  

	 	(B)	the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for the Merger, constitute at least a majority of
the members of the board of directors of, (x) the Surviving Corporation, if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly
or indirectly by a Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; and 

  

	 	(C)	no Person other than (1) the Company or another corporation that is a party to the agreement of Merger, (2) any Related Entity, or (3) any employee
benefit plan (or any trust forming a part thereof) that, immediately prior to the Merger, was maintained by the Company or any Related Entity, or (4) any Person who, immediately prior to the Merger had Beneficial Ownership of forty percent
(40%) or more of the then outstanding shares of Common Stock or Voting Securities, has Beneficial Ownership, directly or indirectly, of forty percent (40%) or more of the combined voting power of the outstanding voting securities or common
stock of (x) the Surviving Corporation, if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly by a Parent
Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation. 

  

	 	(ii)	A complete liquidation or dissolution of the Company; or 

  

	 	(iii)	The sale or other disposition of all or substantially all of the assets of the Company and its subsidiaries taken as a whole to any Person (other than a transfer to a
Related Entity or under conditions that would constitute a Non-Control Transaction with the disposition of assets being regarded as a Merger for this purpose or the distribution to the Company’s stockholders of the stock of a Related Entity or
any other assets). 

 Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any Person
(the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of the then outstanding shares of Common Stock or Voting Securities as a result of the acquisition of shares of Common Stock or Voting Securities by the
Company which, by reducing the number of shares of Common Stock or Voting Securities then outstanding, increases the 

 
proportional number of shares Beneficially Owned by the Subject Persons; provided, that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition
of shares of Common Stock or Voting Securities by the Company, and after such share acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional shares of Common Stock or Voting Securities which increases the
percentage of the then outstanding shares of Common Stock or Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur. 
 Also, notwithstanding the foregoing, to the extent that any Incentive constitutes a deferral of compensation subject to Code Section 409A, and if that Incentive provides for a change in the time or
form of payment upon a Change in Control, then no Change in Control shall be deemed to have occurred upon an event described in this Section 18 unless the event would also constitute a change in ownership or effective control of, or a change in
the ownership of a substantial portion of the assets of, the Company under Code Section 409A. 
 19. Governing Law 

The Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Delaware without giving effect to
the principles of conflicts of laws. 

 ADDENDUM 
 TO THE 
 MEDCO HEALTH SOLUTIONS, INC. 

2002 STOCK INCENTIVE PLAN 

This addendum is intended to cause the Medco Health Solutions, Inc. 2002 Stock Incentive Plan (the “Plan”) to meet the requirements of a
written plan as described in Q&A 21 of Internal Revenue Service Notice 2005-1 with respect to restricted stock units, performance shares or other share based awards subject to deferral (“Stock Units”) granted under the Plan.
Capitalized terms used herein but not defined shall have the meaning ascribed to them in the Plan. 
 1. Deferrals of Stock Units Permitted

  

	 	(a)	Receipt of stock or other payment pursuant to the conversion of a Stock Unit granted under the Plan may be deferred at the election of a grantee beyond the taxable year
in which the Stock Unit vests and becomes non-forfeitable provided permitted by the Committee. 

  

	 	(b)	This deferral program is intended to meet the requirements of an unfunded “top-hat” plan maintained primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees, within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. No grantee shall be permitted to make a deferral election if such grantee’s participation in
the deferral program would cause the Plan to fail to be treated as a top-hat plan. 

  

	 	(c)	Stock Units granted to members of the Board of Directors are not affected by this Addendum. 

 2. Deferral Period 
  

	 	(a)	The deferral may be until any of the following: 

  

	 	(i)	six months after the date of a grantee’s separation from service, 

  

	 	(ii)	the date the participant becomes disabled (within the meaning of Section 409A(a)(2)(C) of Code), 

 

	 	(iii)	death, 

  

	 	(iv)	a specified date (or pursuant to a fixed schedule), 

  

	 	(v)	to the extent provided in regulations, a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the
Company, or 

  

	 	(vi)	the occurrence of an unforeseeable emergency (as defined in Section 409A of the Code or the regulations promulgated thereunder). 

 3. No Acceleration 
 Acceleration of the deferral period elected by the grantee shall not be permitted, except as provided in regulations promulgated under Section 409A of the Code. 

4. Deferral Elections 
 Deferral
elections shall be made in compliance with Section 409A of the Code. In accordance with IRS Notice 2005-1, deferral elections with respect to Stock Units outstanding but unvested as of March 15, 2005 may be made on or before March 15,
2005. Changes in the time and form of payments with respect to Stock Units for which an initial deferral is in effect shall be permitted in accordance with Section 409A(a)(4)(C) of the Code, the terms of which shall be incorporated into this
Addendum. 
 5. Compliance with Section 409A 
 Awards granted under the Plans are intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended. In order to comply with Section 409A, Stock Units
granted under the Plans to employees who are not participants in the 2006 Executive Severance Plan at the time of grant shall be administered such that a separation from service of the grantee does not result in deferred compensation as defined in
Section 409A unless the recipient has made a voluntary deferral election. As a result, Stock Units shall be converted and paid as soon as practicable following the date on which the Stock Units vest and become non-forfeitable. Stock Units
granted under the Plans to employees who are participants in the 2006 Executive Severance Plan shall be administered such that a separation from service of the grantee does not result in the acceleration of payment of a Stock Unit. As a result,
Stock Units shall not be converted and paid prior to the “Vesting Date” specified on the Term Sheet issued in respect of the award. The purpose of the prior sentence is to document that, except in the case of death or termination Within
Two Years following a Change in Control, Stock Units granted to a participant in the 2006 Executive Severance Plan are paid on a date certain unless the recipient has made a specific deferral election in writing. 

6. Transition Relief 
 Notwithstanding
the foregoing, Stock Units that have become vested on or before October 22, 2008 and have not been paid as of such date, shall, if held by an employee who is not a participant in the Executive Severance Plan, be paid on or about
February 24, 2009. This provision has been added as of October 22, 2008 and is intended to comply with the 409A transition guidance. 

7. Change in Control Provisions 
 In
order to comply with Section 409A in connection with the payment of any Stock Units following or in connection with a “Change in Control,” the following applies: 

 

	 	(a)	The definition of Change in Control in Section 18 of the Plan shall apply for purposes of determining the extent to which an Incentive has vested.

  

	 	(b)	Any payment provisions applicable to a Stock Unit that are conditioned upon the occurrence of a Change in Control shall only apply if the Change in Control is also a
change in the ownership or effective control, or a change in the ownership of a substantial portion of the assets of the Company as defined in Treasury Regulation Section 1.409A-3(i)(5).

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