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Docusign Envelope ID: 4C195600 -904A-41 DA-A041-3005C422FD42 <br />DocuSign Envelope ID: 7CEFA800-59DE49DA-8C5B-D8DB41083547 <br />(112024 Version) <br />below on Client utilization to be calculated as follows. The pricing below will be <br />implemented as of the Addendum Effective Date. The pricing below will be guaranteed <br />upon the start of Client's Initial Term or Renewal Term (as described in the Agreement) <br />that begins on or after the Addendum Effective Date. <br />[]-(total discounted AWP ingredient cost excluding dispensing fees and <br />ancillary charges, and prior to application of Copayments) of applicable <br />Prescription Drug Claims for the annual period divided by total undiscounted <br />AWP ingredient cost (both amounts will be calculated as of the date of <br />adjudication) for the annual period)]. Discounted ingredient cost will be the <br />lesser of MAC (as applicable), U&C or AWP discount. <br />Notwithstanding anything herein to the contrary: (i) a Prescription Drug <br />Claim that processes at the Brand Drug rates (Participating Pharmacy <br />Reimbursement Rates) and (Mail Pharmacy Reimbursement Rates), as <br />indicated on the ingredient cost field of the Prescription Drug Claim's data <br />record, shall be reconciled as part of the Brand Drug guarantee below; and <br />(ii) a Prescription Drug Claim that processes at the Generic Drug rates <br />(Participating Pharmacy Reimbursement Rates) and (Mail Pharmacy <br />Reimbursement Rates) above, as indicated on the ingredient cost field of the <br />Prescription Drug Claim's data record, shall be reconciled as part of the <br />Generic Drug guarantee below. The Prescription Drug Claims that may be <br />excluded from the reconciliation of the pricing guarantees are as identified in <br />the "Prescription Drug Claims Excluded" paragraphs below in addition to <br />Prescription Drug Claims dispensed in Puerto Rico, Guam, Northern Mariana <br />Islands, Virgin Islands, Hawaii, Massachusetts, Alaska, West Virginia, and <br />rural pharmacies. Furthermore, prices may vary in certain states for reasons <br />such as most favored nations laws, other state or local legal requirements, <br />geographic location, or other factors beyond the control of Administrator. In <br />those situations, some Claims may be exempt from reconciliation of the <br />financial guarantees set forth herein. All Claims may be aggregated for <br />purposes of such rates. Additionally, under any retail pricing arrangement(s) <br />subject to NADAC pricing, Administrator will retrospectively invoice Client <br />for the difference between Client's contracted dispensing fee and any state <br />mandated pharmacy dispensing fee resulting from claims incurred in any <br />state that mandates the use of NADAC or another pricing benchmarks in <br />pharmacy reimbursement. <br />PARTICIPATING <br />PHARMACV <br />BRAND <br />• <br />PPO <br />AWP — <br />19.75% <br />GENERIC <br />• <br />RETAIL MAINTENANCE <br />PPO <br />AWP — <br />NETWORK 1D <br />85.55% <br />BRAND <br />PPO <br />AWP — <br />23.25% <br />GENERIC <br />• <br />MAIL SERVICE <br />PPO <br />PHARMACY <br />AWP — <br />85.55% <br />BRAND <br />NOT FOR DISTRIBUTION. THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL, PROPRIETARY <br />AND CONSTITUTES TRADE SECRETS OF ESI AND RXBENEFITS <br />