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"Member Submitted Claim" means a paper claim submitted by a Member for Covered Drugs dispensed by a <br />pharmacy for which the Member paid cash. <br />"Pass -Through" means the actual ingredient cost and dispensing fee amount paid by ESI for the Prescription <br />Drug Claim when the claim is adjudicated to the Participating Pharmacy, as set forth in the specific <br />Participating Pharmacy remittances related to Client's claims. <br />"PDL" means the PBM Performance Drug List, which is a list of preferred pharmaceutical products, created <br />and maintained by PBM, as amended from time to time, which: (a) has been approved by PBM's pharmacy <br />and therapeutics committee; and (b) reflects PBM's recommendations as to which pharmaceutical products <br />should be given favorable consideration by plans and their participants. <br />"Participating Pharmacy" means any licensed retail pharmacy with which ESI or one or more of its affiliates <br />has executed an agreement to provide Covered Drugs to Members but shall not include any mail order or <br />specialty pharmacy affiliated with any such Participating Pharmacy. Participating Pharmacies are <br />independent contractors of ESI. <br />"Plan" means the self-funded prescription drug benefit plan(s) administered and/or sponsored by Client. <br />"Plan Administrator" means the Plan sponsor or committee designated by the Plan sponsor with respect to <br />the Plan, as contemplated by Section 3 (16)(A) of ERISA. <br />"Plan Design" means drug coverage, days' supply limitation, Cost Share, Formulary (including Formulary <br />drug selection and relative cost indication) and other Prescription Drug Program specifications applicable to <br />the Prescription Drug Program designated for Client as set forth in this Agreement or otherwise documented <br />between the Parties. <br />"PMPM" means per Member per month fee, if applicable, as determined by Administrator from the <br />Eligibility Files. <br />"Prescription Drug Claim" means a Member Submitted Claim, Subrogation Claim or claim for payment <br />submitted to ESI by a Participating Pharmacy, Mail Service Pharmacy or ESI Specialty Pharmacy as a result <br />of dispensing Covered Drugs to a Member. <br />"Prescription Drug Program" means the specific pharmacy benefit management services and benefit design <br />adopted by, and applicable to, Client under this Agreement. <br />"Primary Member" means each Member, excluding Members who are qualified dependents. <br />"Protected Health Information" or "PHI" shall have the meaning given such term by HIPAA but limited to <br />that information created or received by PBM in its capacity as a subcontractor to Administrator or by <br />Administrator in its capacity as a business associate to the Plan. <br />"Rebates" mean retrospective formulary rebates that are paid to ESI pursuant to the terms of a formulary <br />rebate contract negotiated independently by ESI with a pharmaceutical manufacturer and directly attributable <br />to the utilization of certain Covered Drugs by Members. Rebates do not include Manufacturer Administrative <br />Fees; product discounts or fees related to the procurement of prescription drug inventories, ESI Specialty <br />Pharmacy or the Mail Service Pharmacy; fees received by ESI from pharmaceutical manufacturers for care <br />management or other services provided in connection with the dispensing ofproducts; or other fee-for-service <br />arrangements whereby pharmaceutical manufacturers generally report the fees paid to ESI or its affiliates for <br />services rendered as "bona fide service fees" pursuant to federal laws and regulations (collectively, "Other <br />Pharma Revenue"). Such laws and regulations, as well as ESI's contracts with pharmaceutical <br />manufacturers, generally prohibit ESI from sharing any such "bona fide service fees" earned by ESI, whether <br />wholly or in part, with any ESI client. ESI represents and warrants that it will not enter into any agreement <br />with a pharmaceutical manufacturer for Other Pharma Revenue with the intent to reduce Rebates. <br />NOT FOR DISTRIBUTION. THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL, PROPRIETARY <br />AND CONSTITUTES TRADE SECRETS OF ESI AND RXBENEFITS <br />4 <br />