# EDGAR Filing Document

**Accession Number:** 0001651561
**File Stem:** 0001558370-23-003430
**Filing Date:** 2023-3
**Character Count:** 1001776
**Document Hash:** 7c877cb4cc58dceb43d875c458085062
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-23-003430.hdr.sgml**: 20230310

**ACCESSION NUMBER**: 0001558370-23-003430

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 140

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230310

**DATE AS OF CHANGE**: 20230310

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Tabula Rasa HealthCare, Inc.
- **CENTRAL INDEX KEY:** 0001651561
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-BUSINESS SERVICES, NEC [7389]
- **IRS NUMBER:** 465726437
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37888
- **FILM NUMBER:** 23722930

**BUSINESS ADDRESS:**
- **STREET 1:** 228 STRAWBRIDGE DRIVE
- **STREET 2:** SUITE 100
- **CITY:** MOORESTOWN
- **STATE:** NJ
- **ZIP:** 08057
- **BUSINESS PHONE:** 866-648-2767

**MAIL ADDRESS:**
- **STREET 1:** 228 STRAWBRIDGE DRIVE
- **STREET 2:** SUITE 100
- **CITY:** MOORESTOWN
- **STATE:** NJ
- **ZIP:** 08057

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10-K**

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

**For the year ended December 31, 2022**

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

Commission file number 001-37888

**Tabula Rasa HealthCare, Inc.**

(Exact name of registrant as specified in its charter)

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| | |
|:---|:---|
| &nbsp;&nbsp;**Delaware** | &nbsp;&nbsp;**45-5726437** |
| &nbsp;&nbsp;&nbsp;(State of incorporation) | &nbsp;&nbsp;&nbsp;(I.R.S. Employer Identification No.) |
| &nbsp;&nbsp;**228 Strawbridge Drive, Suite 100**<br>**Moorestown, NJ 08057** | &nbsp;&nbsp;<br>**(866) 648-2767** |
| &nbsp;&nbsp;&nbsp;(Address of Principal Executive Offices, including Zip Code) | &nbsp;&nbsp;&nbsp;(Registrant's Telephone Number, including Area Code) |

---

Securities registered pursuant to Section 12(b) of the Act

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Title of Each Class** | &nbsp;&nbsp;**Trading Symbol** | &nbsp;&nbsp;&nbsp;**Name of Each Exchange on Which Registered** |
| &nbsp;&nbsp;Common Stock, par value $0.0001 per share | &nbsp;&nbsp;TRHC | &nbsp;&nbsp;The Nasdaq Stock Market, LLC |
| &nbsp;&nbsp;Preferred Stock Purchase Rights |  | &nbsp;&nbsp;The Nasdaq Stock Market, LLC |

---

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the voting common stock held by non-affiliates of the registrant was approximately $49,483,939 as of June 30, 2022, the last business day of the registrant's most recently completed second fiscal quarter, computed based on the closing price on such date.

As of February 28, 2023, the Registrant had 26,870,660 shares of Common Stock outstanding.

**DOCUMENTS INCORPORATED BY REFERENCE**

Portions of the Registrant's definitive proxy statement to be filed subsequently and delivered to stockholders in connection with the 2023 annual meeting of stockholders are incorporated herein by reference in response to Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the Registrant's fiscal year ended December 31, 2022.

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| *6*<br>|  |  |
|  |  | **Page** |
|  |  | **Number** |
|  | <br>[PART I](#PartI_431743) |  |
| [Item 1](#Item1Business_424049) | [Business](#Item1Business_424049) | 6 |
| [Item 1A](#Item1ARiskFactors_491780) | [Risk Factors](#Item1ARiskFactors_491780) | 19 |
| [Item 1B](#Item1BUnresolvedStaffComments_720592) | [Unresolved Staff Comments](#Item1BUnresolvedStaffComments_720592) | 47 |
| [Item 2](#Item2Properties_100409) | [Properties](#Item2Properties_100409) | 47 |
| [Item 3](#Item3LegalProceedings_144826) | [Legal Proceedings](#Item3LegalProceedings_144826) | 47 |
| [Item 4](#Item4MineSafetyDisclosures_290003) | [Mine Safety Disclosures](#Item4MineSafetyDisclosures_290003) | 47 |
|  | <br>[PART II](#PartII) |  |
| [Item 5](#Item5MarketforRegistrantsCommonEquity_23) | [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](#Item5MarketforRegistrantsCommonEquity_23) | 47 |
| [Item 6](#Item6Reserved) | [\[Reserved\]](#Item6Reserved) | 48 |
| [Item 7](#Item7ManagementsDiscussionandAnalysis_25) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#Item7ManagementsDiscussionandAnalysis_25) | 48 |
| [Item 7A](#Item7AQuantitativeandQualitativeDisclosu) | [Quantitative and Qualitative Disclosures About Market Risk](#Item7AQuantitativeandQualitativeDisclosu) | 65 |
| [Item 8](#Item8FinancialStatementsandSupplementary) | [Financial Statements and Supplementary Data](#Item8FinancialStatementsandSupplementary) | 65 |
| [Item 9](#Item9ChangesinandDisagreements_96536) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#Item9ChangesinandDisagreements_96536) | 65 |
| [Item 9A](#Item9AControlsandProcedures_7734) | [Controls and Procedures](#Item9AControlsandProcedures_7734) | 65 |
| [Item 9B](#Item9BOtherInformation_344544) | [Other Information](#Item9BOtherInformation_344544) | 66 |
| [Item 9C](#Item9C_770672) | [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](#Item9C_770672) | 66 |
|  | <br>[PART III](#PartIII_300087) |  |
| [Item 10](#Item10DirectorsExecutiveOfficersandCorpo) | [Directors, Executive Officers, and Corporate Governance](#Item10DirectorsExecutiveOfficersandCorpo) | 67 |
| [Item 11](#Item11ExecutiveCompensation_990944) | [Executive Compensation](#Item11ExecutiveCompensation_990944) | 67 |
| [Item 12](#Item12SecurityOwnershipofCertainBenefici) | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#Item12SecurityOwnershipofCertainBenefici) | 67 |
| [Item 13](#Item13CertainRelationshipsandRelatedTran) | [Certain Relationships and Related Transactions and Director Independence](#Item13CertainRelationshipsandRelatedTran) | 67 |
| [Item 14](#Item14PrincipalAccountingFeesandServices) | [Principal Accountant Fees and Services](#Item14PrincipalAccountingFeesandServices) | 67 |
|  | <br>[PART IV](#PartIV_110098) |  |
| [Item 15](#Item15ExhibitsandFinancialStatementSched) | [Exhibits and Financial Statement Schedules](#Item15ExhibitsandFinancialStatementSched) | 67 |
| [Item 16](#Item16Form10KSummary_218558) | [Form 10-K Summary](#Item16Form10KSummary_218558) | 67 |

---

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**Special Note Regarding Forward-Looking Statements**

This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of federal securities laws, including Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). All statements that do not relate to historical or current facts are forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Many of these statements appear, in particular, under the headings *Business* and *Management's Discussion and Analysis of Financial Condition and Results of Operations* included in Item 1 of Part I and Item 7 of Part II, respectively. Forward-looking statements are often identified by the use of words such as, but not limited to, "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "might," "will," "plan," "project," "seek," "should," "target," "would," and similar expressions or variations intended to identify forward-looking statements. The forward-looking statements in this Annual Report on Form 10-K include, among other things, statements about:

● our expectations regarding industry and market trends, including the expected growth and continued structural change and consolidation in the market for healthcare in the United States;

● our expectations about the growth of Programs of All-Inclusive Care for the Elderly ("PACE") organizations;

● our expectations about private payers establishing their own at-risk programs;

● the advantages of our solutions as compared to those of competitors;

● our estimates about our financial performance;

● the visibility into future cash flows from our business model;

● our ability to reduce expenses as a result of our disposition of non-core businesses;

● our growth strategy, including our ability to grow our client base;

● our plans to further penetrate existing markets and enter new markets;

● expectations of earnings, revenue, and other financial items;

● plans, strategies, and objectives of management for future operations;

● our ability to establish and maintain intellectual property rights;

● our ability to retain and hire necessary associates and appropriately staff our operations;

● future capital expenditures;

● future economic conditions or performance;

● our plans to pursue strategic acquisitions and partnerships;

● our plans to expand and enhance our solutions; and

● our estimates regarding capital requirements and needs for additional financing.

These statements are based on the beliefs and assumptions of our management based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include but are not limited to the risks and uncertainties listed below under "Risk Factors Summary" and further described under the heading "Risk Factors" in Part I, Item 1A of this Report, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the United States Securities and Exchange Commission.

**Risk Factor Summary**

The following is a summary of the risks and uncertainties that could materially adversely affect our financial condition, results of operations, cash flows, and competitive position.

*Risks Relating to Our Business and Industry*

&nbsp;&nbsp;&nbsp;&nbsp;● The continued evolution of the healthcare industry in the United States, or U.S.;

&nbsp;&nbsp;&nbsp;&nbsp;● Our inability to continue offering innovative products and services;

&nbsp;&nbsp;&nbsp;&nbsp;● The competitive nature of the medication management market;

&nbsp;&nbsp;&nbsp;&nbsp;● Our historic significant net losses;

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&nbsp;&nbsp;&nbsp;&nbsp;● Our failure to effectively manage our future growth;

&nbsp;&nbsp;&nbsp;&nbsp;● Our failure to continue to grow at the rates we've achieved historically or at all;

&nbsp;&nbsp;&nbsp;&nbsp;● Our dependence on medication revenue from sales of prescription medications;

&nbsp;&nbsp;&nbsp;&nbsp;● Our dependence on revenue from PACE organizations;

&nbsp;&nbsp;&nbsp;&nbsp;● Consolidation in the healthcare industry;

&nbsp;&nbsp;&nbsp;&nbsp;● Failure by PACE organization clients to meet applicable penetration benchmarks;

&nbsp;&nbsp;&nbsp;&nbsp;● Dependence on the growth of our clients;

&nbsp;&nbsp;&nbsp;&nbsp;● Our dependence on our ten largest clients and the loss of one or more of these clients or the reduction in demands or change in contract terms relating to one or more of these clients;

&nbsp;&nbsp;&nbsp;&nbsp;● Our practice of billing our clients and recognizing revenue over the term of the contract;

&nbsp;&nbsp;&nbsp;&nbsp;● Our potential inability to attract new clients;

&nbsp;&nbsp;&nbsp;&nbsp;● Our inability to maintain and enhance our reputation and brand recognition;

&nbsp;&nbsp;&nbsp;&nbsp;● Our failure to produce positive outcomes and cost reductions for our clients;

&nbsp;&nbsp;&nbsp;&nbsp;● Our dependence on positive references from existing clients for marketing;

&nbsp;&nbsp;&nbsp;&nbsp;● The unpredictability of our sales and implementation cycle;

&nbsp;&nbsp;&nbsp;&nbsp;● Any failure to offer high-quality client support services;

&nbsp;&nbsp;&nbsp;&nbsp;● The failure of our proprietary products and services to operate properly;

&nbsp;&nbsp;&nbsp;&nbsp;● Adverse drug events that may arise as a result of recommendations made by our services;

&nbsp;&nbsp;&nbsp;&nbsp;● Our dependence on a group purchasing organization;

&nbsp;&nbsp;&nbsp;&nbsp;● The expiration of the EMTM Pilot Program;

&nbsp;&nbsp;&nbsp;&nbsp;● Restrictions to license or share data and integrate third-party technologies;

&nbsp;&nbsp;&nbsp;&nbsp;● Data loss or corruption due to failures or errors in our systems;

&nbsp;&nbsp;&nbsp;&nbsp;● Our inability, or the inability of our third-party vendors, to safeguard the privacy of confidential data;

&nbsp;&nbsp;&nbsp;&nbsp;● Our reliance on internet infrastructure, bandwidth providers, and third parties;

&nbsp;&nbsp;&nbsp;&nbsp;● Our reliance on third-party vendors to host and maintain our technology platform;

&nbsp;&nbsp;&nbsp;&nbsp;● The potential loss of one or more of our executive officers or key employees, an inability to attract and retain highly skilled employees, or the impact of recent departures of one or more of our executive officers or key employees;

&nbsp;&nbsp;&nbsp;&nbsp;● The potential lack of additional capital to support business growth;

&nbsp;&nbsp;&nbsp;&nbsp;● Adverse impacts due to changes in tax laws;

&nbsp;&nbsp;&nbsp;&nbsp;● The potential that we could be subject to additional state and local taxation;

&nbsp;&nbsp;&nbsp;&nbsp;● Risks associated with our review of potential strategic alternatives and potential divestitures;

&nbsp;&nbsp;&nbsp;&nbsp;● The impact of activist shareholder activity, including on our strategic direction;

&nbsp;&nbsp;&nbsp;&nbsp;● Potential litigation, investigations, or government proceedings and the impact on our business or management;

&nbsp;&nbsp;&nbsp;&nbsp;● Risks associated with sales to clients outside the U.S. or clients with international operations; and

&nbsp;&nbsp;&nbsp;&nbsp;● The impact of the COVID-19 pandemic and other public health crises.

*Risks Relating to Our Intellectual Property*

&nbsp;&nbsp;&nbsp;&nbsp;● Our inability to obtain, maintain, and enforce intellectual property protection for our technology and products;

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&nbsp;&nbsp;&nbsp;&nbsp;● Our inability to adequately protect our trademarks, trade names, and domain names;

&nbsp;&nbsp;&nbsp;&nbsp;● The potential that we could incur substantial costs as a result of any infringement claim;

&nbsp;&nbsp;&nbsp;&nbsp;● Risks relating to our use of open source software;

&nbsp;&nbsp;&nbsp;&nbsp;● Risks relating to intellectual property lawsuits and litigation; and

&nbsp;&nbsp;&nbsp;&nbsp;● Our inability to protect the confidentiality of our trade secrets, know-how, and other proprietary information.

*Risks Relating to Industry Regulation and Other Legal Compliance Matters*

&nbsp;&nbsp;&nbsp;&nbsp;● The uncertain and evolving nature of the healthcare regulatory and political framework;

&nbsp;&nbsp;&nbsp;&nbsp;● Restrictions imposed by data privacy and security laws, regulations, and contractual obligations;

&nbsp;&nbsp;&nbsp;&nbsp;● Costs associated with compliance with state and federal statutes and regulations relating to the healthcare industry;

&nbsp;&nbsp;&nbsp;&nbsp;● Further modifications to the Medicare Part D program and changes in pricing benchmarks; and

&nbsp;&nbsp;&nbsp;&nbsp;● Legislative or regulatory initiatives relating to climate change or other environment, social and governance ("ESG") matters.

*Risks Relating to Our Common Stock*

&nbsp;&nbsp;&nbsp;&nbsp;● The influence of executive officers, directors, and principal stockholders over all matters submitted to stockholders for approval;

&nbsp;&nbsp;&nbsp;&nbsp;● Provisions of Delaware law that may discourage, delay, or prevent someone from acquiring us or merging with us;

&nbsp;&nbsp;&nbsp;&nbsp;● Our exclusive forum provision;

&nbsp;&nbsp;&nbsp;&nbsp;● The volatility of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;● Our inability to implement effective internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;● Our historic lack of cash dividends;

&nbsp;&nbsp;&nbsp;&nbsp;● The potential limited ability to use net operating loss carryforwards ("NOLs"); and

&nbsp;&nbsp;&nbsp;&nbsp;● Our stockholder rights plan could discourage a transaction that stockholders may find favorable.

*Risks Relating to Our Convertible Senior Subordinated Notes*

&nbsp;&nbsp;&nbsp;&nbsp;● Our inability to generate cash flow required to pay our substantial debt;

&nbsp;&nbsp;&nbsp;&nbsp;● Our potential to incur substantially more debt;

&nbsp;&nbsp;&nbsp;&nbsp;● Our inability to settle conversions of the 2026 Convertible Notes;

&nbsp;&nbsp;&nbsp;&nbsp;● The impact of the conditional conversion feature of the 2026 Convertible Notes on our financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;● The impact of the accounting method for convertible debt securities that may be settled in cash; and

&nbsp;&nbsp;&nbsp;&nbsp;● Our entry into convertible note hedge and warrant transactions.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Unless the context requires otherwise, the terms the "Company," "Tabula Rasa HealthCare," "we," "us," and "our" mean Tabula Rasa HealthCare, Inc., a Delaware corporation, and its consolidated subsidiaries.

**Websites Used in This Report**

Website addresses referenced in this Annual Report on Form 10-K are provided for convenience only, and the content on the referenced websites does not constitute a part of, and shall not be deemed incorporated by reference into, this Annual Report on Form 10-K.

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**Trademarks Used in This Report**

Trademarks or service marks owned by us, when first used in each item of this report, appear with an initial capital and are followed by the symbol® or™, as applicable. In subsequent uses of the marks in the item, the symbols may be omitted.

**Part I**

**Item 1.** **Business**

**Overview**

Tabula Rasa HealthCare, Inc. is a healthcare technology company advancing the safe use of medications by creating solutions designed to empower pharmacists, providers, and patients to optimize medication regimens. Our advanced proprietary technology, MedWise®, identifies causes of and risks for medication-related problems, including adverse drug events ("ADEs"), so that healthcare professionals can minimize harm and reduce medication-related risks. Our software and services help drive valued-based care by improving patient outcomes and lowering healthcare costs through reduced hospitalizations, emergency department visits, and healthcare utilization. Our vision and mission are supported by our experienced leadership team, our significant investments in our technology, services, and people, and partnerships with our healthcare clients including health plans and provider organizations to manage the most complex and vulnerable individuals.

We operate our business through two segments, CareVention HealthCare and MedWise HealthCare.

Our CareVention HealthCare segment provides our clients, primarily organizations with PACE, with medication fulfillment services, cloud-based software, pharmacy benefit management ("PBM") solutions, and clinical pharmacist services at the point-of-care. PACE is a Centers for Medicare & Medicaid Services ("CMS") sponsored program providing comprehensive medical and social services to adults aged 55 and older who need a nursing facility level of care but can live safely in community settings. Our clients include ArchCare Senior Life, Trinity Health, Palm Beach PACE, St. Paul's PACE, and Welbe Health. We access the market through a number of different service lines and brands, including CareKinesis®, Capstone Risk Adjustment Services, CareVention Consulting™, PACElogic™, TruChart®, PeakTPA, PersonifilRx®, and Pharmastar®.

Our largest CareVention HealthCare revenue offering is our medication fulfillment services, which are built around our advanced proprietary MedWise technology, designed to enable clinicians to increase patient safety, create individualized medication regimens, promote adherence, and eliminate unnecessary prescriptions. Our medication fulfillment and adherence packaging services utilize MedWise technology to reduce medication-related risk for the high-cost, high-risk PACE population. The CareVention HealthCare suite of offerings also includes risk adjustment services, PBM solutions, cloud-based electronic health records solutions, and third-party administration services, which are all specifically tailored to the PACE market. Our CareVention HealthCare segment serves more than 150 healthcare organizations.

The CareVention HealthCare segment revenue model is primarily based on payments for charges and dispensing fees for medication fulfillment, payments on a per-member, per-month ("PMPM") basis, payments on a subscription basis, and payments on a per claim basis.

Our MedWise HealthCare segment provides technology-enabled solutions to promote medication safety and adherence to improve patient outcomes and reduce healthcare costs. The technology-enabled solutions revenue model is primarily based on payments on a PMPM basis, payments on a subscription basis, and payments on a fee-for-service basis for each medication safety review and clinical assessment completed.

As described further below under "Divestiture of Non-Core Businesses," we completed the sale of our PrescribeWellness business in 2022 and completed the sales of our DoseMe and SinfoníaRx businesses in January and March 2023, respectively. These non-core businesses collectively comprised the majority of our MedWise HealthCare segment during 2022, with PrescribeWellness representing the most significant portion of this segment, and these

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divestitures represented a strategic business shift having a significant effect on our Company's operations and financial results.

Substantially all of our revenue is recognized in the U.S., and substantially all of our assets are located in the U.S.

**Industry and Market**

We believe demographic, legislative, and regulatory trends support our long-term growth targets. Our core market is the U.S. senior population, defined as individuals 65 years and older, which represent a large and growing segment within the U.S. as seniors are living longer with the current life expectancy in 2023 at 79.1 years according to the United Nations. According to the U.S. Census Bureau, the population of U.S. seniors is expected to grow to 73.1 million by 2030, up from 56.1 million in 2020, and to increase as a percentage of the population from 17% to 21% over the same period.

We believe there is a significant opportunity to scale our business by addressing the growing need to optimize medication regimens for seniors. An April 2020 report from the Lown Institute noted that polypharmacy (defined as the simultaneous use of five or more medications) has reached "epidemic proportions." The Lown Institute also stated in that report that 40% of seniors are taking five or more prescription medications to treat the growing prevalence of multiple chronic conditions, including heart disease, diabetes, asthma, high blood pressure, and cancer.

Our solutions, as evidenced by a number of peer-reviewed publications, result in improved outcomes for the individual and a material reduction in the total cost of care for health plans. Medicare provides health insurance for individuals 65 and older and in 2021 Medicare spending totaled $829 billion. Medicare spending is expected to grow to $1.8 trillion in 2031 due to growing Medicare enrollment increased use of services and intensity of care, and rising healthcare costs.

From a legislative and regulatory perspective, we believe there are important drivers to support future growth including: the long-term transition to value-based care, led by CMS, which established a goal to reach 100% of Medicare beneficiaries in some type of value-based model by 2025; CMS Medicare Part C and Part D Star Ratings, which are published annually and measure the quality of health and drug services received by consumers; and a number of bills introduced in the U.S. House of Representatives and Senate focused on increasing the number of individuals that have access to PACE, our largest market today, including: the House and Senate including the Elizabeth Dole VA Home and Community Based Services for Veterans and Caregivers Act of 2022; the PACE Part D Choice Act; and the PACE Plus Act.

**Our Growth Strategy**

We continue to progress toward the long-term growth strategy that we articulated in early 2020. Continued achievement of this long-term growth is based on two key tenets:

1) Further penetration of the PACE market by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Leveraging our existing client base, which includes more than 80% of all PACE participants utilizing at least one of our solutions and cross-selling to increase our average revenue per participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Organic member growth within our existing clients based upon (i) the growing number of individuals enrolling in Medicare and Medicaid, (ii) the evolution from the National PACE Association's PACE 2.0 initiative to the PACE 200K project, which is designed to significantly increase enrollment to 200,000 by 2028, as compared to 63,606 as of December 2022 according to the National PACE Association, and (iii) the growing influence of for-profit PACE operators such as InnovAge and WelbeHealth; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Continued investments in our offerings to attract new PACE members and, more broadly, managed care organizations and at-risk provider groups with a focus on the more than 12 million dual-eligible beneficiaries.

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Our PACE clients had a combined patient census of 53,430, an increase of 7.4%, at the end of 2022, as compared to 49,769 and 44,947 patients at the end of 2021 and 2020, respectively. The 10.7% growth in patient census for 2021, as compared to 2020, benefited from inorganic growth from the October 2020 acquisition of Personica.

2) Accelerating the adoption of our MedWise software and clinical pharmacy programs by health plans across all lines of business, including Medicare Part C and Part D, Medicaid managed care, and commercial clients.

***Further Penetrate the Programs of All-Inclusive Care for the Older Adult Market***

We believe that we are the market leader in providing medication risk management services to PACE, a CMS-sponsored program through which participating healthcare organizations provide fully integrated healthcare services on an at-risk basis for older adults, most of whom are dually eligible for Medicare and Medicaid. Our medication management, together with pharmacy fulfillment PACE clients, cover approximately 32% of the total PACE enrollees nationwide reported by the National PACE Association at the end of 2022, as compared to 30% at the end of 2021.

We have organized our PACE offerings under our CareVention HealthCare segment that offers a comprehensive set of solutions, including medication management services and fulfillment, PBM solutions, risk adjustment services, third-party administrator services, and electronic health records software. By organizing our sales and marketing resources, we have streamlined efforts to facilitate cross-selling and increase the adoption of our services.

We believe that we have a significant opportunity to continue to grow within the PACE market, and we expect our PACE clients to continue to grow organically to cover more eligible lives through expansion of existing sites and new PACE center locations. Based on recent industry data, there are 2.2 million PACE-eligible individuals in the U.S., which equates to a current penetration rate of approximately 3%. In 2023, the National PACE Association will launch its PACE 200K project with the goal of 200,000 participants by 2028.

***Continue Expansion into the Payer and At-Risk Provider Markets***

We believe that the growth of government healthcare programs and the shift to value-based care models are creating opportunities to capture growing portions of the expanding healthcare market. Accordingly, we are actively targeting at-risk, value-based markets, including managed care organizations, physician provider groups, and self-insured employer groups. We have recently started leveraging our CareVention HealthCare portfolio of services to secure contracts with a number of start-up Medicare Advantage plans and at-risk provider groups, and we expect to continue to further penetrate the broader Medicare and Medicaid market with our solutions

***Continue to Innovate and Expand Platform Offerings to Meet Evolving Market Needs***

We believe our strategic investments in human capital, technology, and services position us to continue to pursue rapid innovation and expand our medication risk management solutions and other platform offerings to the broader healthcare marketplace. For example, we developed the MedWise Risk Score™ (the "MRS") and launched associated high-throughput medication risk stratification technology for identification of patients in need of clinical intervention.

***Divestiture of Non-Core Businesses***

In February 2022, we announced plans to evaluate non-core assets to refocus our corporate strategy and increase stockholder value, and we commenced an initial plan to sell the DoseMe business, which we acquired in January 2019. In March 2022, we completed our evaluation of additional divestiture opportunities and commenced plans to sell the SinfoníaRx and PrescribeWellness businesses, acquired in September 2017 and March 2019, respectively. As described further below, we completed our sales of the PrescribeWellness, DoseMe, and SinfoníaRx business in August 2022, January 2023, and March 2023, respectively. We determined that these businesses met the requirements to be classified as held for sale and discontinued operations as of March 31, 2022, and the DoseMe and SinfoníaRx businesses continued to meet such requirements as of December 31, 2022. Accordingly, the accompanying consolidated financial statements in this Annual Report on Form 10-K have been recast for all periods presented to reflect the assets, liabilities, revenue, and expenses related to these businesses as discontinued operations.

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On August 1, 2022 (the "PW Sale Date"), we completed the sale of our unincorporated PrescribeWellness business division (the "PrescribeWellness Business"), and the assets, properties, and rights that were primarily used or held for use in connection with the PrescribeWellness Business, and the KD Assets (as defined below), to Transaction Data Systems, Inc. ("TDS"). On the PW Sale Date, we also completed the acquisition of certain intellectual property from karmadata, Inc. ("KD"), which had historically been licensed to us (the "KD Assets"). The KD Assets acquired were simultaneously transferred to TDS on the PW Sale Date. The purchase consideration included $125 million in cash, subject to certain customary post-closing adjustments, of which $118.6 million was paid directly to us and $5.9 million was paid to KD on the PW Sale Date. In October 2022, TDS also paid us $1.5 million for certain customary post-closing adjustments. We are also entitled to receive up to $15.0 million in contingent consideration based upon the PrescribeWellness Business's achievement of certain performance-based metrics during the fiscal years ending December 31, 2023 and 2024.

On January 20, 2023, we entered into a Share and Asset Purchase Agreement to sell our unincorporated DoseMe business (the "DoseMe Business"), and the assets, properties, and rights that are primarily used or held for use in connection with the DoseMe Business. The purchase consideration included $2.0 million in cash, subject to certain customary post-closing adjustments, and a note receivable of $3.0 million with an annual interest rate of 7%, which matures on January 20, 2027.

On March 2, 2023, we entered into an Asset Purchase Agreement to sell our unincorporated SinfoníaRx business (the "SinfoníaRx Business"), and the assets, properties, and rights that are primarily used or held for use in connection with the SinfoníaRx Business. The purchase consideration included $1.4 million in cash, subject to certain customary post-closing adjustments, and a note receivable of $3.6 million with an annual interest rate of 3%, which matures on December 31, 2023. We may also be entitled to receive up to $1.0 million in contingent consideration based upon potential regulatory changes affecting the business.

We used the cash proceeds from the sale of the PrescribeWellness Business to pay off our line of credit with Western Alliance Bank (the "2020 Credit Facility") and increase our liquidity. The remaining cash proceeds, along with cash proceeds received and promissory notes from the divestitures of the DoseMe and SinfoníaRx businesses, will provide our Company with the financial flexibility to optimize our capital structure, as well as to focus on our core value-based care business and our MedWise science, including our offerings targeted at the PACE market.

When the Company commenced plans to sell the PrescribeWellness, DoseMe, and SinfoníaRx businesses, these businesses collectively comprised the majority of our MedWise HealthCare segment, with PrescribeWellness representing the most significant portion of this segment. The disposition of these non-core businesses represents the completion of our previously-announced strategic business shift.

***Strategic Review***

On September 13, 2022, we entered into a cooperation agreement (the "Cooperation Agreement") with a significant stockholder, pursuant to which, among other matters, we agreed to effect certain changes to our management team and the composition of our Board of Directors (the "Board") and implement certain corporate governance changes. In connection with the Cooperation Agreement, we also formed a Strategic Review Committee, which oversaw the Company's strategic process relating to the sale of the non-core assets described above and continues to oversee management's exploration of other strategic alternatives and value-creation opportunities with a view toward maximizing stockholder value. For further information regarding the Cooperation Agreement, refer to Note 21, "Related Party Transactions," in the notes to the consolidated financial statements in this Annual Report on Form 10-K.

**Our Software and Services**

***Our Software***

Our cloud-based software applications are designed to assist prescribers and pharmacists with patient engagement, identification, and prioritization of high-risk patients, clinical decision support, documentation of clinical interactions, ordering medications and lab tests, and care management.

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Most of our personalized medication risk management services are based on our MedWise® Science. For each patient, MedWise Science incorporates personal medical history data, summarizes the aggregate risk of the patient's medications based on proprietary algorithms, and provides patient-specific clinical alerts for risk, including cognitive impairment, sedation, heart rhythm problems, and unintentional overdose. MedWise results may be utilized by prescribers independently or analyzed by our pharmacists to optimize patient medication regimens. Elements of MedWise are currently available in *EireneRx®, TruChart®,* and *PACElogic™*.

*EireneRx*

*EireneRx* is our cloud-based medication decision-support and e-prescribing platform. It includes an order entry module used by healthcare organizations to access patient medication-related information and our personalized proprietary MedWise Science on demand. *EireneRx* provides a shared patient medication profile that enables client-clinicians and our pharmacists to collaborate on medication management in real time. *EireneRx* provides MedWise dashboards, as well as a secure instant messaging feature, through which our pharmacists and PACE clinicians can communicate. *EireneRx* is integrated with our prescription fulfillment pharmacies and is capable of transmitting prescriptions to community pharmacies in the U.S.

*TruChart*

*TruChart* offers electronic health records ("EHR"), care coordination, and financial management in one program, allowing PACE programs to track measurable outcomes in defined timeframes for the populations they serve. Developed specifically for PACE, *TruChart* is a comprehensive, scalable, and secure technology solution that delivers PACE functionality. *TruChart* covers end-to-end functionality to manage care coordination, enrollments, authorizations, utilization management, scheduling, claims payment, interfaces, and reporting.

*PACElogic*

*PACElogic* delivers neatly organized, real-time shareable workflows covering all aspects of operations for PACE organizations and other small health plans. Capable of integrating with any EHR, *PACElogic* also delivers value as a robust, stand-alone solution. *PACElogic* offers an array of best-of-breed features, including EHR, customer relationship management, claims adjudication, electronic data interchange, care management, coordination and planning, integration with community-based providers, and all federal and state required reporting. *PACElogic* brings clinical and non-clinical data together into a unified health plan management system.

***Our Services***

Our clinical pharmacist collaboration service, prescription fulfillment, and adherence packaging service, health plan management services, including risk adjustment and third-party administrator services, and pharmacy benefit management services are designed to improve patient experiences and outcomes and contain costs. The revenue models under these service contracts typically include a fee assessed for each medication review, payments on a PMPM basis, payments on a subscription basis, and charges and dispensing fees for medication fulfillment.

*Clinical Pharmacist Collaboration*

We have teams of clinical pharmacists dedicated to performing medication safety reviews (the "MSRs"). These interventions include one-on-one consultations with patients, as well as communications with prescribers. Clinical pharmacist recommendations can include guidance based on the clinical application of pharmacogenomic test results, assessment of the MedWise findings and of patient medical history, and optimization of medication regimens. Our clinical pharmacists provide these personalized medication recommendations through real-time digital and verbal communications. We provide clinical decision support, medication safety recommendations, and adherence support for patients nationwide.

*Prescription Fulfillment and Adherence Packaging*

We operate four prescription fulfillment pharmacies strategically located to efficiently distribute medications nationwide. Informed by each patient's personalized MedWise Matrix, we package medications, synchronize fills, and aggregate doses by day and time-of-day. These measures increase the ease of adherence by patients to their optimized

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medication regimens. Using robotic dispensing machines, our scalable, high-performance systems allow for an array of medication packaging options that include multi-dose, deep-well cards and multi-dose pouches.

*Health Plan Management*

Our health plan management services include risk adjustment services through our Capstone Risk Adjustment Services offerings and third-party administration services through our PeakTPA service offerings.

Long-term optimization of risk adjustment outcomes is complex and, for many organizations, significantly affects financial performance. We take a prospective approach to risk adjustment beyond the typical strategy of providing retrospective reviews and claims data analysis. We specialize in helping clients optimize processes and systems to capture timely, complete, and accurate data. Through these services, we help PACE and other healthcare organizations remain compliant with regulations, make reliable comparisons to internal and external benchmarks and identify high-volume/high-cost issues for quality program initiatives.

We provide third-party administrator services that optimize health plans' financial management functions and fulfill regulatory requirements. Our expertise in health plan management, particularly in PACE, enables our clients to focus on delivering high-quality care to their members. Our services include enrollment management, accounts receivable, claims adjudication, risk adjustment data submission, encounter data processing and submission, and Medicare Part D data submission.

*Pharmacy Benefit Management Solutions*

We provide PBM solutions to PACE and commercial organizations. These capabilities cover a broad range of administrative and clinical functions, including: claims processing, rebate administration and direct and indirect renumeration reporting, drug utilization review programs, prescription drug event management, compliance and audit risk, plan-to-plan management, annual Medicare Part D bids, coordination of benefits, true out-of-pocket cost support, and government and state-level reporting.

**Our Clients**

Our clients are typically at-risk healthcare organizations, primarily PACE organizations, managed-care organizations, government and commercial health plans, and other provider groups. We have strong and long-standing relationships with our clients, in many cases providing services under multi-year contracts. As of December 31, 2022, our largest segment, our CareVention HealthCare segment, served more than 150 healthcare organizations, predominantly PACE organizations.

***PACE Organizations***

PACE, a federal and state collaboration, is one of only three established models serving the more than 12 million dual-eligible patient population in the U.S. and focuses on preventing institutional-based placement. PACE embodies many of the characteristics and trends affecting the healthcare industry as a whole: specifically, value-based payment models and the desire for seniors to age in place. We believe we are the market-leader in providing medication risk management technology and services to PACE organizations, which are responsible for individuals who typically have complex medication regimens. Our PACE clients utilizing our medication risk management and pharmacy fulfillment services covered approximately 32% of the total PACE enrollees nationwide at the end of 2022. In addition, we also provide a suite of complementary solutions to assist PACE organizations with clinical, financial, and administrative operations.

***Managed Care Organizations***

According to CMS, at the end of 2022, 53.0 million Americans were enrolled in Medicare Part C (i.e., Medicare Advantage) and Part D (Prescription Drug Plan or PDP), a 3.0% increase as compared to the end of 2021, driven by growth in Medicare Advantage. In the past decade, the number of beneficiaries enrolled in Medicare Advantage ("MA") plans has more than doubled to 29.6 million in 2022. MA enrollment increased 8.4% in 2022 and total enrollment is expected to grow to more than 40 million by 2030. The Congressional Budget Office projects that MA will increase to nearly 51% of total Medicare enrollment or more than 80 million Americans by 2030. According to

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Medicaid.gov, there were 47.6 million adult lives covered under Medicaid as of October 2022, which represents an increase of 3.4 million lives since the end of 2021. According to the Kaiser Family Foundation, 156.2 million Americans, or 49% of the country's total population, are covered under employer-sponsored health insurance. Many of the health plans with which we currently contract have multiple lines of business spanning Medicare, Medicaid, and the self-funded employer market. We currently provide a range of clinical programs, including MSRs, to these markets. We believe our solutions are broadly applicable throughout the managed care landscape, including to self-funded employer groups.

***At-Risk Provider Groups***

We contract with at-risk provider groups across the country to provide risk adjustment services, care transition support, and comprehensive medication management services. With respect to our comprehensive medication management services, we risk-stratify patient cohorts for these groups and identify patients at risk for medication problems. We then collaborate with these groups on interventions to mitigate that risk. These interventions are performed by our clinical teams, or in some cases, by employees of the at-risk provider who we have trained and certified.

**Intellectual Property**

We create, own, and maintain various intellectual property assets that, in the aggregate, are of material importance to our business. Our intellectual property assets include: six issued patents and nineteen pending patent applications related to our innovations, products, and services; trademarks related to our brands, products, and services; copyrights in software, documentation, content, and databases; and trade secrets relating to data processing, statistical methodologies, data security, and other aspects of our business. We are licensed to use certain technology and other intellectual property rights owned and controlled by others, and, similarly, other companies are licensed on a nonexclusive basis to use certain technology and other intellectual property rights owned and controlled by us.

We rely on patent, copyright, trademark, and trade secret laws, as well as confidentiality agreements, licenses, and other agreements with employees, consultants, vendors, and clients to protect our intellectual property. We also seek to control access to and distribution of our proprietary software, confidential information and know-how, technology, and other intellectual property. We have seven issued patents: (i) U.S. Pat. No. 8,392,220, entitled "Medication Management System and Method" and issued on March 5, 2013; (ii) U.S. Pat. No. 10,720,241, entitled "Medication Risk Mitigation System and Method" and issued on July 21, 2020; (iii) U.S. Pat. No. 10,890,577, entitled "Treatment Methods Having Reduced Drug-Related Toxicity and Methods of Identifying the Likelihood of Patient Harm from Prescribed Medications" and issued on January 12, 2021; (iv) Japanese Pat. 7042256, entitled "Methods of Treatment Having Reduced Drug-Related Toxicity and Methods of Identifying the Likelihood of Patient Harm Arising from Prescribed Medications" and issued on March 16, 2022, (v) Mexico Pat. 389003, entitled "Methods of Treatment Having Reduced Drug-Related Toxicity and Methods of Identifying the Likelihood of Patient Harm Arising from Prescribed Medications" and issued on January 3, 2022 and (vi) Chinese Pat. 110022908, entitled "Methods of Treatment Having Reduced Drug-Related Toxicity and Methods of Identifying the Likelihood of Patient Harm Arising from Prescribed Medications" and issued on April 5, 2022 and (vii) U.S. Pat. 11,361,856, entitled "Population-based Medication Risk Stratification and Personalized Medication Risk Score" and issued on June 14, 2022 . We also have six non-provisional patent applications pending in the United States, comprising: (i) Application No. 15/008,555, filed on January 28, 2016 and relating to a medication risk mitigation matrix system, (ii) Application No. 16/928,557, filed on July 14, 2020, and relating to medication risk mitigation matrix systems and methods, (iii) Application No. 17/143,936, filed on January 7, 2021, relates to treatment methods having reduced drug-related toxicity and methods for identifying patient harm. This application also has related foreign counterpart pending applications in Canada, Hong Kong, Mexico, and Europe. Application No. 16/760,631, filed on April 30, 2020, relates to population-based medication risk stratification. This application also has related foreign counterpart applications in Canada, Europe, Hong Kong, and Singapore. Application No. 16/870,517, filed on May 8, 2020, is related to population-based medication risk stratification. We have pending application No. 17/837,841, filed on June 10, 2022 and entitled "Population-based Medication Risk Stratification and Personalized Medication Risk Score". We have a pending PCT application no. PCT/US2021/057063, entitled "System and Method of Processing Pharmaceutical Substance Data" and filed October 28, 2021. We also have a pending design patent application, Application No. 29/746,708835,609, filed on April 20, 2022 related to a novel graphical user interface. We own copyright registrations in connection with the following software: EireneRx, PACElogic, CaseLogic, Mobile Workforce Manager, and Enterprise Services.

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We own and use trademarks in connection with products and services, including both unregistered common law marks and issued trademark registrations in the U.S. Our material trademarks, service marks, and other marks include: EireneRx®, Carekinesis®, Medication Risk Mitigation by CareKinesis®, MedWise®, MedWise Advisor®, MedWise Risk Score<sup>TM</sup>, NiaRx®, CareVentions®, Tabula Rasa HealthCare®, Medliance®, Medication Risk Mitigation<sup>TM</sup>, Medication Risk Mitigation Matrix<sup>TM</sup>, Peak PACE Solutions<sup>TM</sup>, Mediture®, TruChart®, Cognify<sup>TM</sup>, PACElogic<sup>TM</sup>, PersonifilRx®, Personifil®, and Pharmastar®.

**Our Competitive Landscape**

We compete with a broad and diverse set of businesses. We believe that the competitive landscape is highly fragmented with no single competitor offering our novel, multi-drug interaction software and similarly expansive capabilities and solution offerings. Our competitive advantage is largely based on our proprietary multi-drug interaction software, healthcare industry expertise, breadth and depth of services, intellectual property, including six patents issued or pending, ease of use, reputation, innovation, security, price, reliability, and client service. Our multi-drug interaction software has been developed over the course of three decades. A competitive challenge is to demonstrate to our existing and potential clients the value of utilizing our platforms rather than developing or assembling their own alternative capabilities or utilizing providers who offer a subset of our services. However, we believe that the combination of our competitive strengths and successful culture of innovation, including the real-world-tested nature of our solutions and subject matter expertise of our team members, makes it time- and cost-prohibitive for our clients or competitors to replace or replicate all that we offer.

Current industry participants that offer medication risk management services include large and small healthcare data analytics and consulting companies, community and long-term care pharmacies, national pharmacy providers, health plans, genomic testing labs, and healthcare information technology companies. Many of our competitors' solutions are regulatory-driven, retrospective in nature, and offer no intervention at the point of care. The services offered by these organizations may include e-prescribing and EHRs utilizing antiquated drug interaction analysis, lab-based genomic evaluation, basic risk stratification solutions, and other traditional approaches to MTM. Many health plans attempt to address non-adherence solely through outreach efforts, which often require in-house or third-party consultants and have low success rates. Many genomic testing labs lack the ability to apply patient test results in a useful way at the point of care. Post-acute providers typically employ pharmacist consultants to review prescription regimens every 30 days, which is retrospective in nature and generally less effective in improving patient outcomes. Furthermore, typical prescription fulfillment models are reimbursed on a fee-for-service basis and are incentivized based on prescription dispensing volumes. Our clients partner with us to mitigate and prevent medication problems, lower healthcare costs, and improve overall health outcomes, which often involve utilizing our software to optimize prescription regimens.

While we believe that no competitor provides a similar breadth and depth of solutions, we nevertheless compete with other companies' specific products or solutions and markets or care settings. For example, traditional, single drug-to-drug interaction databases are provided by Wolters Kluwer, Elsevier, and Hearst Health. Additional competitors across both of our major market segments include our health plan clients that opt to in-source clinical programs (such as MTM), as well as external vendors such as Cardinal Health, Adhere Health, RxAnte, Cureatr, Aspen RxHealth, Clarest Health, Pack4U, and MedWatchers. We expect that competition will continue to increase as a result of consolidation in both the information technology and healthcare industries. The continued growth in healthcare spending, the ongoing shift to value-based payment models, such as PACE and Medicare Advantage, and changes in government regulation may draw increasing attention and generate new competitors, such as management consultants, traditional technology companies, and start-ups that may enter the market.

**Regulatory Environment**

We operate in a highly regulated industry and our business operations must comply with a number of complex and evolving federal and state agency requirements. While we believe we comply in all material respects with applicable healthcare laws and regulations, these laws can vary significantly from jurisdiction to jurisdiction, and the state and federal interpretation of existing laws and regulations, and their enforcement, may change from time to time. Additionally, a state or federal government enforcement body may disagree that we are in material compliance with applicable healthcare laws and regulations. Federal and state legislatures also may enact various legislative proposals that could materially impact certain aspects of our business.

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To date, there has been no material adverse effect to our consolidated financial statements or competitive positions as a result of these government regulations. Refer to "Risks Related to Industry Regulation and Other Legal Compliance Matters" in the "Risk Factors" section included in Item 1A. of Part I of this Annual Report on Form 10-K for further discussion of the potential impacts of government regulation on our business.

A non-exhaustive list of federal and state statutes, regulations, sub-regulatory guidance, and contractual provisions that may apply to our business activities includes:

***Healthcare Legislation***

In 2010, Congress passed major health reform legislation, mostly through the Affordable Care Act ("ACA"). Generally, the ACA was designed to expand coverage for the uninsured while containing overall healthcare costs. Following passage, the U.S. government has issued numerous rules and regulations to implement the provisions of the ACA. While not all of these rules, regulations, and reforms affect our business directly, many continue to affect the coverage and plan designs that are or will be provided by many of our clients.

The Biden administration and the United States Congress are considering a number of legislative and regulatory proposals that could, if passed into law, impact the healthcare system, the ACA, and/or the Medicare and Medicaid programs. Congress is considering legislation to increase the number of individuals covered by the Medicare or Medicaid programs, reduce prescription drug costs, increase price transparency for consumers, restrict the sale of certain classes of drugs, and reform medication management practices. While not all of the potential legislation, if enacted, would affect our business directly, much of it could indirectly impact some or many of our business arrangements, if not directly. In addition, regulatory agencies have separately implemented price transparency rules for hospitals and insurers that, while not impacting our business directly, could change the way we interact with these entities. Given that legislative and regulatory change is still being formulated, we cannot predict with any certainty the outcome of any future legislation or regulation.

There has been a trend in federal and state legislation aimed at lowering costs for drug products, including by requiring pharmaceutical companies to disclose information about their pricing and production and marketing costs, and heightened governmental scrutiny over the manner in which pharmaceutical manufacturers set prices for their marketed products. There have been several presidential executive orders and U.S. Congressional inquiries and proposed and enacted federal and state legislation designed to, among other things, bring more transparency to drug pricing, reduce the cost of prescription drugs under Medicare, review the relationship between pricing and manufacturer patient programs, and reform government program reimbursement methodologies for drugs. For example, on October 10, 2018 the Patient Right to Know Drug Prices Act (for private plans) and the Know the Lowest Price Act (for Medicare Parts C and D) were signed into law, which prohibited health plans from restricting pharmacies from informing individuals regarding prices for certain drugs.

On August 15, 2022, the Inflation Reduction Act of 2022 was signed into law by President Biden. This legislation is intended to lower prescription drug costs for people with Medicare and reduce drug spending by the federal government. The prescription drug provisions included in the Inflation Reduction Act will require the federal government to negotiate prices for some drugs covered under Medicare Part B and Part D with the highest total spending, beginning in 2026, and require drug companies to pay rebates to Medicare if prices rise faster than inflation for drugs used by Medicare beneficiaries, beginning in 2023. We are unable at this time to assess any impact this legislation may have on our business.

***PACE Organizations***

Our partnership with PACE organizations is a significant source of our current revenue stream. The PACE program is a unique, comprehensive managed care benefit for older adults, most of whom are dually eligible for Medicare and Medicaid benefits, provided by a not-for-profit or public entity. The PACE program features a comprehensive medical and social service delivery system using an interdisciplinary team approach in an adult day health center that is supplemented by in-home and referral services in accordance with participants' needs. Financing for the program is capped, which allows providers to deliver all needed services rather than only those reimbursable under Medicare and Medicaid fee-for-service plans. PACE is a program under Medicare, and states can elect to provide PACE services to Medicaid program beneficiaries as an optional Medicaid benefit. The PACE program becomes the sole

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source of Medicaid and Medicare benefits for PACE participants. According to the National PACE Association, as of January 2023, there are 149 PACE programs operating in 32 states.

***HIPAA Healthcare Fraud Provisions***

In addition to privacy protections, the Health Insurance Portability and Accountability Act of 1996 ("HIPAA") created and expanded federal criminal statutes regarding fraud. Specifically, the HIPAA healthcare fraud statute prohibits, among other things, knowingly and willfully executing or attempting to execute a scheme to defraud any healthcare benefit program, or to obtain by false or fraudulent pretenses any of the money or property owned by a healthcare benefit program, knowingly and willfully embezzling or stealing from a healthcare benefit program, and willfully obstructing a criminal investigation of a healthcare offense. The HIPAA healthcare fraud statutes also prohibit, among other things, concealing a material fact or making a materially false statement in connection with the delivery of or payment for healthcare benefits, items, or services. The ACA amended the intent standard for certain healthcare fraud statutes under HIPAA, like the federal Anti-Kickback Statute ("AKS"), such that a person or entity no longer needs to have actual knowledge of the statute or specific intent to violate it in order to have committed a violation. Noncompliance with the AKS can result in exclusion from the Medicare, Medicaid or other governmental programs and civil and criminal penalties.

The AKS is broad, and it prohibits many arrangements and practices that are lawful in businesses outside of the healthcare industry. To create better clarity, the Office of the Inspector General ("OIG") of the U.S. Department of Health and Human Services ("HHS") has issued regulations as "safe harbor" guidelines which if met in form and substance, will assure healthcare providers that they will not be prosecuted for violation of the Anti-kickback Statute. The OIG issued a final rule on November 20, 2020, as part of the Regulatory Sprint to Coordinated Care initiative by HHS that, among other things, established new "safe harbors" under the AKS for certain value-based compensation arrangements. Although full compliance with these provisions ensures against prosecution under the AKS, the failure of a transaction or arrangement to fit within a specific safe harbor does not necessarily mean that the transaction or arrangement is illegal or that prosecution under the AKS will be pursued.

***State and Federal Data Privacy and Security Laws***

We process, collect, use, and disclose individual patient data directly or for our clients and, therefore, we are subject to various laws protecting privacy and security of that patient information. Certain businesses of our company qualify as a "Covered Entity" under HIPAA, and others qualify as a "Business Associate" to our partners who are Covered Entities. We are required to comply with HIPAA and the Health Information Technology for Economic and Clinical Health ("HITECH") Act as implemented through regulations promulgated thereunder by HHS, which include the HIPAA Omnibus Final Rule, the HIPAA Privacy Rule and the HIPAA Security Rule. HIPAA generally requires Covered Entities and their Business Associates (each as defined therein) to adopt certain safeguards to ensure the privacy and security of protected health information, or PHI, and to limit uses and disclosures of such PHI to those permissible under the law. When Covered Entities utilize Business Associates to provide services, pursuant to which the Business Associate may access the Covered Entity's PHI, the parties must enter into a Business Associate Agreement through which the Business Associate must contractually agree to safeguard PHI in certain ways and to notify the Covered Entity of improper uses or disclosures of PHI.

Covered Entities and Business Associates are required to have written policies and procedures addressing HIPAA compliance and must designate a Security Officer to oversee the development and implementation of the policies and procedures related to the safeguards to protect privacy of electronic PHI. Covered Entities must also designate a Privacy Officer (as defined in HIPAA), although the Privacy Officer and the Security Officer may be the same person. As part of their security policies and procedures, Covered Entities and Business Associates are required to conduct periodic risk assessments to identify vulnerabilities to electronic PHI. Additionally, Covered Entities and Business Associates are required to train all employees on their HIPAA policies and procedures. Further, in the event of a breach of PHI as defined by HIPAA, Covered Entities must notify affected individuals, HHS, and sometimes the media, and must take steps to mitigate damage, and they may be subject to fines and penalties. HIPAA violations can result in significant civil monetary penalties and/or imprisonment for up to ten years depending on the facts surrounding the violation.

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Many states also have similar data privacy and security laws that track federal requirements or impose different and/or more stringent conditions for use and disclosure of PHI. Failure to comply with these laws may also result in the imposition of significant civil and/or criminal penalties. The California Consumer Privacy Act of 2018 (the "CCPA") imposes rules governing how businesses handle personal data of California residents. Companies that do business in California are, as of January 1, 2020, required to disclose the types of data they collect, the purpose for the data collection, and how the data will be used and to expand organizational responsibilities pertaining to individual rights, accountability, and governance. In November 2020, California voters passed the California Privacy Rights and Enforcement Act of 2020 ("CPRA"), which was effective on January 1, 2023. The CPRA expands the CCPA and establishes a California regulatory agency dedicated to enforcing data privacy compliance requirements. Other states are considering legislation similar to the CCPA and the CPRA, which could expand our data protection obligations.

***Federal and State Oversight of Medical Devices, Genomic Testing, Drugs, and Controlled Substances***

Some technologies and software applications used in connection with healthcare analytics and genomic testing and analysis are considered medical devices and are subject to regulation by the Food and Drug Administration (the "FDA"). The 21<sup>st</sup> Century Cures Act (Pub. L. 114-255) ("Cures Act"), enacted in December 2016, included certain changes to the Federal Food, Drug, and Cosmetic Act to exempt certain medical-related software from FDA regulation. In December 2017, the FDA issued a draft guidance document describing the FDA's proposed interpretation of the exemption under the Cures Act for clinical decision support, ("CDS"), software. The FDA issued the final version of this CDS software guidance document in September 2022, which represents a more conservative interpretation of the CDS software exemption under the Cures Act. The 2022 final guidance also does not include any policies of enforcement discretion. Although we believe that our technologies and software are not subject to active FDA regulation, there is a risk that the FDA could disagree. If the FDA determines that any of our current or future services, technologies, or software applications are regulated by the FDA as medical devices, we would become subject to various statutes, regulations, and policies enforced by the FDA and other governmental authorities, including both pre-market and post-market requirements, and we would need to ensure that the affected services, technologies, and/or software comply with such requirements. The FDA could also require that we cease marketing and/or recall the affected services, technologies, and/or software unless and until they comply with the FDA's requirements.

Clinical laboratories that perform human genomic testing are subject to oversight by CMS and state regulators. The laboratories that we contract with for genomic testing must comply with federal and state laws and regulations applicable to clinical laboratories and genomic testing, including the Clinical Laboratory Improvement Amendments and the Eliminating Kickbacks in Recovery Act of 2018 ("EKRA"). To date, there have been no regulations implementing EKRA proposed by the Department of Justice.

The Drug Enforcement Administration ("DEA"), the FDA, and state regulators, such as state boards of pharmacy, regulate drug and controlled substance packaging, repackaging, purchasing, handling, storage, distribution, security, and dispensing activities. Our prescription fulfillment pharmacies must comply with the applicable FDA, DEA, and state statutes, regulations, and policies. In addition, our prescription fulfillment pharmacies may be subject to periodic audits by the FDA, the DEA, and state regulators to assess our compliance with these requirements.

Noncompliance with applicable federal or state requirements, as described above, can result in an enforcement action that could substantially harm our business.

***Anti-Kickback Laws***

The federal AKS makes it unlawful for individuals or entities, among other things, to knowingly and willfully solicit, offer, receive, or pay any kickback, bribe, or other remuneration, directly or indirectly, overtly or covertly, in cash or in kind, in exchange for or to induce or reward the referral of an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under a federal healthcare program, or the purchase, lease, or order, or arranging for or recommending purchasing, leasing, or ordering, of any good, facility, service, or item for which payment may be made in whole or in part under a federal healthcare program. Penalties for violations include criminal penalties and civil sanctions such as fines, imprisonment, and possible exclusion from federal healthcare programs.

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The AKS is applicable to us as operators of specialty pharmacies, contractors to health plans and providers, and contractors to various federal healthcare program payers. When our compensation arrangements implicate the AKS, we evaluate whether we believe they fall within one of the safe harbors. If not, we consider the factors to identify the intent behind such arrangements and the relative risk of fraud and abuse. We also design business models that seek to reduce the risk that any such arrangements might be viewed as abusive and trigger AKS scrutiny or claims.

In addition to the federal AKS, many states have anti-kickback prohibitions that may apply to arrangements and claims involving healthcare items or services reimbursed by non-governmental third-party payers.

***Federal and State Self-Referral Laws***

The Stark Law prohibits a physician who has a financial relationship, or who has an immediate family member who has a financial relationship, with entities providing designated health services, or DHS, from referring Medicare and Medicaid patients to such entities for the furnishing of DHS, unless an exception applies. The Stark Law also prohibits the entity from billing for any such prohibited referral. Unlike the AKS, the Stark Law is violated if the financial arrangement does not meet an applicable exception, regardless of any intent by the parties to induce or reward referrals or the reasons for the financial relationship and the referral.

We evaluate when these physician (or immediate family member) financial arrangements are created to ensure we do not enter into a prohibited financial relationship and design structures that satisfy exceptions under the Stark Law.

Our business may implicate federal and state physician self-referral laws to the extent our pharmacy, a designated health services entity, has financial arrangements in the form of ownership, investment, or compensation with referring physicians or a referring physician's immediate family member. Our pharmacy may have compensation arrangements with physicians who serve on its Clinical Advisory Panel and who order designated health services for patients enrolled in a PACE program. If any such compensation arrangements exist, we believe such compensation arrangements fall within an exception to the physician self-referral prohibition.

A number of states have statutes and regulations that prohibit the same general types of conduct as those prohibited by the Stark Law, but some have even broader applications, extending beyond Medicare and Medicaid programs and including commercial and self-payers.

***Federal and State False Claims Acts***

The federal false claims and civil monetary penalties laws, including the civil False Claims Act, impose criminal and civil liability on individuals and entities that, among other things, knowingly submit, or cause to be submitted, false or fraudulent claims for payment to the federal government or knowingly make, or cause to be made, a false statement in order to have a false claim paid. The civil False Claims Act provides for treble damages and mandatory and significant minimum penalties per false claim or statement ($13,507 to $27,018 per false claim). The *qui tam* or whistleblower provisions of the civil False Claims Act permit a private individual to bring actions on behalf of the federal government alleging that the defendant has submitted a false claim to the federal government, and to share in any monetary recovery. Our future activities relating to the manner in which we sell and market our services may be subject to scrutiny under these laws. False Claims Act *qui tam* lawsuits in healthcare are common, although the government often declines to pursue such actions following investigation. Analogous state false claims laws also may apply to our sales or marketing arrangements and claims involving healthcare items or services reimbursed by non-governmental third-party payers.

***Other State Laws***

The vast majority of, if not all, states have laws regulating licensure, registration and certification of pharmacies, pharmacists, pharmacy technicians, other pharmacy personnel, and health insurance administrators. We are licensed in all states that require such licensure in which we do business and believe that we substantially comply with all state licensing laws applicable to our business. Where required by law, we also have pharmacists licensed in all states in which we dispense. If we violate state pharmacy licensure laws or engage in conduct prohibited under our license, we could be subject to enforcement action, including but not limited to, suspension or loss of such pharmacy license.

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The DEA, as well as some similar state agencies, requires our pharmacy locations to individually register in order to handle controlled substances, including prescription pharmaceuticals. Federal and various state laws also regulate specific labeling, reporting, and record-keeping related to controlled substances. We maintain DEA registrations for each of our facilities that require such registration and follow procedures intended to comply with all applicable federal and state requirements regarding dispensing controlled substances.

**Human Capital**

Our success is built upon our dedicated and passionate employees who strive to transform the communities we serve by delivering excellent service, utilizing advanced technology, and delivering results. We believe that our success is largely dependent upon our ability to attract and retain qualified employees. We are focused on recruiting a diverse talent pool, promoting leadership development and performance management, and maintaining positive relations with our employees. As of December 31, 2022, we had 1,027 employees. None of our employees are represented by labor unions or subject to collective bargaining agreements and substantially all of our employees currently work in the United States. We believe that we have been successful to date in attracting skilled and experienced professionals.

*Diversity & Inclusion*

We continue to focus on building a high performing organization with an engaging work culture and have established initiatives to support this strategic priority. We embrace differences, diversity, and varying perspectives among our employee base, and we are an equal opportunity employer. We have a zero-tolerance policy regarding any type of harassment and discrimination. We believe in respecting every employee and expect our staff to show respect for everyone.

We believe that our company culture relies on collaboration and input from multiple perspectives. We also believe that building upon our diversity, equity, and inclusion ("DEI") initiatives is key to engaging in responsible business practices. Our DEI committee provides training for all of our employees, and we offer employee resource groups. As of December 31, 2022, 68% of our employees and 56% of our managers self-identified as female. Moreover, as of December 31, 2022, 55% of our Board self-identified as diverse.

*Employee Engagement*

We strongly believe that our success depends, in part, on open and regular communication with employees to help foster a high-performing and engaged workforce. We use a variety of channels to facilitate open and direct communication to help ensure that employees fully understand the Company's long-term strategy, annual goals, and how their work contributes to the Company's success.

**Available Information**

We file our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports with the SEC. You may obtain copies of these documents by accessing the SEC's website at www.sec.gov. In addition, as soon as reasonably practicable after such materials are furnished to the SEC, we make copies of these documents available to the public, free of charge, through our website. Our website address is www.trhc.com.

**Financial Information**

For required financial information related to our operations, please refer to our consolidated financial statements, including the notes thereto, included with this Annual Report on Form 10-K.

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**Item 1A. Risk Factors**

*Investing in our common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below together with all of the other information contained in this Annual Report on Form 10-K, including the section of this report titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our audited consolidated financial statements and the related notes. We cannot assure you that any of the events discussed in the risk factors below will not occur. The occurrence of any of the events or developments described below could have a material and adverse impact on our business, results of operations, financial condition, cash flows and future prospects and, if any such event were to happen, our future prospects could be materially and adversely affected. If any of such events were to happen, the trading price of our common stock could decline, and you could lose all or part of your investment. The risks described below represent the material risks known to us at the time of this filing. These risks are not the only ones that we may face, and additional risks or uncertainties not known to us or that we currently deem immaterial may also impair our business and future prospects. Please also refer to "Special Note Regarding Forward-Looking Statements" in this Annual Report on Form 10-K.*

**Risks Relating to Our Business and Industry**

***The healthcare industry in the U.S. is rapidly evolving, which makes it difficult to forecast demand for our technology-enabled products and services. If we are not successful in promoting the benefits of our products and services, our growth may be limited.***

The healthcare industry in the U.S. is rapidly evolving. We believe demand for our products and services has been driven in large part by price pressure in traditional fee-for-service healthcare, a regulatory environment that is incentivizing value-based care models, the movement toward patient-centricity and personalized healthcare and advances in technology. Widespread acceptance of the value-based care model is critical to our future growth and success. A reduction in the growth of value-based care or patient-centric models could reduce the demand for our products and services and result in a lower revenue growth rate or decreased revenue.

It is uncertain whether the market for technology-enabled healthcare products and services will achieve and sustain high levels of demand and market adoption. Our future financial performance will depend in part on growth in this market and on our ability to adapt to the emerging demands of our clients. It is difficult to predict the future growth rate and size of our target markets. If the estimates and assumptions we use to determine the size of our target markets are inaccurate, our future growth rate may be impacted.

Our success depends to a substantial extent on the willingness of healthcare organizations to increase their use of our technology and our ability to demonstrate the value of our technology to our existing clients and potential clients. If healthcare organizations do not recognize or acknowledge the benefits of our products and services or if we are unable to continue to reduce healthcare costs and drive positive health outcomes, then the market for our products and services might not develop at all, or it might develop more slowly than we expect.

***If we are unable to offer innovative products and services or our products and services fail to keep pace with our clients' needs, our clients may terminate or fail to renew their agreements with us, and our revenue and results of operations may suffer.***

Our success depends on providing innovative, high-quality products and services that healthcare providers and payers use to improve clinical, financial, and operational performance. If we cannot adapt to rapidly evolving industry standards, technology, and increasingly sophisticated and varied client needs, our existing technology could become undesirable, obsolete, or harm our reputation. In order to remain competitive, we must continue to invest significant resources in our personnel and technology in a timely and cost-effective manner to enhance our existing products and services and introduce new high-quality products and services that existing clients and potential new clients will want. We are continuously involved in a number of projects to develop new products and services, including the further expansion and refinement of our proprietary MedWise offerings. If our innovations are not responsive to the needs of our existing clients or potential new clients, are not appropriately timed with market opportunity, are not effectively brought to market, or are a significant increase to our operating costs, we may lose existing clients or be unable to obtain new clients and our results of operations may suffer. In addition, the introduction of new solutions by competitors, the emergence of new industry standards, or the development of entirely new technologies to replace existing offerings could render our existing or future solutions obsolete.

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***The medication management market is highly competitive, and we may be unable to compete successfully against new entrants and established companies with greater resources and/or existing business relationships with our current and potential customers.***

The medication management market is intensely competitive. We expect continued and increased competition from current and future competitors, many of which have significantly greater financial, technical, marketing, and other resources than we do. The competitive challenges we face in the medication management market include, but are not limited to, the following:

● certain competitors may offer or have the ability to offer a broader range of solutions in the marketplace that we are unable to match;

● certain competitors may develop alternative solutions to the customer problems our products are designed to solve that may provide a better customer outcome or a lower cost of operation;

● certain competitors may develop new features or capabilities for their products not previously offered that could compete directly with our products;

● competitive pressures could result in increased price competition for our products and services, fewer customer orders, and reduced gross margins, any of which could harm our business;

● current and potential competitors may make strategic acquisitions or establish cooperative relationships among themselves or with third parties, including larger, more established healthcare supply companies, thereby increasing their ability to develop and offer a broader suite of products and services to address the needs of our prospective customers;

● our competitive environment has recently experienced a significant degree of consolidation, which could lead to competitors developing new business models that require us to adapt how we market, sell, or distribute our products;

● other established or emerging companies may enter the medication management and supply chain solutions market, or the medication adherence market, with products and services that are preferred by our current and potential customers based on factors such as features, capabilities, or cost;

● our competitors may develop, license, or incorporate new or emerging technologies or devote greater resources to the development, promotion, and sale of their products and services than we do;

● certain competitors have greater brand name recognition and a more extensive installed base of medication and supply dispensing systems or other products and services than we do, and such advantages could be used to increase their market share;

● certain competitors may have existing business relationships with our current and potential customers, which may cause these customers to purchase medication and supply dispensing systems or automation solutions from these competitors; and

● our competitors may secure products and services from suppliers on more favorable terms or secure exclusive arrangements with suppliers or buyers that may impede the sales of our products and services.

***We have incurred significant net losses and we may not be able to generate net income in the future, and may have difficulty obtaining financing on favorable terms, or at all.***

We have incurred net losses since our inception. As of December 31, 2022, we had an accumulated deficit of $407.9 million. Substantially all of our operating losses resulted from $159.3 million of stock-based compensation expense, $119.2 million amortization of acquired intangibles, $61.9 million of impairment charges primarily related to

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our long-lived assets, goodwill and operating lease right-of-use assets, $51.8 million of change in fair value of contingent consideration expense and receivable, a $6.4 million loss on extinguishment of debt, and a $2.9 million loss related to the sale of the PrescribeWellness Business. Our ability to generate net income is dependent upon, among other things, the acceptance of our products and services by, and the strength of, our existing and potential clients. These efforts may prove more expensive than we currently anticipate, and we may not succeed in increasing our revenue sufficiently to offset these higher expenses. We are unable to accurately predict when, or if, we will be able to achieve profitability. Even if we achieve profitability in the future, we may not be able to sustain profitability in subsequent periods. If we are not able to achieve or maintain positive cash flow in the long term, we may require additional financing, which may not be available on favorable terms or at all and/or which may be dilutive to our stockholders. If we are unable to achieve or maintain profitability or positive cash flow, the value of our common stock could be negatively impacted.

***If we fail to effectively manage our growth, our business and results of operations could be harmed.***

We have expanded our operations significantly since our inception. For example, we grew from 241 employees in 2016 to 1,027 employees as of December 31, 2022. Our revenue from continuing operations grew from $94.8 million for the year ended December 31, 2016 to $299.5 million for the year ended December 31, 2022. If we do not effectively manage our growth as we continue to expand, the quality of our products and services could suffer and our revenue could decline. Our growth to date has increased the significant demands on our management, our operational and financial systems, IT infrastructure, security mechanisms and other resources. In order to successfully expand our business, we must effectively recruit, integrate, and motivate new employees, while maintaining the beneficial aspects of our corporate culture. If we fail to effectively manage our hiring needs and successfully integrate our new hires, our efficiency and ability to meet our forecasts and our employee morale, productivity, and retention could suffer, and our business and results of operations could be harmed. We must also continue to improve our existing systems for operational and financial management, including our reporting systems, procedures, and controls. These improvements could require significant capital expenditures and place increasing demands on our management. We may not be successful in managing or expanding our operations or in maintaining adequate financial and operating systems and controls. If we do not successfully manage these processes, our business and results of operations could be harmed.

***We may not grow at the rates we have achieved historically or at all, even if our key metrics may indicate growth, which could cause the market price of our common stock to decline.***

We have experienced significant growth in revenues in the past several years. Future revenue may not grow at these same rates or may decline. Our future growth will depend, in part, on our ability to grow our revenue from existing clients, to complete sales to new clients, and to expand our client base in the healthcare industry and with provider and payer organizations. We may not be successful in executing on our growth strategies and may not continue to grow our revenue at similar rates as we have in the past. Our ability to execute on our existing sales pipeline, create additional sales pipelines, and expand our client base depends on the attractiveness of our products and services relative to those offered by our competitors, our ability to demonstrate the value of our existing and future products and services, and our ability to attract and retain a sufficient number of qualified sales and marketing personnel. In addition, clients in some market segments in which we have a more limited presence may be slower to adopt our products and services than we currently anticipate. Our ability to maintain future revenue growth may also impact assumptions utilized in our assessments over the fair value of our assets, including our goodwill and intangible assets, and a decline in revenue growth could result in potential impairment charges to these assets.

***To date, we have derived substantially all of our medication revenue from sales of prescription medications, and revenue from sales of prescription medications is dependent upon factors outside of our control.***

To date, substantially all of our medication revenue has been derived from sales of prescription medications and related services, and for the foreseeable future we expect to continue to derive the substantial majority of our medication revenue from sales of prescription medications and related services. Revenue from prescription medication fulfillment is dependent upon a number of factors, many of which are outside of our control, such as growth or contraction in the patient populations of our clients and the number and mix of medications each patient is prescribed. Any change in these factors could harm our financial results.

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***We derive a significant portion of our revenue from PACE organizations. Any changes in laws or regulations, or any other factors that cause a decline in the use of PACE organizations to provide healthcare could hurt our ability to generate revenue and grow our business.***

We derive a significant portion of our revenue from PACE organizations, which are our largest clients and account for 99% of our revenue from continuing operations for the year ended December 31, 2022. PACE organizations reflect a value-based model for providing healthcare to the elderly and are funded by both Medicare and Medicaid. Our ability to generate revenue and grow our business may be compromised if the laws and regulations that currently promote PACE organizations were to change in a way that makes operating a PACE organization less attractive, if other Medicare or Medicaid reimbursement models are developed that are more attractive to the healthcare providers that operate PACE organizations, or if the prevalence of PACE organizations were to decline for any other reason.

***Consolidation in the healthcare industry could lead to the elimination of some of our clients and make others larger, which could decrease demand for our solutions or create pricing pressure.***

Many healthcare industry participants are consolidating to create larger and more integrated healthcare delivery systems. If regulatory and economic conditions continue to facilitate additional consolidation in the healthcare industry, some of our current clients, and possibly our future clients, may be eliminated. Such market fluctuations may result in decreased need for some or all of our products and services as some of our clients disappear, and others acquire larger market power, which may be used to develop various solutions in-house, rather than purchasing them from us, or negotiate fee reductions for our products and services.

***Failure by PACE organization clients to meet applicable penetration benchmarks could result in loss of their service area, which could lead to our loss of that business and a corresponding decline in our revenue.***

PACE organizations in many states are subject to penetration benchmarks regarding the number of eligible lives in their service areas that have been captured by the program. If the number of members covered by any of our PACE organization clients were to be reduced by a material amount, such decrease may lead to a loss of their service area, which could result in our loss of the client and a corresponding decline in our revenue.

***The growth of our business relies, in part, on the growth of members covered by our clients' programs, which is difficult to predict and is affected by factors outside of our control.***

We enter into agreements with our clients under which a portion of our fees are dependent upon the number of members that are covered by our clients' programs each month. The number of members covered by a client's program is often affected by factors outside of our control, such as the client's pricing, overall quality of service, and member retention initiatives. If the number of members covered by one or more of our client's programs were to be reduced, such decrease would lead to a decrease in our revenue. In addition, the growth forecasts of our clients are subject to significant uncertainty and are based on assumptions and estimates that may prove to be inaccurate. Even if the markets in which our clients compete meet the size estimates and growth forecasted, their program membership could fail to grow at similar rates, if at all.

***A few clients account for a significant portion of our revenue and, as a result, the loss of one or more of these clients could hurt our revenue.***

Our ten largest clients accounted for 52%, 50%, and 55% of our total revenue from continuing operations during the years ended December 31, 2022, 2021, and 2020, respectively. Our engagement with our ten largest clients is generally covered through multi-year contracts. One or more of these clients may decline to renew their existing contracts with us upon expiration and any such failure to renew could have a negative impact on our revenue and compromise our growth strategy. Further, if one or more of these clients significantly decreases its use of our solutions, we would lose revenue and our growth would be compromised. We believe our clients view us as a trusted partner that shares their commitment to improving medication-related health outcomes and reducing overall healthcare costs.

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***Because we generally bill our clients and recognize revenue over the term of the contract, near-term declines in new or renewed agreements may not be reflected immediately in our operating results.***

Most of our revenue in each quarter is derived from agreements entered into with our clients during previous quarters. Consequently, a decline in new or renewed agreements in any one quarter may not be fully reflected in our revenue for that quarter because, although we enter into multi-year contracts with our clients and recognize revenue over the term of the contract, such revenue varies based on the volume and pricing of prescriptions filled and the number of members of the healthcare organization and is, thus, not recognized evenly. Such declines, however, would negatively affect our revenue in future periods. The effect of any significant downturns in sales of, and market demand for, our products and services, as well as any potential changes in our rate of renewals or renewal terms, may not be fully reflected in our results of operations until future periods. In addition, we may be unable to adjust our cost structure rapidly, or at all, to take account of reduced revenue.

***If we do not continue to attract new clients, we may not be able to grow our business.***

In order to grow our business, we must continually attract new clients. Our ability to do so depends in large part on the success of our sales and marketing efforts. Potential clients may seek out other options. Therefore, we must demonstrate that our products and services provide a viable solution for potential clients. If we fail to provide high-quality solutions and convince individual clients of our value proposition, we may not be able to attract new clients. Our financial results could be harmed if the market for our products and services declines or grows more slowly than we expect, or if the number of individual clients that use our solutions declines or fails to increase as we expect.

***If we are not able to maintain and enhance our reputation and brand recognition, our business will be harmed.***

Maintaining and enhancing our reputation and brand recognition is critical to our relationships with existing clients and to our ability to attract new clients. The promotion of our brand may require us to make substantial investments. As our market becomes increasingly competitive, we anticipate that these marketing initiatives may become more difficult and expensive. Our marketing activities may not be successful or yield increased revenue, and to the extent that these activities yield increased revenue, the increased revenue may not offset the expenses we incur. In addition, any factor that diminishes our reputation or that of our management, including failing to meet the expectations of our clients, could make it substantially more difficult for us to attract new clients. If we do not successfully maintain and enhance our reputation and brand recognition, our business may not grow and we could lose our relationships with clients.

***Positive outcomes and cost reductions for our clients are not necessarily predictive of future outcomes or costs.***

Although several of our clients have reported improved outcomes for their patients and cost reductions as a result of our services, these results are not necessarily predictive of future outcomes. Other factors, including changes in healthcare regulations or other business practices or our clients' implementation of other cost saving measures may have contributed to positive outcomes or reduced costs. Moreover, outcome and cost reduction data are often susceptible to varying interpretations and analyses. If we fail to produce positive outcomes and reduce costs for our clients, they may not continue to use our services and we may be unable to attract new clients. Each of these factors could harm our business.

***Our marketing efforts depend significantly on our ability to receive positive references from our existing clients.***

Our marketing efforts depend significantly on our ability to call on our current clients to provide positive references to new, potential clients. The loss or dissatisfaction of any client could substantially harm our brand and reputation, inhibit the market adoption of our products and services, impair our ability to attract new clients and maintain existing clients and, ultimately, harm our financial results.

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***Our sales and implementation cycle can be long and unpredictable and can require considerable time and expense, which may cause our operating results to fluctuate.***

The sales cycle for our products and services, from initial sales activity with a potential client to contract execution and implementation, can be long and varies widely by client, typically ranging from three to twelve months. Some of our clients undertake pilot programs for our products and services that generally range from six to eighteen months in length. These pilot programs may result in extended sales cycles and upfront sales costs as the potential client evaluates our products and services. Our sales efforts involve educating our clients about the use, technical capabilities, and benefits of our products and services. It is possible that in the future we may experience even longer sales cycles, more complex client requirements, higher upfront sales costs, and less predictability in completing sales, as we continue to expand into new territories and add additional products and services. If our sales cycle lengthens or our substantial upfront sales and implementation investments do not result in sufficient sales to justify our investments, our operating results may be harmed.

***The failure to offer high-quality client support services may adversely affect our relationships with our clients and harm our financial results.***

Our clients depend on our technical support to resolve any issues relating to our offering and technology solutions and to provide initial and ongoing training and education when necessary. In addition, our sales process is highly dependent on the quality of our offering, our business reputation, and strong recommendations from our existing clients. Any failure to maintain high-quality and highly responsive technical support, or a market perception that we do not maintain high-quality and highly responsive support, could harm our reputation and compromise our ability to sell our solutions to existing and prospective clients.

We offer client support services with our offerings and may be unable to respond quickly enough to accommodate short-term increases in client demand for support services, particularly as we increase the size of our client base. We also may be unable to modify the format of our support services to compete with changes in support services provided by competitors. It is difficult to predict client demand for our support services. If client demand increases significantly, we may be unable to provide satisfactory support services to our clients. Additionally, increased client demand for these services, without corresponding revenue, could increase costs and hurt our ability to achieve profitability.

***Our proprietary products and services may not operate properly, which could damage our reputation, give rise to a variety of claims against us, or divert our resources from other purposes, any of which could harm our business and operating results.***

Technology-enabled product and service development is time-consuming, expensive, and complex and may involve unforeseen difficulties. We may encounter technical obstacles, and we may discover additional problems that prevent our proprietary products and services from operating properly. If our products and services do not function reliably or fail to achieve client expectations in terms of performance, clients could assert liability claims against us and attempt to cancel their contracts with us. Moreover, material performance problems, defects, or errors in our existing or new products and services may arise in the future and may result from, among other things, the lack of interoperability of our software with systems and data that we did not develop, the function of which is outside of our control or undetected in our testing. Defects or errors in our products or services might discourage existing or potential clients from purchasing services from us. Correction of defects or errors could prove to be time-consuming, costly, impossible, or impracticable. The existence of errors or defects in our products and services and the correction of such errors could divert our resources from other matters relating to our business, damage our reputation, and increase our costs.

***Adverse drug events resulting from optimizing a patient's medication regimen through recommendations made by our services or our pharmacists could give rise to claims against us and could damage our reputation.***

We provide medication risk management services that include answering prescriber questions and making recommendations to prescribers and providing formal consultations with physicians and patients. In the event that optimizing a patient's medication regimen through recommendations made by our services or our pharmacists contributes to an adverse drug event, clients and patients could assert liability claims against us, which may not be subject to a contractually agreed upon liability cap, and clients could attempt to cancel their contracts with us. Such

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instances may also generate significant negative publicity that could harm our reputation, increase our costs, and materially affect our results of operations.

***We purchase a significant portion of our pharmaceutical products from a group purchasing organization which receives discounts from a primary supplier with a term lasting through March 31, 2024, subject to renewal provisions.*** 

On June 30, 2020, we entered into an Affiliated Pharmacy Agreement and Pharmaceutical Program Supply Agreement, including an associated High Volume Retailer Addendum (the "Pharmaceutical Supply Agreements") with Thrifty Drug Stores, Inc. ("Thrifty Drug"). Pursuant to the terms of the Pharmaceutical Supply Agreements, which have a term lasting through March 31, 2024, subject to renewal under certain circumstances, we agree to purchase not less than 98% of our total prescription product requirements from Thrifty Drug. The Pharmaceutical Supply Agreements can be terminated solely by Thrifty Drug for, among other things, a payment default that continues for ten days after notice thereof and our failure to maintain creditworthiness. If we are no longer able to purchase our pharmaceutical products from a group purchasing organization, there can be no assurance that our operations would not be disrupted or that we could obtain the necessary pharmaceutical products at similar cost or at all. In this event, failure to satisfy our clients' requirements would result in defaults under client contracts, subjecting us to damages and the potential termination of those contracts.

***As of January 1, 2022, we ceased recognizing revenue related to the EMTM Pilot Program, which expired on December 31, 2021.***

On January 1, 2017, we launched the Enhanced Medication Therapy Management ("EMTM") program, with a large, regional Medicare Part D Prescription Drug Plan participating in the CMMI Medicaid Part D pilot. The EMTM Pilot Program expired on December 31, 2021 and, as a result, beginning on January 1, 2022, we ceased recognizing revenue related to the EMTM Pilot Program. For the years ended December 31, 2021 and 2020, the EMTM Pilot Program revenue accounted for 4% and 5%, respectively, of total revenue from continuing operations. Accordingly, the expiration of the EMTM Pilot Program has adversely affected our results of operations in 2022 and could adversely affect our business, financial condition, and results of operations going forward.

***Any restrictions on our ability to license or share data and integrate third-party technologies could harm our business.***

We depend upon licenses from third parties for some of the technology and data used in our products and services, and for some of the technology platforms upon which these products and services are built and operate. Most of our third-party licenses are non-exclusive and our competitors may obtain the right to use any of the technology covered by these licenses to compete directly with us. We also license some of our technology and share data we collect with our clients, including under agreements with health systems and providers of electronic health records. We expect that we will need to obtain additional licenses from third parties in the future in connection with the development of our products and services. In addition, we obtain a portion of the data that we use from public records and from our clients for specific client engagements. Our licenses for information may not be sufficient to allow us to use the data that is incorporated into our products and services for all potential or contemplated applications and products.

In the future, data providers could withdraw their data from us or restrict our usage for any reason, including if there is a competitive reason to do so, if legislation is passed restricting the use of the data, or if judicial interpretations are issued restricting use of the data that we currently use in our products and services. In addition, data providers could fail to adhere to our quality control standards in the future, causing us to incur additional expense to appropriately utilize the data. If a substantial number of data providers were to withdraw or restrict their data, or if they were to fail to adhere to our quality control standards, and if we were unable to identify and contract with suitable alternative data suppliers and integrate these data sources into our service offerings, our ability to provide products and services to our clients would be compromised and our future growth and success could be delayed or limited.

We also integrate into our proprietary applications and use third-party software to maintain and enhance, among other things, content generation and delivery, and to support our technology infrastructure. Some of this software is proprietary and some is open-source software. Our use of third-party technologies exposes us to increased risks, including, but not limited to, risks associated with the integration of new technology into our solutions, the diversion of our resources from development of our own proprietary technology, and our inability to generate revenue from licensed

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technology sufficient to offset associated acquisition and maintenance costs. These technologies may not be available to us in the future on commercially reasonable terms or at all and could be difficult to replace once integrated into our own proprietary applications. Most of these licenses can be renewed only by mutual consent and may be terminated if we breach the terms of the license and fail to cure the breach within a specified period of time. Our inability to obtain, maintain, or comply with any of these licenses could delay development until equivalent technology can be identified, licensed, and integrated, which could delay or limit our future growth.

***Data loss or corruption due to failures or errors in our systems may expose us to liability, hurt our reputation and relationships with existing clients, and force us to incur significant costs.***

Hardware failures or errors in our systems could result in data loss or corruption or cause the information that we collect to be incomplete or contain inaccuracies that our clients regard as significant. Complex software such as ours may contain errors or failures that are not detected until after the software is introduced or updates and new versions are released. We continually introduce new software and updates and enhancements to our existing software. Despite testing by us, we may discover defects or errors in our software. Any defects or errors could expose us to risk of liability to clients and the government and could cause delays in the introduction of new products and services, result in increased costs and diversion of development resources, require design modifications, decrease market acceptance or client satisfaction with our products and services, or cause harm to our reputation. Data losses related to personal health records could result in additional risks. We are subject to data privacy and security laws and regulations and contractual obligations governing the transmission, security, and privacy of health and other sensitive or proprietary information, which may impose restrictions on the manner in which we access, store, transmit, use, and disclose such information and subject us to penalties if we are unable to fully comply with such laws or contractual provisions.

Furthermore, our clients might use our software together with products from other companies. As a result, when problems occur, it might be difficult to identify the source of the problem. Even when our software does not cause these problems, the existence of these errors might cause us to incur significant costs, divert the attention of our technical personnel from our product development efforts, hurt our reputation, and lead to significant client relations problems.

***We are subject to cybersecurity risks and other risks associated with cyber incidents. If we are unable to safeguard the security and privacy of confidential data, we may incur increased expenses to mitigate our disclosure or address any such incidents, and our reputation and business will be harmed.***

Our products and services involve the collection, storage, and analysis of confidential or proprietary information, and we are subject to numerous laws, rules, and regulations in the U.S. (both federal and state) that protect personally identifiable information and personal health information. If a cyber incident such as a phishing or ransomware attack, virus, malware installation, server malfunction, software or hardware failure, impairment of data integrity, loss of data or other computer assets, insider threat, or other similar issue impairs or shuts down one or more of our computing systems or our IT network, or results in the unauthorized access to confidential, proprietary, or personally identifiable information, we may be subject to negative treatment and lawsuits by our clients and business partners, and to regulatory scrutiny. In addition, attention to remediating cyber incidents may distract our technical or management personnel from their normal responsibilities. Public announcements of such cyber incidents could adversely affect the price of our common stock, and we could lose sales and clients.

In certain cases, confidential or proprietary information is provided to third parties, such as the service providers that host our technology platform, and we may be unable to control the use of our information or the security protections used by third parties. Cyber incidents and malicious internet-based activity continue to increase generally, and providers of hosting and cloud-based services are often targeted. If the third parties with whom we work violate applicable laws, contracts, or our security policies, these violations could also put our confidential or proprietary information at risk and otherwise hurt our business. Cyber incidents can also occur as a result of non-technical issues, including employee error or malfeasance, poor password management, or other irregularities by us or by our third-party service providers that result in the unauthorized access to personally identifiable, confidential, or proprietary information. In addition, if the security measures of our clients are compromised, even without any actual compromise of our own systems, we may face negative publicity or reputational harm if our clients or anyone else attributes the blame for such security breaches to us or our systems.

We may be required to expend significant capital and other resources to protect against cybersecurity risks or to remediate and recover from security incidents. We, our customers, and our third-party service providers face an evolving threat landscape in which cybercriminals, among others, employ a complex array of cyber-attack techniques designed to

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access sensitive information or disrupt our operations, including, for example, the use of fraudulent or stolen access credentials, malware, ransomware, phishing, denial-of-service, and other types of attacks. These types of cyber-attacks are becoming more prevalent, particularly in the healthcare industry, and we have been the target of such attacks in the past and may be a target in the future. While cyber incidents have not to date had a material impact on our operations, there is no assurance that such impacts will be immaterial in the future. Moreover, despite our implementation of security measures, techniques used to obtain unauthorized access to information or to sabotage information technology systems change frequently, are becoming increasingly sophisticated, and often are not recognized until launched against a target. Furthermore, unknown cyber vulnerabilities caused by third-party software or services may exist within our system. As a result, we or our third-party service providers may be unable to anticipate such techniques or vulnerabilities or to implement adequate preventive measures. Any compromise or perceived compromise of our security could damage our reputation and our relationship with our clients, reduce demand for our products and services and require us to defend against lawsuits and regulatory actions, and subject us to significant liability. Were an incident to occur, we may also incur significant remediation costs, including repairing system damage, hiring outside counsel or technical specialists, purchasing new software or technology, or providing notice and benefits to affected customers or employees. In addition, in the event that new privacy or data security laws are implemented, we may not be able to timely comply with such requirements, or such requirements may not be compatible with our current processes and technology. Changing our processes and acquiring new technology could be time-consuming and expensive, and failure to timely implement required changes could subject us to liability for noncompliance.

***We rely on internet infrastructure, bandwidth providers, other third parties, and our own systems to provide services to our clients, and any failure or interruption in the services provided by these third parties or our own systems could expose us to litigation and hurt our reputation and relationships with clients.***

Our ability to deliver our products and services, particularly our cloud-based solutions, is dependent on the development and maintenance of the infrastructure of the internet and other telecommunications services by third parties. This includes maintenance of a reliable network connection with the necessary speed, data capacity, and security for providing reliable internet access and services and reliable telephone and facsimile services. Our services are designed to operate without perceptible interruption in accordance with our service level commitments.

We have, however, experienced limited interruptions in these systems in the past, including server failures that temporarily slowed down the performance of our services, and we may experience similar or more significant interruptions in the future. We rely on internal systems as well as third-party suppliers, including bandwidth and telecommunications equipment providers, to provide our services. We do not currently maintain redundant systems or facilities for some of these services. Interruptions in these systems or services, whether due to system failures, cyber incidents, physical or electronic break-ins, or other events, could affect the security or availability of our services and prevent or inhibit the ability of our clients and their patients to access our services. In the event of a catastrophic event with respect to one or more of these systems or facilities, we may experience an extended period of system unavailability, which could result in substantial costs to remedy those problems or harm our relationship with our clients and our business.

Additionally, any disruption in the network access, telecommunications, or co-location services provided by third-party providers or any failure of or by third-party providers' systems or our own systems to handle current or higher volume of use could significantly harm our business. We exercise limited control over our third-party suppliers, which increases our vulnerability to problems with services they provide. Any errors, failures, interruptions, or delays experienced in connection with these third-party technologies and information services or our own systems could hurt our relationships with clients and expose us to third-party liabilities. Although we maintain insurance for our business, the coverage under our policies may not be adequate to compensate us for all losses that may occur. In addition, we might not continue to be able to obtain adequate insurance coverage at an acceptable cost.

The reliability and performance of our internet connection may be harmed by increased usage or by denial-of-service attacks or related cyber incidents. The services of other companies delivered through the internet have experienced a variety of outages and other delays as a result of damage to portions of the internet's infrastructure, and such outages and delays could affect our systems and services in the future. These outages and delays could reduce the level of internet usage as well as the availability to us of the internet for delivery of our internet-based services.

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***We rely on third-party vendors to host and maintain our technology platform.***

We rely on third-party vendors to host and maintain our technology platform, including our *EireneRx* and *MedWise* software. Our ability to offer our products and services and operate our business is dependent on maintaining our relationships with third-party vendors, particularly Amazon Web Services, and entering into new relationships to meet the changing needs of our business. Any deterioration in our relationships with such vendors or our failure to enter into agreements with vendors in the future could harm our business and our ability to pursue our growth strategy. Because of the large amount of data that we collect and manage, it is possible that, despite precautions taken at our vendors' facilities, the occurrence of a natural disaster, cyber incident, a decision to close the facilities without adequate notice, or other unanticipated problems could result in lengthy interruptions in our service. These service interruptions could cause our platform to be unavailable to our clients and impair our ability to deliver products and services and to manage our relationships with new and existing clients.

If our vendors are unable or unwilling to provide the services necessary to support our business, or if our agreements with such vendors are terminated, our operations could be significantly disrupted. Some of our vendor agreements may be unilaterally terminated by the licensor for convenience, and if such agreements are terminated, we may not be able to enter into similar relationships in the future on reasonable terms or at all. We may also incur substantial costs, delays, and disruptions to our business in transitioning such services to ourselves or other third-party vendors. In addition, third-party vendors may not be able to provide the services required in order to meet the changing needs of our business.

***We depend on our senior management team, and the loss of one or more of our executive officers or key employees or an inability to attract and retain highly skilled employees could compromise our ability to pursue our growth strategy and grow our business.***

Our success depends largely upon the continued services of our executive officers and other key employees. We do not maintain "key person" insurance for our executive officers, other than for our Interim Chief Executive Officer, Mr. Brian W. Adams, or any of our other key employees. From time to time there may be changes in our senior management team resulting from the hiring or departure of executives, which could disrupt our business. For example, in 2022, Dr. Calvin H. Knowlton and Dr. Orsula V. Knowlton resigned as Chief Executive Officer of the Company and Co-President and Chief Marketing & New Business Development Officer of the Company, respectively, and from the Board. Dr. Calvin H. Knowlton was replaced by Mr. Brian W. Adams, our then Co-President. All of our employees' employment is at-will, including the employment of our Interim Chief Executive Officer and our Chief Financial Officer, which means that any of these employees could leave our employment at any time. The replacement of one or more of our executive officers or other key employees would likely involve significant time and costs and may significantly delay or prevent the achievement of our business objectives.

In addition, competition for qualified management in our industry is intense. Many of the companies with which we compete for management personnel have greater financial and other resources than we do. As a result, we may experience difficulty hiring and retaining qualified personnel. The departure of key personnel could also hurt our business. In such event, we would be required to hire other personnel to manage and operate our business, and we might not be able to employ a suitable replacement for the departing individual, or a replacement might not be willing to work for us on terms that are favorable to us.

In addition, in making employment decisions, particularly in the technology industry, job candidates often consider the value of the stock options or other equity instruments they are to receive in connection with their employment. Volatility in the price of our common stock might therefore compromise our ability to attract or retain highly skilled personnel. Furthermore, the requirement to expense stock options and other equity instruments might discourage us from granting the size or type of stock option or equity awards that job candidates require to join our company. If we fail to attract new personnel or fail to retain and motivate our current personnel, our business and future growth prospects could be harmed.

***We may require additional capital to support business growth, and this capital might not be available to us on acceptable terms or at all.***

Our operations have required a significant investment of cash since inception. We intend to continue to make significant investments to support our business growth, respond to business challenges or opportunities, develop new

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applications and services, enhance our existing platform and services, hire additional sales and marketing personnel, enhance our operating infrastructure, and potentially acquire complementary businesses and technologies. As of December 31, 2022, we had $70.0 million of unrestricted cash and cash equivalents.

Our future capital requirements may be significantly different from our current estimates and will depend on many factors, including our growth rate, renewal activity, the timing and extent of spending to support product development efforts, the expansion of sales and marketing activities, the introduction of new and enhanced products and services, and the continuing market acceptance of our products and services. Accordingly, we might need to engage in equity or debt financings or collaborative arrangements to secure additional funds. In March 2021, the U.K.'s Financial Conduct Authority, a regulator of financial services firms and financial markets in the U.K., stated that it will plan for a phase out of regulatory oversight of LIBOR interest rates indices beginning as of December 31, 2021. In the U.S., the Alternative Reference Rates Committee, a committee convened by the Federal Reserve Board and the Federal Reserve Bank of New York, recommended SOFR plus a recommended spread adjustment as LIBOR's replacement. LIBOR and SOFR have significant differences, such as LIBOR being an unsecured lending rate while SOFR is a secured lending rate, and SOFR being an overnight rate while LIBOR reflects term rates at different maturities. Introduction of SOFR may introduce additional basis risk for market participants as an alternative index is utilized along with LIBOR. The Company is not able to predict whether SOFR will become a widely accepted benchmark, or what the impact the transition to SOFR may be on the Company's financial condition and results of operations.

If we raise additional funds through further issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we issue could have rights, preferences, and privileges superior to those of holders of our common stock. Any debt financing secured by us in the future could involve restrictive covenants relating to our capital-raising activities and other financial and operational matters, which might make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions. We might have to obtain funds through arrangements with collaborators or others that may require us to relinquish rights to our technologies or offerings that we otherwise would not consider. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to continue to support our business growth and to respond to business challenges could be limited.

***Our effective tax rate may increase or decrease, and we may be adversely impacted by changes in tax laws.***

We are subject to income taxes in the U.S. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. We are subject to audit by tax authorities where we do business. Although we believe that our tax estimates and tax positions are reasonable, they could be materially affected by many factors, including the final outcome of tax audits and related litigation, the introduction of new tax accounting standards, legislation, regulations, and related interpretations, our global mix of earnings and the realizability of deferred tax assets. An increase or decrease in our effective tax rate could have a material adverse impact on our financial condition and results of operations.

In addition, at any time, U.S. federal tax laws or the administrative interpretations of those laws may be changed. We also cannot predict whether, when, or to what extent other new U.S. federal tax laws, regulations, interpretations, or rulings will be issued. As a result, changes in U.S. federal tax laws could adversely affect our business, financial condition, and results of operations, and adversely impact our stockholders.

Occasionally, changes in state and local tax laws or regulations are enacted that may result in an increase in our tax liability. Shortfalls in tax revenues for states and municipalities in recent years may lead to an increase in the frequency and size of such changes. If such changes occur, we may be required to pay additional taxes on our assets or income.

***Certain U.S. state tax authorities may assert that we have a state nexus and seek to impose state and local income taxes, which could adversely affect our results of operations.***

We are currently licensed to operate in all 50 states and file state income tax returns in 41 states. There is a risk that certain state tax authorities where we do not currently file a state income tax return could assert that we are liable for state and local income taxes based upon income or gross receipts allocable to such states. States are becoming increasingly aggressive in asserting a nexus for state income tax purposes. We could be subject to state and local taxation, including penalties and interest attributable to prior periods, if a state tax authority successfully asserts that our

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activities give rise to a nexus. Such tax assessments, penalties, and interest may adversely affect our results of operations.

***Our review of potential strategic alternatives may not result in an executed or consummated transaction or other strategic alternative, and the process of reviewing strategic alternatives or its conclusion could adversely affect our business and our stockholders.***

In February 2022, we announced plans to evaluate non-core assets to refocus our corporate strategy and increase stockholder value, and we commenced an initial plan to sell the DoseMe business, which we acquired in January 2019. In March 2022, we completed our evaluation of additional divestiture opportunities and commenced plans to sell the SinfoníaRx and PrescribeWellness businesses, acquired in September 2017 and March 2019, respectively. We completed the sales of our unincorporated PrescribeWellness, DoseMe, SinfoníaRx businesses in August 2022, January 2023, and March 2023, respectively. In September 2022, the Company entered into a cooperation agreement with a significant stockholder, in connection with which the Board of Directors formed a new Strategic Review Committee to oversee our strategic process relating to the sale of non-core assets and to explore other strategic alternatives and value creation opportunities with a view toward maximizing stockholder value.

Any potential strategic alternative would be dependent on a number of factors that may be beyond our control, including, among other things, market conditions, industry trends, regulatory approvals, and the availability of financing for a potential transaction on reasonable terms. The process of reviewing potential strategic alternatives may be time-consuming, distracting, and disruptive to our business operations, which may cause concern to our current or potential customers, employees, investors, strategic partners, and other constituencies and may have a material impact on our business and operating results and/or result in increased volatility in our share price. We have and will continue to incur substantial expenses associated with identifying, evaluating, and negotiating potential strategic alternatives. There can be no assurance that any potential transaction or other strategic alternative, if consummated, will provide greater value to our stockholders than that reflected in the current price of our common stock. Until the process is concluded, perceived uncertainties related to our future may result in the loss of potential business opportunities and volatility in the market price of our common stock and may make it more difficult for us to attract and retain qualified personnel and business partners. Similarly, activist investors may engage in proxy solicitations or advance shareholder proposals, or otherwise attempt to effect changes and assert influence on our Board and management, which could lead to the impacts on our business, Board, management, and employees discussed above.

***We may incur liabilities in connection with divestitures.***

In connection with various divestitures, and certain other transactions, we have indemnified or guaranteed parties against certain liabilities. These indemnities and guarantees relate, among other things, to liabilities which may arise with respect to the period during which we or our subsidiaries operated a divested business, and to certain ongoing contractual relationships and entitlements with respect to which we or our subsidiaries made commitments in connection with the divestiture.

***Actions of activist stockholders against us could be disruptive and costly. The possibility that activist stockholders may wage proxy contests or seek representation on our Board could cause uncertainty about the strategic direction of our business.***

Stockholders may from time to time engage in proxy solicitations, advance stockholder proposals, or Board nominations or otherwise attempt to effect changes, assert influence, or acquire some level of control over us.

We recently engaged in a process with one of our significant stockholders, which culminated in our entering into the Cooperation Agreement with that significant stockholder and several resulting changes in our management and corporate governance. The stockholder also agreed to customary standstill provisions during the term of the Cooperation Agreement, which expired on January 26, 2023.

That stockholder, following the termination of the standstill provisions in the Cooperation Agreement, or another activist stockholder, may attempt to effect additional changes in our strategic direction, and in furtherance thereof seek changes to how our company is governed, through further changes to our Board of Directors or otherwise. While our Board and management team will continue to strive to maintain constructive, ongoing

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communications with our stockholders, and welcomes their views and opinions with the goal of enhancing value for all stockholders, if that stockholder takes further action, or if another stockholder were to launch an activist campaign that seeks to further replace members of our Board or bring about changes in our strategic direction, it could have an adverse effect on us because:

● Responding to actions by activist stockholders can disrupt our operations, are costly and time-consuming, and divert the attention of our Board and senior management team from the pursuit of business strategies, which could adversely affect our results of operations and financial condition;

● Perceived uncertainties as to our future direction as a result of changes to the composition of our Board or changes to our stockholder base may lead to the perception of a change in the direction of the business, instability, or lack of continuity, which may be exploited by our competitors, result in the loss of potential business opportunities, cause concern for our client base, and make it more difficult to attract and retain qualified personnel and business partners;

● These types of actions could cause significant fluctuations in our stock price based on temporary or speculative market perceptions or other factors that do not necessarily reflect the underlying fundamentals and prospects of our business; and

● If individuals are elected to our Board with a specific agenda, it may adversely affect our ability to effectively implement our business strategy and to create additional value for our stockholders.

***We and certain of our officers may become involved in litigation, investigations, and governmental proceedings that may be costly, may divert the efforts of our key personnel, and could result in adverse court rulings, fines, or penalties, which could materially harm our business.***

We may become involved in litigation, including antitrust and commercial matters, putative securities class action suits, and other actions or governmental inquiries or proceedings. Litigation is subject to inherent risks and uncertainties that may cause actual results to differ materially from our expectations. In the event of an adverse outcome in any litigation, investigation, or governmental proceeding, we could be required to pay substantial damages, fines, or penalties and cease certain practices or activities. Regardless of their merit, such matters can be complex, can extend for a protracted period of time, and can be very expensive, even unpredictably expensive. In addition, litigation, investigations, or governmental proceedings and any related publicity may divert the efforts and attention of some of our key personnel, affect demand for our products, and harm the market prices of our securities.

We may be obligated to indemnify our current or former directors or employees, or former directors or employees of companies that we have acquired, in connection with litigation, investigations, or governmental proceedings. These liabilities could be substantial and may include, among other things: the cost of defending lawsuits against these individuals; the cost of defending shareholder derivative suits; the cost of governmental, law-enforcement, or regulatory investigations or proceedings; civil or criminal fines and penalties; legal and other expenses; and expenses associated with the remedial measures, if any, which may be imposed.

***Future sales to clients outside the U.S. or clients with international operations might expose us to risks inherent in international markets, which could hurt our business.***

Operating in international markets requires significant resources and management attention and will subject us to regulatory, economic, and political risks that are different from those in the U.S. Because of our limited experience with international operations, any potential future international expansion efforts might not be successful in creating demand for our products and services outside of the U.S. or in effectively selling our products and services in the international markets we enter. In addition, we could face risks such as compliance challenges related to the complexity of multiple, conflicting and changing governmental laws and regulations, including employment, anti-bribery, foreign investment, tax, privacy, and data protection laws and regulations. The occurrence of these risks could negatively affect our business and results of operations.

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***The COVID-19 pandemic and other public health crises could have a material adverse effect on our business operations, results of operations, cash flows, and financial position.***

The COVID-19 pandemic has impacted, and could continue to impact, our business and those of our clients and their suppliers and other business partners. These impacts include additional costs resulting from our efforts to protect the health and well-being of our employees, increased logistics, component, and other costs. While our facilities are all currently operational, we have experienced, and may experience in the future, temporary closures of certain facilities related to the pandemic. Future outbreaks of infectious disease or other public health crises may have a similar impact.

The effects of such health crises, including the COVID-19 pandemic, are uncertain and difficult to predict, but may include:

● disruptions to our business, our clients' businesses, or our supply chain caused by employees or others contracting infectious diseases, or governmental orders to contain the spread of infectious disease, such as travel restrictions , quarantines, shelter-in-place orders, trade controls, and business shut-downs;

● deterioration of credit markets that may limit our ability to obtain or increase the cost of obtaining external financing to fund our operations and capital expenditures and result in a higher rate of losses on our accounts receivables due to customer credit defaults;

● volatility in financial markets, which may harm our ability to access the financial markets on acceptable terms;

● increased data security and technology risk as some employees continue to work from home, including possible outages to systems and technologies critical to remote work and increased data privacy risk with cybercriminals attempting to take advantage of the disruption;

● reduced productivity or other disruptions of our operations if workers in our factories or our other worksites are exposed to or spread infectious disease to other employees; and

● reduced ability to purchase or obtain pharmaceutical products, which may result in higher supply chain costs and could otherwise disrupt our operations.

The extent to which the COVID-19 pandemic or future public health crises ultimately impacts our business and our clients and their patients, suppliers, and other business partners will depend on numerous factors that are beyond our control, highly uncertain and cannot be predicted at this time.

**Risks Related to Our Intellectual Property**

***If we are unable to obtain, maintain, and enforce intellectual property protection for our technology and products or if the scope of our intellectual property protection is not sufficiently broad, others may be able to develop and commercialize technology and products substantially similar to ours, and our ability to successfully commercialize our technology and products may be compromised.***

Our business depends on proprietary technology and content, including software, databases, confidential information, and know-how, the protection of which is crucial to the success of our business. We rely on a combination of patent, trademark, trade-secret, and copyright laws, confidentiality procedures, cyber security practices, and contractual provisions to protect the intellectual property rights of our proprietary technology and content. We may over time increase our investment in protecting our intellectual property through additional trademark, patent, and other intellectual property filings, which could be expensive and time-consuming. We may not be able to obtain protection for our technology and, even if we are successful in attaining effective patent, trademark, trade-secret, and copyright protection, it is expensive to maintain these rights and the costs of defending our rights could be substantial. Furthermore, recent changes to U.S. intellectual property laws may jeopardize the enforceability and validity of our intellectual property portfolio and harm our ability to obtain patent protection for some of our unique business methods.

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In addition, these measures may not be sufficient to offer us meaningful protection or provide us with any competitive advantages. If we are unable to adequately protect our intellectual property and other proprietary rights, our competitive position and our business could be harmed, as third parties may be able to commercialize and use technologies and software products that are substantially the same as ours without incurring the development and licensing costs that we have incurred. Any of our owned or licensed intellectual property rights could be challenged, invalidated, circumvented, infringed, or misappropriated; our trade secrets and other confidential information could be disclosed in an unauthorized manner to third parties; or our intellectual property rights may not be sufficient to permit us to take advantage of current market trends or to otherwise provide us with competitive advantages, which could result in costly redesign efforts, discontinuance of some of our offerings, or other competitive harm.

Monitoring unauthorized use of our intellectual property is difficult and costly. From time to time we seek to analyze our competitors' products and services, and may in the future seek to enforce our rights against potential infringement. However, the steps we have taken to protect our proprietary rights may not be adequate to enforce our rights against infringement or misappropriation of our intellectual property. We may not be able to detect unauthorized use of, or take appropriate steps to enforce, our intellectual property rights. Any inability to meaningfully protect our intellectual property rights could harm our ability to compete and reduce demand for our products and services. Moreover, our failure to develop and properly manage new intellectual property could hurt our market position and business opportunities. Also, some of our products and services rely on technologies, data, and software developed by or licensed from third parties, and we may not be able to maintain our relationships with such third parties or enter into similar relationships in the future on reasonable terms or at all. Any loss of the right to use any third-party technologies, data, or software could result in delays in implementing or provisioning our products and services until equivalent technology is either developed by us or, if available, is identified, obtained, and integrated, which could harm our business.

We may also be required to protect our proprietary technology and content in an increasing number of jurisdictions, a process that is expensive and may not be successful, or which we may not pursue in every location. In addition, effective intellectual property protection may not be available to us in every country, and the laws of some foreign countries may not be as protective of intellectual property rights as those in the U.S. Additional uncertainty may result from changes to intellectual property legislation enacted in the U.S. and elsewhere, and from interpretations of intellectual property laws by applicable courts and agencies. Accordingly, we may be unable to obtain, maintain, and enforce the intellectual property rights necessary to provide us with a competitive advantage. Our failure to obtain, maintain, and enforce our intellectual property rights could therefore adversely affect our business, financial condition, and results of operations.

***If our trademarks and trade names are not adequately protected and if we cannot protect our domain names, we may not be able to build name recognition in our markets of interest and our competitive position may be harmed.***

The registered or unregistered trademarks or trade names that we own may be challenged, infringed, circumvented, declared generic, lapsed, or determined to be infringing on or dilutive of other marks. We may not be able to protect our rights in these trademarks and trade names, which we need in order to build name recognition with potential clients. In addition, third parties may in the future file for registration of trademarks similar or identical to our trademarks. If they succeed in registering or developing common law rights in such trademarks, and if we are not successful in challenging such third-party rights, we may not be able to use these trademarks to develop brand recognition of our technologies, products, or services. If we are unable to establish name recognition based on our trademarks and trade names, we may not be able to compete effectively.

We also currently own the web domain names www.tabularasahealthcare.com, www.trhc.com, www.careventionhc.com, www.careventions.com, www.medliance.com, www.capstoneperformancesystems.com, www.eirenerx.com, www.medwisehealthcare.com, www.medwise.com, www.mediture.com, and www.cognify.com, each of which is critical to the operation of our business. The acquisition and maintenance of domain names is generally regulated by governmental agencies and their designees. The regulation of domain names in the U.S. and in foreign countries is subject to change. Governing bodies may establish additional top-level domains, appoint additional domain name registrars, or modify the requirements for holding domain names. As a result, we may be unable to acquire or maintain relevant domain names in all countries in which we conduct business. Furthermore, it is unclear whether laws protecting trademarks and similar proprietary rights will be extended to protect domain names. Therefore, we may be unable to prevent third parties from acquiring domain names that are similar to, infringe upon, or otherwise decrease the value of our trademarks and other proprietary rights. We may not be able to successfully implement our business

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strategy of establishing a strong brand if we cannot prevent others from using similar domain names or trademarks. This failure could impair our ability to increase our market share and revenue.

***We could incur substantial costs as a result of any claim of infringement of another party's intellectual property rights.***

Our commercial success depends in part on our ability to develop and commercialize our products and services without infringing or being claimed to have infringed the intellectual property or proprietary rights of third parties. Intellectual property disputes can be costly to defend and may cause our business, operating results, and financial condition to suffer. As the market for technology-enabled healthcare solutions in the U.S. expands and intellectual property protections asserted by others increase, the risk increases that there may be intellectual property asserted by others and patents issued to third parties that relate to our products and technology of which we are not aware or that we must challenge to continue our operations as currently contemplated. Whether merited or not, we may face allegations that we, our clients, our licensees, or parties indemnified by us have infringed or otherwise violated the patents, trademarks, copyrights, or other intellectual property rights of third parties. In addition, we have received letters from third parties from time to time claiming that our software, technologies, or methodologies are covered by their patents or that our activities are otherwise violating their patents, trademarks, copyrights, or other intellectual property rights, and future claims may require us to expend time and money to address and resolve these claims. Such claims may be made by competitors seeking to obtain a competitive advantage or by other parties. Additionally, in recent years, individuals and groups have begun purchasing intellectual property assets for the purpose of making claims of infringement and attempting to extract settlements from other technology-reliant companies.

We may also face allegations that our employees or consultants have misappropriated the intellectual property or proprietary rights of their former employers or other third parties. It may be necessary for us to initiate litigation to defend ourselves in order to determine the scope, enforceability, and validity of third-party intellectual property or proprietary rights, or to establish our respective rights. Regardless of whether claims that we are infringing patents or other intellectual property rights have merit, such claims can be time-consuming, divert management's attention and financial resources, and can be costly to evaluate and defend. Results of any such litigation are difficult to predict and may require us to stop commercializing or using our products or technology, obtain licenses, modify our products and technology while we develop non-infringing substitutes, incur substantial damages or settlement costs, or face a temporary or permanent injunction prohibiting us from marketing or providing the affected products and services. If we require a third-party license, it may not be available on reasonable terms or at all, and we may have to pay substantial royalties, upfront fees, or grant cross-licenses to intellectual property rights for our products and services. We may also have to redesign our products or services so they do not infringe third-party intellectual property rights, which may not be possible or may require substantial monetary expenditures and time, during which our technology and products may not be available for commercialization or use. Even if we have an agreement to indemnify us against such costs, the indemnifying party may be unable to uphold its contractual obligations. If we cannot or do not obtain a third-party license to the infringed technology at all, license the technology on reasonable terms, or obtain similar technology from another source, our ability to operate our business could be compromised.

***Our use of open-source software could compromise our ability to offer our services and subject us to possible litigation.***

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***We may become involved in lawsuits to protect or enforce our patents or other intellectual property, which could be expensive, time-consuming, and unsuccessful.***

Competitors may infringe our issued patents or other intellectual property. To counter infringement or unauthorized use, we may be required to monitor for such infringement and file infringement claims, both of which can be expensive and time-consuming. Any claims we assert against perceived infringers could provoke these parties to assert counterclaims against us alleging that we infringe their patents. In addition, in a patent infringement proceeding, a court may decide that a patent of ours is invalid or unenforceable, in whole or in part, or may construe the patent's claims narrowly or refuse to stop the other party from using the technology at issue on the grounds that our patents do not cover the technology in question. An adverse result in a proceeding could put one or more of our patents at risk of being invalidated.

***We may be subject to claims by third parties asserting that our employees, our contractors, or we have misappropriated their intellectual property, or claiming ownership of what we regard as our own intellectual property.***

Many of our employees and contractors were previously employed at universities or other technology or pharmaceutical companies, including our competitors or potential competitors. Although we try to ensure that our employees and our contractors do not use the proprietary information or know-how of others in their work for us, we may be subject to claims that our employees, our contractors, or we have used or disclosed intellectual property, including trade secrets or other proprietary information, of any such employee's or contractor's former employer. Costly litigation may be necessary to defend against these claims.

In addition, while it is our policy to require our employees and contractors who may be involved in the development of intellectual property to execute agreements assigning such intellectual property to us, we may be unsuccessful in executing such an agreement with each party who in fact develops intellectual property that we regard as our own. Our and their assignment agreements may not be self-executing or may be breached, and we may be forced to bring claims against third parties, or defend claims they may bring against us, to determine the ownership of what we regard as our intellectual property.

If we fail in prosecuting or defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights or personnel. Even if we are successful in prosecuting or defending against such claims, litigation could result in substantial costs and be a distraction to management.

***Intellectual property litigation could cause us to spend substantial resources and distract our personnel from their normal responsibilities.***

Even if resolved in our favor, litigation or other legal proceedings against us relating to intellectual property claims may cause us to incur significant expenses and could distract our technical and management personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings, motions, or other interim proceedings or developments and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our common stock. Such litigation or proceedings could substantially increase our operating losses and reduce the resources available for development activities or any future sales, marketing, or distribution activities. We may not have sufficient financial or other resources to conduct such litigation or proceedings adequately. Some of our competitors may be able to sustain the costs of such litigation or proceedings more effectively than we can because of their greater financial resources. Uncertainties resulting from the initiation and continuation of patent litigation or other proceedings could compromise our ability to compete in the marketplace.

***If we are unable to protect the confidentiality of our trade secrets, know-how, and other proprietary information, the value of our technology, products, and services could be hurt.***

We may not be able to adequately protect our trade secrets, know-how, and other proprietary information. Although we use reasonable efforts to protect this proprietary information and technology, our employees, consultants, and other parties may unintentionally or willfully disclose our information or technology to competitors. In addition, our trade secrets, know-how, and other proprietary information may be accessed or disclosed during a cyber incident, which could have a significant negative impact on us. Further, such cyber incidents, if disclosed publicly, could adversely affect the price of our common stock.

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Enforcing a claim that a third party illegally obtained and is using any of our proprietary information or technology is expensive and time-consuming, and the outcome is unpredictable. In addition, courts outside the U.S. are sometimes less willing to protect trade secrets, know-how, and other proprietary information. We rely, in part, on non-disclosure, confidentiality, and invention assignment agreements with our employees, consultants, and other parties to protect our trade secrets, know-how, and other intellectual property and proprietary information. These agreements may not be self-executing, or they may be breached, and we may not have adequate remedies for such breach. Moreover, third parties may independently develop similar or equivalent proprietary information or otherwise gain access to our trade secrets, know-how, and other proprietary information.

**Risks Related to Industry Regulation and Other Legal Compliance Matters**

***The healthcare regulatory and political framework is uncertain and evolving.***

Healthcare laws and regulations are rapidly evolving and may change significantly in the future. For example, in March 2010, the ACA was adopted, which is a healthcare reform measure that seeks to contain healthcare costs while improving quality and access to coverage. The ACA includes a variety of healthcare reform provisions and requirements that have already become effective and substantially changed the way healthcare is financed by both governmental and private insurers, which may significantly affect our industry and our business. In addition, other legislation expanding or modifying the ACA may be considered by Congress in the future.

On October 24, 2018, President Trump signed legislation into law aimed at curbing the opioid crisis in the U.S. The SUPPORT Act includes provisions that address law enforcement, public health, and coverage under the Medicare and Medicaid programs. Broad in scope, the legislation increases federal oversight with respect to the production and distribution of opioids, bolsters fraud prevention safeguards, enhances oversight of prescription opioids, expands coverage of opioid addiction treatment services, and authorizes consumer education and provider training programs aimed at preventing and treating opioid use disorders. The potential for additional regulatory oversight and enforcement will likely add to the costs associated with the prescription and any downstream handling of medications. Whether it impacts medication management companies or health plans is difficult to determine without seeing the implementing regulations, but, given the intent to crack down on opioid abuse in this country, it is likely that more time, attention, and personnel will be required to ensure compliance. Implementation of the SUPPORT Act has been slow to occur. We cannot be sure whether additional legislative changes will be enacted, given the continued scrutiny of prescription opioids by the U.S. Congress, or predict what the impact of future regulations generated by the SUPPORT Act, if any, may be.

There has been a trend in federal and state legislation aimed at lowering costs for drug products, including by requiring pharmaceutical companies to disclose information about their pricing and production and marketing costs, and heightened governmental scrutiny over the manner in which pharmaceutical manufacturers set prices for their marketed products. There have been several presidential executive orders and U.S. Congressional inquiries and proposed and enacted federal and state legislation designed to, among other things, bring more transparency to drug pricing, reduce the cost of prescription drugs under Medicare, review the relationship between pricing and manufacturer patient programs, and reform government program reimbursement methodologies for drugs. For example, on October 10, 2018 the Patient Right to Know Drug Prices Act (for private plans) and the Know the Lowest Price Act (for Medicare Parts C and D) were signed into law, which prohibited health plans from restricting pharmacies from informing individuals regarding prices for certain drugs.

Additionally, a significant amount of our business depends on the evolution of the health care environment and concomitant clinical integration and care coordination, including certain demonstration projects operated by the federal government. If these demonstration projects are modified, cancelled, or not ultimately made permanent as part of federal health care programs, this might affect demand for the types of services we provide. In 2020, CMS and OIG finalized rules as part of the federal government's "Regulatory Sprint to Coordinated Care" initiative. The impact of these rules is still unknown, but they focus on protecting and encouraging certain value-based arrangements.

In addition, we are subject to various other healthcare laws and regulations, including, among others, the Stark Law relating to self-referrals, anti-kickback laws, including the federal AKS, antitrust laws, and the data privacy and security laws and regulations described below. For instance, the CCPA imposes rules governing how businesses handle personal data of California residents. Companies that do business in California will be required to disclose the types of

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data they collect, the purpose of the data collection, and how the data will be used and to expand organizational responsibilities pertaining to individual rights, accountability, and governance. Companies subject to the CCPA must have complied by January 1, 2020. There were additional regulatory provisions and legislative amendments related to the CCPA during 2020, including the passage of the CPRA. The CPRA modifies the CCPA and will impose additional data protection obligations on companies doing business in California effective January 1, 2023. If we were to become subject to litigation or liabilities or found to be out of compliance with these or other laws, our business could be hurt. We may become subject to litigation, which could be costly and result in significant liability.

***We are subject to data privacy and security laws, regulations, and contractual obligations governing the transmission, security, and privacy of health information and other sensitive or proprietary information, which may impose restrictions on the manner in which we access, store, transmit, use, and disclose such information and subject us to penalties if we are unable to fully comply with such laws or contractual provisions.***

As described below, we are required to comply with numerous federal and state laws and regulations governing the collection, use, disclosure, storage, and transmission of individually identifiable health information that we may obtain or have access to in connection with the provision of our services. These laws and regulations, including their interpretation by governmental agencies, are subject to frequent change. These laws and regulations include the following.

● The HIPAA and its implementing regulations required expanded protection of the privacy and security of protected health information. Also required are the execution of certain contracts to safeguard protected health information and the adoption of standards for the exchange of electronic health information for health plans, healthcare clearinghouses, and certain healthcare providers, which we refer to as Covered Entities, and their business associates. Among the standards that HHS has adopted pursuant to HIPAA are standards for electronic transactions and code sets, unique identifiers for providers, employers, health plans, and individuals, security, electronic signatures, privacy, and enforcement. Actual failure to comply with HIPAA could result in fines and civil and criminal penalties, as well as contractual damages, which could harm our business, finances, and reputation.

● The HITECH Act, enacted as part of the American Recovery and Reinvestment Act of 2009, also known as the "Stimulus Bill," effective February 22, 2010, modified HIPAA by setting forth health information security breach notification requirements and increasing penalties for violations of HIPAA, among other things. The HITECH Act requires individual notification for all breaches as defined by HIPAA, media notification of breaches affecting over 500 individuals located in the same region, and either prompt or annual reporting of breaches to HHS, depending on the number of affected individuals. The HITECH Act also replaced the prior monetary penalty system of $100 per violation and an annual maximum of $25,000 per violation with a four-tier system of sanctions for breaches. Penalties now range from a minimum of $100 per violation and an annual maximum of $25,000 per violation for the first tier to a minimum of $50,000 per violation and an annual maximum of $1.5 million per violation for the fourth tier. Failure to comply with HIPAA as modified by the HITECH Act could result in fines and penalties, criminal sanctions, and reputational damage that could harm our business.

● Numerous federal and state laws and regulations govern the collection, retention, use, and disclosure of personal information. In addition to HIPAA, we are subject to various laws, rules and regulations related to privacy and information security, including those promulgated under the Gramm-Leach-Bliley Act and various state laws regulating the use and security of personal information. Those laws, rules, and regulations include requirements such as reasonable and appropriate safeguards to protect personal information or providing appropriate notice to consumers about how their personal information will be used or disclosed. State legislatures have been actively considering and enacting new laws addressing data security, security breach notification, and privacy. For example, the California Privacy Rights Act, the Colorado Privacy Act, and the Virginia Consumer Data Protection Act were all enacted recently and will become operative in 2023 (some provisions have already become operative). These areas may present implementation challenges, could be an enforcement priority for the state regulators, and could generate increased lawsuits by consumers and other individuals. Our management believes that we are currently operating in compliance with these areas of law. However, continued compliance with these evolving laws, rules and regulations regarding the privacy, security and protection of our customers' data, or the

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implementation of any additional privacy and security rules and regulations, could result in higher compliance and technology costs for us.

● State data privacy and security laws that track federal requirements or impose more stringent or different requirements than HIPAA regarding storage, transmission, use, and disclosure of protected health information, general individually identifiable information, or other sensitive information. The CCPA imposes rules governing how businesses handle personal data of California residents. Companies that do business in California are required to disclose the types of data they collect, the purpose of the data collection, how the data will be used, and to expand organizational responsibilities pertaining to individual rights, accountability, and governance. Companies subject to the CCPA and CPRA have needed to comply with the applicable provisions of both laws by January 1, 2023.

● Federal and state consumer protection laws are increasingly being applied by the U.S. Federal Trade Commission and states' attorneys general to regulate the collection, use, storage, and disclosure of personal or individually identifiable information, through websites or otherwise, and to regulate the presentation of website content.

There is ongoing concern from privacy advocates, regulators and others regarding data protection and privacy issues, and the number of jurisdictions with data protection and privacy laws has been increasing. In addition, the scope of protection afforded to data subjects by many of these data protection and privacy laws has been increasing. Also, there are ongoing public policy discussions regarding whether the standards for deidentified, anonymous, or pseudonymized health information are sufficient, and the risk of re-identification sufficiently small, to adequately protect patient privacy. These discussions may lead to further restrictions on the use of such information. These initiatives or future initiatives could compromise our ability to access and use data or to develop or market current or future services.

The security measures that we and our third-party vendors and subcontractors have in place to ensure compliance with privacy and data protection laws and contractual commitments may not protect our facilities and systems from security breaches, acts of vandalism or theft, cyber incidents, misplaced or lost data, programming and human errors, or other similar events. The occurrence of a cyber incident that affects either individually identifiable health information or other confidential or proprietary information with which we have been entrusted may result in liability and hurt our reputation.

Additionally, as a business associate under HIPAA, we may also be liable for privacy and security breaches of protected health information and certain similar failures of our subcontractors. Even though we contractually require our subcontractors to safeguard protected health information as required by law, we still have limited control over their actions and practices. An actual or perceived breach of privacy or security of individually identifiable health information held by us or by our subcontractors may result in an enforcement action, including criminal and civil liability, against us, as well as negative publicity, reputational harm, and contractual ramifications with our clients.

We are not able to predict the full extent of the impact such incidents may have on our business if such incidents occur. Any failure we may have in complying with HIPAA may result in criminal or civil liability, and due to the heightened enforcement climate and recent changes to the law, the potential for enforcement action against business associates under HIPAA is now greater than in prior years. Enforcement actions against us could be costly and could interrupt regular operations, which may harm our business. While we have not received any notices of violation of the applicable privacy and data protection laws and believe we adequately protect our information, including in compliance with such laws, there can be no assurance that we will not receive such notices in the future. Further, costly breaches can occur regardless of our compliance infrastructure.

***We operate in a highly regulated industry and must comply with a significant number of complex and evolving requirements. Achieving and sustaining compliance with state and federal statutes and regulation related to the healthcare industry may prove costly. Changes in these laws could restrict our ability to conduct our business. Further, if we fail to comply with these requirements, we could incur significant penalties and our reputation could suffer.***

Our industry is highly regulated and subject to changing political, legislative, regulatory, and other influences. Changes in the laws and regulations may impact the operating environment and healthcare market and, by extension, our business. Among other impacts, existing and new laws and regulations affecting the healthcare industry could create

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legal liabilities for us, cause us to incur additional costs and/or restrict our operations. These laws and regulations are complex and their application to specific services and relationships are not always clear. In particular, many existing laws and regulations affecting employee benefits, when enacted, did not anticipate the services that we provide, and these laws and regulations might be applied to our services in ways that we do not anticipate. Our failure to accurately anticipate the application of these laws and regulations, or our failure to comply, could create liability for us, result in adverse publicity, and negatively affect our business. Some of the risks we face from regulation are as follows:

● *Healthcare Market Reforms.* Healthcare services and benefits are delivered and reimbursed under an increasingly intricate, and frequently uncertain, statutory and regulatory framework. Ongoing efforts to repeal and/or reform part or all of the ACA, new payment models for certain federal healthcare programs, and efforts to slow the growth in healthcare spending and to alter the regulatory landscape have created uncertainty in the healthcare industry broadly. For instance, carriers and large employers might experience changes in the numbers of individuals they insure as a result of the elimination of the penalty associated with ACA's individual mandate, possible repeal of guaranteed issue, and flux in the state and national exchanges under ACA. Although we are unable to predict with any reasonable certainty or otherwise quantify the likely impact of ACA reform efforts and other regulatory initiatives on our business model, financial condition, and operations, as well as changes in the business of our client base, may negatively impact our business.

● *Healthcare Cost Reforms.* Legislative efforts at cost containment in healthcare programs are ongoing. For example, the American Taxpayer Relief Act of 2012 reduced Medicare payments to certain providers and increased the statute of limitations period for the government to recover overpayments to providers from three to five years. Similarly, at the state level, individual states are increasingly aggressive in passing legislation and implementing regulations designed to control costs, including price or patient reimbursement constraints, discounts, restrictions on certain product access and marketing cost disclosure and transparency measures, and, in some cases, designed to encourage importation from other countries and bulk purchasing. We expect that additional state and federal healthcare reform measures will be adopted in the future, any of which could limit the amounts that federal and state governments will pay for healthcare products and services. These laws, and others, may result in additional reductions in Medicare and other healthcare funding.

● *The AKS, the federal False Claims Act, the Stark Law, and related laws*. Providers and suppliers that accept reimbursement from federal and state healthcare programs, and those that contract with them, are required to comply with various laws and regulations intended to minimize the risk of fraud and abuse. These laws include the AKS, which attaches criminal liability to unlawful inducements for the referral of business reimbursable under federally-funded healthcare programs; the Stark Law, which attach repayment and monetary damages where a healthcare service provider seeks reimbursement for providing certain services to a patient who was referred by a physician that has certain types of direct or indirect financial relationships with such service provider; the federal False Claims Act, which attaches per-claim liability and potentially treble damages to the filing of false claims for federal payment; the federal prohibition on beneficiary inducements. Many states have also adopted similar laws that apply to any third-party payor including commercial plans.

The False Claims Act prohibits intentionally submitting, conspiring to submit, or causing to be submitted, false or otherwise improper claims, records or statements to the federal government, or intentionally failing to return overpayments, in connection with reimbursement by federal government programs. PACE organizations are funded by both Medicare and Medicaid, and the Medicare risk-adjustment methodology applies to the Medicare component of PACE organization reimbursement. PACE submissions may also be comparable to state Medicaid risk-adjustment submissions and vary by state. Because risk adjustment submissions to Medicare and state Medicaid programs have a direct impact on the amounts that Medicare and Medicaid programs pay to PACE organizations, these activities may be the subject of scrutiny and litigation under the federal civil False Claims Act.

The False Claims Act provides for treble damages and mandatory minimum penalties per false claim or statement. In this context it is particularly notable that a significant portion of our revenue is derived from services provided to PACE organizations. In addition, violations of the Stark law and the federal Anti-Kickback Statute can also lead to liability under the federal False Claims Act. Most states have enacted

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false claims laws analogous to the federal False Claims Act. In addition, the federal False Claims Act and some state false claims laws permit private individuals to file whistleblower lawsuits known as "qui tam" actions on behalf of the federal or state government. Many states have passed laws similar to the federal False Claims Act that pertain to all payors, not just items or services paid for by the federal government.

In addition, the HHS OIG and many state Medicaid agencies maintain lists of individuals and organizations that have been excluded from participation in a federal healthcare program. A significant part of our revenue is derived from our services as federal healthcare program providers, pharmacies, or contractors to federal healthcare program providers or plans and, as such, we need to comply with restrictions on employing or contracting with personnel and vendors who have been excluded from participation in federal healthcare programs. Adhering to the best practice of conducting monthly screenings against the federal and state exclusion lists for employees and contractors may be costly and resource-consuming, but failure to do so may give rise to significant administrative liability and sanctions.

Moreover, as contractors to PACE organizations and Medicare Advantage organizations ("MAOs"), we are subject to contractual provisions, which impose on us various obligations related to healthcare compliance and healthcare fraud, waste, and abuse reduction and elimination efforts. These obligations stem from the provisions contained in prime contracts between PACE organizations and MAOs, and the federal government. Examples of such flow-down provisions include subcontractor's compliance with all applicable state and federal laws, subcontractor's obligation to screen state and federal exclusion lists and obligation to conduct periodic audits, among many others.

In addition:

● Various state licensure, registration, and certification laws are applicable to pharmacies, pharmacists, pharmacy technicians, other pharmacy personnel , and insurance administrators . If we are unable to maintain our licenses or if states place burdensome restrictions or limitations on non-resident pharmacies, this could limit or affect our ability to operate in some states. Additionally, if we or any of our personnel violate conditions of their pharmacy or pharmacist licensure, we could face penalties and lose valuable personnel.

● A number of federal and state laws and registration requirements are applicable to the purchase, handling, and dispensing of controlled substances. If we are unable to maintain our registrations this could limit or affect our ability to purchase, handle, or dispense controlled substances and other violations of these laws could subject us to criminal or other sanctions.

● Federal and state laws and policies require pharmacies to maintain, enroll, and participate in federal healthcare programs or to report specified changes in their operations to the agencies that administer these programs. If we do not comply with these laws, we may not be able to participate in some federal healthcare programs, which could compromise our ability to sell our solutions.

● A number of FDA regulations and guidance documents are relevant to our business. Some technologies and software applications used in healthcare analytics, genomic testing, and analysis are considered medical devices and are subject to regulation by the FDA. However, the 21st Century Cures Act, signed into law in 2016, created new statutory exemptions for medical-related software, and the FDA has issued guidance documents describing its interpretation of these exemptions and other FDA policies of enforcement discretion for software and related technologies. If the FDA determines that any of our current or future services, technologies, or software applications are regulated by the FDA as medical devices, we will become subject to various laws, regulations, and policies enforced by the FDA or other governmental authorities, including both pre-market and post-market requirements, and we would need to bring the affected services, technologies, or software into compliance with such requirements. The FDA could also require that we cease marketing and/or recall the affected services, technologies, and software unless and until we bring them into compliance with FDA requirements. The FDA and state regulators, such as state boards of pharmacy, also regulate drug packaging and repackaging. Our drug packaging activities must comply with the relevant FDA and state statutes, regulations, and policies. Noncompliance with applicable FDA or state requirements, including those related to pharmaceutical and medical device promotional practices and the pre-market and post-market approval requirements for medical devices can result in an enforcement action that could substantially harm our business. Changes in existing regulatory

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requirements, our failure to comply with current or future requirements, or adoption of new requirements could negatively affect our business.

● Clinical laboratories that perform human genomic testing are subject to oversight by CMS and state regulators, including the Eliminating Kickbacks in Recovery Act of 2018. If the laboratories that we partner with for genomic testing are not in compliance with the applicable CMS or state laws or regulations, they could be subject to enforcement action, which could negatively affect our business .

***Further modifications to the Medicare Part D program and changes in pricing benchmarks may reduce revenue and impose additional costs on the industry.***

The Medicare Prescription Drug Improvement and Modernization Act of 2003 included a major expansion of the Medicare program with the addition of a prescription drug benefit under the new Medicare Part D program. The continued impact of these regulations on our business and operations depends upon a variety of factors, including our ongoing relationships with the Part D plans and the patient mix of our clients. Future modifications to the Medicare Part D program may reduce revenue and impose additional costs on the industry. In addition, contracts and fee schedules in the prescription drug industry, including our contracts with certain of our clients, use certain published benchmarks, including average wholesale price ("AWP") to establish pricing for prescription drugs. Most of our contracts utilize the AWP standard. However, there can be no assurance that our clients will continue to utilize AWP, as previously calculated, or that other pricing benchmarks will not be adopted to establish prices for prescription drugs within the industry.

***Legislative or regulatory initiatives related to climate change or other ESG matters could have a material adverse effect on our business.***

Greenhouse gases may have an adverse effect on global temperatures, weather patterns, and the frequency and severity of extreme weather and natural disasters. Such events could have a negative effect on our business. Concern over climate change may result in new or additional legislative and regulatory requirements to reduce or mitigate the effects of climate change on the environment, which could result in future tax, transportation, and utility increases, and could in turn have a material adverse effect on our business. Moreover, continuing political and social attention to climate change and environmental issues has resulted in both existing and pending international agreements and national, regional and local legislation, regulatory measures, reporting obligations and policy changes. There is increasing societal pressure in some of the areas where we operate to limit greenhouse gas emissions as well as other global initiatives. These agreements and measures may require, or could result in future legislation, regulatory measures or policy changes that would require operational changes, taxes, or purchases of emission credits to reduce emission of greenhouse gases from our operations, which may result in substantial capital expenditures.

Furthermore, increasing attention to climate change has resulted in governmental investigations and public and private litigation, which could increase our costs or otherwise adversely affect our business or results of operations. Any or all of these initiatives may result in significant operational changes and expenditures and could materially adversely affect our business, financial condition, and results of operations.

There is also increased focus, including by investors, customers, and other stakeholders, on these and other ESG and sustainability matters, including with respect to the use of plastic, energy, waste, and worker safety. Our reputation could be damaged if we do not, or are perceived to not, act responsibly with respect to sustainability matters, which could also have a material adverse effect on our business, results of operations, financial position, and cash flows.

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**Risks Related to Our Common Stock**

***Our executive officers, directors, and principal stockholders, if they choose to act together, will continue to have the ability to influence all matters submitted to stockholders for approval.***

Our executive officers and directors, combined with our stockholders, who own more than five percent of our outstanding capital stock, in the aggregate, beneficially own shares representing approximately 43% of our capital stock. As a result, if these stockholders were to choose to act together, they may be able to influence all matters submitted to our stockholders for approval, as well as our management and affairs. This concentration of ownership control may:

● delay, defer, or prevent a change in control;

● entrench our management and the Board of Directors; or

● impede a merger, consolidation, takeover, or other business combination involving us that other stockholders may desire.

As a result, these executive officers, directors, and current five percent or greater stockholders could pursue transactions that may not be in our best interests and could harm our business.

***Some provisions of Delaware law, our amended and restated certificate of incorporation, and our amended and restated bylaws may deter third parties from acquiring us.***

Our amended and restated certificate of incorporation and amended and restated bylaws, among other things:

● divide our Board of Directors into three staggered classes of directors that are each elected to three-year terms;

● provide that the authorized number of directors may be changed only by resolution of our Board of Directors;

● provide that all vacancies, including newly created directorships, may, except as otherwise required by law, be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum;

● prohibit stockholder action by written consent;

● authorize the issuance of "blank check" preferred stock that could be issued by our Board of Directors to increase the number of outstanding shares of capital stock, making a takeover more difficult and expensive;

● prohibit cumulative voting in the election of directors, which would otherwise allow less than a majority of stockholders to elect director candidates;

● provide that special meetings of the stockholders may be called only by or at the direction of the Board of Directors, the chairman of our Board or the Chief Executive Officer; and

● require advance notice to be given by stockholders for any stockholder proposals or director nominees.

Because we are incorporated in Delaware, we are governed by the provisions of Section 203 of the Delaware General Corporation Law (the "DGCL"), which may discourage, delay, or prevent someone from acquiring us or merging with us, whether or not it is desired by or beneficial to our stockholders. Under the DGCL, a corporation may not in general engage in a business combination with any holder of 15% or more of its capital stock unless the holder has held the stock for three years or, among other things, the Board of Directors has approved the transaction.

These and the recently adopted Rights Agreement described below could have the effect of discouraging, delaying, or preventing a transaction involving a change in control of our company or could make it more difficult for you and other stockholders to elect directors of your choosing or to cause us to take other corporate actions that you desire.

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***Our amended and restated certificate of incorporation designates courts in the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.***

Our amended and restated certificate of incorporation provides that, subject to limited exceptions, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for (a) any derivative action or proceeding brought on our behalf, (b) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, or other employees to us or our stockholders, (c) any action asserting a claim against us arising pursuant to any provision of the DGCL, our amended and restated certificate of incorporation, or our amended and restated bylaws, (d) any action to interpret, apply, enforce, or determine the validity of our amended and restated certificate of incorporation or amended and restated bylaws, or (e) any other action asserting a claim against us that is governed by the internal affairs doctrine. We refer to each of these proceedings as a "covered proceeding." In addition, our amended and restated certificate of incorporation provides that if any action, the subject matter of which is a covered proceeding, is filed in a court other than the specified Delaware courts without the approval of our Board of Directors, which we refer to as a "foreign action," the claiming party will be deemed to have consented to (1) the personal jurisdiction of the specified Delaware courts in connection with any action brought in any such courts to enforce the exclusive forum provision described above and (2) having service of process made upon such claiming party in any such enforcement action by service upon such claiming party's counsel in the foreign action as agent for such claiming party. Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock will be deemed to have notice of and to have consented to these provisions. These provisions may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers, or other employees, which may discourage such lawsuits against us and our directors, officers, and employees. Alternatively, if a court were to find these provisions of our amended and restated certificate of incorporation inapplicable to or unenforceable in respect of one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions. The exclusive forum provision in the Company's amended and restated certificate of incorporation will not preclude or contract the scope of exclusive federal or concurrent jurisdiction for actions brought under the federal securities laws, including the Exchange Act or the Securities Act or the respective rules and regulations promulgated thereunder.

***The price of our common stock historically has been volatile. This volatility may affect the price at which you could sell your common stock, and the sale of substantial amounts of our common stock could adversely affect the price of our common stock. This volatility may also impact assessments over the potential impairment of our assets.***

The market price for our common stock has varied between a high of $6.95 and a low of $2.30 in the 12-month period ending on February 28, 2023. This volatility may affect the price at which you could sell the common stock, and the sale of substantial amounts of our common stock could adversely affect the price of our common stock. Our stock price is likely to continue to be volatile and subject to significant price and volume fluctuations in response to market and other factors, including the other factors discussed in "Risks Relating to Our Business and Industry"; variations in our quarterly operating results from our expectations or those of securities analysts or investors; downward revisions in securities analysts' estimates; and announcements by us or our competitors of significant acquisitions, strategic partnerships, joint ventures, or capital commitments.

In addition, the sale of substantial amounts of our common stock could adversely impact its price. As of February 28, 2023, we had outstanding approximately 26,870,660 shares of our common stock, of which approximately 1,601,118 are restricted, and options to purchase approximately 1,068,934 shares of our common stock (of which approximately 1,066,569 were exercisable) as of that date. The sale or the availability for sale of a large number of shares of our common stock in the public market could cause the price of our common stock to decline.

The volatility of our common stock may also impact assumptions relied upon in our assessments of the fair value of our assets, including our goodwill and intangible assets, and a decline in our stock price could result in potential impairment charges to these assets. During the second quarter of 2021 and through the date of this report, we experienced a sustained decline in the price of our common stock. If the stock price continues to decline or remains depressed, we may be required to assess our assets, including goodwill and intangible assets, for impairment, which may result in possible impairment charges for 2023.

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***If we are unable to implement and maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may be negatively affected.***

As a public company, we are required to maintain internal control over financial reporting and to report any material weaknesses in such internal control. Section 404 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act") requires that we evaluate and determine the effectiveness of our internal control over financial reporting.

We may identify material weaknesses and other deficiencies in the design and operation of our internal controls over financial reporting, which may require remediation to correct in order to conclude that our internal controls over financial reporting are operating effectively. Completion of remediation does not provide assurance that our remediation or other controls will continue to operate properly. We may not detect errors on a timely basis and our consolidated financial statements may be materially misstated. If we are unable to comply with the requirements of Section 404 in a timely manner, or if we are unable to assert that our internal control over financial reporting is effective, then (a) investors may lose confidence in the accuracy and completeness of our financial reports; (b) the market price of our common stock could be negatively affected; and (c) we could become subject to investigations by the Nasdaq Global Market, on which our securities are listed, the SEC, or other regulatory authorities, which could require us to obtain additional financial and management resources.

***Because we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be your sole source of gain.***

We have never declared or paid cash dividends on our capital stock. We currently intend to retain all of our future earnings, if any, to finance the growth and development of our business. In addition, the terms of any future debt agreements may preclude us from paying dividends. As a result, capital appreciation, if any, of our common stock will be your sole source of gain for the foreseeable future.

***Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.***

Under Section 382 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an "ownership change," generally defined as a greater than 50% change (by value) in its equity ownership over a three-year period, the corporation's ability to use its pre-change federal net NOLs and other pre-change federal tax attributes (such as research tax credits) to offset its post-change income may be limited. We may experience ownership changes as a result of shifts in our stock ownership that could limit the use of our NOLs. State NOL may be similarly or more stringently limited. As a result, if we earn net taxable income, our ability to use our pre-change NOLs to offset U.S. federal taxable income may be subject to limitations, which could potentially result in increased future tax liability to us. In addition, under the Tax Act, the amount of post-2017 NOLs that we are permitted to deduct in any taxable year is limited to 80% of our taxable income in such year, where taxable income is determined without regard to the NOL deduction itself. In addition, the Tax Act generally eliminates the ability to carry back any NOL to prior taxable years, while allowing post-2017 unused NOLs to be carried forward indefinitely. There is a risk that due to regulatory changes, or other unforeseen reasons, our existing NOLs could expire or otherwise be unavailable to offset future income tax liabilities. For these reasons, we may not be able to realize a tax benefit from the use of our NOLs, whether or not we attain profitability.

***Our stockholder rights plan, or "poison pill," includes terms and conditions that could discourage a takeover or other transaction that stockholders may consider favorable.***

On July 25, 2022, our Board approved and adopted a Rights Agreement, dated as of July 25, 2022 (the "Rights Agreement"), by and between the Company and American Stock Transfer & Trust Company, LLC, as rights agent. Pursuant to the Rights Agreement, the Board declared a dividend of one preferred share purchase right (each, a "Right") for each outstanding share of our common stock (the "Common Shares"). The Rights were distributable to stockholders of record as of the close of business on August 5, 2022 (the "Record Date"). One Right also will be issued together with each Common Share issued by the Company after the Record Date, but before the Distribution Date (as defined in the Rights Agreement) (or the earlier redemption or expiration of the Rights) and, in certain circumstances, after the Distribution Date.

Generally, the Rights Agreement works by causing substantial dilution to any person or group that acquires

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beneficial ownership of 10% or more of the Common Shares without the approval of the Board. As a result, the overall effect of the Rights Agreement and the issuance of the Rights may be to render more difficult or discourage a merger, tender, or exchange offer or other business combination involving the Company that is not approved by the Board. The Rights Agreement is not intended to interfere with any merger, tender, or exchange offer or other business combination approved by the Board. The Rights Agreement also does not prevent the Board from considering any offer that it considers to be in the best interest of its stockholders. The description and terms of the Rights are set forth in the Rights Agreement, which has previously been filed as an exhibit to our public reports.

As discussed above, the effect of the Rights may be to discourage a third party from attempting to obtain a substantial position in our Common Shares or seeking to obtain control of us. To the extent any potential acquisition is deterred by the Rights, the Rights may make the removal of management difficult even if the removal would be considered beneficial to our stockholders generally and may have the effect of limiting stockholder participation in certain transactions such as mergers or tender offers if these transactions are not favored by our management. The Rights will cause substantial dilution to a person or group that attempts to acquire us on terms not approved by the Board.

The Rights and the Rights Agreement will expire upon the earliest to occur of (i) the date on which all of the Rights are redeemed, (ii) the date on which the Rights are exchanged, and (iii) the close of business on July 25, 2023.

**Risks Related to Our Convertible Senior Subordinated Notes** 

***Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt.***

Our ability to make scheduled payments of the principal of, to pay interest on, or to refinance our indebtedness, including the 1.75% Convertible Senior Subordinated Notes due 2026 that we issued in February 2019 (the "2026 Convertible Notes"), depends on our future performance, which is subject to economic, financial, competitive, and other factors beyond our control. Our business may not continue to generate cash flow from operations in the future sufficient to service our debt and make necessary capital expenditures. If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as selling assets, restructuring debt, or obtaining additional equity capital on terms that may be onerous or highly dilutive. Our ability to refinance our indebtedness will depend on the capital markets and our financial condition at such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in a default on our debt obligations.

***Despite our current debt levels, we may still incur substantially more debt or take other actions that would intensify the risks discussed above.***

Despite our current consolidated debt levels, we and our subsidiaries may incur substantial additional debt in the future, subject to the restrictions contained in our debt instruments, some of which in the future may be secured debt. We are not restricted under the terms of the indenture governing the 2026 Convertible Notes from incurring additional debt, securing existing or future debt, recapitalizing our debt, or taking a number of other actions that could have the effect of diminishing our ability to make payments on the 2026 Convertible Notes when due.

***We may not have the ability to raise the funds necessary to settle conversions of the 2026 Convertible Notes in cash or to repurchase the 2026 Convertible Notes upon a fundamental change, and our future debt may contain limitations on our ability to pay cash upon conversion or repurchase of the 2026 Convertible Notes.***

Holders of the 2026 Convertible Notes have the right to require us to repurchase all or a portion of their 2026 Convertible Notes upon the occurrence of a fundamental change at a repurchase price equal to 100% of the principal amount of the 2026 Convertible Notes to be repurchased, plus accrued and unpaid interest, if any. In addition, upon conversion of the 2026 Convertible Notes, unless we elect to deliver solely shares of our common stock to settle such conversion (other than paying cash in lieu of delivering any fractional share), we will be required to make cash payments in respect of the 2026 Convertible Notes being converted. However, we may not have enough available cash or be able to obtain financing at the time we are required to make repurchases of the 2026 Convertible Notes surrendered therefor or the 2026 Convertible Notes being converted. In addition, our ability to repurchase the notes or to pay cash upon conversions of the 2026 Convertible Notes may be limited by law, by regulatory authority, or by agreements governing our future indebtedness. Our failure to repurchase 2026 Convertible Notes at a time when the repurchase is required by the indenture or to pay any cash payable on future conversions of the 2026 Convertible Notes as required by the

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indenture would constitute a default under the indenture. A default under the indenture, or the fundamental change itself, could also lead to a default under agreements governing our future indebtedness. If the repayment of the related indebtedness were to be accelerated after any applicable notice or grace periods, we may not have sufficient funds to repay the indebtedness and repurchase the 2026 Convertible Notes or make cash payments upon conversions thereof.

***The conditional conversion feature of the notes, if triggered, may adversely affect our financial condition and operating results.***

In certain circumstances specified in the indenture governing the 2026 Convertible Notes, holders of the 2026 Convertible Notes will be entitled to convert the notes at any time during specified periods at their option. If one or more holders elect to convert their 2026 Convertible Notes, unless we elect to satisfy our conversion obligation by delivering solely shares of our common stock (other than paying cash in lieu of delivering any fractional share), we would be required to settle a portion or all of our conversion obligation through the payment of cash, which could adversely affect our liquidity. In addition, even if holders do not elect to convert their notes, we could be required under applicable accounting rules to reclassify all or a portion of the outstanding principal of the 2026 Convertible Notes as a current, rather than long-term, liability, which would result in a material reduction of our net working capital.

***The accounting method for convertible debt securities that may be settled in cash, such as the 2026 Convertible Notes, could have a material effect on our reported financial results.***

In August 2020, the FASB issued Account Standard Update, or ASU 2020-06, *Debt - Debt with Conversion and Other Options (subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40)*, which updated the previous accounting guidance for convertible debt instruments under Accounting Standards Codification 470-20, Debt with Conversion and Other Options, or ASC 470-20. ASU 2020-06 requires a convertible debt instrument to be accounted for as a single liability measured at its amortized cost. We adopted ASU 2020-06 effective January 1, 2021 for purposes of accounting for the 2026 Convertible Notes. Interest expense, recorded in the consolidated statements of operations, is closer to the coupon rate interest expense. In addition, the if-converted method, rather than the treasury stock method, must be used for the calculation of the diluted earnings per share calculation when accounting for the shares issuable upon conversion of the 2026 Convertible Notes, which could adversely affect our diluted earnings per share.

***In connection with the 2026 Convertible Notes, we entered into convertible note hedge and warrant transactions that may affect the value of our common stock.***

In connection with the pricing of the 2026 Convertible Notes, we entered into convertible note hedge transactions with one or more of the initial purchasers of the Convertible Notes and/or their respective affiliates, which we refer to as the "option counterparties." We also entered into warrant transactions with the option counterparties. The convertible note hedge transactions are expected generally to reduce the potential dilution upon conversion of the 2026 Convertible Notes and/or offset any cash payments that we are required to make in excess of the principal amount of converted notes. However, the warrant transactions could separately have a dilutive effect on our common stock to the extent that the market price per share of our common stock exceeds the strike price of the warrants.

In connection with establishing their initial hedges of the convertible note hedge and warrant transactions, the option counterparties or their respective affiliates purchased shares of our common stock and/or entered into various derivative transactions with respect to our common stock concurrently with, or shortly after, the pricing of the 2026 Convertible Notes. This activity may have increased (or reduced the size of any decrease in) the market price of our common stock at that time.

In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to our common stock and/or purchasing or selling our common stock or other securities of ours in secondary market transactions prior to the maturity of the 2026 Convertible Notes (and are likely to do so during any observation period related to a conversion of 2026 Convertible Notes). This activity could also cause or avoid an increase or a decrease in the market price of our common stock.

In addition, if any such convertible note hedge and warrant transactions fail to become effective, the option counterparties may unwind their hedge positions with respect to our common stock, which could adversely affect the value of our common stock.

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**Item 1B. Unresolved Staff Comments**

None.

**Item 2. Properties**

Our Company's principal properties as of December 31, 2022 are described below:

Our corporate headquarters is located in Moorestown, New Jersey, where we lease an aggregate of 74,565 square feet of space under three lease agreements that expire in January 2030. Our corporate headquarters contains administrative and executive office spaces, a facility for prospective medication risk management, that uses our proprietary technology and pharmacy distribution services, including competitive-inhibition informed robotic adherence packaging, and call centers to support our CareVention HealthCare services.

To support our medication and technology-enabled solutions, we also lease an aggregate of 22,619 square feet dedicated to medication fulfillment services in Boulder, Colorado; South San Francisco, California; and Warwick, Rhode Island. Our health plan management services, which include third-party administration services and pharmacy benefit management solutions, and related administrative offices lease an aggregate of 17,169 square feet in Webster Groves, Missouri; Eden Prairie, Minnesota; and Altoona, Wisconsin.

**Item 3. Legal Proceedings**

We are not currently involved in any significant claims or legal actions that, in the opinion of management, will have a material adverse impact on our Company.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Part II**

**Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities**

**Market Information**

Our common stock has been listed on the Nasdaq Global Market under the symbol "TRHC" since September 29, 2016.

**Holders**

As of February 28, 2023, we had 76 holders of record of our common stock. The actual number of stockholders is greater than this number of record holders and includes stockholders who are beneficial owners but whose shares are held in street name by brokers and other nominees. This number of holders of record also does not include stockholders whose shares may be held in trust by other entities.

**Dividends**

We have never declared or paid any cash dividend on our common stock. We currently intend to retain all future earnings, if any, generated by our operations for the development and growth of our business for the foreseeable future. The decision to pay dividends is at the discretion of our Board of Directors and depends upon our financial condition, results of operations, capital requirements, and other factors that our Board of Directors deems relevant.

**Stock Performance Graph**

The following graph compares the five-year cumulative total stockholder return on our common stock, assuming reinvestment of dividends, to the cumulative total returns of the Nasdaq Health Care Index and the NYSE

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Composite Index from December 31, 2017 to December 31, 2022. This graph assumes an investment of $100 in shares of our common stock on December 31, 2017.

The comparisons shown in the following graph are based upon historical data. We caution that the stock price performance shown in the graph below is not necessarily indicative of, nor is it intended to forecast, the potential future performance of our common stock.

![Graphic](trhc-20221231x10k001.jpg)

**Purchases of Equity Securities**

During the year ended December 31, 2022, we did not repurchase any shares of common stock.

**Item 6. *[Reserved]***

**Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*Management's Discussion and Analysis of Financial Condition and Results of Operations is designed to provide a reader of our financial statements with a narrative from the perspective of management on the Company's financial condition, results of operations, liquidity and certain other factors that may affect future results. The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and the related notes and other financial information included elsewhere in this Annual Report on Form 10-K. The following discussion focuses on 2022 and 2021 financial condition and results of operations and year-to-year comparisons between 2022 and 2021. Similar discussion of our 2020 financial condition and results and year-to-year comparisons between 2021 and 2020 can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2021. See also "Special Note Regarding Forward-Looking Statements" in this Annual Report on Form 10-K.*

**Overview**

We are advancing the safe use of medication by creating solutions designed to empower pharmacists, providers, and patients to optimize medication regimens. Our advanced proprietary technology, MedWise®, identifies the causes of and risks for medication-related problems, including ADEs, so that healthcare professionals can minimize harm and reduce medication-related risks. Our software and services help drive value-based care by improving patient outcomes and lowering healthcare costs through reduced hospitalizations, emergency department visits, and healthcare utilization. Our vision and mission are supported by our experienced leadership team, our significant investments in our technology, services and people, and collaborations to advance precision pharmacotherapy research and its application in clinical practice, and our culture.

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We operate our business through two segments, CareVention HealthCare and MedWise HealthCare, which accounted for 99% and 1% of revenue from continuing operations, respectively, for the year ended December 31, 2022.

Our total revenues from continuing operations for the years ended December 31, 2022 and 2021 were $299.5 million and $259.9 million, respectively. We incurred net losses from continuing operations for the years ended December 31, 2022 and 2021 of $77.3 million and $52.2 million, respectively.

In February 2022, we announced plans to evaluate non-core assets to refocus our corporate strategy and increase stockholder value, and we commenced an initial plan to sell the DoseMe business, which we acquired in January 2019. In March 2022, we completed our evaluation of additional divestiture opportunities and commenced plans to sell the SinfoníaRx and PrescribeWellness businesses, acquired in September 2017 and March 2019, respectively.

On August 1, 2022, we completed the sale of our unincorporated PrescribeWellness business division, and the assets, properties, and rights that were primarily used or held for use in connection with the PrescribeWellness Business, and the KD Assets (as defined below), to TDS. On the PW Sale Date, we also completed the acquisition of certain intellectual property from KD, which had historically been licensed to the Company (the "KD Assets"). The KD Assets acquired were simultaneously transferred to TDS on the PW Sale Date. The purchase consideration included $125 million in cash, subject to certain customary post-closing adjustments, of which $118.6 million was paid directly to us and $5.9 million was paid to KD on the PW Sale Date. In October 2022, TDS also paid us $1.5 million for certain customary post-closing adjustments. We are also entitled to receive up to $15.0 million in contingent consideration based upon the PrescribeWellness Business's achievement of certain performance-based metrics during the fiscal years ending December 31, 2023 and 2024.

On January 20, 2023, we entered into a Share and Asset Purchase Agreement, to sell our unincorporated DoseMe Business, and the assets, properties, and rights that are primarily used or held for use in connection with the DoseMe Business. The purchase consideration included $2.0 million in cash, subject to certain customary post-closing adjustments, and a note receivable of $3.0 million with an annual interest rate of 7%, which matures on January 20, 2027.

On March 2, 2023, we entered into an Asset Purchase Agreement to sell our unincorporated SinfoníaRx business, and the assets, properties, and rights that are primarily used or held for use in connection with the SinfoníaRx Business. The purchase consideration included $1.4 million in cash, subject to certain customary post-closing adjustments and a note receivable of $3.6 million with an annual interest rate of 3%, which matures on December 31, 2023. We may also be entitled to receive up to $1.0 million in contingent consideration based upon potential regulatory changes affecting the business.

When we commenced plans to sell the PrescribeWellness, DoseMe, and SinfoníaRx businesses, these businesses (principally, PrescribeWellness) collectively comprised the majority of our MedWise HealthCare segment. Our sales of the PrescribeWellness, DoseMe and SinfoníaRx businesses represented a strategic business shift having a significant effect on our Company's operations and financial results. As a result, we determined that these businesses met the requirements to be classified as held for sale and discontinued operations as of March 31, 2022, and the DoseMe and SinfoníaRx businesses continued to meet such requirements as of December 31, 2022. Accordingly, the accompanying consolidated financial statements in this Annual Report on Form 10-K have been recast for all periods presented to reflect the assets, liabilities, revenue, and expenses related to these businesses as discontinued operations.

**Key Business Metrics**

We continually monitor certain corporate metrics, including the following key metrics, that we believe are useful in evaluating and managing our operating performance as compared to that of other companies in our industry.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | |
|  | **December 31,**  | **December 31,**  | <br>**Change** |
|  | **2022** | **2021** | $**%** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Revenues from continuing operations | $299516 | $259882 | 15% |
| Net loss from continuing operations | (77334) | (52238) | 48 |

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We monitor the key metrics set forth in the preceding table to help us evaluate trends, establish budgets, and measure the effectiveness and efficiency of our operations.

We also monitor net revenue retention rate. We believe that our ability to retain revenue associated with new or existing client relationships is an indicator of the stability of our revenue base and the long-term value we provide to our clients. We assess our performance in this area using a metric we refer to as net revenue retention. We calculate our net revenue retention by comparing revenue by client at the end of the most recent calendar year divided by revenue at the end of the prior calendar year from only clients that were contracted with us at the end of the prior calendar year. We believe net revenue retention captures our cross-sell success, client expansion, changes in pricing, and client churn or downgrades.

During 2022 and 2021, we generated net revenue retention from continuing operations of 115% and 117%, respectively, driven by census growth at existing clients and cross-sell revenue.

**Factors Affecting our Future Performance**

We believe that our future success depends on many factors, including our ability to maintain and grow our relationships with existing clients, expand our client base, continue to enter new markets, and expand our offerings to meet evolving market needs. While these areas present significant opportunities, they also present risks that we must manage to ensure successful results. See the section entitled "Risk Factors" for a discussion of certain risks and uncertainties that may impact our future success.

As described above, we completed the sales of the PrescribeWellness, DoseMe, and SinfoníaRx businesses in 2022 and early 2023. The continuing operations of the remaining components of our MedWise HealthCare segment promote medication safety and adherence to improve patient outcomes and reduce healthcare costs. The MedWise HealthCare segment revenue model is primarily based on payments on a PMPM basis, payments on a subscription basis, and payments on a fee-for-service basis for each MSR and clinical assessment completed.

**Components of Our Results of Continuing Operations**

***Revenue***

Our revenue is derived from our medication revenue and technology-enabled solutions revenue under our CareVention HealthCare and MedWise HealthCare segments. For the years ended December 31, 2022 and 2021, medication revenue represented 77% and 73%, respectively, of our total revenue from continuing operations. For the years ended December 31, 2022 and 2021, technology-enabled solutions revenue represented 23% and 27%, respectively, of our total revenue from continuing operations.

To provide improved description over our disaggregation of revenue, we retitled our revenue categories from product revenue and service revenue to medication revenue and technology-enabled solutions revenue, respectively, in the consolidated statements of operations and the notes to the consolidated financial statements. The change had no impact to the amounts previously reported in the consolidated statements of operations and the notes to the consolidated financial statements.

***CareVention HealthCare***

*Medication Revenue*

We provide medication fulfillment pharmacy services to PACE organizations under our CareVention HealthCare segment. While the majority of medications are routinely filled in order to treat chronic conditions, the mix and quantity of medications can vary. Revenue from medication fulfillment services is generally billed monthly or weekly, depending on whether the PACE organization is contracted with a pharmacy benefit manager, and is recognized when medications are delivered and control has passed to the client. At the time of delivery, we have performed substantially all of our performance obligations under our client contracts. We do not experience a significant level of returns or reshipments.

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*Technology-Enabled Solutions Revenue*

We provide medication safety services and health plan management services to PACE organizations under our CareVention HealthCare segment. These services primarily include medication safety services, risk adjustment services, PBM solutions, EHR solutions, and third-party administration services. Revenue related to these services primarily consists of a fixed monthly fee assessed on a PMPM basis, a fee for each claim adjudicated, and subscription fees. These fees are recognized when we satisfy our performance obligation to stand ready to provide PACE services, which occurs when our clients have access to the PACE services. We generally bill for PACE services on a monthly basis as the services are provided.

***MedWise HealthCare***

*Technology-Enabled Solutions Revenue*

Value-Based Care Solutions

We provide medication safety services under our MedWise HealthCare segment, which include identification of high-risk individuals, medication regimen reviews, including patient and prescriber counseling, and targeted interventions to increase adherence and close gaps in care. Revenue related to these services primarily consists of PMPM fees and fees for each medication review and clinical assessment completed. Revenue is recognized when we satisfy our performance obligation to stand ready to provide medication safety services, which occurs when our clients have access to the medication safety services and when medication reviews and clinical assessments are completed. We generally bill for the medication safety services on a monthly basis.

Software Subscription and Services

We provide software as a service ("SaaS") solutions, which allow for the identification of individuals with high medication-related risk. Revenues related to SaaS solutions primarily consist of monthly subscription fees and are recognized monthly as we meet our performance obligation to provide access to the software. Revenue for implementation and set-up services is generally recognized over the contract term as the software services are provided. We generally bill for the software services on a monthly basis.

***Cost of Revenue (exclusive of depreciation and amortization)***

*Cost of Medication Revenue*

Cost of medication revenue includes all costs directly related to the fulfillment and distribution of medications. These costs consist primarily of the purchase price of the medications we dispense, shipping, packaging, expenses associated with operating our medication fulfillment centers, including employment costs and stock-based compensation, and technology expenses. Such costs also include direct overhead expenses and allocated indirect overhead costs. We allocate indirect overhead costs among functions based on employee headcount. The purchase price of medications represented 81% of our total cost of medication revenue for the years ended December 31, 2022 and 2021.

*Cost of Technology-Enabled Solutions Revenue*

Cost of technology-enabled solutions revenue includes all costs directly related to servicing our technology service contracts and primarily consists of employment costs, including stock-based compensation, outside contractors, expenses related to supporting our software platforms, direct overhead expenses, and allocated indirect overhead costs. We allocate indirect overhead costs among functions based on employee headcount.

***Research and Development Expenses***

Our research and development expenses consist primarily of employment costs, including stock-based compensation, for employees engaged in scientific research, healthcare analytics, the design and development of new scientific algorithms, and the enhancement of our software and technology platforms. Research and development expenses also include fees paid to third-party consultants, costs related to quality assurance and testing, and other

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allocated facility-related overhead and expenses.

We capitalize certain costs incurred in connection with obtaining or developing the proprietary software platforms that support our medication and technology service contracts, including third-party contractors and payroll costs for employees directly involved with the software development. Capitalized software development costs are amortized beginning when the software project is substantially completed and when the asset is ready for its intended use. Costs incurred during the preliminary project stage and post-implementation stage, as well as maintenance and training costs, are expensed as incurred. We continue to focus our research and development efforts on adding new features and applications to increase the functionality and enhance the ease of use of our existing suite of software solutions.

We believe that continued investment in our software solutions is important for our future growth. We expect that our research and development expenses will fluctuate in the short-term as we refocus on our core business but will decrease as a percentage of revenue in the long-term.

***Sales and Marketing Expenses***

Sales and marketing expenses consist principally of salaries, commissions, bonuses, and stock-based compensation and employee benefits for sales, marketing, and account management personnel, as well as travel costs related to sales, marketing, and account management activities. Marketing costs also include costs for communication and branding materials, conferences, trade shows, public relations, and allocated overhead.

We expect our sales and marketing expenses to fluctuate in the short-term as we refocus on our core business but decrease as a percentage of revenue in the long-term.

***General and Administrative Expenses***

General and administrative expenses consist principally of employee-related expenses, including salaries, benefits, and stock-based compensation, for employees who are responsible for information systems, administration, human resources, finance, strategy, legal and executive management, as well as other corporate expenses associated with these functional areas. General and administrative expenses also include professional fees for legal, consulting, and accounting services and allocated overhead. General and administrative expenses are expensed when incurred.

We expect that our general and administrative expenses will fluctuate in the short-term as we refocus on our core business but decrease as a percentage of revenue in the long-term.

***Change in Fair Value of Contingent Consideration Receivable***

In connection with the sale of the PrescribeWellness Business on August 1, 2022, we may be entitled to additional consideration based on the achievement of certain customer and revenue metrics. The contingent consideration is classified as an asset and is subject to remeasurement at each balance sheet date. Any change in the fair value of the contingent consideration receivable is reflected in our consolidated statements of operations as a change in fair value of the receivable. We adjust the carrying value of the contingent consideration receivable until the contingency is finally determined or final payment is received.

***Long-Lived Asset Impairment Charge***

Long-lived assets consist of property and equipment, operating lease right-of-use assets, software development costs, and definite-lived intangible assets. Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that we consider in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, we compare forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss may be recognized when estimated undiscounted future cash flows expected to result from the use and disposition of an asset are less than its carrying amount. The impairment loss would

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be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows or a combination of income and market approaches.

***Depreciation and Amortization Expenses***

Depreciation and amortization expenses are primarily attributable to our capital investment in equipment, our capitalized software, and our acquisition-related intangibles.

***Interest Expense***

Interest expense is primarily attributable to interest expense associated with our convertible senior subordinated notes (the "2026 Notes"), our Loan and Security Agreement with Western Alliance Bank (the "2020 Credit Facility") prior to its termination on August 1, 2022, and the promissory notes related to the purchase consideration for the acquisition of Personica, LLC. Interest expense also includes the amortization of debt discount and debt issuance costs related to our various debt arrangements and imputed interest.

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**Results of Operations**

***Comparison of the Years Ended December 31, 2022 and 2021 (Continuing Operations)***

The following table summarizes our results of operations for the years ended December 31, 2022 and 2021 (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,**  | **Year Ended December 31,**  | **Change** |
|  | **2022** | **2021** | $**%** |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Medication revenue | $231052 | $189591 | 22% |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology-enabled solutions revenue | 68464 | 70291 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 299516 | 259882 | 15 |
| Cost of revenue, exclusive of depreciation and amortization shown below: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of medication revenue | 178527 | 143700 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of technology-enabled solutions revenue | 54076 | 49678 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue, exclusive of depreciation and amortization  | 232603 | 193378 | 20 |
| Operating expenses:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 14483 | 14629 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 10491 | 11039 | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 74974 | 63095 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration receivable | 3650 |  | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-lived asset impairment charge | 8943 |  | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 23347 | 20482 | 14 |
| Total operating expenses  | 135888 | 109245 | 24 |
| Loss from operations | (68975) | (42741) | 61 |
| Other income (expense):  |  |  |  |
| Interest expense, net | (9034) | (9107) | (1) |
| Other income | 1064 |  | 100 |
| Total other expense, net | (7970) | (9107) | (12) |
| Loss from continuing operations before income taxes | (76945) | (51848) | 48 |
| Income tax expense  | 389 | 390 |  |
| Net loss from continuing operations | (77334) | (52238) | 48 |
| Net loss from discontinued operations, net of tax | (70176) | (26817) | 162 |
| Net loss | $(147510) | $(79055) | 87% |

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*Medication Revenue*

Medication revenue increased $41.5 million, or 22%, from $189.6 million for the year ended December 31, 2021 to $231.1 million for the year ended December 31, 2022. Increased medication fulfillment volume from growth in the number of patients served by our existing clients, medication mix of prescriptions filled, and payer mix contributed $25.1 million to the increase. In addition, new CareVention HealthCare clients that started services since 2021 contributed $10.3 million to the increase in medication revenue during 2022. Revenue for medications dispensed on behalf of CareVention HealthCare by our community pharmacy network where we perform both medication fulfillment and PBM services also increased $6.1 million.

*Technology-Enabled Solutions Revenue*

Revenue generated from technology-enabled solutions decreased $1.8 million, or 3%, from $70.3 million for the year ended December 31, 2021 to $68.5 million for the year ended December 31, 2022.

Technology-enabled solutions revenue generated by our MedWise HealthCare segment decreased by approximately $7.8 million, or 66%, to $4.0 million for the year ended December 31, 2022, as compared to the same period in 2021. The decrease was primarily due to the conclusion of the EMTM pilot program on December 31, 2021, which contributed $9.2 million of revenues during the year ended December 31, 2021. As a result, no revenues related to the EMTM program were recognized after December 31, 2021. This decrease was partially offset by $1.4 million of revenue generated from new clients added since 2021.

Technology-enabled solutions revenue generated by our CareVention HealthCare segment increased by $6.0 million, or 10%, to $64.4 million for the year ended December 31, 2022, as compared to the same period in 2021. The increase was primarily attributable to new clients and growth within existing clients, primarily in our third-party

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administration services division, and an increase in manufacturer rebates earned under our pharmacy benefit management services during the year ended December 31, 2022.

*Cost of Medication Revenue*

Cost of medication revenue increased $34.8 million, or 24%, from $143.7 million for the year ended December 31, 2021 to $178.5 million for the comparable period in 2022. Increased medication volume from growth in the number of patients served by our customers contributed approximately $27.9 million to the change, of which new clients contributed $6.7 million and $6.1 million was attributable to medications dispensed by our community pharmacy network where we perform both medication fulfillment and PBM services. The increase in cost of medication revenue was also due to a $4.2 million increase in distribution charges related to higher shipping costs and volume for the medications we fulfilled. Cost of medication revenue also increased $2.4 million due to employee compensation costs due to an increase in employee headcount.

*Cost of Technology-Enabled Solutions Revenue*

Cost of technology-enabled solutions revenue increased $4.4 million, or 9%, to $54.1 million for the year ended December 31, 2022 compared to the same period in 2021.

The increase was primarily comprised of $11.4 million of costs related to a new vendor arrangement for business process support and technology services for our third-party administration services and electronic health records solutions, and an $0.8 million increase in information technology expenses, including software licenses and hosting services. These increases were partially offset by a $6.1 million reduction in employee compensation costs, including stock-based compensation, for the employees hired by the third-party provider, and a $2.1 million reduction in resources contracted to deliver medication safety services due to the conclusion of the EMTM program on December 31, 2021.

*Research and Development Expenses*

Research and development expenses decreased by $0.1 million, or 1%, from $14.6 million for the year ended December 31, 2021 to $14.5 million for the year ended December 31, 2022.

The decrease was primarily due to a $1.1 million decrease in stock-based compensation expense compared to 2021. The decrease in research and development expenses was partially offset by investment in information technology spend of $0.4 million, a $0.4 million increase in professional services, and $0.4 million of expenses related to non-recurring business optimization initiatives during 2022, specifically efforts associated with consolidating our electronic health records solutions platforms.

*Sales and Marketing Expenses*

Sales and marketing expenses decreased $0.5 million, or 5%, to $10.5 million for the year ended December 31, 2022, as compared to the year ended December 31, 2021.

The decrease was primarily attributable to a $0.8 million decrease in stock-based compensation expense, as compared to 2021 and a $0.3 million decrease in conference-related travel expenses, professional consulting services, and other costs related to branding and marketing strategies. These decreases were partially offset by an increase of $0.3 million in employee compensation costs and $0.2 million of severance costs related to the realignment of our resources.

*General and Administrative Expenses*

General and administrative expenses increased $11.9 million, or 19%, from $63.1 million for the year ended December 31, 2021, to $75.0 million for the year ended December 31, 2022.

The increase in general and administrative expenses was primarily due to a $3.3 million increase in stock-based compensation expense compared to 2021, of which $4.5 million related to incremental year over year expense a result of the vesting of restricted stock awards related to the retirement of former named executive officers, which was offset by a $1.2 million decrease in stock-based compensation expense due to a decrease in employee headcount. The increase in

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general and administrative expenses was also due to a $2.7 million increase in professional services expense related to a new provider of enterprise support services we engaged during the fourth quarter of 2021 as part of our business optimization initiatives. The increase in general and administrative expenses also included $2.7 million of divestiture-related costs, $2.0 million of executive transition costs primarily related to the retirement and transition of former named executive officers, $1.2 million of severance costs, and $1.0 million of legal and advisory costs related to the Cooperation Agreement.

The increase in general and administrative expenses was partially offset by a $0.7 million decrease in employee compensation costs, primarily due to a decrease in employee headcount as a result of the Company's business optimization initiative to outsource the enterprise support services previously mentioned.

*Change in Fair Value of Contingent Consideration Receivable*

In connection with the sale of the PrescribeWellness Business on August 1, 2022, we may be entitled to receive additional consideration based on the achievement of certain customer and revenue metrics for the periods ending December 31, 2023 and 2024. The contingent consideration receivable was recorded at the estimated fair value of $7.0 million on the sale date of August 1, 2022. During the year ended December 31, 2022, we recorded a $3.7 million charge to decrease the fair value of the contingent consideration receivable primarily due to updated estimates utilized in the contingent consideration calculation. The fair value of the contingent consideration receivable was $3.3 million as of December 31, 2022.

*Long-Lived Asset Impairment Charge*

During the year ended December 31, 2022, we recorded $8.9 million in long-lived asset impairment charges primarily due to the impairment of certain operating lease right of use assets and related property and equipment and impairment of certain capitalized software development costs.

During the fourth quarter of 2022, we determined that certain leased spaces no longer provided an economic benefit, and we vacated the leased spaces for our development centers in Moorestown, New Jersey and Charleston, South Carolina. As a result, we incurred $4.9 million in noncash impairment charges, of which $2.8 million was allocated to the operating lease right-of-use assets and $2.1 million was allocated to related property and equipment based on their relative carrying amounts.

During the first quarter of 2022, we became aware of changes in circumstances impacting the future application of certain capitalized software development costs and evaluated the recoverability of the related long-lived assets by comparing their carrying amount to the future net undiscounted cash flows expected to be generated by the assets to determine if the carrying value was not recoverable. The recoverability test indicated that certain capitalized software development costs were impaired. As a result, we recognized an impairment loss of $4.1 million for the year ended December 31, 2022.

We did not record any long-lived asset impairment charges for the year ended December 31, 2021.

*Depreciation and Amortization Expenses*

Depreciation and amortization expenses increased $2.9 million, or 14% to $23.3 million for the year ended December 31, 2022.

This increase was primarily due to a $3.2 million increase in the amortization of capitalized software related to new software functionality placed into service since the end of 2021 to support our business. This increase was partially offset by a decrease in amortization expense of $0.5 million primarily due to definite-lived intangible assets which have been fully amortized since the end of the second quarter of 2021.

*Interest Expense*

Interest expense decreased $0.1 million, from $9.1 million for the year ended December 31, 2021 to $9.0 million for the year ended December 31, 2022. The decrease was primarily due to the full satisfaction of the acquisition-related notes payable in October 2021 related to the October 2020 acquisition of Personica, LLC. Approximately $0.5

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million of interest expense was recognized for the year ended December 31, 2021, related to the acquisition-related notes payable.

The decrease in interest expense was partially offset by a $0.4 million increase in expense due to amortization of the remaining balance of deferred financing costs to interest expense, as a result of terminating the 2020 Credit Facility. As discussed under Liquidity and Capital Resources below, the Company repaid and terminated the 2020 Credit Facility on August 1, 2022.

*Other Income*

In connection with the sale of the PrescribeWellness Business, we entered into a transition services agreement ("TSA") with TDS pursuant to which we are providing business support services for the PrescribeWellness Business after its sale. We recognized $1.1 million of income related to the TSA for the year ended December 31, 2022, which is reported in other income in our consolidated statement of operations.

*Income Taxes*

For the years ended December 31, 2022 and 2021, we recorded income tax expense of $0.4 million, which resulted in an effective rate of (0.5)% and (0.8)%, respectively. Income tax expense was primarily related to indefinite-lived deferred tax liabilities for goodwill amortization. The effective tax rate differs from the U.S. statutory tax rate primarily due to the full valuation allowance recorded that is currently limiting the realizability of our net deferred tax assets as of December 31, 2022 and 2021. Accordingly, the tax benefit was limited due to unbenefited losses during the year ended December 31, 2022 and 2021. As of December 31, 2022, the Company recorded a full valuation allowance against its deferred tax assets.

On February 12, 2021, the Company received a private letter ruling from the Internal Revenue Service, which determined, based on information submitted and representations made by the Company, that the Company met the requirements to deduct the interest expense resulting from the amortization of the debt discount associated with the 2026 Notes. As a result, the Company recorded a deferred tax asset of $26.3 million and a corresponding $26.3 million increase to its valuation allowance.

*Net Loss from Discontinued Operations, Net of Tax*

During the first quarter of 2022, we announced plans to evaluate non-core assets and commenced plans to sell the SinfoníaRx, PrescribeWellness, and DoseMe businesses, which were acquired in September 2017, March 2019, and January 2019, respectively. We completed the sales of the PrescribeWellness, DoseMe, and SinfoníaRx businesses on August 1, 2022, January 20, 2023 and March 2, 2023, respectively. Our sales of the PrescribeWellness, DoseMe and SinfoníaRx businesses represented a strategic business shift having a significant effect on our operations and financial results. As a result, we determined that these businesses met such requirements to be classified as held for sale and discontinued operations as of March 31, 2022 and the DoseMe and SinfoníaRx businesses continued to meet the requirements as of December 31, 2022. Accordingly, all related assets and liabilities and the results of operations for all periods presented are classified as discontinued operations in the consolidated financial statements.

Net loss from discontinued operations, net of tax, for the SinfoníaRx and DoseMe businesses was $43.6 million and $18.1 million for the years ended December 31, 2022 and 2021, respectively. Net loss from discontinued operations, net of tax, for the PrescribeWellness Business was $26.6 million and $8.7 million for the years ended December 31, 2022 and 2021, respectively. See Note 6 in the notes to our consolidated financial statements as reported in this Annual Report on Form 10-K for additional information.

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**Liquidity and Capital Resources**

We incurred net losses of $147.5 million, $79.1 million, and $81.0 million for the years ended December 31, 2022, 2021, and 2020, respectively. Our primary liquidity and capital requirements are for software development, research and development, sales and marketing, general and administrative expenses, and debt service obligations. We have funded our operations, working capital needs, and investments with cash generated through operations, proceeds from the divestiture of non-core businesses, issuance of stock, and borrowings under our credit facilities. As of December 31, 2022, we had unrestricted cash and cash equivalents of $70.0 million.

***Summary of Cash Flows***

The following table shows a summary of our cash flows for the years ended December 31, 2022, 2021, and 2020.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| Net cash provided by operating activities | $7357 | $15452 | $4818 |
| Net cash provided by (used in) investing activities | 91302 | (35194) | (28734) |
| Net cash provided by (used in) financing activities | (31958) | 6916 | 5867 |
| Net increase (decrease) in cash, cash equivalents and restricted cash <sup>(1)</sup> | $66701 | $(12826) | $(18049) |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) The cash flows related to discontinued operations have not been segregated. Accordingly, the consolidated statements of cash flows and the following discussions include the results of continuing and discontinued operations. See Note 6 in the notes to the consolidated financial statements as reported in this Annual Report on Form 10-K .

*Operating Activities*

Net cash provided by operating activities was $7.4 million for the year ended December 31, 2022 and consisted of our net loss of $147.5 million, offset by the addition of noncash items of $133.2 million and changes in our operating assets and liabilities totaling $21.7 million. The noncash items primarily included $56.8 million of impairment charges primarily related to our long-lived assets, goodwill and operating lease right-of-use assets, $36.8 million of stock-based compensation expense, $30.7 million of depreciation and amortization expense, a $3.7 million change in fair value of contingent consideration receivable, a $2.9 million loss related to the sale of the PrescribeWellness Business, and $2.3 million of amortization of deferred financing costs and debt discounts primarily related to the 2026 Notes. The change in operating assets and liabilities was primarily due to an increase in accrued expenses and other liabilities, an increase in accounts payable due to the timing of vendor payments, and an increase in consideration payable to customers for our PBM solutions. The change in operating assets and liabilities was also due to a decrease in accounts receivable, primarily due to improved collections, and an increase in long-term liabilities due to the vendor financing arrangement entered into in February 2022 related to business process outsourcing and technology services for our third-party administration services and electronic health records solutions. The change in operating assets and liabilities was partially offset by an increase in client claims receivable due to increased growth in PBM services utilized by our pharmacy clients, and an increase in prepaid expenses and other current assets primarily due to an increase in contract assets related to rebate administration services under our PBM solutions.

Net cash provided by operating activities was $15.5 million for the year ended December 31, 2021 and consisted of our net loss of $79.1 million, offset by the addition of noncash items of $88.8 million and changes in our operating assets and liabilities totaling $5.7 million. The noncash items primarily included $47.7 million of depreciation and amortization expense, $38.5 million of stock-based compensation expense, $2.2 million of amortization of deferred financing costs and debt discounts primarily related to the 2026 Notes and acquisition-related notes payable, and a $0.5 million change in net deferred taxes, offset by acquisition-related contingent consideration paid of $0.1 million related to the Cognify acquisition. The change in operating assets and liabilities was primarily due to an increase in accrued expenses and other liabilities mostly due to increased consideration payable to clients under our rebate administration services and an increase in accrued employee compensation costs. The change in operating assets and liabilities was partially offset by an increase in prepaid expenses and other current assets primarily due to an increase in contract assets related to rebate administration services under our PBM solutions and an increase in non-trade receivables.

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*Investing Activities*

Net cash provided by investing activities was $91.3 million for the year ended December 31, 2022, and consisted primarily of $120.0 million of cash received related to the sale of the PrescribeWellness Business, which was offset by $26.4 million in software development costs for our CareVention HealthCare and MedWise HealthCare technologies and $2.3 million in purchases of property and equipment to support technology-related needs and infrastructure for our pharmacies and health plan management services.

Net cash used in investing activities was $35.2 million for the year ended December 31, 2021, which reflected $31.8 million in software development costs for our CareVention HealthCare and MedWise HealthCare technologies. Net cash used in investing activities also included $3.4 million in purchases of property and equipment primarily to support technology-related needs and infrastructure at our pharmacies, call center locations, and Moorestown, New Jersey headquarters, as well as fixtures and improvements for our new office space in Eden Prairie, Minnesota and for an expansion of our pharmacy in Boulder, Colorado.

*Financing Activities*

Net cash used in financing activities was $32.0 million for the year ended December 31, 2022 and consisted primarily of $29.5 million of net principal repayments on our 2020 Credit Facility, which was terminated on August 1, 2022, $2.2 million of payments on employee taxes for shares withheld, and $0.4 million of payments for debt financing costs. The cash used in financing activities for the year ended December 31, 2022 was partially offset by $0.1 million of proceeds received from the exercise of stock options.

Net cash provided by financing activities was $6.9 million for the year ended December 31, 2021. Financing activities for the year ended December 31, 2021 primarily reflected $19.5 million of net borrowings on our 2020 Credit Facility mainly used to fund the repayment of the promissory notes in connection with the Personica acquisition. Proceeds received from the exercise of stock options totaled $4.1 million during the year ended December 31, 2021. The net cash provided by financing activities for the year ended December 31, 2021 was partially offset by repayments of $16.5 million related to the promissory notes in connection with the 2020 Personica acquisition.

***Funding Requirements***

On December 18, 2020, we entered into the 2020 Credit Facility with Western Alliance Bank ("WAB"), which provided for a $120.0 million secured revolving credit facility, with a $1.0 million sublimit for cash management services and letters of credit and foreign exchange transactions. The 2020 Credit Facility was scheduled to mature on May 16, 2025.

On August 1, 2022, we entered into a payoff letter with WAB with respect to the 2020 Credit Facility, pursuant to which we voluntarily elected to pay all amounts outstanding, including principal and interest, under the 2020 Credit Facility and related loan documents (the "Pay Off") using cash on hand and proceeds from the sale of the PrescribeWellness Business. Accordingly, on August 1, 2022, we paid a total of $57.4 million to WAB for the Pay Off, and terminated the 2020 Credit Facility and related loan documents.

We believe that our unrestricted cash and cash equivalents of $70.0 million as of December 31, 2022, cash flows from continuing operations, and proceeds from the sales of the DoseMe and SinfoníaRx businesses, including $3.4 million received at closing, will be sufficient to fund our planned operations through the next twelve months and for the foreseeable future. Our ability to maintain successful operations will depend on, among other things, new business, the retention of clients, and the effectiveness of sales and marketing initiatives.

We may seek additional funding through public or private debt or equity financings. We may not be able to obtain financing on acceptable terms, or at all. The terms of any financing may adversely affect our stockholders. If we are unable to obtain funding, we could be forced to delay, reduce, or eliminate our research and development programs, product portfolio expansion, or commercialization efforts, which could adversely affect our business prospects. There is no assurance that we will be successful in obtaining sufficient funding on terms acceptable to us to fund continuing operations, if at all.

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**Future Cash Requirements**

Our material future cash requirements primarily consist of principal and interest payments on our convertible senior subordinated notes, minimum payments on our vendor financing arrangements, minimum rental payments on our noncancelable operating leases, and minimum payments on legally binding service contracts. Contractual obligations for the purchase of goods or services are defined as agreements that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction.

The following table summarizes our estimated material future cash requirements as of December 31, 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Payments due by period** | **Payments due by period** | **Payments due by period** | **Payments due by period** |
|  | <br>**Total** | **Less**<br>**than 1**<br>**year** | <br>**1-3 years** | <br>**3-5 years** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Convertible senior subordinated notes, including interest | $344906 | $5688 | $11375 | $327843 |
| Vendor financing arrangements | 104114 | 16910 | 33832 | 33473 |
| Operating leases | 17973 | 2764 | 5409 | 4872 |
| Other commitments | 9339 | 4500 | 4839 |  |
| Total | $476332 | $29862 | $55455 | $366188 |

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Our convertible senior subordinated notes mature on February 15, 2026, unless earlier converted or repurchased. Interest payments on our convertible senior subordinated notes are payable semiannually at a rate of 1.75% per year.

Our vendor financing arrangements primarily consist of third-party business process support and technology services and software support. On February 24, 2022, we expanded our existing relationship with a third-party service provider for business process support and technology services designed to enhance the operational efficiency of our third-party administration services and transform our electronic health records solutions. As a result, the partner hired approximately 180 employees from our Company, hired to fill existing open positions, and augmented with additional resources to meet client demand. The agreement term is seven years and includes total estimated fees of $115.3 million. In order to determine the present value of the commitment, we used an imputed interest rate of 9.5%, which was reflective of our estimated uncollateralized borrowing rate at signing. As of December 31, 2022, the outstanding principal balance of the financing arrangement was $5.2 million with an unamortized discount of $1.2 million, which was included in accrued expenses and other liabilities and other long-term liabilities on our consolidated balance sheet. Imputed interest expense from the arrangement was $0.2 million for the year ended December 31, 2022.

On October 1, 2022, we entered into a purchase arrangement with a third-party software support and service provider to purchase software licenses for total fees of $1.1 million. The purchased software licenses were delivered to us on the purchase date. The arrangement allows us to pay the fees over 36 monthly installment payments.

Our existing office lease agreements provide us with the option to renew and generally provide for rental payments on a graduated basis. Our future operating lease obligations would change if we entered into additional operating lease agreements as we expand our operations.

Other commitments include $9.3 million of minimum purchase obligations under certain vendor agreements that provide information technology services.

Effective March 2019, we entered into an Affiliated Pharmacy Agreement and Pharmaceutical Program Supply Agreement with Thrifty Drug Stores, Inc., which was replaced on July 1, 2020 by a new Affiliated Pharmacy Agreement and Pharmaceutical Program Supply Agreement, to provide us with the pharmaceutical products that we sell. The contract commits us to a minimum purchase obligation of 98% of our total prescription product requirements from Thrifty Drug Stores through March 2024. The table above does not include future payments to Thrifty Drug Stores because certain terms of these payments were not determinable at December 31, 2022 due to the timing and volume of future purchases.

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**Critical Accounting Policies and Significant Judgments and Estimates**

We base this management's discussion and analysis of our financial condition and results of operations on our consolidated financial statements, which we have prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities in our consolidated financial statements. Actual results may differ from these estimates under different assumptions or conditions.

Certain accounting policies involve significant judgments and assumptions by management, which have a material impact on the carrying value of assets and liabilities and the recognition of income and expenses. We consider these accounting policies to be critical accounting policies. The estimates and assumptions used by management are based on historical experience and other factors, which are believed to be reasonable under the circumstances.

Our significant accounting policies, and related estimates and assumptions, are described more fully in Note 2 – Summary of Significant Accounting Policies in our Notes to Consolidated Financial Statements in Part IV, Item 15 of this Annual Report on Form 10-K. We believe the following accounting policies are the most critical to the judgments and estimates we use in the preparation of our consolidated financial statements.

***Revenue Recognition***

We provide technology-enabled solutions tailored toward the specific needs of healthcare organizations, payers, providers, and pharmacies. These solutions can be integrated or provided on a standalone basis. Contracts generally have a term of one to five years and generally renew at the end of the initial term. In most cases, clients may terminate their contracts with a notice period ranging from zero to 180 days without cause, thereby limiting the term in which we have enforceable rights and obligations. Revenue is recognized in an amount that reflects the consideration that is expected in exchange for the goods or services.

We use the practical expedient to not account for significant financing components because the period between recognition and collection does not exceed one year for most of our contracts. We do not disclose the amount of variable consideration that we expect to recognize in future periods as the variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation, and the terms of that variable consideration relate specifically to our efforts to transfer the distinct service, or to a specific outcome from transferring the distinct service. Our customers' contracts primarily include monthly fees associated with unspecified membership, claims, or MSRs that fluctuate throughout the contract.

*Medication Revenue*

We provide medication fulfillment pharmacy services to PACE organizations under our CareVention HealthCare segment. While the majority of medications are routinely filled in order to treat chronic conditions, the mix and quantity of medications can vary. Revenue from medication fulfillment services is generally billed monthly or weekly, depending on whether the PACE organization is contracted with a PBM, and is recognized when medications are delivered and control has passed to the client. At the time of delivery, we have performed substantially all of our performance obligations under our client contracts. We do not experience a significant level of returns or reshipments.

*Technology-Enabled Solutions Revenue*

We provide medication safety services and health plan management services to PACE organizations under our CareVention HealthCare segment. These services primarily include medication safety services, risk adjustment services, PBM solutions, EHR solutions, and third-party administration services. Revenue related to these services primarily consists of a fixed monthly fee assessed on a PMPM basis, a fee for each claim adjudicated, and subscription fees. These fees are recognized when we satisfy our performance obligation to stand ready to provide PACE services, which occurs when our clients have access to the PACE services. We generally bill for PACE services on a monthly basis as the services are provided.

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For client contracts for which we perform both medication fulfillment and the PBM services, we recognize revenue using the gross method at the contract price negotiated with our clients and when we have concluded that we control the prescription drug before it is transferred to the client plan members. We control prescriptions dispensed indirectly through our retail pharmacy network because we have separate contractual arrangements with those pharmacies, have discretion in setting the price for the transaction, and assume primary responsibility for fulfilling the promise to provide prescription drugs to our client plan members while performing the related PBM services. These factors indicate that we are the principal and, as such, we recognize the total prescription price contracted with clients in revenue.

Value-Based Care Solutions

We provide medication safety services under our MedWise HealthCare segment, which include identification of high-risk individuals; medication regimen reviews, including patient and prescriber counseling; and targeted interventions to increase adherence and close gaps in care. Revenue related to these services primarily consists of PMPM fees and fees for each medication review and clinical assessment completed. Revenue is recognized when we satisfy our performance obligation to stand ready to provide medication safety services, which occurs when our clients have access to the medication safety services and when medication reviews and clinical assessments are completed. We generally bill for the medication safety services on a monthly basis.

Software Subscription and Services

We provide SaaS solutions under our MedWise HealthCare segment, which allow for the identification of individuals with high medication-related risk. Revenues related to these SaaS solutions primarily consist of monthly subscription fees and are recognized monthly as we meet our performance obligation to provide access to the software. Revenue for implementation and set-up services is generally recognized over the contract term as the software services are provided. We generally bill for the software services on a monthly basis.

***Goodwill***

Goodwill consists of the excess purchase price over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized but is tested for impairment annually by reporting unit. Based on these considerations, we have determined that our two operating segments, CareVention HealthCare and MedWise HealthCare, each represent a reporting unit for our goodwill impairment assessment.

GAAP provides an entity with an option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount prior to performing the quantitative assessment. If this is the case, the quantitative impairment test is required. If the quantitative impairment test is required, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and an impairment loss is recognized for any excess of the carrying amount over the reporting unit's fair value.

In 2022, the fair value of the reporting units was estimated using a market approach, which estimates fair value based on a reconciliation of the Company's market capitalization. In 2021, the fair value of the reporting units was estimated using a combination of a discounted cash flow method, or income approach, and market approaches, which estimate fair value based on a selection of appropriate peer group companies. The determination of the fair value of the reporting units requires us to make significant assumptions and estimates, which include, but are not limited to: forecasts of revenue, operating income, income taxes, capital expenditures, and working capital requirements; the selection of appropriate peer group companies; control premiums and valuation multiples appropriate for acquisitions in the industries in which the Company competes; discount rates; terminal growth rates; and long-term operating margin assumptions. We also consider each reporting unit's current and historical financial results and the current industry trends. Our estimates can be affected by several factors, including general economic, industry, and regulatory conditions; the risk-free interest rate environment; our market capitalization; and our ability to achieve our forecasted operating results. Changes in estimates or the application of alternative assumptions could produce significantly different results.

We complete our goodwill impairment assessment on October 1 of each year or more frequently if events or changes in circumstances indicate that the asset might be impaired.

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*2022 and 2021 Goodwill Impairment Tests*

During our annual impairment analysis as of October 1, 2022 and 2021, we evaluated qualitative factors that could indicate whether the fair value of our reporting units may be lower than the carrying value. We did not identify any qualitative factors that would trigger a quantitative goodwill impairment test as of October 1, 2021. However, during the fourth of quarter of 2021 and the first and second quarters of 2022, we experienced a sustained decline in the market price of our Company's common stock and determined that an indicator of impairment was present. As a result, we performed a quantitative goodwill impairment assessment as of December 31, 2021, March 31, 2022, June 30, 2022 and our annual impairment assessment as of October 1, 2022 for each reporting unit.

The fair value of the CareVention HealthCare reporting unit exceeded its carrying value by a significant margin as each of testing date. The fair value of the MedWise HealthCare reporting unit exceeded its carrying value by approximately 11%, 22%, 6%, and 15% as of December 31, 2021, March 31, 2022, June 30, 2022 and October 1, 2022, respectively. As a result, goodwill was not impaired as of December 31, 2021 and 2022.

*2020 Goodwill Impairment Tests*

For the year ended December 31, 2020, we performed a qualitative assessment of goodwill and determined that it was not more likely than not that the fair value of our reporting units was less than the carrying amount. Accordingly, no impairment loss was recorded for the year ended December 31, 2020.

***Impairment of Long-Lived Assets, Including Other Intangible Assets***

Long-lived assets consist of property and equipment, software development costs and definite-lived intangible assets. Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that we consider in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, we compare forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss may be recognized when estimated undiscounted future cash flows expected to result from the use and disposition of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows or a combination of income and market approaches.

Although we believe the carrying values of our long-lived assets are currently realizable, future events could cause us to conclude otherwise. If assumptions or estimates in the fair value calculations change or if future cash flows vary from what was expected, this may impact the impairment analysis and could reduce the underlying cash flows used to estimate fair values and result in a decline in fair value that may trigger future impairment charges.

During the fourth quarter of 2022, we determined that certain leased spaces no longer provided an economic benefit and either terminated the leases or vacated the leased spaces. We vacated the leased spaces for our development centers in Moorestown, New Jersey and Charleston, South Carolina. As a result, we incurred $4.9 million in noncash impairment charges, of which $2.8 million was allocated to the operating lease ROU assets and $2.1 million was allocated to related property and equipment based on their relative carrying amounts.

During the first quarter of 2022, we became aware of changes in circumstances impacting the future application of certain capitalized software development costs and evaluated the recoverability of the related long-lived assets by comparing their carrying amount to the future net undiscounted cash flows expected to be generated by the assets to determine if the carrying value was not recoverable. The recoverability test indicated that certain capitalized software development costs were impaired. As a result, we recognized an impairment loss equal to $4.1 million for the year ended December 31, 2022.

During the fourth quarter of 2021, we determined that an indicator of impairment was present as it related to the financial performance of the DoseMe business. We evaluated the recoverability of the related intangible assets and determined that the estimated fair value of the asset group was greater than its carrying value. As a result, the related

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intangible assets were not impaired and no impairment charges were recorded for the year ended December 31, 2021.

During the fourth quarter of 2020, we became aware of changes in circumstances impacting the future performance of our pharmacy cost management services, which relate to certain intangible assets acquired from the Medliance acquisition in 2014. We evaluated the recoverability of the related intangible assets and determined that certain customer relationships and developed technology intangible assets were impaired. As a result, we recognized noncash impairment charges of $5.0 million to the related intangible assets for the year ended December 31, 2020.

**Assets Held for Sale and Discontinued Operations**

A long-lived asset (or disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable within a year. A long-lived asset (or disposal group) classified as held for sale is initially measured at the lower of its carrying amount or fair value less costs to sell. An impairment loss is recognized for any initial or subsequent write-down of the long-lived asset (or disposal group) to fair value less costs to sell. A gain or loss not previously recognized by the date of the sale of the long-lived asset (or disposal group) is recognized at the date of derecognition.

Long-lived assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Long-lived assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

In February 2022, we announced plans to evaluate non-core assets to refocus our corporate strategy and increase stockholder value, and we commenced an initial plan to sell the DoseMe business, which we acquired in January 2019. In March 2022, we completed our evaluation of additional divestiture opportunities and commenced plans to sell the SinfoníaRx and PrescribeWellness businesses, acquired in September 2017 and March 2019, respectively. These businesses collectively comprised the majority of our MedWise HealthCare segment. We sold the PrescribeWellness business on August 1, 2022, the DoseMe business in January 2023, and the SinfoníaRx business in March 2023. Our sales of the PrescribeWellness, DoseMe and SinfoníaRx businesses represented a strategic business shift having a significant effect on our Company's operations and financial results. As a result, we determined that these businesses met the requirements to be classified as held for sale and discontinued operations as of March 31, 2022, and the DoseMe and SinfoníaRx businesses continued to meet such requirements as of December 31, 2022.

During the second quarter of 2022, as a result of our intention to sell the PrescribeWellness business, we prepared an impairment test on the related net assets held for sale. Using a market approach to determine fair value, we concluded that the carrying value of the net assets held for sale for the PrescribeWellness business did not exceed its fair value, less costs to sell. As a result, we recorded goodwill impairment charges of $12.1 and impairment charges of $8.5 on net assets held for sale. On August 1, 2022, we recorded an additional $2.9 million for the final loss on the sale of the PrescribeWellness business, resulting in an aggregate loss of $11.4 million on the net assets sold for the year ended December 31, 2022.

In 2022, as a result of our intention to sell the DoseMe and SinfoníaRx businesses, we prepared an impairment test on the related net assets held for sale. Using a market approach to determine fair value, we concluded that the carrying values of the net assets held for sale for the SinfoníaRx and DoseMe businesses did not exceed their fair values, less costs to sell. As a result, we recorded $6.1 million of goodwill impairment charges and $21.1 million of impairment charges on the net assets held for sale related to the DoseMe and SinfoníaRx businesses for the year ended December 31, 2022.

**Recent Accounting Pronouncements**

See Note 2 of Notes to Consolidated Financial Statements in Part IV, Item 15 of this Annual Report on Form 10-K for a summary of new accounting standards.

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**Item 7A. Quantitative and Qualitative Disclosures About Market Risk**

We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk is principally limited to interest rate fluctuations. A risk management program is in place to manage these risks. We have estimated our market risk exposure using a sensitivity analysis. A hypothetical 10% change in interest rates during the year ended December 31, 2022 would not have had a material impact on our earnings. We have no interest rate hedging agreements.

**Item 8. Financial Statements and Supplementary Data**

Our Consolidated Financial Statements are listed in the Index to Consolidated Financial Statements and Financial Statement Schedule filed as part of this Annual Report on Form 10-K, beginning on page F-1.

**Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure**

None.

**Item 9A. Controls and Procedures**

***Evaluation of Disclosure Controls and Procedures***

As required by Rule 13a-15(b) and Rule 15d-15(b) of the Exchange Act, our management, including our principal executive officer and our principal financial officer, conducted an evaluation as of the end of the period covered by this Annual Report on Form 10-K of the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures are effective at the reasonable assurance level in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

***Inherent Limitations on Effectiveness of Controls and Procedures***

Internal control over financial reporting may not prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Also, projections of any evaluation of effectiveness of internal control to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Accordingly, our disclosure controls and procedures are designed to provide reasonable, not absolute, assurance that the objectives of our disclosure control system are met.

***Management's Annual Report on Internal Control over Financial Reporting***

Our management is responsible for establishing and maintaining adequate internal control over financial reporting for our Company. Internal control over financial reporting is defined in Rules 13a-15(f) and 15(d)-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, our Interim Chief Executive Officer and Chief Financial Officer and effected by our Board, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

● pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and disposition of our assets;

● provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles;

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● provide reasonable assurance that our receipts and expenditures are being made only in accordance with authorization of our management and directors; and

● provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.

Our management, including our Interim Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2022. In conducting this evaluation, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in *Internal Control-Integrated Framework (2013)*. Based upon this evaluation and those criteria, management believes that, as of December 31, 2022, our internal controls over financial reporting were effective.

***Changes in Internal Control over Financial Reporting***

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the quarter ended December 31, 2022 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**Item 9B. Other Information**

The information included in this Item 9B is provided in lieu of filing such information on a Current Report on Form 8-K.

***Director and Officer Indemnification Agreement***

On February 28, 2023, upon recommendation of the Nominating and Corporate Governance Committee of the Board, the Board approved and adopted a new form of indemnification agreement (the "New Indemnification Agreement") to be entered into by the Company with each of its directors and executive officers (each, an "Indemnitee"). The New Indemnification Agreement will supersede and replace the Company's existing indemnification agreements in place with the Company's directors and executive officers and will be the form used for all newly-appointed directors and executive officers.

Consistent with the Company's prior form of indemnification agreement, the New Indemnification Agreement provides that the Company will indemnify the Indemnitee against certain expenses and costs arising out of claims to which he or she becomes subject in connection with his or her service to the Company and contains customary terms and conditions and establishes certain customary procedures and presumptions. The New Indemnification Agreement is intended to update the Company's prior form of indemnification agreement to clarify certain existing rights, ensure conformity with Delaware law, and reflect current market indemnification practices.

The foregoing description of the New Indemnification Agreement does not purport to be complete and is qualified in its entirety by reference to the form of indemnification agreement filed as Exhibit 10.2 hereto and incorporated herein by reference.

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable.

**Part III**

Information required by Items 10, 11, 12, 13, and 14 of Part III is omitted from this Annual Report and will be filed in our definitive proxy statement to be filed with the SEC with respect to our 2023 annual meeting of stockholders, or the Proxy Statement, or by an amendment to this Annual Report not later than 120 days after the end of the fiscal year covered by this Annual Report.

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**Item 10. Directors, Executive Officers, and Corporate Governance**

The information required by this Item 10 will be included in our Proxy Statement under the following captions and is incorporated herein by reference: "Proposal 1: Election of Directors," "Executive Officers," "Delinquent Section 16(A) Reports," "Corporate Governance – Code of Business Conduct and Ethics of Employees, Executive Officers, and Directors," "Corporate Governance – Nominating Committee," and "Corporate Governance – Audit Committee."

**Item 11. Executive Compensation**

The information required by this Item 11 will be included in our Proxy Statement under the following captions and is incorporated herein by reference: "Director Compensation," "Compensation Discussion and Analysis" and the related tabular disclosure, "Compensation Committee Report," "CEO Pay Ratio," "Compensation Risk Assessment," and "Policies Prohibiting Hedging, Pledging, Margining, and Short-Selling."

**Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters**

The information required by this Item 12 will be included in our Proxy Statement under the following captions and is incorporated herein by reference: "Security Ownership of Certain Beneficial Owners and Management" and "Securities Authorized for Issuance under Equity Compensation Plans as of December 31, 2022."

**Item 13. Certain Relationships and Related Transactions and Director Independence**

The information required by this Item 13 will be included in our Proxy Statement under the following caption and is incorporated herein by reference: "Certain Relationships and Related Party Transactions" and "Corporate Governance – Independence of the Board of Directors."

**Item 14. Principal Accountant Fees and Services**

The information required by this Item 14 will be included in our Proxy Statement under the following caption and is incorporated herein by reference: "Principal Accountant Fees and Services."

**Part IV**

**Item 15. Exhibits and Financial Statement Schedules**

A list of exhibits is set forth on the Exhibit Index immediately before the signature page of this Form 10-K and is incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (1) The Registrant's financial statements together with a separate table of contents are annexed hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Financial Statement Schedules are listed in the separate table of contents annexed hereto.

Schedule II—Valuation and Qualifying Accounts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A list of exhibits is set forth on the Exhibit Index immediately before the signature page of this Form 10-K and is incorporated herein by reference.

**Item 16. Form 10-K Summary**

None.

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**EXHIBIT INDEX**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| <br>**ExhibitNo.** | <br>**Exhibit Description** | **Form** | **FilingDate** | **ExhibitNumber** | <br>**FiledHerewith** |
| 2.1# | [Asset Purchase Agreement, dated as of April 22, 2014, by and among Capstone Performance Systems, LLC (Delaware), CareKinesis, Inc., Capstone Performance Systems, LLC (Colorado), PPS Holdings, Inc., and David M. Reyes and Ronda L. Hackbart-Reyes](http://www.sec.gov/Archives/edgar/data/1651561/000104746916009535/a2226891zex-2_2.htm) | S-1 | 1/4/2016 | 2.2 |  |
| 2.2# | [Agreement and Plan of Merger, dated as of September 6, 2017, by and among Tabula Rasa HealthCare, Inc., TRCRD, Inc., TRSHC Holdings, LLC, Sinfonía HealthCare Corporation, Michael Deitch, Fletcher McCusker, and Michael Deitch, as Stockholders' Representative](http://www.sec.gov/Archives/edgar/data/1651561/000110465917055888/a17-21370_1ex2d1.htm) | 8-K | 9/7/2017 | 2.1 |  |
| 2.3# | [Membership Interest Purchase Agreement, made and entered into as of August 31, 2018, by and among TRHC MEC Holdings, LLC, each member of Mediture LLC and eClusive L.L.C., and Kelley Business Law, PLLC, solely in its capacity as the Seller Representative](http://www.sec.gov/Archives/edgar/data/1651561/000155837018008949/trhc-20180930ex21823b5bd.htm) | 10-Q | 11/8/2018 | 2.1 |  |
| 2.4# | [Stock Purchase Agreement, made and entered into as of October 19, 2018, by and among TRHC MEC Holdings, LLC, the stockholders of Cognify, Inc., and Mace Wolf, solely in his capacity as the Sellers' Representative](http://www.sec.gov/Archives/edgar/data/1651561/000155837019001440/trhc-20181231ex263dfee62.htm) | 10-K | 3/1/2019 | 2.6 |  |
| 2.5# | [Share Purchase Deed, made and entered into on November 30, 2018, by and among Tabula Rasa HealthCare, Inc., DM Acquisition Pty Ltd, the shareholders and option holders of DoseMe Holdings Pty Ltd set forth on the signature page thereto under the heading "Sellers," and Charles Cornish, solely in his capacity as the Seller Representative](http://www.sec.gov/Archives/edgar/data/1651561/000141057818000581/a18-40997_1ex2d1.htm) | 8-K | 12/3/2018 | 2.1 |  |
| 2.6# | [Merger Agreement, dated March 5, 2019, by and among Tabula Rasa HealthCare, Inc., TRHC PW Acquisition, LLC, Prescribe Wellness, LLC and Fortis Advisors, LLC, as Holder Representative](http://www.sec.gov/Archives/edgar/data/1651561/000110465919012877/a19-5864_1ex2d1.htm) | 8-K | 3/5/2019 | 2.1 |  |
| 2.7# | [Membership Interest Purchase Agreement, made and entered into on October 5, 2020, by and among Tabula Rasa HealthCare Group, Inc., Tabula Rasa HealthCare, Inc., Personica Holdings, Inc., Peter C. Farrow, Robert Tanner, Michele Bauer, Luke Johnson, and Personica Holdings, Inc., as Seller Representative](https://www.sec.gov/Archives/edgar/data/1651561/000110465920111963/tm2032350d1_ex2-1.htm) | 8-K | 10/5/2020 | 2.1 |  |
| 3.1 | [Amended and Restated Certificate of Incorporation of Tabula Rasa HealthCare, Inc.](http://www.sec.gov/Archives/edgar/data/1651561/000110465916148608/a16-19314_1ex3d1.htm) | 8-K | 10/4/2016 | 3.1 |  |
| 3.2 | [Certificate of Designation of Series A Junior Participating Preferred Stock of Tabula Rasa HealthCare, Inc.](https://www.sec.gov/Archives/edgar/data/1651561/000110465922082633/tm2221764d1_ex3-1.htm) | 8-K | 7/26/2022 | 3.1 |  |
| 3.3 | [Amended and Restated Bylaws of Tabula Rasa HealthCare, Inc.](http://www.sec.gov/Archives/edgar/data/1651561/000110465916148608/a16-19314_1ex3d2.htm) | 8-K | 10/4/2016 | 3.2 |  |
| 4.1 | [Indenture, dated as of February 12, 2019, by and between Tabula Rasa HealthCare, Inc. and U.S. Bank National Association, as trustee](http://www.sec.gov/Archives/edgar/data/1651561/000110465919007543/a19-4416_1ex4d1.htm) | 8-K | 2/12/2019 | 4.1 |  |
| 4.2 | [Form of Note (included in Exhibit 4.1)](http://www.sec.gov/Archives/edgar/data/1651561/000110465919007543/a19-4416_1ex4d1.htm) | 8-K | 2/12/2019 | 4.1 |  |
| 4.3 | [Description of the Registrant's Securities](https://www.sec.gov/Archives/edgar/data/1651561/000155837020001882/ex-4d3.htm) | 10-K | 3/2/2020 | 4.3 |  |
| 4.4 | [Rights Agreement, dated as of July 25, 2022, by and between Tabula Rasa HealthCare, Inc. and American Stock Transfer & Trust Company, LLC, as rights agent](https://www.sec.gov/Archives/edgar/data/1651561/000110465922082633/tm2221764d1_ex4-1.htm) | 8-K | 7/26/2022 | 4.1 |  |
| 10.1\* | [Tabula Rasa HealthCare, Inc. Amended and Restated 2014 Equity Compensation Plan, including forms of Incentive Stock Option Agreement, Nonqualified Stock Option Agreements, and Restricted Stock Agreement thereunder](http://www.sec.gov/Archives/edgar/data/1651561/000104746916015538/a2229699zex-10_1.htm) | S-1/A | 9/19/2016 | 10.1 |  |
| 10.2 | [Form of Indemnification Agreement](trhc-20221231xex10d2.htm) |  |  |  | X |
| 10.3 | [Loan and Security Agreement, dated as of April 29, 2015, by and among Western Alliance Bank, successor in interest to Bridge Bank, National Association, and Tabula Rasa HealthCare, Inc., CareKinesis, Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc., and Medliance LLC, as amended by that Loan and Security Modification Agreement, dated as of July 1, 2016, by and among Western Alliance Bank, as successor in interest to Bridge Bank, National Association, and CareKinesis, Inc., Tabula Rasa HealthCare, Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc. and Medliance LLC, included as Exhibit 10.4, as amended by that Loan and Security Modification Agreement, dated as of September 15, 2016, by and among Western Alliance Bank, CareKinesis, Inc., Tabula Rasa HealthCare, Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc., Medliance LLC and CK Solutions, LLC, included as Exhibit 10.5](http://www.sec.gov/Archives/edgar/data/1651561/000104746916009535/a2226891zex-10_6.htm) | S-1 | 1/4/2016 | 10.6 |  |
| 10.4 | [Loan and Security Modification Agreement, dated as of July 1, 2016, by and among Western Alliance Bank, as successor in interest to Bridge Bank, National Association, and CareKinesis, Inc., Tabula Rasa HealthCare, Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc. and Medliance LLC](http://www.sec.gov/Archives/edgar/data/1651561/000104746916014401/a2228875zex-10_7.htm) | S-1/A | 7/21/2016 | 10.7 |  |
| 10.5 | [Loan and Security Modification Agreement, dated as of September 15, 2016, by and among Western Alliance Bank, CareKinesis, Inc., Tabula Rasa HealthCare, Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc., Medliance LLC and CK Solutions, LLC](http://www.sec.gov/Archives/edgar/data/1651561/000104746916015538/a2229699zex-10_8.htm) | S-1/A | 9/19/2016 | 10.8 |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| 10.6 | [Amended and Restated Loan and Security Agreement, dated as of September 6, 2017, by and among CareKinesis, Inc., Tabula Rasa HealthCare, Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc., Medliance LLC, CK Solutions, LLC, SinfoníaRx, Inc., Sinfonía HealthCare Corporation, TRCRD, Inc., TRSHC Holdings, LLC, the several banks and other financial institutions or entities from time to time party thereto, and Western Alliance Bank, as a Lender and as administrative agent and collateral agent for the Lenders](http://www.sec.gov/Archives/edgar/data/1651561/000110465917055888/a17-21370_1ex10d1.htm) | 8-K | 9/7/2017 | 10.1 |
| 10.7 | [Loan and Security Modification Agreement, dated as of May 1, 2018, by and among CareKinesis, Inc., Tabula Rasa HealthCare Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc., Medliance LLC, CK Solutions, LLC, TRSHC Holdings, LLC, and SinfoníaRx, Inc., and Western Alliance Bank](http://www.sec.gov/Archives/edgar/data/1651561/000155837018006788/trhc-20180630ex101bcded3.htm) | 10-Q | 8/8/2018 | 10.1 |
| 10.8 | [Loan and Security Modification Agreement, dated August 31, 2018, by and among CareKinesis, Inc., Tabula Rasa HealthCare Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc., Medliance LLC, CK Solutions, LLC, TRSHC Holdings, LLC, and SinfoníaRx, Inc., the several banks and other financial institutions or entities party thereto and Western Alliance Bank](http://www.sec.gov/Archives/edgar/data/1651561/000155837018008949/trhc-20180930ex102986806.htm) | 10-Q | 11/8/2018 | 10.2 |
| 10.9 | [Loan and Security Modification Agreement, entered into as of October 19, 2018, by and among CareKinesis, Inc., Tabula Rasa HealthCare, Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc., Medliance LLC, CK Solutions, LLC, TRSHC Holdings, LLC, SinfoníaRx, Inc., TRHC MEC Holdings, LLC, Mediture, LLC, eClusive L.L.C., the several banks and other financial institutions or entities party thereto and Western Alliance Bank](http://www.sec.gov/Archives/edgar/data/1651561/000110465919006830/a19-4210_2ex10d1.htm) | 8-K | 2/8/2019 | 10.1 |
| 10.10 | [Loan and Security Modification Agreement, entered into as of December 31, 2018, by and among CareKinesis, Inc., Tabula Rasa HealthCare, Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc., Medliance LLC, CK Solutions, LLC, TRSHC Holdings, LLC, SinfoníaRx, Inc., TRHC MEC Holdings, LLC, Mediture, LLC, eClusive L.L.C., Cognify LLC, the several banks and other financial institutions or entities party thereto, and Western Alliance Bank](http://www.sec.gov/Archives/edgar/data/1651561/000110465919000180/a18-42202_1ex10d1.htm) | 8-K | 1/2/2019 | 10.1 |
| 10.11 | [Loan and Security Modification Agreement, entered into as of February 7, 2019, by and among CareKinesis, Inc., Tabula Rasa HealthCare, Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc., Medliance LLC, CK Solutions, LLC, TRSHC Holdings, LLC, SinfoníaRx, Inc., TRHC MEC Holdings, LLC, Mediture, LLC, eClusive L.L.C., Cognify, LLC, TRHC DM Holdings, LLC, the several banks and other financial institutions or entities party thereto, and Western Alliance Bank, as a Lender and as administrative agent and collateral agent for the Lenders](http://www.sec.gov/Archives/edgar/data/1651561/000110465919006830/a19-4210_2ex10d2.htm) | 8-K | 2/8/2019 | 10.2 |
| 10.12 | [Loan and Security Modification Agreement, entered into as of March 5, 2019, by and among CareKinesis, Inc., Tabula Rasa HealthCare, Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc., Medliance LLC, CK Solutions, LLC, TRSHC Holdings, LLC, SinfoníaRx, Inc., TRHC MEC Holdings, LLC, Mediture, LLC, eClusive L.L.C., Cognify, LLC, TRHC DM Holdings, LLC, the several banks and other financial institutions or entities party thereto, and Western Alliance Bank, as a Lender and as administrative agent and collateral agent for the Lenders](http://www.sec.gov/Archives/edgar/data/1651561/000154478419000006/trhc-20190331ex1024f28ff.htm) | 10-Q | 5/10/2019 | 10.2 |
| 10.13 | [Loan and Security Modification Agreement, entered into as of December 20, 2019, by and among CareKinesis, Inc., Tabula Rasa HealthCare, Inc., Carevention, Inc., Capstone Performance Systems, LLC, J.A. Robertson, Inc., Medliance LLC, CK Solutions, LLC, TRSHC Holdings, LLC, SinfoníaRx, Inc., TRHC MEC Holdings, LLC, Mediture, LLC, eClusive L.L.C., Cognify, LLC, DoseMe, LLC, the several banks and other financial institutions or entities party thereto, and Western Alliance Bank, as a Lender and as administrative agent and collateral agent for the Lende](https://www.sec.gov/Archives/edgar/data/1651561/000155837020001882/ex-10d13.htm)rs | 10-K | 3/2/2020 | 10.13 |
| 10.14 | [Loan and Security Modification Agreement, entered into as of September 2, 2020, by and among Tabula Rasa HealthCare Group, Inc., Tabula Rasa HealthCare, Inc., CK Solutions, LLC, the several banks and other financial institutions or entities party thereto, and Western Alliance Bank, as Lender and as administrative agent and collateral agent for the Lenders](https://www.sec.gov/Archives/edgar/data/1651561/000110465920103465/tm2030341d1_ex10-1.htm) | 8-K | 9/9/2020 | 10.1 |
| 10.15 | [Loan and Security Modification Agreement, entered into as of October 5, 2020, by and among Tabula Rasa HealthCare Group, Inc., Tabula Rasa HealthCare, Inc., CK Solutions, LLC, the several banks and other financial institutions or entities party thereto, and Western Alliance Bank, as a Lender and as administrative agent and collateral agent for the Lenders](https://www.sec.gov/Archives/edgar/data/1651561/000110465920111963/tm2032350d1_ex10-1.htm) | 8-K | 10/5/2020 | 10.1 |
| 10.16 | [Loan and Security Agreement, entered into as of December 18, 2020, by and among Tabula Rasa HealthCare Group, Inc., Tabula Rasa HealthCare, Inc., CK Solutions, LLC, Personica, LLC, TRHC TPA, LLC, PersonifilRx, the several banks and other financial institutions or entities party thereto, Western Alliance Bank and Regions Bank, as documentation agent](https://www.sec.gov/Archives/edgar/data/1651561/000110465920138561/tm2039109d1_ex10-1.htm) | 8-K | 12/22/2020 | 10.1 |
| 10.17\* | [Tabula Rasa HealthCare, Inc. 2016 Omnibus Incentive Compensation Plan, including forms of Incentive Stock Option Agreement, Nonqualified Stock Option Agreement, and Restricted Stock Agreement thereunder](http://www.sec.gov/Archives/edgar/data/1651561/000104746916015538/a2229699zex-10_15.htm) | S-1/A | 9/19/2016 | 10.15 |
| 10.18\* | [Form of Director Stock Unit Agreement](https://www.sec.gov/Archives/edgar/data/1651561/000155837020001882/ex-10d15.htm) | 10-K | 3/2/2020 | 10.15 |

---

[**Table of Contents**](#TOC)

---

| | | | | |
|:---|:---|:---|:---|:---|
| 10.19 | [Lease Agreement, dated as of August 21, 2015, by and between 228 Strawbridge Associates, LLC and Tabula Rasa HealthCare, Inc. (Suite 100), as amended by that First Amendment to Lease Agreements, dated as of March 22, 2016, by that Second Amendment to Lease Agreements, dated as of February 3, 2017, and by that Third Amendment to Lease Agreements, effective as of July 10, 2018.](http://www.sec.gov/Archives/edgar/data/1651561/000155837019001440/trhc-20181231ex1011f7c88.htm) | 10-K | 3/1/2019 | 10.11 |
| 10.20 | [Lease Agreement, dated as of August 21, 2015, by and between 228 Strawbridge Associates, LLC and Tabula Rasa HealthCare, Inc. (Suite 200), as amended by that First Amendment to Lease Agreements, dated as of March 22, 2016, by that Second Amendment to Lease Agreements, dated as of February 3, 2017, and by that Third Amendment to Lease Agreements, effective as of July 10, 2018](http://www.sec.gov/Archives/edgar/data/1651561/000155837019001440/trhc-20181231ex101228f12.htm) | 10-K | 3/1/2019 | 10.12 |
| 10.21 | [Lease Agreement, dated as of August 21, 2015, by and between 228 Strawbridge Associates, LLC and Tabula Rasa HealthCare, Inc. (Suite 300), as amended by that First Amendment to Lease Agreements, dated as of March 22, 2016, by that Second Amendment to Lease Agreements, dated as of February 3, 2017, and by that Third Amendment to Lease Agreements, effective as of July 10, 2018](http://www.sec.gov/Archives/edgar/data/1651561/000155837019001440/trhc-20181231ex1013c4a9f.htm) | 10-K | 3/1/2019 | 10.13 |
| 10.22# | [Affiliated Pharmacy Agreement, dated as of March 29, 2019, by and between Thrifty Drug Stores, Inc. and Tabula Rasa HealthCare, Inc.](http://www.sec.gov/Archives/edgar/data/1651561/000154478419000006/trhc-20190331ex10117d918.htm) | 10-Q | 5/10/2019 | 10.11 |
| 10.23# | [Pharmaceutical Program Supply Agreement, effective as of March 29, 2019, by and between Thrifty Drug Stores, Inc. and Tabula Rasa HealthCare, Inc.](http://www.sec.gov/Archives/edgar/data/1651561/000154478419000006/trhc-20190331ex1012600c1.htm) | 10-Q | 5/10/2019 | 10.12 |
| 10.24\* | [Tabula Rasa HealthCare, Inc. Annual Incentive Plan, effective as of January 1, 2017](http://www.sec.gov/Archives/edgar/data/1651561/000110465917027622/a17-12076_1ex10d4.htm) | 8-K | 4/28/2017 | 10.4 |
| 10.25\* | [Change-in-Control and Severance Agreement, dated as of January 1, 2018, by and between Dr. Calvin Knowlton and Tabula Rasa HealthCare, Inc.](http://www.sec.gov/Archives/edgar/data/1651561/000110465918014503/a18-6688_2ex10d1.htm) | 8-K | 3/2/2018 | 10.1 |
| 10.26\* | [Change-in-Control and Severance Agreement, dated as of January 1, 2018, by and between Dr. Orsula Knowlton and Tabula Rasa HealthCare, Inc](http://www.sec.gov/Archives/edgar/data/1651561/000110465918014503/a18-6688_2ex10d2.htm). | 8-K | 3/2/2018 | 10.2 |
| 10.27\* | [Change-in-Control and Severance Agreement, dated as of January 1, 2018, by and between Brian Adams and Tabula Rasa HealthCare, Inc.](http://www.sec.gov/Archives/edgar/data/1651561/000110465918014503/a18-6688_2ex10d3.htm) | 8-K | 3/2/2018 | 10.3 |
| 10.28\* | [First Amendment to the Tabula Rasa Healthcare, Inc. Annual Incentive Plan, dated as of February 26, 2018](http://www.sec.gov/Archives/edgar/data/1651561/000110465918014503/a18-6688_2ex10d4.htm) | 8-K | 3/2/2018 | 10.4 |
| 10.29 | [Call Option Confirmation, dated as of February 7, 2019, by and between Tabula Rasa HealthCare, Inc. and Citibank, N.A.](http://www.sec.gov/Archives/edgar/data/1651561/000110465919007543/a19-4416_1ex10d1.htm) | 8-K | 2/12/2019 | 10.1 |
| 10.30 | [Call Option Confirmation, dated as of February 7, 2019, by and between Tabula Rasa HealthCare, Inc. and Bank of America, N.A.](http://www.sec.gov/Archives/edgar/data/1651561/000110465919007543/a19-4416_1ex10d2.htm) | 8-K | 2/12/2019 | 10.2 |
| 10.31 | [Warrant Confirmation, dated as of February 7, 2019, by and between Tabula Rasa HealthCare, Inc. and Citibank, N.A.](http://www.sec.gov/Archives/edgar/data/1651561/000110465919007543/a19-4416_1ex10d3.htm) | 8-K | 2/12/2019 | 10.3 |
| 10.32 | [Warrant Confirmation, dated as of February 7, 2019, by and between Tabula Rasa HealthCare, Inc. and Bank of America, N.A.](http://www.sec.gov/Archives/edgar/data/1651561/000110465919007543/a19-4416_1ex10d4.htm) | 8-K | 2/12/2019 | 10.4 |
| 10.33 | [Call Option Confirmation, dated as of February 8, 2019, by and between Tabula Rasa HealthCare, Inc. and Citibank, N.A.](http://www.sec.gov/Archives/edgar/data/1651561/000110465919007543/a19-4416_1ex10d5.htm) | 8-K | 2/12/2019 | 10.5 |
| 10.34 | [Call Option Confirmation, dated as of February 8, 2019, by and between Tabula Rasa HealthCare, Inc. and Bank of America, N.A.](http://www.sec.gov/Archives/edgar/data/1651561/000110465919007543/a19-4416_1ex10d6.htm) | 8-K | 2/12/2019 | 10.6 |
| 10.35 | [Warrant Confirmation, dated as of February 8, 2019, by and between Tabula Rasa HealthCare, Inc. and Citibank, N.A.](http://www.sec.gov/Archives/edgar/data/1651561/000110465919007543/a19-4416_1ex10d7.htm) | 8-K | 2/12/2019 | 10.7 |
| 10.36 | [Warrant Confirmation, dated as of February 8, 2019, by and between Tabula Rasa HealthCare, Inc. and Bank of America, N.A.](http://www.sec.gov/Archives/edgar/data/1651561/000110465919007543/a19-4416_1ex10d8.htm) | 8-K | 2/12/2019 | 10.8 |
| 10.37 | [Affiliated Pharmacy Agreement, dated as of June 30, 2020, by and between Thrifty Drug Stores, Inc. and Tabula Rasa HealthCare Group, Inc.](https://www.sec.gov/Archives/edgar/data/1651561/000155837020009704/trhc-20200630xex10d1.htm) | 10-Q | 8/6/2020 | 10.1 |
| 10.38 | [Pharmaceutical Program Supply Agreement, effective as of July 1, 2020, by and between Thrifty Drug Stores, Inc. and Tabula Rasa HealthCare Group, Inc.](https://www.sec.gov/Archives/edgar/data/1651561/000155837020009704/trhc-20200630xex10d2.htm) | 10-Q | 8/6/2020 | 10.2 |
| 10.39 | [Retailer Addendum to Pharmaceutical Program Supply Agreement (High Volume), effective as of June 30, 2020, by and between Thrifty Drug Stores, Inc. and Tabula Rasa HealthCare Group, Inc.](https://www.sec.gov/Archives/edgar/data/1651561/000155837020009704/trhc-20200630xex10d3.htm) | 10-Q | 8/6/2020 | 10.3 |
| 10.41 | [Form of Letter Agreement, dated as of November 12, 2020, by and between Tabula Rasa HealthCare, Inc. and each of Calvin H. Knowlton, Orsula V. Knowlton and Brian W. Adams](https://www.sec.gov/Archives/edgar/data/1651561/000110465920125792/tm2035956d1_ex10-1.htm) | 8-K | 11/16/2020 | 10.1 |
| 10.42 | [Tabula Rasa HealthCare, Inc. Employee Stock Purchase Plan](https://www.sec.gov/Archives/edgar/data/1651561/000110465921082593/tm2119975d1_ex10-1.htm) | 8-K | 6/17/2021 | 10.1 |
| 10.43\* | [Change in Control and Severance Agreement, dated as of January 1, 2018, as amended effective December 14, 2021, and between Brian Adams and Tabula Rasa HealthCare, Inc.](https://www.sec.gov/Archives/edgar/data/1651561/000155837022002164/trhc-20211231xex10d43.htm) | 10-K | 2/25/2022 | 10.43 |
| 10.44# | [Asset Purchase Agreement, dated as of June 18, 2022, by and among Tabula Rasa HealthCare Group, Inc., Transaction Data Systems, Inc., and Tabula Rasa HealthCare, Inc.](https://www.sec.gov/Archives/edgar/data/1651561/000110465922072732/tm2218346d2_ex2-1.htm)  | 8-K | 6/21/2022 | 2.1 |
| 10.45# | [Asset Purchase Agreement, by and between Tabula Rasa HealthCare Group, Inc., and karmadata, Inc., dated as of June 18, 2022](https://www.sec.gov/Archives/edgar/data/1651561/000110465922072732/tm2218346d2_ex2-2.htm) | 8-K | 6/21/2022 | 2.2 |
| 10.46 | [Cooperation Agreement, dated as of September 13, 2022, by and between Tabula Rasa HealthCare, Inc. and Indaba Capital Management, L.P.](https://www.sec.gov/Archives/edgar/data/1651561/000110465922099891/tm2225741d1_ex10-1.htm) | 8-K | 9/14/2022 | 10.1 |
| 10.47\* | [Executive Transition and Separation Agreement, dated as of September 13, 2022, by and between Tabula Rasa HealthCare, Inc. and Dr. C. Knowlton](https://www.sec.gov/Archives/edgar/data/1651561/000110465922099891/tm2225741d1_ex10-2.htm) | 8-K | 9/14/2022 | 10.2 |
| 10.48\* | [Executive Transition and Separation Agreement, dated as of September 13, 2022, by and between Tabula Rasa HealthCare, Inc. and Dr. O. Knowlton](https://www.sec.gov/Archives/edgar/data/1651561/000110465922099891/tm2225741d1_ex10-3.htm)  | 8-K | 9/14/2022 | 10.3 |
| 10.49 | [Consulting Agreement, dated as of September 13, 2022, by and between Tabula Rasa HealthCare, Inc. and Dr. C. Knowlton](https://www.sec.gov/Archives/edgar/data/1651561/000110465922099891/tm2225741d1_ex10-4.htm) | 8-K | 9/14/2022 | 10.4 |

---

[**Table of Contents**](#TOC)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| 10.50 | [Consulting Agreement, dated as of September 13, 2022, by and between Tabula Rasa HealthCare, Inc. and Dr. O. Knowlton](https://www.sec.gov/Archives/edgar/data/1651561/000110465922099891/tm2225741d1_ex10-5.htm) | 8-K | 9/14/2022 | 10.5 |  |
| 10.51 | [Form of 2022 Performance Stock Unit Award Agreement](https://www.sec.gov/Archives/edgar/data/1651561/000155837022016383/trhc-20220930xex10d8.htm) | 10-Q | 11/4/2022 | 10.8 |  |
| 10.52 | [Indemnification Agreement, dated as of September 13, 2022, by and between Tabula Rasa HealthCare, Inc. and Jonathan Schwartz](https://www.sec.gov/Archives/edgar/data/1651561/000155837022016383/trhc-20220930xex10d9.htm) | 10-Q | 11/4/2022 | 10.9 |  |
| 10.53\* | [Offer Letter, dated as of February 2, 2022, by and between Tabula Rasa HealthCare, Inc. and Thomas Cancro](https://www.sec.gov/Archives/edgar/data/1651561/000155837022007796/trhc-20220331xex10d1.htm) | 10-Q | 5/9/2022 | 10.1 |  |
| 10.54\* | [Change in Control and Severance Agreement, dated as of February 24, 2022, by and between Thomas Cancro and Tabula Rasa HealthCare, Inc](https://www.sec.gov/Archives/edgar/data/1651561/000155837022007796/trhc-20220331xex10d2.htm) | 10-Q | 5/9/2022 | 10.2 |  |
| 10.55# | [Master Services Agreement, dated as of August 30, 2021, by and between Tabula Rasa HealthCare, Inc. and Mphasis Corporation](https://www.sec.gov/Archives/edgar/data/1651561/000155837022007796/trhc-20220331xex10d4.htm)  | 10-Q | 5/9/2022 | 10.4 |  |
| 10.56\* | [Sixth Amendment to Restricted Stock Agreement (Calvin Knowlton)](https://www.sec.gov/Archives/edgar/data/1651561/000110465922062492/tm2215861d1_ex10-1.htm) | 8-K | 5/18/2022 | 10.1 |  |
| 10.57\* | [Sixth Amendment to Restricted Stock Agreement (Orsula Knowlton)](https://www.sec.gov/Archives/edgar/data/1651561/000110465922062492/tm2215861d1_ex10-2.htm) | 8-K | 5/18/2022 | 10.2 |  |
| 10.58 | [Form of Restricted Stock Agreement](https://www.sec.gov/Archives/edgar/data/1651561/000155837022012394/trhc-20220630xex10d5.htm) | 10-Q | 8/5/2022 | 10.5 |  |
| 10.59# | [Share and Asset Purchase Agreement, dated as of January 20, 2023, by and between Tabula Rasa HealthCare Group, Inc. and DoseMe Operations Inc.](trhc-20221231xex10d59.htm) |  |  |  | X |
| 10.60# | [Asset Purchase Agreement, dated as of March 2, 2023, by and between Tabula Rasa HealthCare Group, Inc. and Symphony Clinic, LLC](trhc-20221231xex10d60.htm) |  |  |  | X |
| 21.1 | [Subsidiaries of Registrant](trhc-20221231xex21d1.htm) |  |  |  | X |
| 23.1 | [Consent of KPMG LLP](trhc-20221231xex23d1.htm) |  |  |  | X |
| 31.1 | [Certification of Chief Executive Officer (Principal Executive Officer) required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](trhc-20221231xex31d1.htm) |  |  |  | X |
| 31.2 | [Certification of Chief Financial Officer (Principal Financial Officer) required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](trhc-20221231xex31d2.htm) |  |  |  | X |
| 32.1\*\* | [Certification of Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), as required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §1350), as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](trhc-20221231xex32d1.htm) |  |  |  | X |
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |  |  |  | X |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |  |  |  | X |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase |  |  |  | X |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase |  |  |  | X |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase |  |  |  | X |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase |  |  |  | X |
| 104 | The cover page from the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, formatted in Inline XBRL (contained in Exhibit 101) |  |  |  | X |

---

\* Represents management contract or compensatory plan or arrangement.

\*\* This certification attached as Exhibit 32.1 that accompanies this Annual Report on Form 10-K is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Tabula Rasa HealthCare, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of this Form 10-K), irrespective of any general incorporation language contained in such filing.

# Certain schedules and exhibits to this exhibit have been omitted pursuant to Item 601(a)(5) or 601(b)(2) of Regulation S-K, as applicable. The Company will furnish the omitted schedules and exhibits to the Securities and Exchange Commission upon request.

[**Table of Contents**](#TOC)

**Signatures**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | TABULA RASA HEALTHCARE, INC. | TABULA RASA HEALTHCARE, INC. |
| Date: March 10, 2023 | By: | /s/ BRIAN W. ADAMS |
|  | Name: | Brian W. Adams |
|  | Title: | Interim Chief Executive Officer |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| Date: March 10, 2023 | By: | /s/ BRIAN W. ADAMS |
|  | Name: | Brian W. Adams |
|  | Title: | Interim Chief Executive Officer |
|  |  | *(Principal Executive Officer)* |
| Date: March 10, 2023 | By: | /s/ THOMAS J. CANCRO |
|  | Name: | Thomas J. Cancro |
|  | Title: | Chief Financial Officer |
|  |  | *(Principal Financial and Accounting Officer)* |
| Date: March 10, 2023 | By: | /s/ SAMIRA K. BECKWITH |
|  | Name: | Samira K. Beckwith |
|  | Title: | Director |
| Date: March 10, 2023 | By: | /s/ DR. JAN BERGER |
|  | Name: | Dr. Jan Berger |
|  | Title: | Director |
| Date: March 10, 2023 | By: | /s/ DR. DENNIS K. HELLING |
|  | Name: | Dr. Dennis K. Helling |
|  | Title: | Director |
| Date: March 10, 2023 | By: | /s/ RON MITCHELL |
|  | Name: | Ron Mitchell |
|  | Title: | Director |
| Date: March 10, 2023 | By: | /s/ KATHRINE O'BRIEN |
|  | Name: | Kathrine O'Brien |
|  | Title: | Director |
| Date: March 10, 2023 | By: | /s/ MICHAEL PURCELL |
|  | Name: | Michael Purcell |
|  | Title: | Director |
| Date: March 10, 2023 | By: | /s/ DEREK SCHRIER |
|  | Name: | Derek Schrier |
|  | Title: | Director |
| Date: March 10, 2023 | By: | /s/ JONATHAN SCHWARTZ |
|  | Name: | Jonathan Schwartz |
|  | Title: | Director |
| Date: March 10, 2023 | By: | /s/ DR. PAMELA SCHWEITZER |
|  | Name: | Dr. Pamela Schweitzer |
|  | Title: | Director |

---

[**Table of Contents**](#TOC)

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  |  | **Number** |
| 1. | Audited Consolidated Financial Statements of Tabula Rasa HealthCare, Inc. |  |
|  | [Report of Independent Registered Public Accounting Firm](#ReportofIndependentAccountingFirm) (KPMG LLP, Philadelphia, PA, Auditor Firm ID: 185) | F-2 |
|  | [Consolidated Balance Sheets as of December 31, 2022 and 2021](#BALANCESHEETS_63823)  | F-4 |
|  | [Consolidated Statements of Operations for the Years Ended December 31, 2022, 2021, and 2020](#STATEMENTSOFOPERATIONS_742776) | F-5 |
|  | [Consolidated Statements of Stockholders' Equity (Deficit) for the Years Ended December 31, 2022, 2021, and 2020](#STOCKANDSTOCKHOLDERS_546738) | F-6 |
|  | [Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021, and 2020](#CASHFLOWS_220117) | F-7 |
|  | [Notes to Consolidated Financial Statements](#NatureofBusiness_211577) | F-8 |
| 2. | Supplemental Financial Data |  |
|  | The following supplemental financial data of the Registrant required to be included in Item 15(a)(2) on Form 10-K are listed below: |  |
|  | [Schedule II – Valuation and Qualifying Accounts](#ScheduleII_968931) | F-52 |

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[**Table of Contents**](#TOC)

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and Board of Directors

Tabula Rasa HealthCare, Inc.:

*Opinion on the Consolidated Financial Statements*

We have audited the accompanying consolidated balance sheets of Tabula Rasa HealthCare, Inc. and subsidiaries (the Company) as of December 31, 2022 and 2021, the related consolidated statements of operations, stockholders' equity (deficit), and cash flows for each of the years in the three-year period ended December 31, 2022, and the related notes and financial statement schedule II - valuation and qualifying accounts (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2022, in conformity with U.S. generally accepted accounting principles.

*Change in Accounting Principle*

As discussed in Note 14 to the consolidated financial statements, the Company has changed its method of accounting for convertible debt instruments as of January 1, 2021 due to the adoption of Accounting Standards Update (ASU) No. 2020-06, *Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)*.

*Basis for Opinion*

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

*Critical Audit Matter*

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

[**Table of Contents**](#TOC)

*Sufficiency of audit evidence over revenue*

As discussed in Notes 2, 3, and 6 to the consolidated financial statements, the Company had $299,516 thousand in revenues for the year ended December 31, 2022, of which $231,052 thousand and $68,464 thousand was medication revenue and technology-enabled solutions revenue, respectively. Additionally, included within discontinued operations for the year ended December 31, 2022, the Company had $19,306 thousand in revenues for the PrescribeWellness business and $27,898 thousand in revenues for the DoseMe and SinfoniaRx businesses. The Company has multiple revenue streams for medication revenue, technology-enabled solutions revenue, and revenues reported in discontinued operations.

We identified the evaluation of the sufficiency of audit evidence over revenue as a critical audit matter. Evaluating the sufficiency of audit evidence required especially challenging auditor judgment due to the number of revenue streams in the revenue recognition process. This included determining the revenue streams over which procedures were performed and evaluating the nature and extent of evidence obtained over each revenue stream.

The following are the primary procedures we performed to address this critical audit matter. We applied auditor judgment to determine the nature and extent of procedures to be performed over revenue, including the revenue streams over which procedures were performed. For each revenue stream over which procedures were performed, we assessed the recorded revenue by selecting transactions and comparing the amounts recognized for consistency with underlying documentation, including contracts with customers and the Company's revenue recognition policies. We evaluated the sufficiency of audit evidence obtained by assessing the results of procedures performed, including the appropriateness of the nature and extent of such evidence.

/s/ KPMG LLP

We have served as the Company's auditor since 2012.

Philadelphia, Pennsylvania

March 10, 2023

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**CONSOLIDATED BALANCE SHEETS**

**(In thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** |
| **Assets**  |  |  |
| Current assets:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $70017 | $9395 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 12372 | 6038 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance of $368 and $110, respectively | 19252 | 21405 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 6566 | 5444 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 4664 | 3812 |
| &nbsp;&nbsp;&nbsp;&nbsp;Client claims receivable | 16377 | 11257 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 18187 | 18033 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current assets of discontinued operations | 22825 | 14511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 170260 | 89895 |
| Property and equipment, net | 9158 | 11778 |
| Operating lease right-of-use assets | 10483 | 16323 |
| Software development costs, net | 32592 | 29254 |
| Goodwill | 115323 | 115323 |
| Intangible assets, net | 38326 | 45358 |
| Contingent consideration receivable | 3350 |  |
| Other assets | 4657 | 3929 |
| Noncurrent assets of discontinued operations |  | 187558 |
| Total assets | $384149 | $499418 |
| **Liabilities and stockholders' equity (deficit)** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current operating lease liabilities | $2708 | $3275 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 19459 | 8870 |
| &nbsp;&nbsp;&nbsp;&nbsp;Client claims payable | 10781 | 8398 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 55745 | 40997 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current liabilities of discontinued operations | 13389 | 12380 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 102082 | 73920 |
| Line of credit |  | 29500 |
| Long-term debt, net of discount of $3,160 and $5,701, respectively | 232112 | 319299 |
| Long-term debt – related party, net of discount of $1,206 and $0, respectively | 88522 |  |
| Noncurrent operating lease liabilities | 12786 | 15792 |
| Deferred income tax liability, net | 1380 | 1402 |
| Other long-term liabilities | 4298 | 176 |
| Noncurrent liabilities of discontinued operations |  | 3573 |
| Total liabilities | 441180 | 443662 |
| Commitments and contingencies (Note 19) |  |  |
| Stockholders' equity (deficit): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding at December 31, 2022 and December 31, 2021 | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value; 100,000,000 shares authorized, 28,031,616 and 26,036,236 shares issued and 27,129,096 and 25,666,434 shares outstanding at December 31, 2022 and December 31, 2021, respectively | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost; 902,520 and 369,802 shares at December 31, 2022 and December 31, 2021, respectively | (3391) | (4292) |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 354214 | 320392 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (407857) | (260347) |
| Total stockholders' equity (deficit) | (57031) | 55756 |
| Total liabilities and stockholders' equity (deficit) | $384149 | $499418 |

---

See accompanying notes to consolidated financial statements.

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**TABULA RASA HEALTHCARE, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In thousands, except share and per share amounts)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Medication revenue | $231052 | $189591 | $158692 |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology-enabled solutions revenue | 68464 | 70291 | 62697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 299516 | 259882 | 221389 |
| Cost of revenue, exclusive of depreciation and amortization shown below: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of medication revenue | 178527 | 143700 | 116463 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of technology-enabled solutions revenue | 54076 | 49678 | 44155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue, exclusive of depreciation and amortization | 232603 | 193378 | 160618 |
| Operating expenses:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development  | 14483 | 14629 | 14426 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 10491 | 11039 | 8145 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative  | 74974 | 63095 | 55091 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of acquisition-related contingent consideration expense |  |  | 2613 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration receivable | 3650 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-lived asset impairment charge | 8943 |  | 5040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 23347 | 20482 | 16633 |
| Total operating expenses  | 135888 | 109245 | 101948 |
| Loss from operations | (68975) | (42741) | (41177) |
| Other income (expense):  |  |  |  |
| Interest expense, net | (9034) | (9107) | (20743) |
| Other income | 1064 |  |  |
| Total other expense, net | (7970) | (9107) | (20743) |
| Loss from continuing operations before income taxes | (76945) | (51848) | (61920) |
| Income tax expense (benefit) | 389 | 390 | (5409) |
| Net loss from continuing operations | (77334) | (52238) | (56511) |
| Net loss from discontinued operations, net of tax | (70176) | (26817) | (24455) |
| Net loss | $(147510) | $(79055) | $(80966) |
| Net loss per share: |  |  |  |
| Net loss per share from continuing operations, basic and diluted | $(3.18) | $(2.24) | $(2.59) |
| Net loss per share from discontinued operations, basic and diluted | (2.89) | (1.15) | (1.12) |
| Total net loss per share, basic and diluted | $(6.07) | $(3.39) | $(3.71) |
| Weighted average common shares outstanding, basic and diluted | 24293483 | 23290660 | 21815388 |

---

See accompanying notes to consolidated financial statements.

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**TABULA RASA HEALTHCARE, INC.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)**

**(In thousands, except share amounts)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended December 31, 2022, 2021, and 2020** | **For the Years Ended December 31, 2022, 2021, and 2020** | **For the Years Ended December 31, 2022, 2021, and 2020** | **For the Years Ended December 31, 2022, 2021, and 2020** | **For the Years Ended December 31, 2022, 2021, and 2020** | **For the Years Ended December 31, 2022, 2021, and 2020** | **For the Years Ended December 31, 2022, 2021, and 2020** |
|  | **Common Stock** | **Common Stock** | **Treasury Stock** | **Treasury Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in Capital** | **Accumulated**<br>**Deficit** | **Stockholders'**<br>**Equity (Deficit)** |
| Balance, January 1, 2020 | 22496999 | $2 | (175689) | $(3865) | $288345 | $(98934) | $185548 |
| &nbsp;&nbsp;Issuance of common stock in connection with acquisition | 555555 |  |  |  | 23589 |  | 23589 |
| &nbsp;&nbsp;Issuance of common stock awards | 14386 |  |  |  |  |  |  |
| &nbsp;&nbsp;Issuance of restricted stock | 578261 |  |  |  |  |  |  |
| &nbsp;&nbsp;Forfeitures of restricted shares |  |  | (51391) |  |  |  |  |
| &nbsp;&nbsp;Exercise of stock options, net of shares withheld | 442039 |  | (3198) | (153) | 1103 |  | 950 |
| &nbsp;&nbsp;Share adjustment |  |  | 12500 |  |  |  |  |
| &nbsp;&nbsp;Issuance of common stock in connection with the settlement of acquisition-related contingent consideration | 135434 |  |  |  | 6853 |  | 6853 |
| &nbsp;&nbsp;Stock-based compensation expense |  |  |  |  | 32555 |  | 32555 |
| &nbsp;&nbsp;Net loss |  |  |  |  |  | (80966) | (80966) |
| Balance, December 31, 2020 | 24222674 | 2 | (217778) | (4018) | 352445 | (179900) | 168529 |
| &nbsp;&nbsp;Cumulative effect of change in accounting policy |  |  |  |  | (74850) | (1392) | (76242) |
| &nbsp;&nbsp;Issuance of common stock awards | 1416 |  |  |  |  |  |  |
| &nbsp;&nbsp;Issuance of restricted stock | 1446376 | 1 |  |  |  |  | 1 |
| &nbsp;&nbsp;Forfeitures of restricted shares |  |  | (145684) |  |  |  |  |
| &nbsp;&nbsp;Exercise of stock options, net of shares withheld | 365770 |  | (6340) | (274) | 4343 |  | 4069 |
| &nbsp;&nbsp;Stock-based compensation expense |  |  |  |  | 38454 |  | 38454 |
| &nbsp;&nbsp;Net loss |  |  |  |  |  | (79055) | (79055) |
| Balance, December 31, 2021 | 26036236 | 3 | (369802) | (4292) | 320392 | (260347) | 55756 |
| &nbsp;&nbsp;Issuance of common stock awards | 28733 |  | 615066 | 3082 | (3082) |  |  |
| &nbsp;&nbsp;Issuance of restricted stock | 1945277 |  | 107480 |  |  |  |  |
| &nbsp;&nbsp;Forfeitures of restricted shares |  |  | (791537) |  |  |  |  |
| &nbsp;&nbsp;Exercise of stock options, net of shares withheld | 14732 |  | (109) |  | 73 |  | 73 |
| &nbsp;&nbsp;Vesting of restricted stock units | 6638 |  |  |  |  |  |  |
| &nbsp;&nbsp;Shares withheld for payment of employee taxes |  |  | (463618) | (2181) |  |  | (2181) |
| &nbsp;&nbsp;Stock-based compensation expense |  |  |  |  | 36831 |  | 36831 |
| &nbsp;&nbsp;Net loss |  |  |  |  |  | (147510) | (147510) |
| Balance, December 31, 2022 | 28031616 | $3 | (902520) | $(3391) | $354214 | $(407857) | $(57031) |

---

See accompanying notes to consolidated financial statements.

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| **Cash flows from operating activities:** |  |  |  |
| Net loss | $(147510) | $(79055) | $(80966) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 30678 | 47706 | 45040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs and debt discount | 2309 | 2185 | 13637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | (22) | 513 | (5302) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 36831 | 38454 | 32555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of acquisition-related contingent consideration |  |  | 2613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration receivable | 3650 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related contingent consideration paid |  | (67) | (2593) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment charges | 56828 |  | 5040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on divestiture of business | 2879 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncash items | 70 | 39 | (66) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities, net of effect of divestiture and acquisitions: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 5542 | (1526) | (2448) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (1122) | (1183) | (239) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (3410) | (8834) | 4859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Client claims receivables | (5120) | 2697 | (5674) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (1315) | (2057) | (494) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable  | 8697 | 1982 | 2149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 12211 | 14294 | (3642) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Client claims payables | 2383 | 664 | (249) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities | 3778 | (360) | 598 |
| Net cash provided by operating activities | 7357 | 15452 | 4818 |
| **Cash flows from investing activities:** |  |  |  |
| Purchases of property and equipment | (2285) | (3350) | (3091) |
| Software development costs | (26451) | (31844) | (18836) |
| Acquisitions of businesses, net of cash acquired |  |  | (6807) |
| Proceeds from divestiture of business | 120038 |  |  |
| Net cash provided by (used in) investing activities | 91302 | (35194) | (28734) |
| **Cash flows from financing activities:** |  |  |  |
| Proceeds from exercise of stock options | 73 | 4072 | 3943 |
| Payments for employee taxes for shares withheld | (2181) | (3) | (2993) |
| Payments for debt financing costs | (350) | (8) | (1226) |
| Borrowings on line of credit | 27700 | 29500 | 10000 |
| Repayments of line of credit | (57200) | (10000) |  |
| Payment of acquisition-related notes payable |  | (16542) |  |
| Payments of acquisition-related contingent consideration |  | (99) | (3801) |
| Repayments of long-term debt and finance leases |  | (4) | (56) |
| Net cash (used in) provided by financing activities | (31958) | 6916 | 5867 |
| Net increase (decrease) in cash, cash equivalents and restricted cash | 66701 | (12826) | (18049) |
| Cash, cash equivalents and restricted cash, beginning of year | 15706 | 28532 | 46581 |
| Cash, cash equivalents and restricted cash, end of year <sup>(1)</sup> | $82407 | $15706 | $28532 |
| **Supplemental disclosure of cash flow information:** |  |  |  |
| Purchases of property and equipment and software development included in accounts payable and accrued expenses | $1516 | $134 | $183 |
| Purchases of property and equipment and software development through vendor financing arrangements | $1042 | $— | $— |
| Cash paid for interest | $7204 | $8678 | $5808 |
| Cash paid for taxes (income tax refund) | $123 | $53 | $(24) |
| Interest costs capitalized to software development costs | $272 | $322 | $257 |
| Stock issued in connection with settlement of acquisition-related contingent consideration | $— | $— | $6853 |
| Stock issued in connection with acquisitions | $— | $— | $23589 |
| Fair value of promissory notes entered into in connection with acquisition | $— | $— | $16355 |
| **Reconciliation of cash, cash equivalents and restricted cash:** |  |  |  |
| Cash and cash equivalents | $70017 | $9395 | $22531 |
| Restricted cash | 12372 | 6038 | 5170 |
| Cash from discontinued operations | 18 | 273 | 831 |
| Total cash, cash equivalents and restricted cash | $82407 | $15706 | $28532 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The cash flows related to discontinued operations have not been segregated. Accordingly, the consolidated statements of cash flows include the results of continuing and discontinued operations. As a result of the divestiture, the changes in operating assets and liabilities for the year ended December 31, 2022 exclude changes related to the divested business. See Note 6 for discussion of discontinued operations and divestiture of business.

See accompanying notes to consolidated financial statements.

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

**1.&nbsp;&nbsp;&nbsp;&nbsp; Nature of Business**

Tabula Rasa HealthCare, Inc. (the "Company") is a healthcare technology company advancing the safe use of medications by creating solutions designed to empower pharmacists, providers, and patients to optimize medication regimens, combating medication overload and reducing adverse drug events. The Company's advanced proprietary technology solutions, including MedWise®, identify causes of and risks for medication-related problems so that healthcare professionals can minimize harm and reduce medication-related risks. The Company's software and services help drive value-based care by improving patient outcomes and lowering healthcare costs through reduced hospitalizations, emergency department visits, and healthcare utilization. The Company serves a number of different organizations within the healthcare industry, including health plans and at-risk provider groups, the majority of which are organizations with Programs of All-Inclusive Care for the Elderly ("PACE").

**2.&nbsp;&nbsp;&nbsp;&nbsp; Summary of Significant Accounting Policies**

***(a) Basis of Presentation***

The accompanying consolidated financial statements of the Company have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission (the "SEC") regarding annual financial reporting. Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

During the first quarter of 2022, the Company announced plans to evaluate non-core assets, refocus its corporate strategy, and increase stockholder value. As a result, the Company commenced plans to sell the SinfoníaRx, DoseMe, and PrescribeWellness businesses, which the Company acquired in September 2017, January 2019, and March 2019, respectively. The sales of the PrescribeWellness, DoseMe, and SinfoníaRx businesses were completed in August 2022, January 2023, and March 2023, respectively. These businesses comprised the majority of the Company's MedWise HealthCare segment. The Company's completed sales of the PrescribeWellness, DoseMe, and SinfoníaRx businesses represented a strategic business shift having a significant effect on the Company's operations and financial results. As a result, the Company determined that these businesses met such requirements to be classified as held for sale and discontinued operations as of March 31, 2022, and the DoseMe and SinfoníaRx businesses continued to meet the requirements as of December 31, 2022. Accordingly, unless otherwise indicated, the accompanying consolidated financial statements have been recast for all periods presented to reflect the assets, liabilities, revenue, and expenses related to these businesses as discontinued operations. Unless otherwise noted, amounts and disclosures throughout the notes to the consolidated financial statements relate to the Company's continuing operations. See Note 6 for further information on the Company's discontinued operations.

To provide improved description over the Company's disaggregation of revenue, the Company retitled its revenue categories from product revenue and service revenue to medication revenue and technology-enabled solutions revenue, respectively, in the consolidated statements of operations and the notes to the consolidated financial statements. The change had no impact to the amounts previously reported in the consolidated statements of operations and the notes to the consolidated financial statements.

***(b) Use of Estimates***

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates or assumptions.

On an ongoing basis, management evaluates its estimates and assumptions, including, but not limited to, those related to: (i) the fair value of assets acquired and liabilities assumed for business combinations, (ii) the recognition and

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

disclosure of contingent liabilities, (iii) the useful lives of long-lived assets, including definite-lived intangible assets, (iv) the evaluation of revenue recognition criteria, (v) the evaluation of contract assets and consideration payable to customers related to manufacturer rebates earned by the Company's pharmacy benefit management solutions, (vi) the realizability of long-lived assets, including goodwill and intangible assets, (vii) the assumptions used to determine the fair value of right-of-use assets and liabilities for the Company's leases, (viii) the assumptions used to determine the fair value of convertible debt instruments and related equity-classified conversion option, (ix) the fair value of contingent consideration receivable, and (x) the assumptions used to determine the fair value of held for sale businesses. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company has engaged and, in the future, may engage third-party valuation specialists to assist with estimates related to the valuation of assets and liabilities acquired. Such estimates often require the selection of appropriate valuation methodologies and models, and significant judgment in evaluating ranges of assumptions and financial inputs. Actual results may differ from those estimates under different assumptions or circumstances.

***(c) Assets and Liabilities Held for Sale and Discontinued Operations***

A long-lived asset (or disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable within a year. A long-lived asset (or disposal group) classified as held for sale is initially measured at the lower of its carrying amount or fair value less costs to sell. An impairment loss is recognized for any initial or subsequent write-down of the long-lived asset (or disposal group) to fair value less costs to sell. A gain or loss not previously recognized by the date of the sale of the long-lived asset (or disposal group) is recognized at the date of derecognition.

Long-lived assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Long-lived assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

Additional details surrounding the Company's assets and liabilities held for sale and discontinued operations are included in Note 6.

 ***(d) Revenue Recognition***

The Company evaluates its contractual arrangements to determine the performance obligations and transaction prices. Revenue is allocated to each performance obligation and recognized when the related performance obligation is satisfied. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenue. See Note 3 for additional details about the Company's revenue offerings.

***(e) Cost of Medication Revenue (exclusive of depreciation and amortization)***

Cost of medication revenue includes all costs directly related to the fulfillment and distribution of medications as part of the Company's CareVention HealthCare offerings. These costs consist primarily of the purchase price of the medications that the Company dispenses, shipping and packaging, expenses associated with operating the Company's medication fulfillment centers, including employment costs and stock-based compensation, and expenses related to the hosting of the Company's technology platform. Cost of medication revenue also includes direct overhead expenses and allocated indirect overhead costs. The Company allocates indirect overhead costs among functions based on employee headcount.

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

***(f) Cost of Technology-Enabled Solutions Revenue (exclusive of depreciation and amortization)***

Cost of technology-enabled solutions revenue includes all costs directly related to servicing the Company's CareVention HealthCare and MedWise HealthCare service contracts. These costs primarily consist of employment costs, including stock-based compensation, outside contractors, expenses related to supporting the Company's software platforms, direct overhead expenses, and allocated indirect overhead costs. The Company allocates indirect overhead costs among functions based on employee headcount.

***(g) Research and Development***

Research and development expenses consist primarily of employment costs, including stock-based compensation expense, for employees engaged in scientific research, healthcare analytics, the design and development of new scientific algorithms, and the enhancement of the Company's software and technology platforms. Research and development expenses also include costs for the design and development of new software and technology to support the Company's service offerings, including fees paid to third-party consultants, costs related to quality assurance and testing, and other allocated facility-related overhead and expenses. Costs incurred in research and development are charged to expense as incurred.

***(h) Stock-Based Compensation***

The Company accounts for stock-based awards granted to employees and directors in accordance with ASC Topic 718, *Compensation — Stock Compensation*, which requires that compensation cost be recognized for awards based on the grant-date fair value of the award. That cost is recognized on a straight-line basis over the period during which an employee, director, or non-employee is required to provide service in exchange for the award — the requisite service period ("vesting period"). The Company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient's payroll costs or the recipient's service payments are classified.

The grant-date fair value of employee and non-employee director restricted stock awards and restricted stock units is determined using the Company's closing stock price on the grant date. Restricted stock awards and restricted stock units generally vest over a one-to-four year period, and the unvested portion of these awards is forfeited if the employee or non-employee director leaves the Company before the vesting period is completed.

The grant-date fair value of performance stock units is determined based on the fair value of the Company's closing stock price at grant date and the expected vesting units, taking into consideration the possibilities of all possible performance achievement levels. Stock-based compensation costs associated with these grants are recognized over the performance period. Performance stock units contain performance vesting conditions in addition to a service condition, and the vesting of performance stock units is dependent upon the degree to which the Company achieves its predetermined performance goals.

The grant-date fair value of employee and non-employee director stock option awards is determined using the Black-Scholes option-pricing model. The Company estimates its expected stock volatility based on the historical volatility of its own traded stock price. The expected term of the Company's stock options has been determined utilizing the "simplified" method. The expected term of the stock options granted to non-employees is equal to the contractual term of the option award. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future.

The option price per share cannot be less than the fair market value of a share on the date the option was granted, and in the case of incentive stock options granted to an employee owning more than 10% of the total combined voting power of all classes of stock of the Company, the option price shall not be less than 110% of the fair market value of Company stock on the date of grant. Stock option grants under the 2016 Plan (as defined below) generally expire ten years from the date of grant (other than incentive stock option grants to 10% shareholders, which have a five-year term)

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

90 days after termination, or one year after the date of death or termination due to disability. Stock options generally vest over a period of four years, with 25% of the options becoming exercisable on the one-year anniversary of the commencement date and the remaining shares vesting monthly thereafter for 36 months in equal installments of 2.08% per month.

***(i) Income Taxes***

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized.

***(j) Net Loss per Share***

Basic and diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock of the Company outstanding during the period.

***(k)&nbsp;&nbsp;&nbsp;&nbsp; Cash and Cash Equivalents***

Cash consists of cash on deposit with banks. Cash equivalents consist of money market funds or highly liquid investments with a maturity of three months or less from the date of purchase.

***(l) Restricted Cash***

Cash and cash equivalents that are restricted as to withdrawal or use under certain contractual agreements are recorded in restricted cash on the Company's consolidated balance sheets. As part of the Company's third-party administration services under the CareVention HealthCare segment, the Company holds funds on behalf of its clients. These amounts are recorded as restricted cash with an offsetting liability recorded in accrued expenses and other liabilities on the Company's consolidated balance sheets.

***(m) Accounts Receivable, Net***

Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management estimates the expected lifetime credit losses on the Company's trade receivables and contract assets using a broad range of reasonable and supportable information, which includes consideration of historical losses and current market conditions on the Company's clients. The Company reviews its allowance for doubtful accounts monthly. The allowance for doubtful accounts was $368 and $110 as of December 31, 2022 and 2021, respectively.

***(n) Inventories***

Inventories consist of prescription medications and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method.

***(o) Client Claims Receivable and Client Claims Payable***

In conjunction with providing pharmacy benefit management ("PBM") solutions for its clients, the Company collects payments for claims from its clients and remits them to the pharmacies that fulfilled the claims. Client claims receivable represents amounts invoiced to the Company's PBM solutions clients for the adjudicated claims of the

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

clients' members. Client claims payable represents amounts owed to the pharmacies that filled the clients' member claims.

***(p) Cloud Computing Arrangements***

Costs to implement cloud computing arrangements that are hosted by third-party vendors are capitalized when incurred during the application development phase. Capitalized implementation costs are amortized on a straight-line basis over the reasonably certain term of the hosting arrangement, beginning when the service is ready for its intended use. As of December 31, 2022 and 2021, capitalized implementation costs of $882 and $747, respectively, were included in prepaid expenses. As of December 31, 2022 $1,276 was included in other assets on the Company's consolidated balance sheets. Accumulated amortization for these arrangements was $590 and $398 as of December 31, 2022 and 2021, respectively. Amortization expense for the years ended December 31, 2022, 2021, and 2020 was $192, $208, and $185, respectively.

***(q) Vendor Financing Arrangements***

On February 24, 2022, the Company expanded its existing relationship with a third-party service provider for business process outsourcing and technology services for its third-party administration services and electronic health records solutions. As a result, the third-party provider hired approximately 180 employees from the Company, hired to fill existing open positions, and will augment with additional resources to meet client demand. The agreement term is seven years and includes total estimated fees of $115,300.

The arrangement includes extended payment terms for cloud computing implementation costs, internally developed software support, and business process support. In order to determine the present value of the commitment, the Company used an imputed interest rate of 9.5%, which was reflective of its estimated uncollateralized borrowing rate at signing. As of December 31, 2022, the outstanding principal balance of the financing arrangement was $5,169 with an unamortized discount of $1,239, which was included in accrued expenses and other liabilities and other long-term liabilities on the Company's consolidated balance sheet. Imputed interest expense from the arrangement was $166 for the year ended December 31, 2022.

On October 1, 2022, the Company entered into a purchase arrangement with a third-party software support and service provider to purchase software licenses for total fees of $1,065. The purchased software licenses were delivered to the Company on the purchase date. The arrangement allows the Company to pay the fees over 36 monthly installment payments. The Company used an imputed interest rate of 10.0%, which was reflective of its estimated collateralized borrowing rate on purchase date. As of December 31, 2022, the outstanding principal balance of the financing arrangement was $916 with an unamortized discount of $138, which was included in accrued expenses and other liabilities and other long-term liabilities on the Company's consolidated balance sheet. Imputed interest expense from the arrangement was $1 for the year ended December 31, 2022.

***(r) Leases***

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, current operating lease liabilities, and noncurrent operating lease liabilities on the consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease.

ROU assets and liabilities are recognized at the lease commencement date based on the estimated net present value of lease payments over the lease term. As the rate implicit in the lease is not readily determinable for most leases, the Company uses its incremental borrowing rate in determining the net present value of lease payments. The Company estimates its incremental borrowing rate for each lease as of the measurement date with consideration of the risk-free rate for varying maturities corresponding to the remaining lease term, the risk premium attributed to the Company's credit rating for a secured or collateralized instrument, and comparable borrowings of similarly rated companies.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

Leases with an initial term of twelve months or less are not recorded on the balance sheet. The lease expense for short-term leases is recognized on a straight-line basis over the lease term. Many leases include options to renew, with the exercise of lease renewal options at the Company's sole discretion. The lease terms that include options to renew the lease require such renewal to be included when it is reasonably certain that the Company will exercise such option. The depreciable life of finance lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

For leases where the Company will derive no economic benefit from leased space that it has vacated or where the Company has shortened the term of a lease when space is no longer needed, the Company will record an impairment or accelerated amortization of the ROU assets.

The Company's lease agreements do not contain any residual value guarantees. The Company has elected to include both lease and nonlease components as a single lease component for its operating leases.

See Note 9 for further detail regarding the Company's lease arrangements.

***(s) Property and Equipment, Net***

Property and equipment are stated at cost less accumulated depreciation. Additions or improvements that increase the useful life of existing assets are capitalized, while expenditures for repairs and maintenance that do not improve or extend the lives of the respective assets are charged to expense as incurred. Depreciation is recognized using the straight-line method over the estimated useful lives of the assets. The Company depreciates computer hardware and purchased software over a life of three years and office furniture and equipment over a life of five years. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term. Upon retirement or sale, the cost and related accumulated depreciation of assets disposed of are removed from the accounts, and any resulting gain or loss is included in the consolidated statements of operations.

***(t) Software Development Costs, Net***

Certain development costs of the Company's internal-use software are capitalized in accordance with ASC Topic 350, *Intangibles — Goodwill and Other* ("ASC 350"), which outlines the stages of computer software development and specifies when capitalization of costs is required. The Company capitalizes certain costs incurred in connection with obtaining or developing the proprietary platforms that support the Company's medication and technology-enabled service contracts. These costs include third-party contractors and payroll costs for employees directly involved with the software development. Projects that are determined to be in the development stage are capitalized. Subsequent additions, modifications, or upgrades to internal-use software are capitalized to the extent that they allow the software to perform tasks it previously did not perform. Capitalized software costs are amortized beginning when the software project is substantially complete and the asset is ready for its intended use. Capitalized internal-use software costs are amortized using the straight-line method over the remaining estimated useful life of the assets, which is generally three years. Costs incurred in the preliminary project stage and post-implementation stage, as well as maintenance and training costs, are expensed as incurred.

***(u) Goodwill***

Goodwill consists of the excess purchase price over fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but instead tested for impairment at least annually. Goodwill is assessed for impairment on October 1 of each year or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company evaluates goodwill in accordance with ASU No. 2017-04, *Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment*, which requires the Company to perform its goodwill impairment assessment by comparing the fair value of its reporting units with their respective carrying values.

Prior to performing the quantitative assessment, the Company has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Factors generally considered in the Company's qualitative assessment that could trigger a quantitative

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

assessment include significant underperformance relative to expected operating trends, significant changes in the way assets are used, underutilization of the Company's tangible assets, discontinuance of certain products by the Company or by the Company's clients, changes in the competitive environment, and significant negative industry or economic trends. If the Company determines that it is more likely than not that the fair value of a reporting unit is below the carrying amount, a quantitative goodwill impairment test is required. In the quantitative assessment, the fair value of the reporting unit is determined using either a discounted cash flow method or a market approach. If the fair value of the reporting unit is greater than its carrying amount, then the carrying amount is deemed to be recoverable and no further action is required.

If the fair value of the reporting unit is less than its carrying amount, then an indication of goodwill impairment exists for the reporting unit and an impairment loss is recognized in the amount by which the carrying amount exceeds the reporting unit's fair value, and a charge is recorded on the Company's consolidated statements of operations.

For its annual assessment for the year ended December 31, 2022, the Company performed a quantitative assessment of goodwill as of October 1, 2022 using a market approach, which estimates fair value based on a reconciliation of the Company's market capitalization. Based on the analysis performed, the Company determined that the estimated fair value of the Company's reporting units exceeded their carrying values, and as a result, goodwill was not impaired as of December 31, 2022.

During first and second quarter of 2022, Company experienced a sustained decline in the price of the Company's common stock. As a result, the Company determined that an indicator of impairment was present and performed a quantitative goodwill impairment assessment as of March 31, 2022 and June 30, 2022, respectively, using a market approach, which estimates fair value based on a reconciliation of the Company's market capitalization. Based on the analysis performed, the Company determined that the estimated fair value of the Company's reporting units exceeded their carrying values, and as a result, goodwill was not impaired as of March 31, 2022 and June 30, 2022.

During fourth of quarter of 2021, the Company experienced a sustained decline in the price of the Company's common stock. As a result, the Company determined that an indicator of impairment was present and performed a quantitative goodwill impairment assessment as of December 31, 2021 in addition to its annual assessment as of October 1, 2021. The fair value of the reporting units was estimated using a combination of a discounted cash flow method, or income approach, and market approaches, which estimate fair value based on a selection of appropriate peer group companies. The Company utilized forecasts of revenue and operating income, based on management's estimates and long-term plans, as well as required estimates and judgments about working capital requirements, capital expenditures, income taxes, discount rates, terminal growth rates, long-term operating margins, and control premiums and valuation multiples appropriate for acquisitions in the industries in which the Company competes. Based on the analysis performed, the Company determined that the estimated fair value of the Company's reporting units exceeded their carrying values, and as a result, goodwill was not impaired as of December 31, 2021.

For the year ended December 31, 2020, the Company performed a qualitative assessment of goodwill and determined that it was not more likely than not that the fair value of its reporting units was less than the carrying amount.

Accordingly, no impairment loss was recorded for the years ended December 31, 2022, 2021, or 2020. See Note 11 - Goodwill and Intangible Assets for additional information.

***(v) Impairment of Long-Lived Assets, Including Other Intangible Assets***

Long-lived assets consist of property and equipment, software development costs, and definite-lived intangible assets. Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss may be recognized when estimated undiscounted future cash flows

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

expected to result from the use and disposition of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows or a combination of income and market approaches.

During the first quarter of 2022, the Company became aware of changes in circumstances impacting the future application of certain capitalized software development costs and determined that an indicator of impairment was present. The Company evaluated the recoverability of the related long-lived assets by comparing their carrying amount to the future net undiscounted cash flows expected to be generated by the assets to determine if the carrying value was not recoverable. The recoverability test indicated that certain capitalized software development costs were impaired. As a result, the Company recognized an impairment loss equal to $4,062 for the year ended December 31, 2022.

During the fourth quarter of 2021, the Company determined that an indicator of impairment was present as it related to definite-lived intangible assets obtained from the DoseMe acquisition in 2019, which are presented in current assets of discontinued operations as of December 31, 2022 and in noncurrent assets of discontinued operations as of December 31, 2021. The recoverability test indicated that the undiscounted cash flows of the asset group were less than its carrying value. Therefore, the estimated fair value of the DoseMe assets was determined based on a combination of a discounted cash flow method, or income approach, and market approaches, which estimate fair value based on a selection of appropriate peer group companies. The estimated fair value of the DoseMe assets exceeded its carrying value. As a result, no intangible asset impairment charges were recorded for the year ended December 31, 2021.

During the fourth quarter of 2020, the Company determined that an indicator of impairment was present as related to definite-lived intangible assets obtained from the Medliance acquisition in 2014. The recoverability test indicated that certain intangible assets were impaired, and the Company recorded an aggregate impairment charge of $5,040 for the year ended December 2020.

See Note 11 - Goodwill and Intangible Assets and Note 6 – Discontinued Operations for additional information.

***(w) Contingencies***

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal fees and other expenses related to litigation are expensed as incurred and included in general and administrative expenses in the consolidated statements of operations.

***(x) Shipping and Handling Costs***

Shipping and handling costs are charged to cost of medication revenue when incurred. Shipping and handling costs totaled $13,613, $9,410, and $8,443 for the years ended December 31, 2022, 2021, and 2020, respectively.

***(y) Advertising Costs***

Advertising costs are charged to operations when the advertising first takes place. The Company incurred advertising costs of $90, $334 and $185 for the years ended December 31, 2022, 2021, and 2020, respectively, which are included in sales and marketing expense.

***(z) Business Combinations***

The costs of business combinations are allocated to the assets acquired and liabilities assumed, in each case based on estimates of their respective fair values at the acquisition dates, using the purchase method of accounting. Fair values of intangible assets are estimated by valuation models prepared by management and third-party specialists. The assets purchased and liabilities assumed have been reflected in the Company's consolidated balance sheets, and the results are included in the consolidated statements of operations and consolidated statements of cash flows from the date of acquisition. Acquisition-related contingent consideration that is classified as a liability is measured at fair value at the acquisition date with changes in fair value after the acquisition date affecting earnings in the period of the estimated fair

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

value change. Acquisition-related transaction costs, including legal and accounting fees and other external costs directly related to the acquisition, are recognized separately from the acquisition and expensed as incurred in general and administrative expenses in the consolidated statements of operations. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates, or actual results.

***(aa) Segment Reporting***

The Company manages its business through two segments for the purposes of assessing performance and making operating decisions. The Company's chief operating decision maker ("CODM"), the Interim Chief Executive Officer, allocates resources and assesses performance based upon financial information at the reportable segment level. All revenues are generated and all tangible assets are held in the U.S. See Note 23 for a discussion of the Company's reportable segments.

***(bb) Concentration of Credit Risk***

The Company is subject to concentrations of credit risk related to cash, cash equivalents, restricted cash, accounts receivable, and client claims receivable. While the Company maintains its cash, cash equivalents and restricted cash with financial institutions with high credit ratings, it often maintains these deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any realized losses on cash, cash equivalents or restricted cash to date.

The Company's medication fulfillment services clients are sponsors of the federal Medicare Part D plan (prescription drug coverage plan) and, therefore, subject to the payment regulations established by the Centers for Medicare & Medicaid Services ("CMS"). Under CMS guidelines, Medicare Part D sponsors are required to remit payment for claims within 14 calendar days of the date on which an electronically submitted claim is received and within 30 days of the date on which non-electronically-submitted claims are received. The Company extends credit to clients based upon such terms, as well as management's evaluation of creditworthiness, and generally collateral is not required.

The Company's clients also include health plans and other healthcare providers. Credit associated with these accounts is extended based upon management's evaluation of creditworthiness and is monitored on an on-going basis.

As of December 31, 2022 and December 31, 2021, no client represented more than 10% of net accounts receivable.

As of December 31, 2022, one client represented 14% of client claims receivable. As of December 31, 2021, two clients represented 13% and 11%, respectively, of client claims receivable.

For the years ended December 31, 2022, 2021, and 2020, one client accounted for 15%, 16%, and 16% of total revenue, respectively.

***(cc) Fair Value of Financial Instruments***

Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

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**(Amounts in thousands, except share and per share data)**

Level 2 — Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities or other inputs that are observable or can be corroborated by observable markets.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

***(dd) Recent Accounting Pronouncements***

In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). ASU 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under ASC Topic 606 (Revenue from Contracts with Customers) in order to align the recognition of a contract liability with the definition of performance obligation. This approach differs from the current requirement to measure contract assets and contract liabilities acquired in a business combination at fair value. ASU 2021-08 is effective for financial statements issued for fiscal years beginning after December 15, 2022; early adoption is permitted. The Company adopted ASU 2021-08 on January 1, 2023 and determined that it does not have a significant impact on the consolidated financial statements.

**3.&nbsp;&nbsp;&nbsp;&nbsp; Revenue**

The Company generates revenue from its CareVention HealthCare and MedWise HealthCare segments. See Note 23 for additional discussion of the Company's reportable segments.

Client contracts generally have a term of one to five years and generally renew at the end of the initial term. In most cases, clients may terminate their contracts with a notice period ranging from 0 to 180 days without cause, thereby limiting the term in which the Company has enforceable rights and obligations. Revenue is recognized in an amount that reflects the consideration that is expected in exchange for the goods or services provided. Generally, there are not significant differences between the timing of revenue recognition and billing. Consequently, the Company has determined that client contracts do not include a financing component.

The Company does not disclose the amount of variable consideration that the Company expects to recognize in future periods, as the variable consideration in the Company's contracts is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation, and the terms of that variable consideration relate specifically to the Company's efforts to transfer the distinct service, or to a specific outcome from transferring the distinct service. The Company's contracts primarily include monthly fees associated with unspecified quantities of medications, members, claims, medication safety reviews, or user subscriptions that fluctuate throughout the contract. See below for a description of the Company's revenues.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

***CareVention Revenue***

*Medication Revenue*

The Company provides medication fulfillment pharmacy services to PACE organizations under the Company's CareVention HealthCare segment. While the majority of medications are routinely filled in order to treat chronic conditions, the mix and quantity of medications can vary. Revenue from medication fulfillment services is generally billed monthly or weekly, depending on whether the PACE organization is contracted with a pharmacy benefit manager, and is recognized when medications are delivered and control has passed to the client. At the time of delivery, the Company has performed substantially all of its performance obligations under its client contracts. The Company does not experience a significant level of returns or reshipments.

*Technology-Enabled Solutions Revenue*

The Company provides medication safety services and health plan management services to PACE organizations under the Company's CareVention HealthCare segment. These services primarily include medication reviews, risk adjustment services, third-party administration services, pharmacy benefit management ("PBM") solutions, and electronic health records software. Revenue related to these services primarily consists of a fixed monthly fee assessed based on number of members served ("per member, per month" or "PMPM"), a fee for each claim adjudicated, and subscription fees. These fees are recognized when the Company satisfies its performance obligation to stand ready to provide PACE services, which occurs when the Company's clients have access to the PACE services. The Company generally bills for PACE services on a monthly basis.

For client contracts for which the Company performs both medication fulfillment and PBM services, the Company recognizes revenue using the gross method at the contract price negotiated with its clients and when the Company has concluded it controls the prescription drug before it is transferred to the client plan members. The Company controls prescription drugs dispensed indirectly through its retail pharmacy network because it has separate contractual arrangements with those pharmacies, has discretion in setting the price for the transaction, and assumes primary responsibility for fulfilling the promise to provide prescription drugs to its client plan members while performing the related PBM services. These factors indicate that the Company is the principal and, as such, the Company recognizes the total prescription price contracted with clients in revenue.

***MedWise HealthCare***

*Technology-Enabled Solutions Revenue*

Value-Based Care Solutions

The Company provides medication safety services under the MedWise HealthCare segment, which include identification of high-risk individuals, medication regimen reviews, including patient and prescriber counseling, and targeted interventions to increase adherence and close gaps in care. Revenue related to these services primarily consists of per member per month fees and fees for each medication review and clinical assessment completed. Revenue is recognized when the Company satisfies its performance obligation to stand ready to provide medication safety services, which occurs when the Company's clients have access to the medication safety services and when medication reviews and clinical assessments are completed. The Company generally bills for the medication reviews and clinical assessments when they are completed. The Company generally bills for the medication safety services on a monthly basis.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

Software Subscription and Services

The Company provides software as a service ("SaaS") solutions which allow for the identification of individuals with high medication-related risk and for optimizing medication therapy. Revenues related to these SaaS solutions primarily consist of monthly subscription fees and are recognized monthly as the Company meets its performance obligation to provide access to the software. Revenue for implementation and set-up services is generally recognized over the contract term as the software services are provided. The Company generally bills for the software services on a monthly basis.

***Disaggregation of Revenue***

Revenue is disaggregated by reportable segment in the following table:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| **CareVention HealthCare:** |  |  |  |
| &nbsp;&nbsp;Medication revenue | $231052 | $189591 | $158692 |
| &nbsp;&nbsp;Technology-enabled solutions revenue | 64430 | 58417 | 47577 |
|  | $295482 | $248008 | $206269 |
| **MedWise HealthCare:** |  |  |  |
| &nbsp;&nbsp;Technology-enabled solutions revenue |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Value-based care solutions | $3077 | $11617 | $14926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software subscription and services | 957 | 257 | 194 |
|  | $4034 | $11874 | $15120 |
| Total revenue | $299516 | $259882 | $221389 |

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***Contract balances***

Assets and liabilities related to the Company's contracts are reported on a contract-by-contract basis at the end of each reporting period. Contract balances consist of contract assets and contract liabilities. Contract assets are recorded when the right to consideration for services is conditional on something other than the passage of time. Contract assets relating to unbilled receivables are transferred to accounts receivable when the right to consideration becomes unconditional. Contract assets are classified as current or non-current based on the timing of the Company's rights to the unconditional payments. Contract assets are generally classified as current and recorded within other current assets on the Company's consolidated balance sheets.

Contract liabilities include advance customer payments and billings in excess of revenue recognized. The Company generally classifies contract liabilities in accrued expenses and other current liabilities and in other long-term liabilities on the Company's consolidated balance sheets. The Company anticipates that it will satisfy most of its performance obligations associated with its contract liabilities within one year.

The following table provides information about the Company's contract assets and contract liabilities from contracts with clients as of December 31, 2022 and 2021.

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| | | |
|:---|:---|:---|
|  | **December 31,** <br>**2022** | **December 31,** <br>**2021** |
| Contract assets | $15115 | $12695 |
| Contract liabilities | 3435 | 2191 |

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

Significant changes in the contract assets and the contract liabilities balances during the years ended December 31, 2022 and 2021 are as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,** <br>**2022** | **December 31,** <br>**2021** |
| Contract assets: |  |  |
| &nbsp;&nbsp;Contract assets, beginning of year | $12695 | $7024 |
| &nbsp;&nbsp;Decreases due to cash received | (12447) | (8889) |
| &nbsp;&nbsp;Changes to the contract assets at the beginning of the year as a result of changes in estimates | 153 | 2392 |
| &nbsp;&nbsp;Changes during the year, net of reclassifications to receivables | 14714 | 12168 |
| &nbsp;&nbsp;Contract assets, end of year | $15115 | $12695 |
| Contract liabilities: |  |  |
| &nbsp;&nbsp;Contract liabilities, beginning of year | $2191 | $1982 |
| &nbsp;&nbsp;Revenue recognized that was included in the contract liabilities balance at the beginning of the year | (1990) | (1523) |
| &nbsp;&nbsp;Increases due to cash received, excluding amounts recognized as revenue during the year | 3234 | 1732 |
| &nbsp;&nbsp;Contract liabilities, end of year | $3435 | $2191 |

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**4.&nbsp;&nbsp;&nbsp;&nbsp; Net Loss per Share**

The following table presents the calculation of basic and diluted net loss per share for the Company's common stock:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| Numerator (basic and diluted): |  |  |  |
| Net loss from continuing operations | $(77334) | $(52238) | $(56511) |
| Net loss from discontinued operations | (70176) | (26817) | (24455) |
| Net loss | $(147510) | $(79055) | $(80966) |
| Denominator (basic and diluted): |  |  |  |
| Weighted average shares of common stock outstanding, basic and diluted | 24293483 | 23290660 | 21815388 |
| Net loss per share from continuing operations, basic and diluted | $(3.18) | $(2.24) | $(2.59) |
| Net loss per share from discontinued operations, basic and diluted | (2.89) | (1.15) | (1.12) |
| Total net loss per share, basic and diluted | $(6.07) | $(3.39) | $(3.71) |

---

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The following potential common shares, presented based on amounts outstanding as of December 31, 2022, 2021, and 2020, were excluded from the calculation of diluted net loss per share for the years ended December 31, 2022, 2021, and 2020 because including them would have had an anti-dilutive effect:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| Stock options to purchase common stock  | 1177805 | 1604226 | 2096556 |
| Unvested restricted stock and restricted stock units | 2295313 | 2196566 | 1386908 |
| Common stock warrants | 4646393 | 4646393 | 4646393 |
| Conversion of convertible senior subordinated notes | 4646393 | 4646393 |  |
|  | 12765904 | 13093578 | 8129857 |

---

For the years ended December 31, 2022 and 2021, shares related to the conversion of the convertible senior subordinated notes were included in the table above under the if-converted method. For the year ended December 31, 2020, shares associated with the conversion of the convertible senior subordinated notes were excluded from the table above as the Company assumed the notes would be settled entirely or partly in cash.

For the years ended December 31, 2022 and 2021, shares related to the performance stock units were excluded from the table above as the performance conditions were unmet as of December 31, 2022 and 2021 (see Note 17).

**5.&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions**

***Personica Acquisition***

On October 5, 2020, the Company entered into a Membership Interest Purchase Agreement (the "Purchase Agreement") with TRHC Group, Personica Holdings, Inc., a Wisconsin corporation, and other seller parties, whereby the Company completed the acquisition of all of the issued and outstanding membership interests of Personica, LLC, a Delaware limited liability company ("Personica"), and its subsidiaries, a provider of PBM solutions and pharmacy services, including 340B and Medicare Part D administration solutions to the PACE market. The purchase price consisted of (i) cash consideration of $10,000, which was subject to certain customary post-closing adjustments, (ii) the issuance of 555,555 shares of the Company's common stock valued at $23,589, and (iii) the delivery of promissory notes (collectively, the "Notes"), with an aggregate principal of $17,000, of which the Company could set off amounts to the extent the Company was entitled to indemnification under the Purchase Agreement or in respect of adjustments to the purchase price. The Notes consisted of payments of (a) $7,500 in cash paid in January 2021, (b) $5,500 in cash paid in April 2021, and (c) $4,000 in cash paid in October 2021. The Company reduced the October 2021 payment by $458 for indemnification amounts under the Purchase Agreement. For presentation purposes, the Company offset the remaining balance on the Notes against related receivables established to compensate the Company for the expenses incurred.

In connection with the acquisition of Personica, the Company incurred direct acquisition and integration costs of $217 and $794 during the years ended December 31, 2021 and 2020, respectively, which were recorded in general and administrative expenses in the consolidated statement of operations.

The following table summarizes the Personica purchase price consideration based on the estimated acquisition-date fair value of the acquisition consideration:

---

| | |
|:---|:---|
| Cash consideration at closing, including post-closing adjustments | $10292 |
| Promissory notes at closing, at fair value | 16355 |
| Stock consideration at closing | 23589 |
| Total fair value of acquisition consideration | $50236 |

---

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The following table summarizes the final allocation of the Personica purchase price based on the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.

---

| | |
|:---|:---|
| Cash | $3407 |
| Accounts receivable | 945 |
| Inventories | 322 |
| Client claims receivable | 8736 |
| Prepaid expenses and other current assets  | 4747 |
| Property and equipment | 665 |
| Operating lease right-of-use assets | 645 |
| Other assets | 15 |
| Trade names | 700 |
| Client relationships | 28300 |
| Non-competition agreements | 290 |
| Goodwill | 20075 |
| Total assets acquired  | $68847 |
| Client claims payable | (8022) |
| Accrued expenses and other liabilities | (9645) |
| Trade accounts payable | (310) |
| Operating lease liabilities | (634) |
| Total purchase price | $50236 |

---

The purchase price was allocated to the tangible assets and identifiable intangible assets acquired and liabilities assumed based on their acquisition-date estimated fair values. The identifiable intangible assets principally included trade names, client relationships, and non-competition agreements, all of which are subject to amortization on a straight-line basis and are being amortized over a weighted average life of 5.6, 12.0, and 5.0 years, respectively. The weighted average amortization period for acquired intangible assets as of the date of acquisition was 11.8 years.

The Company, with the assistance of a third-party appraiser, assessed the fair value of the assets of Personica and the promissory notes issued. The fair values of the trade names were estimated using the relief from royalty method, under which the Company derived the hypothetical royalty income from the projected revenues of Personica. The fair value of client relationships was estimated using a multi-period excess earnings method. To calculate fair value, the Company used cash flows discounted at a rate considered appropriate given the inherent risks associated with the client grouping. The fair value of the non-competition agreements was estimated using the discounted earnings method by estimating the potential loss of earnings absent the non-competition agreements, assuming the covenantor competes at different time periods during the life of the agreements. The fair values of the promissory notes were estimated using market interest rates for similar terms.

The useful lives of the intangible assets were estimated based on the expected future economic benefit of the assets and are being amortized over the estimated useful life in proportion to the economic benefits consumed using the straight-line method. The amortization of intangible assets is deductible for U.S. income tax purposes.

The Company believes the goodwill related to the acquisition was a result of providing the Company complementary service offerings that will enable the Company to leverage its services with existing and new clients. The goodwill is deductible for income tax purposes.

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

Revenue from Personica includes medication fulfillment pharmacy services to PACE organizations. Revenue for these services and the related costs are recognized when medications are delivered and control has passed to the client and are included in medication revenue and cost of medication revenue, respectively, in the Company's consolidated statements of operations. For the year ended December 31, 2020, medication revenue of $1,804 was included in the Company's consolidated statement of operations. Revenue from Personica is also comprised of monthly fees per adjudicated claim for PBM solutions. Revenue for these services and the related costs are recognized each month as performance obligations are satisfied and costs are incurred, and are included in technology-enabled solutions revenue and cost of technology-enabled solutions revenue, respectively, in the Company's consolidated statements of operations. For the year ended December 31, 2020, technology-enabled solutions revenue of $1,738 from Personica was included in the Company's consolidated statement of operations. Net loss of $5, which includes amortization of $625 associated with acquired intangible assets, from Personica was included in the Company's consolidated statement of operations for the year ended December 31, 2020.

***Pro forma (unaudited)***

The unaudited pro forma results presented below include the results of the Personica acquisition as if it had been consummated as of January 1, 2019. The unaudited pro forma results include the amortization associated with acquired intangible assets, interest expense on the debt incurred to fund the acquisition, stock compensation expense related to equity awards granted to employees of the acquired company, and the estimated tax effect of adjustments to loss before income taxes. Material non-recurring charges, including direct acquisition costs, directly attributable to the transaction are excluded. In addition, the unaudited pro forma results do not include any expected benefits of the acquisition. Accordingly, the unaudited pro forma results are not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been consummated as of January 1, 2019.

---

| | |
|:---|:---|
|  | **Year Ended** <br>**December 31,** <br>**2020** |
| Revenue | $230262 |
| Net loss | (55987) |

---

**6.&nbsp;&nbsp;&nbsp;&nbsp; Discontinued Operations**

In February 2022, the Company announced plans to evaluate non-core assets, refocus its corporate strategy, and increase stockholder value, and the Company commenced a plan to sell the DoseMe business, which the Company acquired in January 2019. In March 2022, the Company completed its evaluation of additional divestiture opportunities and commenced plans to sell the SinfoníaRx and PrescribeWellness businesses, which were acquired in September 2017 and March 2019, respectively. As described below, the Company completed the sales of its unincorporated PrescribeWellness business division (the "PrescribeWellness Business"), DoseMe business division (the "DoseMe Business"), and SinfoníaRx business division (the "SinfoníaRx Business") in August 2022, January 2023, and March 2023, respectively.

The PrescribeWellness, DoseMe, and SinfoníaRx businesses comprised the majority of the Company's MedWise HealthCare segment. The Company's completed sales of the PrescribeWellness Business, DoseMe Business, and SinfoníaRx Business represented a strategic business shift having a significant effect on the Company's operations and financial results. As a result, the Company determined that these businesses met such requirements to be classified as held for sale and discontinued operations as of March 31, 2022, and the DoseMe and SinfoníaRx businesses continued to meet the requirements as of December 31, 2022. Accordingly, unless otherwise indicated, the accompanying consolidated financial statements have been recast for all periods presented to reflect the assets, liabilities, revenue, and expenses related to these businesses as discontinued operations.

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

***Divestiture of Business***

On August 1, 2022 (the "PW Sale Date"), the Company completed the sale of its PrescribeWellness Business, including the assets, properties, and rights that were primarily used or held for use in connection with the PrescribeWellness Business, as well as the KD Assets (as defined below) to Transaction Data Systems, Inc. ("TDS"). On the PW Sale Date, the Company also completed the acquisition of certain intellectual property from karmadata, Inc. ("KD") that had historically been licensed to the Company, (the "KD Assets"). The KD Assets acquired were simultaneously transferred to TDS on the PW Sale Date. The purchase consideration included $125,000 in cash, subject to certain customary post-closing adjustments, of which $118,561 was paid directly to the Company and $5,900 was paid to KD on the PW Sale Date. In October 2022, TDS also paid the Company $1,477 for certain customary post-closing adjustments after the PW Sale Date. The Company is also entitled to receive up to $15,000 of contingent consideration based upon the PrescribeWellness Business's achievement of certain performance-based metrics during the fiscal years ending December 31, 2023 and 2024. The contingent consideration had an estimated fair value of $7,000 on the PW Sale Date. See Note 18 for additional discussion on the fair value assessment of the contingent consideration receivable.

In connection with the sale of the PrescribeWellness Business, the Company entered into a transition services agreement ("TSA") with TDS pursuant to which the Company is providing services, including, but not limited to, business support services for the PrescribeWellness business after the sale through January 2023. The Company recognized $1,064 of income related to the TSA for the year ended December 31, 2022, which is reported in other income in the Company's consolidated statement of operations.

During the second quarter of 2022, as a result of the Company's intention to sell the PrescribeWellness Business, the Company prepared an impairment test on the related net assets held for sale. Using a market approach to determine fair value, the Company concluded that the carrying value of the net assets held for sale for the PrescribeWellness Business did not exceed its fair value, less costs to sell. As a result, the Company recorded goodwill impairment charges of $12,145 and impairment charges of $8,500 on net assets held for sale, summarized in the results of the PrescribeWellness business presented below. On August 1, 2022, the Company recorded an additional $2,879 for the final loss on the sale of the PrescribeWellness Business, resulting in an aggregate loss of $11,379 on the net assets sold for the year ended December 31, 2022.

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The following table summarizes the net assets sold as finally reported on the sale date of August 1, 2022, and as of December 31, 2021, classified as discontinued operations on the consolidated balance sheets as of December 31, 2021:

---

| | | |
|:---|:---|:---|
|  | **August 1,**<br>**2022** | **December 31,** <br>**2021** |
| Accounts receivable, net | $5020 | $8002 |
| Prepaid expenses and other assets | 1751 | 1038 |
| Property and equipment, net | 371 |  |
| Operating lease right-of-use assets | 1252 |  |
| Software development costs, net | 14536 |  |
| Goodwill | 35314 |  |
| Intangible assets, net | 81504 |  |
| Impairment of carrying value | (8500) |  |
| &nbsp;&nbsp;**Total current assets of discontinued operations** | $131248 | $9040 |
| Property and equipment, net | $— | $412 |
| Operating lease right-of-use assets |  | 1434 |
| Software development costs, net |  | 11474 |
| Goodwill |  | 47459 |
| Intangible assets, net |  | 84617 |
| Other assets |  | 64 |
| &nbsp;&nbsp;**Total noncurrent assets of discontinued operations** | $— | $145460 |
| Operating lease liabilities | $1086 | $620 |
| Accounts payable | 491 | 913 |
| Accrued expenses and other liabilities | 2754 | 3529 |
| &nbsp;&nbsp;**Total current liabilities of discontinued operations** | $4331 | $5062 |
| Noncurrent operating lease liabilities | $— | $830 |
| Other long-term liabilities |  | 135 |
| &nbsp;&nbsp;**Total noncurrent liabilities of discontinued operations** | $— | $965 |

---

The following table summarizes the results of operations of the PrescribeWellness Business, which are included in loss from discontinued operations, net of tax in the consolidated statements of operations for the years ended December 31, 2022, 2021, and 2020:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| Revenue | $19306 | $38304 | $35311 |
| Cost of revenue, exclusive of depreciation and amortization | 7747 | 13295 | 13615 |
| Operating expenses | 14930 | 33579 | 27658 |
| Impairment charges | 20645 |  |  |
| Loss on disposal of business | 2879 |  |  |
| Loss from discontinued operations before income taxes | (26895) | (8570) | (5962) |
| Income tax (benefit) expense | (299) | 169 | 172 |
| Net loss from discontinued operations, net of tax | $(26596) | $(8739) | $(6134) |

---

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The following table summarizes the significant operating noncash items and investing activities of PrescribeWellness Business:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| Depreciation and amortization | $4551 | $16374 | $14815 |
| Impairment charges | 20645 |  |  |
| Stock-based compensation | 1697 | 2977 | 1370 |
| Loss on disposal of business | 2879 |  |  |
| Purchases of property and equipment | (22) | (128) | (200) |
| Software development costs | (4443) | (8169) | (5479) |

---

***Held for Sale***

As of December 31, 2022, the Company considered the sale of the DoseMe and SinfoníaRx businesses to be highly probable within one year. During the first quarter of 2023, the Company completed the sales of the DoseMe and SinfoníaRx businesses. See Note 24 for additional discussion on the sales of the DoseMe and SinfoníaRx businesses.

In 2022, as a result of the Company's intention to sell the DoseMe and SinfoníaRx businesses, the Company prepared an impairment test on the related net assets held for sale. Using a market approach to determine fair value, the Company concluded that the carrying values of the net assets held for sale for the SinfoníaRx and DoseMe businesses did not exceed their fair values, less costs to sell. As a result, the Company recorded goodwill impairment charges of $6,127 and $21,113 of impairment charges on the net assets held for sale related to the DoseMe and SinfoníaRx businesses, respectively, for the year ended December 31, 2022.

During the fourth quarter of 2021, the Company determined that an indicator of impairment was present as it related to definite-lived intangible assets obtained from the DoseMe acquisition in 2019, which is recorded in the MedWise HealthCare segment. The recoverability test indicated that the undiscounted cash flows of the asset group were less than its carrying value. Therefore, the estimated fair value of the DoseMe assets was determined based on a combination of a discounted cash flow method, or income approach, and market approaches, which estimate fair value based on a selection of appropriate peer group companies. The estimated fair value of the DoseMe assets exceeded its carrying value. As a result, no intangible asset impairment charges were recorded for the year ended December 31, 2021.

The following table summarizes the results of operations of the DoseMe and SinfoníaRx businesses, which are included in loss from discontinued operations, net of tax in the consolidated statements of operations for the years ended December 31, 2022, 2021, and 2020:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| Revenue | $27898 | $33074 | $40519 |
| Cost of revenue, exclusive of depreciation and amortization | 27153 | 26683 | 30579 |
| Operating expenses | 17104 | 24401 | 28192 |
| Impairment charges | 27240 |  |  |
| Loss from discontinued operations before income taxes | (43599) | (18010) | (18252) |
| Income tax (benefit) expense | (19) | 68 | 69 |
| Net loss from discontinued operations, net of tax | $(43580) | $(18078) | $(18321) |

---

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The following table summarizes the DoseMe and SinfoníaRx businesses' current and noncurrent assets and liabilities classified as discontinued operations on the consolidated balance sheets as of December 31, 2022 and December 31, 2021:

---

| | | |
|:---|:---|:---|
|  | **December 31,** <br>**2022** | **December 31,** <br>**2021** |
| Cash | $18 | $273 |
| Accounts receivable, net | 4237 | 4644 |
| Prepaid expenses and other assets | 2217 | 554 |
| Property and equipment, net | 1350 |  |
| Operating lease right-of-use assets | 3991 |  |
| Software development costs, net | 7563 |  |
| Goodwill | 1927 |  |
| Intangible assets, net | 22635 |  |
| Impairment of carrying value | (21113) |  |
| &nbsp;&nbsp;**Total current assets of discontinued operations** | $22825 | $5471 |
| Property and equipment, net | $— | $1485 |
| Operating lease right-of-use assets |  | 3296 |
| Software development costs, net |  | 4466 |
| Goodwill |  | 8053 |
| Intangible assets, net |  | 24675 |
| Other assets |  | 123 |
| &nbsp;&nbsp;**Total noncurrent assets of discontinued operations** | $— | $42098 |
| Operating lease liabilities | $3525 | $793 |
| Accounts payable | 3230 | 3395 |
| Accrued expenses and other liabilities | 6634 | 3130 |
| &nbsp;&nbsp;**Total current liabilities of discontinued operations** | $13389 | $7318 |
| Noncurrent operating lease liabilities | $— | $2608 |
| &nbsp;&nbsp;**Total noncurrent liabilities of discontinued operations** | $— | $2608 |

---

The following table summarizes the DoseMe and SinfoníaRx businesses' significant operating noncash items and investing activities of discontinued operations:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| Depreciation and amortization | $2780 | $10850 | $13592 |
| Impairment charges | 27240 |  |  |
| Stock-based compensation | 2756 | 3286 | 3534 |
| Purchases of property and equipment | (52) | (205) | (1783) |
| Software development costs | (3651) | (3514) | (1637) |

---

**7.&nbsp;&nbsp;&nbsp;&nbsp; Other Current Assets**

As of December 31, 2022 and 2021, other current assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Contract assets | $15115 | $12695 |
| Non-trade receivables | 719 | 3289 |
| Other | 2353 | 2049 |
| Total other current assets | $18187 | $18033 |

---

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

**8.&nbsp;&nbsp;&nbsp;&nbsp; Property and Equipment**

As of December 31, 2022 and 2021, property and equipment consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | | **December 31,**  | **December 31,**  |
|  | **Estimated**<br>**useful life** | **2022** | **2021** |
| Computer hardware and purchased software | 3 years | $7548 | $5943 |
| Office furniture and equipment | 5 years | 13855 | 12998 |
| Leasehold improvements | 3-14 years | 6779 | 10264 |
|  |  | 28182 | 29205 |
| Less: accumulated depreciation and amortization |  | (19024) | (17427) |
| Property and equipment, net  |  | $9158 | $11778 |

---

Depreciation and amortization expense on property and equipment for the years ended December 31, 2022, 2021, and 2020 was $3,742, $3,495, and $3,658 respectively.

**9.&nbsp;&nbsp;&nbsp;&nbsp; Leases**

The Company has entered into various operating and finance leases for office space and equipment. The operating leases expire on various dates through 2030, and certain of such leases also contain renewal options and escalation clauses. In addition to the base rent payments, the Company is obligated to pay a pro rata share of operating expenses and taxes.

During the fourth quarter of 2022, the Company determined that certain leased spaces no longer provided an economic benefit to the Company and either terminated the leases or vacated the leased spaces. The Company vacated the leased spaces for its development centers in Moorestown, New Jersey and Charleston, South Carolina. As a result, the Company incurred $4,881 in noncash impairment charges, of which $2,805 was allocated to the operating lease ROU assets and $2,076 was allocated to related property and equipment based on their relative carrying amounts.

The components of lease expense were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| Operating lease expense | $3318 | $3404 | $3635 |
| Finance lease expense: |  |  |  |
| &nbsp;&nbsp;Amortization of leased assets |  |  | 138 |
| &nbsp;&nbsp;Interest on lease liabilities |  |  | 1 |
| Total finance lease expense |  |  | 139 |
| Variable lease expense | 1004 | 1012 | 1184 |
| Short-term lease expense | 15 | 10 | 13 |
| Total lease expense | $4337 | $4426 | $4971 |

---

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

Supplemental balance sheet information related to leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Operating leases: |  |  |
| &nbsp;&nbsp;Operating lease right-of-use assets | $10483 | $16323 |
| &nbsp;&nbsp;Current operating lease liabilities | $2708 | $3275 |
| &nbsp;&nbsp;Noncurrent operating lease liabilities | 12786 | 15792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating lease liabilities | $15494 | $19067 |
| Weighted average remaining lease term (in years): |  |  |
| &nbsp;&nbsp;Operating leases | 6.7 | 7.3 |
| Weighted average discount rate: |  |  |
| &nbsp;&nbsp;Operating leases | 4.6% | 4.6% |

---

Supplemental cash flow information related to leases was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
| &nbsp;&nbsp;Operating cash flows for operating leases | $3362 | $3356 | $3212 |
| &nbsp;&nbsp;Operating cash flows for finance leases  |  |  | 1 |
| &nbsp;&nbsp;Financing cash flows for finance leases  |  | 4 | 56 |
| Right-of-use assets obtained in exchange for lease liabilities: |  |  |  |
| &nbsp;&nbsp;Operating leases | $52 | $1475 | $646 |
| Right-of-use assets impairment charges | $2805 | $— | $— |

---

Maturities of lease liabilities as of December 31, 2022 were as follows:

---

| | |
|:---|:---|
|  | **Operating leases** |
| 2023 | $2764 |
| 2024 | 2705 |
| 2025 | 2704 |
| 2026 | 2537 |
| 2027 | 2335 |
| Thereafter | 4928 |
| Total minimum lease payments | 17973 |
| Less: imputed interest | (2479) |
| Present value of lease liabilities | 15494 |
| Less: current portion | (2708) |
| Total long-term lease liabilities | $12786 |

---

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

**10.&nbsp;&nbsp;&nbsp;&nbsp; Software Development Costs**

The Company capitalizes certain costs incurred in connection with obtaining or developing its proprietary software platforms, which are used to support its service contracts, including external direct costs of material and services, payroll costs for employees directly involved with the software development, and interest expense related to the borrowings attributable to software development. As of December 31, 2022 and 2021, capitalized software costs consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Software development costs | $54853 | $49481 |
| Less: accumulated amortization | (22261) | (20227) |
| Software development costs, net | $32592 | $29254 |
| Capitalized software development costs included above not yet subject to amortization | $4997 | $5328 |

---

Amortization expense for the years ended December 31, 2022, 2021, and 2020 was $12,567, $9,407, and $6,432, respectively.

During the first quarter of 2022, the Company became aware of changes in circumstances impacting the future application of certain capitalized software development costs and determined an indicator of impairment was present. The Company evaluated the recoverability of the related long-lived assets by comparing their carrying amount to the future net undiscounted cash flows expected to be generated by the assets to determine if the carrying value was not recoverable. The recoverability test indicated that certain capitalized software development costs were impaired. As a result, we recognized an impairment loss equal to $4,062 for the year ended December 31, 2022.

**11.&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and Intangible Assets**

***Goodwill***

The Company's goodwill and related changes during the years ended December 31, 2022 and 2021 are as follows:

---

| | |
|:---|:---|
|  | **CareVention HealthCare** |
| Balance at January 1, 2021 | $115350 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to goodwill related to prior year acquisition | (27) |
| Balance at January 1, 2022 | 115323 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to goodwill |  |
| Balance at December 31, 2022 | $115323 |

---

No goodwill is allocated to the Company's MedWise HealthCare segment under continuing operations.

For its annual assessment for the year ended December 31, 2022, the Company performed a quantitative assessment of goodwill as of October 1, 2022 using a market approach, which estimates fair value based on a reconciliation of the Company's market capitalization. Based on the analysis performed, the Company determined that the estimated fair value of the Company's reporting units exceeded their carrying values, and as a result, goodwill was not impaired as of December 31, 2022.

During the first and second quarters of 2022, the Company experienced a sustained decline in the price of the Company's common stock. As a result, the Company determined that an indicator of impairment was present and performed a quantitative goodwill impairment assessment as of March 31, 2022 and June 30, 2022, respectively, using a market approach, which estimates fair value based on a reconciliation of the Company's market capitalization. Based on

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

the analysis performed, the Company determined that the estimated fair value of the Company's reporting units exceeded their carrying values, and as a result, goodwill was not impaired as of March 31, 2022 and June 30, 2022.

During the fourth of quarter of 2021, the Company experienced a sustained decline in the price of the Company's common stock. As a result, the Company determined that an indicator of impairment was present and performed a quantitative goodwill impairment assessment as of December 31, 2021 in addition to its annual assessment as of October 1, 2021. The fair value of the reporting units was estimated using a combination of a discounted cash flow method, or income approach, and market approaches, which estimate fair value based on a selection of appropriate peer group companies. The Company utilized forecasts of revenue and operating income, based on management's estimates and long-term plans, as well as required estimates and judgments about working capital requirements, capital expenditures, income taxes, discount rates, terminal growth rates, long-term operating margins, and control premiums and valuation multiples appropriate for acquisitions in the industries in which the Company competes. Based on the analysis performed, the Company determined that the estimated fair value of the Company's reporting units exceeded their carrying values, and as a result, goodwill was not impaired as of December 31, 2021.

For the year ended December 31, 2020, the Company performed a qualitative assessment of goodwill and determined there were no indicators of goodwill impairment for the year ended December 31, 2020.

There are no accumulated impairment charges for the Company's continuing operations as of December 31, 2022, 2021, or 2020. Refer to Note 6 for discussion of goodwill impairment analysis performed over the Company's discontinued operations.

***Intangible Assets***

During the fourth quarter of 2020, the Company became aware of changes in circumstances impacting the future performance of the Company's pharmacy cost management services, which are recorded in the MedWise segment and relate to certain intangible assets acquired from the Medliance acquisition in 2014. The Company evaluated the recoverability of the related intangible assets by comparing their carrying amount to the future net undiscounted cash flows expected to be generated by the asset group to determine if the carrying value is not recoverable. The recoverability test indicated that certain customer relationships and developed technology intangible assets were impaired. As a result, the Company used an income approach to measure the fair value of the intangible assets and recognized noncash impairment charges of $3,815 and $1,225 to the customer relationships and developed technology intangible assets, respectively, for the year ended December 31, 2020.

Intangible assets consisted of the following as of December 31, 2022 and 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Weighted Average**<br>**Amortization Period**<br>**(in years)** | <br>**Gross Value** | <br>**Accumulated**<br>**Amortization** | <br>**Intangible**<br>**Assets, net** |
| **December 31, 2022** |  |  |  |  |
| Trade names | 2.6 | $1340 | $(1000) | $340 |
| Client relationships | 11.7 | 51264 | (15781) | 35483 |
| Non-competition agreements | 5.0 | 1640 | (1303) | 337 |
| Developed technology | 6.2 | 14720 | (12580) | 2140 |
| Domain name | 10.0 | 59 | (33) | 26 |
| Total intangible assets |  | $69023 | $(30697) | $38326 |

---

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Weighted Average**<br>**Amortization Period**<br>**(in years)** | <br>**Gross Value** | <br>**Accumulated**<br>**Amortization** | <br>**Intangible**<br>**Assets, net** |
| **December 31, 2021** |  |  |  |  |
| Trade names | 2.9 | $1340 | $(853) | $487 |
| Client relationships | 11.7 | 51264 | (11042) | 40222 |
| Non-competition agreements | 5.0 | 1640 | (975) | 665 |
| Developed technology | 6.2 | 14720 | (10768) | 3952 |
| Domain name | 10.0 | 59 | (27) | 32 |
| Total intangible assets |  | $69023 | $(23665) | $45358 |

---

Amortization expense for intangible assets for the years ended December 31, 2022, 2021, and 2020 was $7,032, $7,560, and $6,542, respectively.

The estimated amortization expense for each of the next five years and thereafter is as follows:

---

| | |
|:---|:---|
| Years Ending December 31,  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2023 | $5882 |
| &nbsp;&nbsp;&nbsp;&nbsp;2024 | 4684 |
| &nbsp;&nbsp;&nbsp;&nbsp;2025 | 4467 |
| &nbsp;&nbsp;&nbsp;&nbsp;2026 | 4338 |
| &nbsp;&nbsp;&nbsp;&nbsp;2027 | 4270 |
| &nbsp;&nbsp;&nbsp;&nbsp;Thereafter | 14685 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total estimated amortization expense | $38326 |

---

**12.&nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses and Other Liabilities**

At December 31, 2022 and 2021, accrued expenses and other liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Employee related expenses | $10780 | $8595 |
| Contract liability | 3309 | 2015 |
| Customer deposits | 904 | 904 |
| Client funds obligations\* | 12372 | 6038 |
| Contract labor | 3 | 838 |
| Interest | 2133 | 2281 |
| Vendor financing arrangements | 568 |  |
| Professional fees | 748 | 1327 |
| Consideration payable to customer | 20311 | 15971 |
| Income and non-income taxes payable | 8 | 15 |
| Other expenses | 4609 | 3013 |
| Total accrued expenses and other liabilities | $55745 | $40997 |

---

\*This amount represents client funds held by the Company, with an offsetting amount included in restricted cash.

**13.&nbsp;&nbsp;&nbsp;&nbsp; Notes Payable Related to Acquisition**

On October 5, 2020, as part of the consideration of the Personica acquisition, the Company entered into promissory notes (collectively, the "Notes") in the aggregate principal amount of $17,000 payable to the owners of Personica (see Note 5). The Company could set off amounts on the Notes to the extent the Company was entitled to indemnification under the Purchase Agreement or in respect of adjustments to the purchase price. The Notes bore an interest rate of 3.25% and were payable as follows: (a) $7,500 in cash paid in January 2021, (b) $5,500 in cash paid in April 2021, and (c) $4,000 in cash paid in October 2021. The Company reduced the October 2021 payment by $458 for indemnification amounts under the Purchase Agreement. For presentation purposes, the Company offset the remaining

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

balance on the Notes against related receivables established to compensate the Company for the expenses incurred.

The Notes were recorded at their aggregate acquisition-date fair value of $16,355 and were accreted up to their face values over their respective terms using the effective-interest method. For the year ended December 31, 2021, the Company recognized $481 of interest expense related to the Notes, of which $143 was paid and $338 was the noncash accretion of the discounts recorded.

**14.&nbsp;&nbsp;&nbsp;&nbsp; Lines of Credit and Long-Term Debt**

***(a)&nbsp;&nbsp;&nbsp;&nbsp;Lines of Credit***

On December 18, 2020, the Company and its subsidiaries entered into a Loan and Security Agreement (the "2020 Credit Facility"), with Western Alliance Bank ("WAB"). The 2020 Credit Facility provided for a $120,000 secured revolving credit facility, with a $1,000 sublimit for cash management services and letters of credit and foreign exchange transactions.

Amounts under the 2020 Credit Facility could be borrowed, repaid, and re-borrowed from time to time until the maturity date on May 16, 2025, and were permitted to be used for, among other things, working capital and other general corporate purposes. Loans under the 2020 Credit Facility bore interest at a rate equal to the LIBOR rate plus 3.25%. The obligations under the 2020 Credit Facility were secured by all of the assets of the borrowers, subject to certain exceptions and exclusions as set forth in the 2020 Credit Facility. The 2020 Credit Facility was subject to a commitment fee of 0.50% of the total commitment amount payable on the closing date and 0.25% of the total commitment amount payable on each anniversary thereafter. Additionally, the 2020 Credit Facility was subject to an unused line fee.

On August 1, 2022, the Company entered into a payoff letter with WAB with respect to the 2020 Credit Facility, pursuant to which the Company voluntarily elected to pay all amounts outstanding, including principal and interest, under the 2020 Credit Facility and related loan documents (the "Pay Off") using cash on hand and proceeds from the sale of the PrescribeWellness Business. Accordingly, the Company paid a total of $57,406 to WAB for the Pay Off and terminated the 2020 Credit Facility and related loan documents (the "Termination"). The Company did not incur any prepayment or early termination penalties in connection with either the Pay Off or the Termination. Upon the Termination and in connection with the Pay Off, all security interests and pledges granted to the secured parties thereunder were terminated and released.

Interest expense on the 2020 Credit Facility was $1,363 and $1,203 for the years ended December 31, 2022 and 2021, respectively.

In connection with the 2020 Credit Facility, the Company recorded deferred financing costs of $1,534. The Company amortized the deferred financing costs associated with the 2020 Credit Facility to interest expense using the effective-interest method over the term. On August 1, 2022, in connection with the Termination, the remaining balance of deferred financing costs was amortized to interest expense. For the year ended December 31, 2022, the Company amortized $973 to interest expense for deferred financing costs related to the 2020 Credit Facility. For the year ended December 31, 2021, the Company amortized $540 to interest expense for deferred financing costs related to the 2020 Credit Facility. For the year ended December 31, 2020, the Company recorded $336 to interest expense for deferred financing costs related to the 2020 Credit Facility and its 2015 Line of Credit. Deferred financing costs of $624, net of accumulated amortization, were included in other assets on the accompanying consolidated balance sheets as of December 31, 2021.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

***(b)&nbsp;&nbsp;&nbsp;&nbsp;Convertible Senior Subordinated Notes***

On February 12, 2019, the Company issued and sold an aggregate principal amount of $325,000 of 1.75% convertible senior subordinated notes (the "2026 Notes") in a private placement pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2026 Notes bear interest at a rate of 1.75% per year, payable semiannually in arrears on February 15 and August 15 of each year, beginning on August 15, 2019. The notes will mature on February 15, 2026, unless earlier converted or repurchased. The initial conversion rate for the notes is 14.2966 shares of the Company's common stock per $1 principal amount of notes. This conversion rate is equal to an initial conversion price of approximately $69.95 per share of the Company's common stock. Net proceeds from the 2026 Notes were used to pay the cost of convertible note hedge transactions (described below), repay amounts outstanding under the 2015 Line of Credit, fund the PrescribeWellness acquisition, fund the payment of the acquisition-related contingent consideration liabilities, and for general corporate purposes.

Holders may convert all or any portion of their 2026 Notes at any time prior to the close of business on the business day immediately preceding August 15, 2025 only under the following circumstances: (1) during any calendar quarter commencing after March 31, 2019 (and only during such calendar quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price (as defined in the indenture governing the 2026 Notes) per $1 principal amount of 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events, including certain distributions, the occurrence of a fundamental change or make-whole fundamental change (as defined in the indenture governing the 2026 Notes) or a transaction resulting in the Company's common stock converting into other securities or property or assets. On or after August 15, 2025 until the close of business on the first scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its 2026 Notes regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver shares of its common stock, cash, or a combination thereof at the Company's option. As of December 31, 2022, none of the conditions allowing holders of the 2026 Notes to convert had been met.

In the initial accounting for the issuance of the 2026 Notes in 2019, the Company separated the 2026 Notes into liability and equity components. With the assistance of a third-party valuation specialist, the carrying amount of the liability component was calculated by utilizing a discounted cash flow model of the contractual cash flows that were discounted at a risk-adjusted interest rate in order to estimate the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $102,900 and was determined by deducting the fair value of the liability component from the par value of the 2026 Notes. The equity component was not remeasured as long as it continued to meet the conditions for equity classification. The initial associated deferred tax effect of $25,884 was recorded as a reduction of additional paid-in capital because the equity component was not expected to be deductible for income tax purposes. The excess of the principal amount of the liability component over its carrying amount ("debt discount") was amortized to interest expense over the term of the 2026 Notes at an effective interest rate of 8.05% over the contractual term. Debt issuance costs related to the 2026 Notes of $9,372, comprised of discounts and commissions payable to the initial purchasers of $8,937 and third-party offering costs of $435, were allocated to the liability and equity components of the 2026 Notes based on their relative values. Issuance costs attributable to the liability component were $6,405 and were amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were netted with the equity component in stockholders' equity.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The Company adopted ASU 2020-06, *Debt - Debt with Conversion and Other Options (subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40)*, using the modified retrospective method effective January 1, 2021. ASU 2020-06 updated the previous accounting guidance for convertible debt instruments under ASC 470-20, Debt with Conversion and Other Options ("ASC 470-20"), and required a convertible debt instrument to be accounted for as a single liability measured at its amortized cost. Upon adoption, the Company recorded a $74,850 decrease to additional paid-in capital, a $78,707 increase to the carrying value of the 2026 Notes, a $2,465 decrease to the net deferred tax liability, and a $1,392 increase in accumulated deficit. Effective on January 1, 2021, debt issuance costs related to the 2026 Notes of $7,008 were allocated to the liability component of the 2026 Notes and are being amortized to interest expense using the effective interest method over the contractual term, resulting in an effective interest rate of 2.20%. In addition, on February 12, 2021, the Company received a private letter ruling from the Internal Revenue Service, which determined, based on information submitted and representations made by the Company, that the Company met the requirements to deduct the interest expense resulting from the amortization of the debt discount associated with the 2026 Notes.

During the year ended December 31, 2022, the Company recognized $7,023 of interest expense related to the 2026 Notes, of which $5,688 was paid or accrued and $1,335 was noncash accretion of the debt discounts recorded. Total accrued interest payable related to the 2026 Notes was $2,133 as of December 31, 2022, which was included in accrued expenses and other liabilities on the consolidated balance sheet.

During the year ended December 31, 2021, the Company recognized $6,995 of interest expense related to the 2026 Notes, of which $5,688 was paid or accrued and $1,307 was noncash accretion of the debt discounts recorded. In addition, unpaid additional interest payable as a result of the failure to remove the restrictive legend on the 2026 Notes had accrued on the 2026 Notes from and including February 17, 2020 and had ceased accruing on February 16, 2021 as a result of the restrictive legend being removed. The Company recorded $212 of additional interest expense for the year ended December 31, 2021. The total cumulative amount of additional interest expense was $1,625 and was paid in full during the year ended December 31, 2021. Total accrued interest payable related to the 2026 Notes was $2,133 as of December 31, 2021, which was included in accrued expenses and other liabilities on the consolidated balance sheet.

During the year ended December 31, 2020, under the previous accounting standard, the Company recognized $18,682 of interest expense related to the 2026 Notes, of which $5,688 was paid or accrued and $12,994 was noncash accretion of the debt discounts recorded. Additional accrued interest as a result of the failure to remove the restrictive legend on the 2026 Notes, as described above, was $1,413 as of December 31, 2020.

The 2026 Notes had a carrying value of $320,634 and $319,299 as of December 31, 2022 and December 31, 2021, respectively.

The 2026 Notes are classified as long-term debt on the Company's consolidated balance sheets and will be until such Notes are within one year of maturity.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

***(c)&nbsp;&nbsp;&nbsp;&nbsp; Convertible Note Hedge and Warrant Transactions***

In connection with the offering of the 2026 Notes, the Company entered into convertible note hedge transactions with affiliates of certain of the initial purchasers (the "option counterparties") of the 2026 Notes pursuant to the terms of call option confirmations. The Company has the option to purchase a total of 4,646,393 shares of its common stock at a price of approximately $69.95 per share. The total premiums paid for the note hedges were $101,660. The Company also entered into warrant transactions with the option counterparties whereby they have the option to purchase 4,646,393 shares of the Company's common stock at a price of $105.58 per share. The Company received $65,910 in cash proceeds from the sale of the warrants. As these instruments are considered indexed to the Company's own stock and are considered equity classified, the convertible note hedges and warrants are recorded in stockholders' equity (deficit), are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the convertible note hedge and warrant transactions were recorded as a reduction to additional paid-in capital on the Company's consolidated balance sheets.

The convertible note hedge transactions are expected generally to reduce the potential dilution to the Company's common stock upon conversion of the 2026 Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted 2026 Notes, as the case may be. The warrant transactions could separately have a dilutive effect on the Company's common stock to the extent that the market price per share of the Company's common stock exceeds the strike price of the warrants.

As of December 31, 2022, no warrants have been exercised and all warrants to purchase shares of the Company's common stock were outstanding.

***(d)&nbsp;&nbsp;&nbsp;&nbsp;Long-Term Debt Maturities***

The following table represents the total long-term debt obligations of the Company at December 31, 2022 and December 31, 2021:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Convertible senior subordinated notes | $235272 | $325000 |
| Convertible senior subordinated notes - related party | 89728 |  |
| Unamortized discount, including debt issuance costs, on convertible senior subordinated notes | (4366) | (5701) |
| Total long-term debt, net | $320634 | $319299 |

---

**15.&nbsp;&nbsp;&nbsp;&nbsp; Income Taxes**

The Company accounts for income taxes under ASC Topic 740 —*Income Taxes* ("ASC 740"). Deferred income tax assets and liabilities are determined based upon differences between financial reporting and tax bases of assets and liabilities, which are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

The components of the Company's loss before income taxes are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2022** | **2021** | **2020** |
| United States | $(76945) | $(51848) | $(61920) |
| Total loss before income taxes | $(76945) | $(51848) | $(61920) |

---

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The expense (benefit) from income taxes consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2022** | **2021** | **2020** |
| Current: |  |  |  |
| &nbsp;&nbsp;State and local | $93 | $114 | $134 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current income tax expense | 93 | 114 | 134 |
| Deferred: |  |  |  |
| &nbsp;&nbsp;US federal | 14 | 52 | (2930) |
| &nbsp;&nbsp;State and local | 282 | 224 | (2613) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deferred income tax expense (benefit) | 296 | 276 | (5543) |
| Total income tax expense (benefit) | $389 | $390 | $(5409) |

---

The Company had no current or deferred international income tax expense during the years ended December 31, 2022, 2021, and 2020.

For the years ended December 31, 2022 and 2021, the Company had an effective tax rate (0.5%) and (0.8%) respectively, primarily related to indefinite-lived deferred tax liabilities for goodwill amortization. The effective tax rate differs from the U.S. statutory tax rate primarily due to the full valuation allowance recorded that is currently limiting the realizability of the Company's net deferred tax assets as of December 31, 2022 and 2021. Accordingly, the tax benefit was limited due to unbenefited losses in the years ended December 31, 2022 and 2021.

For the year ended December 31, 2020, the Company had an effective tax rate of 8.7%. The tax benefits primarily consist of the benefits generated by the Company's U.S. federal and state and local losses, windfall tax benefits generated from the vesting of restricted stock, disqualifying dispositions, and exercising of nonqualified stock options during the period, offset by other tax expense due to the increase in the Company's valuation allowance.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The principal components of the Company's deferred tax assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;Net federal operating loss carryforward | $51270 | $45037 |
| &nbsp;&nbsp;Net state operating loss carryforward | 13800 | 10597 |
| &nbsp;&nbsp;Net international operating loss carryforward | 4071 | 3554 |
| &nbsp;&nbsp;Interest expense limitation carryforward | 19848 | 14501 |
| &nbsp;&nbsp;Unamortized debt discount | 13629 | 17515 |
| &nbsp;&nbsp;Accruals | 1221 | 1257 |
| &nbsp;&nbsp;Amortizable intangible assets | 419 | 1479 |
| &nbsp;&nbsp;Stock options | 4793 | 8671 |
| &nbsp;&nbsp;Operating lease liabilities | 4987 | 6335 |
| &nbsp;&nbsp;Assets held for sale | 8591 |  |
| &nbsp;&nbsp;Other | 420 | 562 |
| Deferred tax assets | 123049 | 109508 |
| Less: valuation allowances | (111118) | (88370) |
| Deferred tax assets after valuation allowance | 11931 | 21138 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;Fixed assets | (5002) | (12080) |
| &nbsp;&nbsp;Operating lease right-of-use assets | (3795) | (5576) |
| &nbsp;&nbsp;Indefinite-lived intangibles | (4383) | (4830) |
| &nbsp;&nbsp;Other | (131) | (54) |
| Deferred tax liabilities | (13311) | (22540) |
| Net deferred tax liabilities | $(1380) | $(1402) |

---

As of December 31, 2022, the Company had federal net operating loss ("NOL") carryforwards of $243,313, state NOL carry forwards of $247,006 and international NOL carryforwards of $13,568, each of which is available to reduce future taxable income. The NOL carryforwards, if not utilized, will begin to expire in 2031 for federal purposes, and began to expire in 2022 for state purposes. The international NOLs do not expire.

On February 12, 2021, the Company received a private letter ruling from the Internal Revenue Service, which determined, based on information submitted and representations made by the Company, that the Company met the requirements to deduct the interest expense resulting from the amortization of the debt discount associated with the 2026 Notes. As a result, the Company recorded a deferred tax asset of $26,313 and a corresponding $26,313 increase to its valuation allowance.

ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As a result, as of December 31, 2020, the Company had a partial valuation allowance against U.S. federal and state deferred tax assets and a full valuation allowance against its international deferred tax assets because the Company determined that it was more likely than not that these assets would not be fully realized.

After consideration of all the evidence, both positive and negative, at December 31, 2022 and 2021, the Company recorded a full valuation allowance against all of its deferred tax assets because the Company determined that it was more likely than not that these assets would not be fully realized.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The changes in the Company's valuation allowance were as follows:

---

| | | |
|:---|:---|:---|
|  | **Year-Ended** | **Year-Ended** |
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Balance at beginning of the year | $88370 | $23178 |
| &nbsp;&nbsp;Increase due to NOLs and temporary differences | 22954 | 65356 |
| &nbsp;&nbsp;Change in foreign exchange rate | (206) | (164) |
| Balance at end of the year | $111118 | $88370 |

---

A reconciliation of income tax (expense) benefit at the statutory federal income tax rate and income taxes as reflected in the financial statements is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2020** |
| Federal statutory rate | 21.0% | 21.0% | 21.0% |
| State income taxes, net of federal benefit | 1.8 | 17.9 | 4.7 |
| Change in valuation allowance | (7.9) | (78.0) | (20.8) |
| Non-deductible stock compensation and tax windfall benefits, net | (10.6) | (1.0) | 3.5 |
| Change in fair value of contingent consideration | (4.8) |  | (0.9) |
| Change in deduction for debt discount amortization |  | 38.2 |  |
| Non-deductible expenses and other |  | 1.1 | 1.2 |
| Effective income tax rate  | (0.5)% | (0.8)% | 8.7% |

---

The tax benefits of uncertain tax positions are recognized only when the Company believes it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized income tax benefits in income tax expense. Through December 31, 2022, the Company had no unrecognized tax benefits or related interest and penalties accrued.

In the normal course of business, the Company is subject to examination by taxing authorities from federal, state, and international governments. As of December 31, 2022, the Company's tax years beginning in 2016 remain open for examination by taxing authorities.

**16.&nbsp;&nbsp;&nbsp;&nbsp; Stockholders' Equity**

In connection with the offering of the 2026 Notes, the Company issued warrants to purchase 4,646,393 shares of the Company's common stock at a price of $105.58 per share. As of December 31, 2022, no warrants have been exercised and all warrants to purchase shares of the Company's common stock were outstanding. See Note 14 for additional information related to the 2026 Notes.

**17.&nbsp;&nbsp;&nbsp;&nbsp; Stock-Based Compensation**

In September 2016, the Company adopted the 2016 Equity Compensation Plan ("2016 Plan"). During the term of the 2016 Plan, the share reserve will automatically increase on the first trading day in January of each calendar year by an amount equal to the lesser of 5% of the total number of outstanding shares of common stock on the last trading day in December of the prior calendar year or such other number set by the Board of Directors. In accordance with the terms of the 2016 Plan, the share reserve increased by 1,283,321 shares on February 25, 2022. As of December 31, 2022, 1,251,990 shares were available for future grants under the 2016 Plan.

The stock-based compensation information disclosed below includes results of both continuing and discontinued operations.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

***Restricted Common Stock and Restricted Stock Units***

The Company issues restricted stock awards and restricted stock units pursuant to the 2016 Plan to employees and non-employee directors. Restricted stock awards and restricted stock units generally vest over a one-to-four year period and the unvested portion of these awards is forfeited if the employee or non-employee director leaves the Company before the vesting period is completed. The grant-date fair value of restricted stock awards and restricted stock units is determined using the Company's closing stock price at grant date.

The following table summarizes the aggregate restricted stock award activity, inclusive of performance based restricted stock awards, and restricted stock unit activity under the 2016 Plan for the years ended December 31, 2022, 2021 and 2020:

---

| | | |
|:---|:---|:---|
|  | <br>**Number** <br>**of shares** | **Weighted**<br>**average**<br>**grant-date**<br>**fair value** |
| Outstanding at January 1, 2020 | 1213581 | $37.69 |
| Granted | 581107 | 59.83 |
| Vested | (356389) | 45.89 |
| Forfeited | (51391) | 57.14 |
| Outstanding at December 31, 2020 | 1386908 | 44.14 |
| Granted | 1457752 | 40.02 |
| Vested | (502410) | 48.42 |
| Forfeited | (145684) | 47.76 |
| Outstanding at December 31, 2021 | 2196566 | 40.19 |
| Granted | 2154626 | 4.40 |
| Vested | (1256758) | 34.62 |
| Forfeited | (791537) | 16.80 |
| Outstanding at December 31, 2022 | 2302897 | $17.78 |

---

The table above includes 7,584 restricted stock units which had vested but had not been issued as of December 31, 2022.

For the years ended December 31, 2022, 2021, and 2020, $29,572, $31,127, and $22,042, respectively, of expense was recognized related to restricted stock awards and restricted stock units, excluding performance-based restricted stock awards described below. As of December 31, 2022, there was unrecognized compensation expense of $26,175 related to non-vested restricted stock awards and non-vested restricted stock units, excluding performance-based restricted stock awards described below, under the 2016 Plan, which are expected to be recognized over a weighted average period of 2.3 years.

Expense related to restricted stock awards for the year ended December 31, 2022 includes $8,143 for the accelerated vesting of unvested shares of restricted stock related to separation agreements with two retired named executive officers. See Note 21 for additional information.

***Performance-Based Equity Awards***

On May 4, 2020, pursuant to the 2016 Plan, the Board approved grants totaling 10,686 shares of restricted stock to an employee. The awards had a grant-date fair value of $56.14 per share based on the Company's closing stock price on the grant date and were subject to certain performance conditions being achieved during the two-year period ending March 2, 2022. The awards expired on March 2, 2022, and the Company recognized no stock-based compensation expense related to these grants for the years ended December 31, 2022, 2021, and 2020 as the performance conditions were not achieved.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

On October 29, 2020, pursuant to the 2016 Plan, the Board approved grants totaling 26,400 shares of restricted stock to certain employees, of which 1,400 expired on April 30, 2021 and 12,500 expired on December 31, 2021. The remaining 12,500 shares fully vested subject to the achievement of certain milestones on December 31, 2021. The awards had a grant-date fair value of $35.95 per share based on the Company's closing stock price on the grant date. Stock-based compensation costs associated with these grants were recognized over the service period based upon the Company's assessment of the probability that the performance conditions would be achieved. The Company recognized $297 and $152 of stock-based compensation expense related to these grants for the years ended December 31, 2021 and 2020, respectively.

On April 27, 2021, pursuant to the 2016 Plan, the Board approved awards of performance stock units to certain employees. Each award reflects a target number of shares ("Target 2021 Shares") that may be issued to the award recipient. The awards are earned upon the Company's achievement of certain revenue performance targets during the three-year performance period ending December 31, 2023. Depending on the results achieved during the performance period, the actual number of shares that a grant recipient may receive at the end of the performance period may range from 0% to 200% of the Target 2021 Shares granted. The performance stock unit awards have a grant-date fair value of $44.13 per share based on the Company's closing stock price on the grant date. Stock-based compensation costs associated with these grants are recognized over the performance period based upon the Company's assessment of the probability that the performance targets will be achieved. The Company did not recognize any stock-based compensation expense related to the performance stock units for the years ended December 31, 2022 and 2021, as the achievement of the underlying performance targets was considered unlikely. During the year ended December 31, 2022, 47,175 performance stock units expired. As of December 31, 2022, the number of Target 2021 Shares was 45,550 shares, the maximum number of achievable performance stock units was 91,100, and the maximum unrecognized compensation expense was $4,020.

On August 22, 2022, pursuant to the 2016 Plan, the Board approved awards of performance stock units to certain executives. Each award reflects a target number of shares ("Target 2022 Shares") that may be issued to the award recipient. The awards are earned upon the Company's achievement of certain market performance targets during the three-year performance period ending December 31, 2024. Depending on the results achieved during the performance period, the actual number of shares that a grant recipient may receive at the end of the performance period may range from 0% to 200% of the Target 2022 Shares granted. The performance stock unit awards have a grant-date fair value of $4.38 per share based on the fair value of the Company's stock price at grant date and the expected vesting units, taking into consideration the possibilities of all possible performance achievement levels. Stock-based compensation costs associated with these grants are recognized over the performance period. The Company recognized $233 of stock-based compensation expense related to the performance stock units for the year ended December 31, 2022. As of December 31, 2022, the number of Target 2022 Shares was 350,000 shares, the maximum number of achievable performance stock units was 700,000, and the remaining unrecognized compensation expense was $1,299.

***Other Stock Awards***

During the year ended December 31, 2020, the Board approved the grant of stock awards to select employees pursuant to the 2016 Plan. The awards provided for the issuance of 9,386 shares of the Company's common stock, which immediately vested on the grant date. These grants had a weighted average grant-date fair value of $52.29 per share. For the year ended December 31, 2020, the Company recorded $491 of expense related to these stock awards.

During the year ended December 31, 2021, the Board approved the grant of stock awards to certain non-employee directors, in lieu of cash compensation, and to a consultant pursuant to the 2016 Plan. The awards provided for the issuance of 1,416 shares of the Company's common stock, which immediately vested on the grant date. These grants had a weighted average grant-date fair value of $40.85 per share. For the year ended December 31, 2021, the Company recorded $58 of expense related to these stock awards.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

During the first quarter of 2022, the Board approved grants of stock awards to certain non-employee directors, in lieu of cash compensation, and employees pursuant to the 2016 Plan. The awards provided for the issuance of 16,471 shares of the Company's common stock, which immediately vested on the grant date. These grants had a weighted average grant-date fair value of $5.57 per share. For the year ended December 31, 2022, the Company recorded $92 of expense related to these stock awards.

During the second quarter of 2022, the Board approved grants of stock awards to certain non-employee directors, in lieu of cash compensation, pursuant to the 2016 Plan. The awards provided for the issuance of 12,262 shares of the Company's common stock, which immediately vested on the grant date. These grants had a weighted average grant-date fair value of $3.64 per share. For the year ended December 31, 2022, the Company recorded $45 of expense related to these stock awards.

During the third quarter of 2022, the Board approved grants of stock awards to certain employees pursuant to the 2016 Plan. The awards provided for the issuance of 615,066 shares of the Company's common stock, which immediately vested on the grant date. These grants had a weighted average grant-date fair value of $5.01 per share. For the year ended December 31, 2022, the Company recorded $3,082 of expense related to these stock awards.

***Stock Options***

The Company recorded $3,807, $6,972, and $9,870 of stock-based compensation expense related to the vesting of employee and non-employee stock options for the years ended December 31, 2022, 2021, and 2020, respectively.

The table below sets forth the weighted average assumptions for employee grants during the years ended December 31, 2021 and 2020. No stock options were granted during the year ended December 31, 2022.

---

| | | |
|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  |
| Valuation assumptions: | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected volatility | 58.57% | 56.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected term (years) | 5.48 | 5.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk-free interest rate | 0.50% | 1.22% |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend yield |  |  |

---

The weighted average grant-date fair value of employee options granted during the years ended December 31, 2021 and 2020 was $28.26 and $33.78, respectively.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The following table summarizes stock option activity for the years ended December 2022, 2021, and 2020:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Number** <br>**of shares** | <br>**Weighted**<br>**average**<br>**exercise** <br>**price** | **Weighted**<br>**average**<br>**remaining**<br>**contractual**<br>**term** | <br>**Aggregate**<br>**intrinsic**<br>**value** |
| Outstanding at January 1, 2020 | 2755343 | $25.10 |  |  |
| Granted | 5000 | 68.10 |  |  |
| Exercised | (554007) | 11.69 |  |  |
| Forfeited | (109780) | 44.17 |  |  |
| Outstanding at December 31, 2020 | 2096556 | 27.74 |  |  |
| Granted | 2500 | 55.01 |  |  |
| Exercised | (365770) | 11.88 |  |  |
| Forfeited | (129060) | 46.45 |  |  |
| Outstanding at December 31, 2021 | 1604226 | 29.90 |  |  |
| Exercised | (14732) | 4.70 |  |  |
| Forfeited | (411689) | 35.12 |  |  |
| Outstanding at December 31, 2022 | 1177805 | $28.39 | 4.0 | $279 |
| Options vested and expected to vest at December 31, 2022 | 1177805 | $28.39 | 4.0 | $279 |
| Exercisable at December 31, 2022 | 1167411 | $28.16 | 3.9 | $279 |

---

The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the Company's closing stock price or estimated fair value on the last trading day of the fiscal year for those stock options that had exercise prices lower than the fair value of the Company's common stock. This amount changes based on the fair market value of the Company's stock. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021, and 2020 was $111, $11,491, and $22,768, respectively.

As of December 31, 2022, there was $114 of unrecognized compensation cost related to nonvested stock options granted under the 2016 Plan, which is expected to be recognized over a weighted average period of 0.3 years.

Cash received from option exercises for the years ended December 31, 2022, 2021 and 2020 was $73, $4,072, and $3,943, respectively.

During the years ended December 31, 2022, 2021 and 2020, restricted share and option holders delivered 463,727, 122, and 62,310 shares of common stock, with a fair value of $2,181, $3, and $2,993, respectively, for employee payroll taxes owed for the vesting of restricted stock and exercise of stock options.

The Company recorded total stock-based compensation expense for the years ended December 31, 2022, 2021 and 2020 in the following expense categories of its consolidated statement of operations:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  | **Year Ended**  |
|  | **December 31,**  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** | **2020** |
| Cost of medication revenue | $917 | $1279 | $887 |
| Cost of technology-enabled solutions revenue | 2806 | 3635 | 2935 |
| Research and development | 4935 | 5989 | 5076 |
| Sales and marketing | 721 | 1540 | 1074 |
| General and administrative | 22999 | 19748 | 17679 |
| Discontinued operations | 4453 | 6263 | 4904 |
| Total stock-based compensation expense | $36831 | $38454 | $32555 |

---

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

***Employee Stock Purchase Plan***

In February 2021, the Board, subject to stockholder approval, adopted the Tabula Rasa HealthCare, Inc. Employee Stock Purchase Plan (the "ESPP"), which allows eligible employees to purchase common shares of Company stock through payroll deductions at a 15% discount off the lower of (i) the fair market value per share of common stock on the start date of the applicable offering period or (ii) the fair market value per share of common stock on the purchase date. The ESPP was approved by the Company's stockholders at the 2021 annual meeting of stockholders in June 2021. The number of shares of common stock reserved for issuance under the ESPP will initially be 480,097 shares, subject to adjustment as provided in the ESPP, all of which remained available as of December 31, 2022.

**18.&nbsp;&nbsp;&nbsp;&nbsp; Fair Value Measurements**

The Company's financial instruments consist of money market funds, accounts receivable, client claims receivables, contract assets, contingent consideration receivable, accounts payable, client claims payable, contract liabilities, accrued expenses, vendor financing arrangements, and long-term debt, which includes the Company's convertible senior subordinated notes. The carrying values of accounts receivable, client claims receivables, contract assets, accounts payable, client claims payable, contract liabilities, and accrued expenses are representative of their fair values due to the relatively short-term nature of those instruments. Vendor financing arrangements are recorded at net carrying value, which approximates fair value. See below for additional information on the Company's convertible senior subordinated notes.

The Company had classified assets measured at fair value on a recurring basis at December 31, 2022 as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurement** | **Fair Value Measurement** | **Fair Value Measurement** | **Fair Value Measurement** |
|  | **at Reporting Date Using** | **at Reporting Date Using** | **at Reporting Date Using** | **at Reporting Date Using** |
|  | <br>**Level 1** | <br>**Level 2** | <br>**Level 3** | **Balance as of**<br>**December 31, 2022** |
| **Assets** |  |  |  |  |
| Money market funds | $50382 | $— | $— | $50382 |
| Contingent consideration receivable - long-term |  |  | 3350 | 3350 |
| Total | $50382 | $— | $3350 | $53732 |

---

Level 1 instruments include investments in money market funds with an original maturity of three months or less and are valued based on quoted prices in active markets at the measurement date.

In connection with the sale of the PrescribeWellness Business on August 1, 2022, additional consideration may be payable to the Company based on the achievement of certain customer and revenue metrics, as defined in the corresponding purchase agreement, for the years ending December 31, 2023 and 2024. See Note 6 for additional information regarding the sale of the PrescribeWellness Business.

The contingent consideration receivable is measured at fair value on a recurring basis and may include the use of significant unobservable inputs, hence these instruments represent Level 3 measurements within the fair value hierarchy. All changes in contingent consideration subsequent to the initial sale-date measurement are recorded in net income or loss.

The fair value of the contingent consideration receivable was determined using a Monte Carlo simulation with the assistance of a third-party appraiser. The contingent consideration receivable was recorded at the estimated fair value of $7,000 at the sale date of August 1, 2022. During the year ended December 31, 2022, the Company recorded a $3,650 charge to decrease the fair value of the contingent consideration receivable primarily due to updated estimates used in

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

the contingent consideration valuation. The estimated fair value of the contingent consideration receivable was $3,350 as of December 31, 2022.

In connection with the acquisition of the Cognify business in 2018, additional consideration was payable by the Company contingent upon the achievement of certain financial and performance milestones. These acquisition-related contingent consideration liabilities represented the estimated fair value of the additional cash and equity consideration payable. In accordance with ASC 805, *Business Combinations*, all changes in liability-classified contingent consideration subsequent to the initial acquisition-date measurement were recorded in net income or loss.

The acquisition-related contingent consideration liabilities were measured at fair value on a recurring basis and included the use of significant unobservable inputs, hence, these instruments represented Level 3 measurements within the fair value hierarchy.

The Cognify acquisition-related contingent consideration, which was liability-classified, was recorded at the estimated fair value at the acquisition date of October 19, 2018. The Company, with the assistance of a third-party appraiser, utilized a Monte Carlo simulation to derive estimates of the contingent consideration payments as of the acquisition date and at each subsequent reporting period.

During the third quarter of 2020, pursuant to the terms of the corresponding stock purchase agreement, the Company elected to accelerate the payment of the Cognify acquisition-related contingent consideration for an aggregate payment amount of $13,413. Due to the accelerated payment of the Cognify acquisition-related contingent consideration, the acquisition-related contingent consideration payment amount was fixed and was no longer classified within the fair value hierarchy as of December 31, 2020. The Cognify acquisition-related contingent consideration was partially paid during 2020 by cash payments of $6,394 and the issuance of 135,434 shares of the Company's common stock, with a fair value of $6,853. The fair value of the Cognify acquisition-related contingent consideration was calculated to be $166 as of December 31, 2020. In January 2021, the Company made the final cash payment of $166 in full satisfaction of the remaining acquisition-related contingent consideration liability.

The following table presents the financial instruments that are not carried at fair value but require fair value disclosure as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
|  | **Face Value** | **Carrying Value** | **Fair Value** |
| 1.75% Convertible Senior Subordinated Notes due 2026 | $325000 | $320634 | $260023 |

---

The fair value of the 2026 Notes at each balance sheet date is determined based on recent quoted market prices for these notes which is a level 2 measurement. As discussed in Note 14, the 2026 Notes are carried at their aggregate face value of $325,000, less any unaccreted debt discount and unamortized debt issuance costs.

**19.&nbsp;&nbsp;&nbsp;&nbsp; Commitments and Contingencies**

***(a)&nbsp;&nbsp;&nbsp;&nbsp;Employment Agreements***

The Company has change-in-control and severance agreements with each of the Company's named executive officers and other key members of management that provide for, among other things, salary, performance bonuses, or other incentive compensation, payments in the event of termination of the executives upon the occurrence of a change in control, and restrictive covenants pursuant to which the employees have agreed to refrain from competing with the Company or soliciting the Company's employees or clients for a period following the employee's termination of employment.

 ***(b)&nbsp;&nbsp;&nbsp;&nbsp;Legal Proceedings***

The Company is not currently involved in any significant claims or legal actions that, in the opinion of management, will have a material adverse impact on the Company.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

***(c)&nbsp;&nbsp;&nbsp;&nbsp;Vendor Purchase Agreements***

On March 29, 2019, the Company entered into an Affiliated Pharmacy Agreement and Pharmaceutical Program Supply Agreement (the "Prior Thrifty Drug Agreements") with Thrifty Drug Stores, Inc. ("Thrifty Drug"). On July 1, 2020, the Company entered into a new Affiliated Pharmacy Agreement and Pharmaceutical Program Supply Agreement with Thrifty Drug (the "Thrifty Drug Agreements") to replace the Prior Thrifty Drug Agreements, which, among other things, extended the Company's agreement with Thrifty Drug through March 31, 2024. Pursuant to the terms of the Thrifty Drug Agreements, the Company has agreed to purchase not less than 98% of the Company's total prescription product requirements from Thrifty Drug. The Company commenced purchasing prescription products under the Prior Thrifty Drug Agreements in May 2019 and has continued to do so under the Thrifty Drug Agreements beginning in July 2020. Both the Prior Thrifty Drug Agreements and the Thrifty Drug Agreements authorize Thrifty Drug to hold a security interest in all of the products purchased by the Company under the respective agreements.

As of December 31, 2022 and 2021, the Company had $4,608 and $1,854, respectively, due to Thrifty Drug as a result of prescription drug purchases.

In June 2021 and October 2021, the Company entered into agreements with a provider for cloud hosting and support services. The June 2021 agreement was effective as of June 3, 2021 and expires on April 28, 2024. Pursuant to the June 2021 agreement, the Company is committed to a minimum purchase obligation of $1,272 over the term of the agreement. The October 2021 agreement was effective as of October 1, 2021 and expires on September 30, 2024. Pursuant to the October 2021 agreement, the Company is committed to a minimum purchase obligation of $7,050 over the term of the agreement. Commitments under the October 2021 agreement are inclusive of commitments under the June 2021 agreement. As of December 31, 2022, the Company had a remaining commitment of $3,863 under the October 2021 agreement, of which $581 pertained to the June 2021 agreement.

In August 2021, the Company entered into an agreement with a third party to provide enterprise support and information technology services. The agreement is effective as of November 1, 2021 and expires on October 31, 2026 and commits the Company to a minimum purchase obligation of $8,960 through October 31, 2024. As of December 31, 2022, the Company had a remaining commitment of $5,476.

**20.&nbsp;&nbsp;&nbsp;&nbsp; Retirement Plan**

The Company has established a 401(k) plan that qualifies as a defined contribution plan under Section 401 of the Internal Revenue Code. The Company's contributions to this plan are based on a percentage of eligible employees' plan year earnings, as defined therein. The Company made matching contributions to participants' accounts totaling $2,958, $3,067, and $2,732 during the years ended December 31, 2022, 2021 and 2020, respectively.

**21. Related Party Transactions**

The Company's CareVention HealthCare segment provides medication fulfillment pharmacy services and certain PACE solutions services to a client whose Chief Executive Officer is a member of the Company's Board. For the years ended December 31, 2022, 2021, and 2020, approximately $7,494, $6,605 and $5,631, respectively, of revenue related to this client was included in the Company's consolidated statements of operations, and approximately $145 and $67 was included in accounts receivable, net, as of December 31, 2022 and 2021, respectively, on the Company's consolidated balance sheets.

During the second quarter of 2022, a holder of the Company's convertible senior subordinated notes became a significant stockholder. The stockholder held approximately $88,522 of the Company's convertible senior subordinated notes, net of discount, which is presented on the Company's consolidated balance sheet as of December 31, 2022. See Note 14 for more information on the Company's convertible senior subordinated notes.

On September 13, 2022, the Company entered into a cooperation agreement (the "Cooperation Agreement") with a significant stockholder of the Company, pursuant to which, among other matters, the Company agreed to effect

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

certain changes to its management team and the composition of the Board of Directors and implement certain corporate governance changes. In connection with the Cooperation Agreement, the Company agreed to reimburse the stockholder $464 of fees incurred, which were paid by the Company in the fourth quarter of 2022.

On September 13, 2022, in connection with the entry into separation agreements with two retired named executive officers, the Company incurred $9,927 of separation costs, which included stock-based compensation related to the accelerated vesting of unvested shares of restricted stock, severance payments and benefits, relevant payroll taxes, and outplacement services. These costs are included within general and administrative expenses in the Company's consolidated statement of operations, of which $1,330 are included within accrued expenses and other liabilities on the Company's consolidated balance sheet as of December 31, 2022.

On September 13, 2022, the Company entered into consulting services agreements with two retired named executive officers to provide certain consulting and advisory services to the Company, including assisting with the transition of key client relationships, strategic business partners, and prospects. The consulting services agreements expire on December 31, 2022. The Company incurred $3 of consulting services costs for the year ended December 31, 2022, which are included within general and administrative expenses in the Company's consolidated statement of operations.

**22.&nbsp;&nbsp;&nbsp;&nbsp; Rights Plan**

On July 25, 2022, the Board approved and adopted a Rights Agreement (the "Rights Agreement"), by and between the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent. Pursuant to the Rights Agreement, the Board declared a dividend of one preferred share purchase right (each, a "Right") for each outstanding share of common stock. The Rights are distributable to stockholders of record as of the close of business on August 5, 2022 and are not exercisable initially. If the Rights become exercisable, each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of a newly-designated series of preferred stock, Series A Junior Participating Preferred Stock, par value $0.0001 per share, of the Company, at an exercise price of $26.00, subject to adjustment. The Rights expire at the earlier of (a) the redemption or exchange of the Rights as provided in the Rights Agreement or (b) July 25, 2023.

**23.&nbsp;&nbsp;&nbsp;&nbsp; Segment Reporting**

The Company operates its business through two segments. As discussed in Note 6 above, the 2022 divestiture of the PrescribeWellness Business and the 2023 divestitures of the DoseMe and SinfoníaRx businesses, which collectively comprised the majority of the Company's MedWise HealthCare segment, represented a strategic business shift in the Company's operations. The Company determined that these businesses met the requirements of discontinued operations as of March 31, 2022 and the DoseMe and SinfoníaRx businesses continued to meet the requirements as of December 31, 2022. As a result, these businesses are excluded from the Company's segment reporting. The Company presents continuing operations of the remaining components of the MedWise HealthCare segment combined with its shared services as Shared Services and Other.

The Company's chief operating decision maker ("CODM"), the Interim Chief Executive Officer, allocates resources and assesses performance based upon financial information at the reportable segment level. Substantially all revenues are generated and substantially all tangible assets are held in the U.S.

CareVention HealthCare primarily provides services to PACE organizations that include medication fulfillment pharmacy services and technology-enabled solutions such as medication safety services, PBM solutions, and health plan management services.

MedWise HealthCare primarily generates revenues from the Company's technology-enabled solutions, which include medication safety services and software subscription solutions which identify individuals with high medication-related risk and optimize medication therapy.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

Shared services primarily consist of unallocated corporate sales and marketing expenses and general and administrative expenses associated with the management and administration of the Company's business objectives.

The CODM uses revenue in accordance with U.S. GAAP and Adjusted EBITDA as the relevant segment performance measures to evaluate the performance of the segments and allocate resources.

Adjusted EBITDA is a segment performance financial measure that offers a useful view of the overall operation of the Company's businesses and may be different than similarly-titled segment performance financial measures used by other companies.

Adjusted EBITDA consists of net loss plus certain other expenses, which include interest expense, provision for income taxes, depreciation and amortization, change in fair value of acquisition-related contingent consideration expense, change in fair value of contingent consideration receivable, impairment charges, business optimization expenses, severance costs, executive transition costs, cooperation agreement costs, divestiture-related expense, acquisition-related expense, stock-based compensation expense, loss on disposal of business, and settlement costs. The Company considers business optimization expenses to include contract termination payments, lease termination costs, retention payments, and other employee and non-recurring vendor costs incurred related to its business optimization initiatives during 2022 and 2021. The Company considers severance costs to include severance costs related to the realignment of its resources. The Company considers executive transition costs to include non-recurring costs related to the hiring and onboarding of new named executive officers and separation costs related to former named executive officers. The Company considers cooperation agreement costs to include legal, professional services, and other non-recurring costs related to the Company's cooperation agreement with Indaba Capital Management. The Company considers divestiture-related expense to include non-recurring direct transaction costs. The Company considers acquisition-related expense to include non-recurring direct transaction and integration costs. The Company considers loss on disposal of business to include non-recurring loss resulting from the sale of PrescribeWellness Business. The Company considers settlement costs to include amounts payable by the Company or reductions to amounts owed to the Company as a result of a contractual settlement.

Management considers revenue and Adjusted EBITDA to be the appropriate metric to evaluate and compare the ongoing operating performance of the Company's segments on a consistent basis across reporting periods as they eliminate the effect of items that are not indicative of each segment's core operating performance.

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**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The following tables present the Company's segment information:

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| | | | |
|:---|:---|:---|:---|
|  | **CareVention HealthCare** | **Shared Services and Other** | **Consolidated** |
| **Revenue:** |  |  |  |
| **Year Ended December 31, 2022** |  |  |  |
| &nbsp;&nbsp;Medication revenue | $231052 | $— | $231052 |
| &nbsp;&nbsp;Technology-enabled solutions revenue | 64430 | 4034 | 68464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $295482 | $4034 | $299516 |
| **Year Ended December 31, 2021** |  |  |  |
| &nbsp;&nbsp;Medication revenue | $189591 | $— | $189591 |
| &nbsp;&nbsp;Technology-enabled solutions revenue | 58417 | 11874 | 70291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $248008 | $11874 | $259882 |
| **Year Ended December 31, 2020** |  |  |  |
| &nbsp;&nbsp;Medication revenue | $158692 | $— | $158692 |
| &nbsp;&nbsp;Technology-enabled solutions revenue | 47577 | 15120 | 62697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $206269 | $15120 | $221389 |

---

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| | | | |
|:---|:---|:---|:---|
|  | **CareVention HealthCare** | **Shared Services and Other** | **Consolidated** |
| **Adjusted EBITDA (Loss) from Continuing Operations:** |  |  |  |
| **Year Ended December 31, 2022** |  |  |  |
| &nbsp;&nbsp;Adjusted EBITDA (loss) | $55093 | $(45764) | $9329 |
| **Year Ended December 31, 2021** |  |  |  |
| &nbsp;&nbsp;Adjusted EBITDA (loss) | $56572 | $(44475) | $12097 |
| **Year Ended December 31, 2020** |  |  |  |
| &nbsp;&nbsp;Adjusted EBITDA (loss) | $50400 | $(38004) | $12396 |

---

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

The following table presents the Company's reconciliation of the segments' total Adjusted EBITDA to net loss as presented in the consolidated statements of operations:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** | **2020** |
| **Reconciliation of Net Loss to Adjusted EBITDA from Continuing Operations** |  |  |  |
| Net loss | $(147510) | $(79055) | $(80966) |
| Add: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | 9034 | 9107 | 20743 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 389 | 390 | (5409) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 23347 | 20482 | 16633 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of acquisition-related contingent consideration expense |  |  | 2613 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration receivable | 3650 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment charges | 8943 |  | 5040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Business optimization expenses | 872 | 1061 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance costs | 2118 | 887 | 841 |
| &nbsp;&nbsp;&nbsp;&nbsp;Executive transition | 1971 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cooperation agreement costs | 980 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestiture-related expense | 2981 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related expense |  | 217 | 795 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 32378 | 32191 | 27651 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations | 70176 | 26817 | 24455 |
| Adjusted EBITDA from continuing operations | $9329 | $12097 | $12396 |
| Adjusted EBITDA (loss) from discontinued operations | (6243) | 7514 | 9379 |
| Total Adjusted EBITDA | $3086 | $19611 | $21775 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** | **2020** |
| **Reconciliation of Net Loss from Discontinued Operations, net of tax to Adjusted EBITDA (Loss) from Discontinued Operations** |  |  |  |
| Net loss from discontinued operations, net of tax | $(70176) | $(26817) | $(24455) |
| Add: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax (benefit) expense | (318) | 237 | 241 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 7331 | 27224 | 28407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment charges | 47885 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of business | 2879 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Business optimization expenses |  | 107 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance costs | 39 |  | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement | 1448 | 500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related expense |  |  | 250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestiture-related expense | 216 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 4453 | 6263 | 4904 |
| Adjusted EBITDA (loss) from discontinued operations | $(6243) | $7514 | $9379 |

---

Asset information by segment is not a key measure of performance used by the CODM. Accordingly, the Company has not disclosed asset information by segment.

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

**24.&nbsp;&nbsp;&nbsp;&nbsp; Subsequent Events**

On January 20, 2023 (the "DoseMe Sale Date"), the Company and Tabula Rasa HealthCare Group, Inc., a wholly-owned subsidiary of the Company (the "Seller"), entered into a Share and Asset Purchase Agreement (the "DoseMe Purchase Agreement"), by and among the Company, Seller, and DoseMe Operations Inc. ("Buyer"), pursuant to which Seller agreed to sell to Buyer its unincorporated DoseMe Business, and the assets, properties, and rights that are primarily used or held for use in connection with the DoseMe Business. As consideration, Buyer agreed to pay to Seller on the DoseMe Sale Date $2,000 in cash, subject to certain customary post-closing adjustments. The purchase consideration also includes a note receivable of $3,000 with an annual interest rate of 7%, which matures on January 20, 2027. Initial accounting for the divestiture is incomplete as of March 10, 2023 due to the complexity of the transaction. Pro forma financial information has not been provided herein due to a lack of sufficient information at the time of filing.

On March 2, 2023 (the "SinfoníaRx Sale Date"), the Company and Tabula Rasa HealthCare Group, Inc., a wholly-owned subsidiary of the Company (the "Seller"), entered into an Asset Purchase Agreement (the "SinfoníaRx Purchase Agreement"), by and among the Company, Seller, and Symphony Clinic, LLC ("Symphony"), pursuant to which Seller agreed to sell to Symphony its unincorporated SinfoníaRx Business, and the assets, properties, and rights that are primarily used or held for use in connection with the SinfoníaRx Business. As consideration, Symphony agreed to pay to Seller on the SinfoníaRx Sale Date $1,400 in cash, subject to certain customary post-closing adjustments. The purchase consideration also includes a note receivable of $3,600 with an annual interest rate of 3%, which matures on December 31, 2023. The Company may also be entitled to receive up to $1,000 in contingent consideration based upon potential regulatory changes affecting the business. Initial accounting for the divestiture is incomplete as of March 10, 2023 due to the complexity of the transaction. Pro forma financial information has not been provided herein due to a lack of sufficient information at the time of filing. In connection with the sale, the Company incurred severance costs of $923, which are expected to be paid in the first and second quarters of 2023.

[**Table of Contents**](#TOC)

**TABULA RASA HEALTHCARE, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data)**

**Schedule II - Valuation and Qualifying Accounts for continuing operations as of and for the years ended December 31, 2022, 2021 and 2020.**

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | <br>**Balance at** <br>**Beginning of** <br>**Period** | **Additions**<br>**Charged to**<br> **Costs and**<br> **Expenses** | <br>**Deductions** | <br>**Balance at End**<br> **of Period** |
| Allowance for doubtful accounts: |  |  |  |  |
| &nbsp;&nbsp;Year Ended December 31, 2022 | $110 | $512 | $(254) | $368 |
| &nbsp;&nbsp;Year Ended December 31, 2021 | $121 | $148 | $(159) | $110 |
| &nbsp;&nbsp;Year Ended December 31, 2020 | $318 | $(175) | $(22) | $121 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | <br>**Balance at** <br>**Beginning of**<br> **Period** | **Allowance** <br>**Recorded on** <br>**Current Year** <br>**Losses** | **Change**<br>**In Foreign**<br>**Exchange**<br>**Rate** | <br>**Balance at End**<br> **of Period** |
| Deferred tax asset valuation allowance: |  |  |  |  |
| &nbsp;&nbsp;Year Ended December 31, 2022 | $88370 | $22954 | $(206) | $111118 |
| &nbsp;&nbsp;Year Ended December 31, 2021 | $23178 | $65356 | $(164) | $88370 |
| &nbsp;&nbsp;Year Ended December 31, 2020 | $3161 | $19877 | $140 | $23178 |

---

## Exhibit 10.2

**Exhibit 10.2**

#### INDEMNIFICATION AGREEMENT
This Indemnification Agreement, effective as of [●], 20[●] (this "***Agreement***"), is made by and between Tabula Rasa HealthCare, Inc., a Delaware corporation (the "***Company***"), and [●] ("***Indemnitee***").

#### RECITALS:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.The Company desires to attract and retain the services of highly qualified individuals as directors and officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Competent and experienced persons are reluctant to serve corporations as directors or officers or in other fiduciary capacities unless they are provided with adequate protection from claims and actions against them arising out of their service to the corporation in addition to any protections provided by the organizational documents of the corporation, including the certificate of incorporation and bylaws, and, as a result, it is common for publicly traded companies to enter into indemnification agreements with their directors and officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Indemnitee's willingness to [continue to] serve as [a director][an officer] of the Company is predicated, in substantial part, upon the Company's willingness to indemnify Indemnitee and to provide advancement of Expenses (as defined in Section 1(e)) to Indemnitee, to the fullest extent permitted by the laws of the State of Delaware, and upon the other undertakings set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.The board of directors of the Company (the "***Board***") has determined that enhancing the ability of the Company to retain and attract as directors and officers the most capable persons is in the best interests of the Company and that the Company therefore should seek to assure such persons that indemnification and insurance coverage is available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.Therefore, in recognition of the need to provide Indemnitee with substantial protection against personal liability, in order to procure Indemnitee's [continued] service as [a director][an officer] of the Company and to enhance Indemnitee's ability to serve the Company in an effective manner, and in order to provide such protection pursuant to express contract rights (intended to be enforceable irrespective of, among other things, any amendment to the Company's certificate of incorporation or bylaws (collectively, the "***Constituent Documents***"), any change in the composition of the Board or any change-in-control or business combination transaction relating to the Company), the Company wishes to provide in this Agreement for the indemnification of and the advancement of Expenses to Indemnitee as set forth in this Agreement and for the continued coverage of Indemnitee under the Company's directors' and officers' liability insurance policies.

#### AGREEMENT :
NOW, THEREFORE, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Certain Definitions.** In addition to terms defined elsewhere herein, the following terms have the following meanings when used in this Agreement with initial capital letters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)***"Beneficial Owner"*** has the meaning given to the term "beneficial owner" in Rule 13d-3 under the Securities Exhange Act of 1934 (the "***Exchange Act***").

 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)***"Change in Control"*** means the occurrence after the date of this Agreement of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the consummation of a reorganization, merger or consolidation or other similar transaction (each, a ***"Business Combination"***), unless, in each case, immediately following such Business Combination all or substantially all of the Beneficial Owners of Voting Stock of the Company immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the combined voting power of the then outstanding shares of Voting Stock of (1) the surviving or resulting entity of such Business Combination or (2) if the surviving or resulting entity is a wholly owned subsidiary of another entity immediately following such Business Combination, the parent entity of such surviving or resulting entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)approval by the stockholders of the Company of a complete liquidation or dissolution of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)during any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), Incumbent Directors cease for any reason to constitute at least a majority of the members of the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 35% or more of the voting power of the Company's then outstanding Voting Stock other than a change in relative Beneficial Ownership of the Company's securities by any Person resulting solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**"*Claim*"** means (i) any threatened, asserted, pending or completed claim, counterclaim, cross claim, demand, action, suit or proceeding, whether civil, criminal, administrative, arbitrative, investigative or other, and whether made pursuant to federal, state or other law; and (ii) any inquiry, hearing or investigation, whether made, instituted or conducted by the Company or any other party, including without limitation any federal, state or other governmental entity, that Indemnitee determines might lead to the institution of any such claim, demand, action, suit or proceeding. A Claim shall include any appeals therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**"*Disinterested Director*"** means a director of the Company who is not and was not a party to the Claim in respect of which indemnification is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)**"*Expenses*"** shall include any and all expenses, including all reasonable attorneys' fees, retainers, court costs, transcript costs, fees of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes (including ERISA excise taxes and penalties) imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, and all other disbursements, obligations or expenses of the types customarily incurred in connection with, or as a result of, prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a deponent or witness in, or otherwise participating in, any Claim. Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any Indemnifiable Claim, including, without limitation, the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, (ii) Expenses incurred in connection with recovery under any directors' and officers' liability insurance policies maintained by the Company, regardless of whether Indemnitee is ultimately determined to be entitled to such indemnification, advancement or Expenses or insurance recovery, as the case may be. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)**"*Incumbent Directors*"** means the individuals who, as of the date hereof, are directors of the Company and any individual becoming a director subsequent to the date hereof whose election, nomination for election by the Company's stockholders, or appointment was approved by a vote of at least two-thirds of the then still in office directors who were either directors as of the date hereof or whose election or nomination for election was previously so approved (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection to such nomination).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)**"*Indemnifiable Claim*"** means any Claim based upon, arising out of or resulting from any event or occurrence, whether occurring before, on or after the date of this Agreement, related to the fact that Indemnitee is or was a director, officer, employee or agent of the Company or is or was serving at the request of the Company as a director, officer, employee, member, manager, trustee or agent of any other corporation, limited liability company, partnership, joint venture, trust or other entity or enterprise (collectively with the Company, "***Enterprise***"), or by reason of an action or inaction by Indemnitee in any such capacity (whether or not serving in such capacity at the time any Loss is incurred for which indemnification can be provided under this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)**"*Indemnifiable Losses*"** means any and all Losses relating to, arising out of or resulting from any Indemnifiable Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)**"*Independent Counsel*"** means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent or performed services for: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Indemnifiable Claim giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)**"*Losses*"** means any and all Expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil, criminal or other), any federal, state, local or foreign taxes (including ERISA excise taxes and penalties) imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, and amounts paid in settlement, including without limitation all interest, assessments and other charges, paid or payable in connection with or in respect of any Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)**"*Person*"** means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association, organization, governmental entity or other entity and includes the meaning set forth in Sections 13(d) and 14(d) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)***"Subsidiary"*** means an entity in which the Company directly or indirectly Beneficially Owns 50% or more of the outstanding Voting Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)***"Voting Stock"*** means securities entitled to vote generally in the election of directors (or similar governing bodies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Indemnification Obligation.** Subject to Sections 7 and 15, the Company shall indemnify, defend and hold harmless Indemnitee, to the fullest extent permitted by the laws of the State of Delaware in effect on the date hereof or as such laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all Indemnifiable Losses actually and reasonably incurred in connection with any Indemnifiable Claim, including, without limitation, Indemnifiable Claims brought by or in the right of the Company, Indemnifiable Claims brought by third parties, and Indemnifiable Claims in which the Indemnitee is solely a witness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Advancement of Expenses.** Subject to Section 15, Indemnitee shall have the right to advancement by the Company prior to the final disposition of any Indemnifiable Claim, by final adjudication to which there are no further rights of appeal, of any and all Expenses actually and reasonably paid or incurred by Indemnitee in connection with any Indemnifiable Claim. Indemnitee's right to such advancement is not subject to the satisfaction of any standard of conduct. Advances shall be unsecured and interest free. Without limiting the generality or effect of the foregoing, within [ten] business days after any request by Indemnitee, the Company shall, in accordance with such request, (a) pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such Expenses. In connection with any such payment, advancement or reimbursement, Indemnitee shall

------

not be required to provide any documentation or information to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. Indemnitee hereby undertakes to repay to the Company any Expense advanced pursuant to this Section 3 if and to the extent that it shall ultimately be determined by final disposition of such Indemnifiable Claim from which there is no further right to appeal that Indemnitee is not entitled to be indemnified under this Agreement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.Indemnification for Additional Expenses.** The Company shall also indemnify against and, if requested by Indemnitee, shall advance to Indemnitee, subject to and in accordance with Section 3, within [ten] business days of such request, any Expenses actually and reasonably paid or incurred by Indemnitee in connection with any Claim by Indemnitee for (a) indemnification or reimbursement or advance payment of Expenses by the Company under any provision of this Agreement, or under any other agreement or provision of the Constituent Documents now or hereafter in effect relating to Indemnifiable Claims, and/or (b) recovery under any directors' and officers' liability insurance policies maintained by the Company, regardless in each case of whether Indemnitee ultimately is determined to be entitled to such indemnification, reimbursement, advance or insurance recovery, as the case may be. Indemnitee shall be required to reimburse the Company in the event that a final judicial determination is made that such action brought by Indemnitee was frivolous or not made in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.Partial Indemnity.** If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any Indemnifiable Loss but not for all of the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.Procedure for Notification**. To obtain indemnification under this Agreement in respect of an Indemnifiable Claim or advancement of Expenses, Indemnitee shall submit to the Company a written notice as soon as practicable of any Claim which could relate to an Indemnifiable Claim or for which the Indemnitee could seek advancement of Expenses hereunder, including a brief description (based upon information then available to Indemnitee) of the nature of, and the facts underlying, such Claim. If, at the time of the receipt of such request, the Company has directors' and officers' liability insurance in effect under which coverage for such Indemnifiable Claim is potentially available, the Company shall give prompt written notice of such Indemnifiable Claim to the applicable insurers in accordance with the procedures set forth and the time periods specified in the applicable policies. The Company shall provide to Indemnitee a copy of such notice delivered to the applicable insurers, and copies of all subsequent correspondence between the Company and such insurers regarding the Indemnifiable Claim, in each case substantially concurrently with the delivery or receipt thereof by the Company. The failure by Indemnitee to timely notify the Company of any Indemnifiable Claim shall not relieve the Company from any liability hereunder unless, and only to the extent that, the Company is materially prejudiced by such failure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.Application and Determination of Right to Indemnification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)In order to obtain indemnification pursuant to this Agreement, Indemnitee shall submit to the Company a written request therefor (following the final disposition of the applicable Indemnifiable Claim), including in such request, except to the extent previously provided to the Company in connection with a request or requests for advancement of expenses pursuant to Section 3 hereof, a statement or statements reasonably evidencing all Losses incurred or paid by or on behalf of the Indemnitee and for which indemnification is requested and such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. Indemnification shall be made insofar as the Company determines Indemnitee is entitled to indemnification in accordance with this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)To the extent that Indemnitee shall have been successful on the merits or otherwise in defense of any Indemnifiable Claim or any portion thereof or in defense of any issue or matter therein, including without limitation dismissal without prejudice, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred relating to such Indemnifiable Claim in accordance with Section 2 and no Standard of Conduct Determination (as defined in Section 7(d)) shall be required. If the Indemnitee is not wholly successful in defending any Indemnifiable Claim but is successful, on the merits or otherwise, in defending one or more but less than all claims, issues or matters relating to any such Indemnifiable Claim, including dismissal without prejudice of certain claims, issues or matters, the Company shall indemnify the Indemnitee against all Expenses actually and reasonably incurred by the Indemnitee or on the Indemnitee's behalf in defending each such successfully resolved claim, issue or matter, and no Standard of Conduct Determination (as defined in Section 7(d)) shall be required.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)To the extent that Indemnitee's involvement in an Indemnifiable Claim is to prepare to serve and serve as a witness, and not as a party, the Indemnitee shall be indemnified against all Expenses incurred in connection therewith to the fullest extent permitted by law and no Standard of Conduct Determination (as defined in Section 7(d)) shall be required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)To the extent that the provisions of Section 7(b) and Section 7(c) are inapplicable to an Indemnifiable Claim that shall have been finally disposed of, any determination of whether Indemnitee has satisfied any applicable standard of conduct under Delaware law that is a legally required condition to indemnification of Indemnitee hereunder against Indemnifiable Losses relating to such Indemnifiable Claim (a "***Standard of Conduct Determination***") shall be made as follows: (i) unless a Change in Control has occurred, (A) by a majority vote of the Disinterested Directors, even if less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even if less than a quorum of the Board, or (C) if there are no such Disinterested Directors, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee; and (ii) if a Change in Control shall have occurred, (A) if the Indemnitee so requests in writing, by a majority vote of the Disinterested Directors, even if less than a quorum of the Board or (B) otherwise, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee. The Company shall indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within 10 business days of such request, any and all costs and expenses (including attorneys' and experts' fees and expenses) incurred by Indemnitee in cooperating with the person or persons making such Standard of Conduct Determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Company shall use its reasonable best efforts to cause any Standard of Conduct Determination required under Section 7(d) to be made as promptly as practicable. If the person or persons determined under Section 7 to make the Standard of Conduct Determination shall not have made a determination within 45 days after the later of (A) receipt by the Company of written notice from Indemnitee advising the Company of the final disposition of the applicable Claim (the date of such receipt being the "***Notification Date***") and (B) the selection of an Independent Counsel, if such determination is to be made by Independent Counsel, then Indemnitee shall, to the fullest extent permitted by law, be deemed to have satisfied the applicable standard of conduct; *provided* that such 45-day period may be extended for a reasonable time, not to exceed an additional 45 days, if the person or persons making such determination in good faith requires such additional time to obtain or evaluate information relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)If (i) Indemnitee shall be entitled to indemnification pursuant to Section 7(b) or (c), (ii) no determination of whether Indemnitee has satisfied any applicable standard of conduct under Delaware law is a legally required condition to indemnification of Indemnitee hereunder against any Indemnifiable Losses, or (iii) Indemnitee has been determined or deemed pursuant to Section 7(d) or (e) to have satisfied any applicable standard of conduct under Delaware law which is a legally required condition to indemnification of Indemnitee, then the Company shall pay to Indemnitee, within 10 business days after the later of (x) the Notification Date and (y) the earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) is satisfied, an amount equal to such Indemnifiable Losses. If it is determined that the Indemnitee is not entitled to indemnification, then the written notice to the Indemnitee (or, if such determination has been made by Independent Counsel in a written opinion, the copy of such written opinion delivered to the Indemnitee) shall disclose the basis upon which such determination is based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to Section 7(d)(i), the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising Indemnitee of the identity of the Independent Counsel so selected. If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to Section 7(d)(ii), the Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either case, Indemnitee or the Company, as applicable, may, within five business days after receiving written notice of selection from the other, deliver to the other a written objection to such selection; *provided*, *however*, that such objection may be asserted only on the ground that the Independent Counsel so selected does not satisfy the criteria set forth in the definition of "Independent Counsel" in Section 1(i), and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person or firm so selected shall act as Independent Counsel. If such written objection is properly and timely made and substantiated, (i)

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the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit and (ii) the non-objecting party may, at its option, select an alternative Independent Counsel and give written notice to the other party advising such other party of the identity of the alternative Independent Counsel so selected, in which case the provisions of the two immediately preceding sentences and clause (i) of this sentence shall apply to such subsequent selection and notice. If applicable, the provisions of clause (ii) of the immediately preceding sentence shall apply to successive alternative selections. If no Independent Counsel that is permitted under the foregoing provisions of this Section 7(g) to make the Standard of Conduct Determination shall have been selected within 30 days after the Company gives its initial notice pursuant to the first sentence of this Section 7(g) or Indemnitee gives its initial notice pursuant to the second sentence of this Section 7(g), as the case may be, either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware (the "***Delaware Court***") for resolution of any objection which shall have been made by the Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Delaware Court or by such other person as the Delaware Court shall designate, and the person or firm with respect to whom all objections are so resolved or the person or firm so appointed will act as Independent Counsel. In all events, the Company shall pay all of the reasonable fees and expenses of the Independent Counsel incurred in connection with the Independent Counsel's determination pursuant to Section 7(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.Presumption of Entitlement and Reliance as a Safe Harbor.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)In making any Standard of Conduct Determination, the Person or Persons making such determination shall, to the fullest extent permitted by law, presume that Indemnitee has satisfied the applicable standard of conduct, and the Company shall have the burden of proof to overcome that presumption in connection with the making by any Person or Persons of any determination contrary to that presumption. Any Standard of Conduct Determination that is adverse to Indemnitee may be challenged by the Indemnitee in the Delaware Court. No determination by the Company (including by its directors or any Independent Counsel) that Indemnitee has not satisfied any applicable standard of conduct shall be a defense to any Claim by Indemnitee for indemnification or reimbursement or advance payment of Expenses by the Company hereunder or create a presumption that Indemnitee has not met any applicable standard of conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)For purposes of this Agreement, and without creating any presumption as to a lack of good faith if the following circumstances do not exist, Indemnitee shall be deemed to have acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company if Indemnitee's actions or omissions to act are taken in good faith reliance upon the records of the Company, including its financial statements, or upon information, opinions, reports or statements furnished to Indemnitee by the officers or employees of the Company or any of its subsidiaries in the course of their duties, or by committees of the Board or by any other Person (including legal counsel, accountants and financial advisors) as to matters Indemnitee reasonably believes are within such other Person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Company. In addition, the knowledge and/or actions, or failures to act, of any director, officer, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnity hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.No Other Presumption.** For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of *nolo contendere* or its equivalent, will not create a presumption that Indemnitee did not meet any applicable standard of conduct or that indemnification hereunder is otherwise not permitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.Non**-**Exclusivity.** The rights of Indemnitee hereunder will be in addition to any other rights Indemnitee may have under the Constituent Documents, or the General Corporation Law of the State of Delaware, any other contract or otherwise (collectively, "***Other Indemnity Provisions***"); *provided*, *however*

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, that (a) to the extent that Indemnitee otherwise would have any greater right to indemnification under any Other Indemnity Provision, Indemnitee will be deemed to have such greater right hereunder and (b) to the extent that any change is made to any Other Indemnity Provision which permits any greater right to indemnification than that provided under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right hereunder. The Company will not adopt any amendment to any of the Constituent Documents the effect of which would be to deny, diminish or encumber Indemnitee's right to indemnification under this Agreement or any Other Indemnity Provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.Liability Insurance and Funding.** For the duration of Indemnitee's service as [a director][an officer] of the Company, and thereafter for so long as Indemnitee shall be subject to any pending Indemnifiable Claim, the Company shall use commercially reasonable efforts (taking into account the scope and amount of coverage available relative to the cost thereof) to cause to be maintained in effect policies of directors' and officers' liability insurance providing coverage for directors and/or officers of the Company that is at least substantially comparable in scope and amount to that provided by the Company's current policies of directors' and officers' liability insurance. The Company shall provide Indemnitee with a copy of all directors' and officers' liability insurance applications, binders, policies, declarations, endorsements and other related materials, and shall provide Indemnitee with a reasonable opportunity to review and comment on the same. Without limiting the generality or effect of the two immediately preceding sentences, the Company shall not discontinue or significantly reduce the scope or amount of coverage from one policy period to the next (i) without the prior approval thereof by a majority vote of the Incumbent Directors, even if less than a quorum, or (ii) if at the time that any such discontinuation or significant reduction in the scope or amount of coverage is proposed there are no Incumbent Directors, without the prior written consent of Indemnitee (which consent shall not be unreasonably withheld or delayed). In all policies of directors' and officers' liability insurance obtained by the Company, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits, subject to the same limitations, as are accorded to the Company's directors and officers most favorably insured by such policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.Subrogation.** In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the related rights of recovery of Indemnitee against other Persons (other than Indemnitee's successors), including any Enterprise referred to in the definition of "Indemnifiable Claim" in Section 1(g). Indemnitee shall execute all papers reasonably required to evidence such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.No Duplication of Payments.** The Company shall not be liable under this Agreement to make any payment to Indemnitee in respect of any Indemnifiable Losses to the extent Indemnitee has otherwise actually received payment (net of Expenses incurred in connection therewith) under any insurance policy, the Constituent Documents and Other Indemnity Provisions or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.Defense of Claims.** The Company shall be entitled to participate in the defense of any Indemnifiable Claim at its own expense and, except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof, with counsel reasonably satisfactory to the Indemnitee. After notice from the Company to Indemnitee of its election to assume the defense of any such Indemnifiable Claim, the Company shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently directly incurred by Indemnitee in connection with Indemnitee's defense of such Indemnifiable Claim except as otherwise provided below. If Indemnitee has reasonably determined, after consultation with counsel selected by Indemnitee, that (a) the use of counsel chosen by the Company to represent Indemnitee would present such counsel with an actual or potential conflict, (b) the named parties in any such Indemnifiable Claim (including any impleaded parties) include both the Company and Indemnitee and that there may be one or more legal defenses available to Indemnitee that are different from or in addition to those available to the Company, or (c) any such representation by such counsel would be precluded under the applicable standards of professional conduct then prevailing, then Indemnitee shall be entitled to retain separate counsel (but not more than one law firm plus, if applicable, local counsel in respect of any particular Indemnifiable Claim) at the Company's expense. The Company shall not be liable to Indemnitee under this Agreement for any amounts paid in settlement of any threatened or pending Indemnifiable Claim effected without the Company's prior written consent; *provided, however*

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, that if a Change in Control has occurred, the Company shall be liable for indemnification of the Indemnitee for amounts paid in settlement if an Independent Counsel has approved the settlement. The Company shall not, without the prior written consent of the Indemnitee, effect any settlement of any threatened or pending Indemnifiable Claim which the Indemnitee is or could have been a party unless such settlement solely involves the payment of money and includes a complete and unconditional release of the Indemnitee from all liability on any claims that are the subject matter of such Indemnifiable Claim. Neither the Company nor Indemnitee shall unreasonably withhold its consent to any proposed settlement; *provided* that Indemnitee may withhold consent to any settlement that does not provide a complete and unconditional release of Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.Exclusions from Indemnification**. Notwithstanding anything in this Agreement to the contrary, the Company shall not be obligated to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Indemnify or advance funds to Indemnitee for Expenses or Losses with respect to proceedings (or any part thereof) initiated by Indemnitee, including any proceedings against the Company or its directors, officers, employees or other indemnitees or by way of defense of any counterclaim, cross-claim, affirmative defense, or like claim of the Company in such proceedings (or part thereof), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)proceedings referenced in Section 4 above (unless a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such proceedings was not made in good faith or was frivolous); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)where the Board has consented to the initiation of such proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Indemnify Indemnitee if a final decision by a court of competent jurisdiction determines that such indemnification is prohibited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Indemnify Indemnitee for the disgorgement of profits arising from the purchase or sale by Indemnitee of securities of the Company in violation of Section 16(b) of the Exchange Act, or any similar successor statute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Indemnify or advance funds to Indemnitee for Indemnitee's reimbursement to the Company of any bonus or other incentive-based or equity-based compensation previously received by Indemnitee or payment of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements under Section 304 of the Sarbanes-Oxley Act of 2002 in connection with an accounting restatement of the Company or the payment to the Company of profits arising from the purchase or sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act of 2002).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.Services to the Company**. Indemnitee agrees [to continue] to serve as [a director][an officer] of the Company for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders Indemnitee's resignation or is no longer serving in such capacity. This Agreement shall not be deemed an employment agreement between the Company (or any of its subsidiaries or Enterprises) and Indemnitee. Indemnitee specifically acknowledges that Indemnitee's [employment with/service to] the Company or any of its subsidiaries or Enterprises is at will and the Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment agreement between Indemnitee and the Company (or any of its subsidiaries or Enterprises), other applicable formal severance policies duly adopted by the Board or, with respect to service as a director or officer of the Company, by the Constituent Documents or Delaware law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.Successors and Binding Agreement.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business or assets of the Company, by agreement in form and substance satisfactory to Indemnitee and Indemnitee's counsel, expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place. This Agreement shall be binding upon and inure to the benefit of the Company and any successor to the Company, including without limitation any Person acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such

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successor will thereafter be deemed the "***Company***" for purposes of this Agreement), but shall not otherwise be assignable or delegatable by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)This Agreement shall inure to the benefit of and be enforceable by the Indemnitee's personal or legal representatives, executors, administrators, heirs, distributees, legatees and other successors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)This Agreement is personal in nature and neither of the parties hereto shall, without the consent of the other, assign or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Sections 17(a) and 17(b). Without limiting the generality or effect of the foregoing, Indemnitee's right to receive payments hereunder shall not be assignable, whether by pledge, creation of a security interest or otherwise, other than by a transfer by the Indemnitee's will or by the laws of descent and distribution, and, in the event of any attempted assignment or transfer contrary to this Section 17(c), the Company shall have no liability to pay any amount so attempted to be assigned or transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company, or (b) one (1) year after the final determination of any Indemnifiable Claim then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding (including any appeal thereof) commenced by Indemnitee pursuant to this Agreement relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.Notices.** For all purposes of this Agreement, all communications, including without limitation notices, consents, requests or approvals, required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when hand delivered or when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, or five business days after having been mailed by United States registered or certified mail, return receipt requested, postage prepaid or one business day after having been sent for next-day delivery by a nationally recognized overnight courier service, addressed to the Company (to the attention of the Secretary of the Company) and to Indemnitee at the addresses shown on the signature page hereto, or to such other address as any party may have furnished to the other in writing and in accordance herewith, except that notices of changes of address will be effective only upon receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.Governing Law.** The validity, interpretation, construction and performance of this Agreement shall be governed by and construed in accordance with the substantive laws of the State of Delaware, without giving effect to the principles of conflict of laws of such State. The Company and Indemnitee each hereby irrevocably (a) consent to the exclusive jurisdiction of the Delaware Court for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement, (b) agree that any action arising out of or relating to this Agreement shall be brought only in the Delaware Court, (c) waive any objection to the laying of venue of such action or proceeding in the Delaware Court, and (d) waive, and agree not to plead or make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.Validity.** If any provision of this Agreement or the application of any provision hereof to any person or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any other person or circumstance shall not be affected, and the provision so held to be invalid, unenforceable or otherwise illegal shall be reformed to the extent, and only to the extent, necessary to make it enforceable, valid or legal. In the event that any court or other adjudicative body shall decline to reform any provision of this Agreement held to be invalid, unenforceable or otherwise illegal as contemplated by the immediately preceding sentence, the parties thereto shall take all such action as may be necessary or appropriate to replace the provision so held to be invalid, unenforceable or otherwise illegal with one or more alternative provisions that effectuate the purpose and intent of the original provisions of this Agreement as fully as possible without being invalid, unenforceable or otherwise illegal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.Miscellaneous.** No provision of this Agreement may be supplemented, modified or amended unless such supplement, modification or amendment is agreed to in writing signed by Indemnitee and the Company. No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed by the party against whom enforcement of the waiver is sought, and no such waiver by

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either party hereto at any time of any breach by the other party hereto or compliance with any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, expressed or implied with respect to the subject matter hereof have been made by either party that are not set forth expressly in this Agreement. References to Sections are to references to Sections of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.Certain Interpretive Matters.** No provision of this Agreement shall be interpreted in favor of, or against, either of the parties hereto by reason of the extent to which any such party or its counsel participated in the drafting thereof or by reason of the extent to which any such provision is inconsistent with any prior draft hereof or thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.Counterparts.** This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original but all of which together shall constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.Contribution**. To the fullest extent permissible under applicable law, if the indemnification or other rights and benefits provided to Indemnitee in this Agreement are unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amounts incurred by Indemnitee, for any and all Indemnifiable Losses in connection with any claim relating to an Indemnifiable Claim under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Indemnifiable Claim in order to reflect (i) the relative benefits received by the Company, on the one hand, and Indemnitee, on the other hand, as a result of the event(s) and/or transaction(s) giving cause to such Indemnifiable Claim; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents), on the one hand, and Indemnitee, on the other hand, in connection with such event(s) and/or transaction(s), with any such determination regarding the contribution amount being made in the same manner as a Standard of Conduct Determination as set forth in Section 7(d)(i) or (ii), as applicable.

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IN WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly authorized representative to execute this Agreement as of the date first above written.

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| |
|:---|
| **TABULA RASA HEALTHCARE, INC.**<br><u> </u> <br>Name:<br>Title: <br>Date:  |
| **INDEMNITEE**<br>Signature of Indemnitee<br>Print or Type Name of Indemnitee<br>Date |

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## Exhibit 10.59

**Exhibit 10.59**

CERTAIN SCHEDULES AND EXHIBITS HAVE BEEN OMITTED PURSUANT TO ITEM 601(a)(5) OF REGULATION S-K. IN ADDITION, PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO ITEM 601(b)(2) of REGULATION S-K BECAUSE THEY (i) ARE NOT MATERIAL AND (ii) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED. THE COMPANY AGREES TO FURNISH SUPPLEMENTALLY TO THE COMMISSION AN UNREDACTED COPY OF THIS EXHIBIT, OR A COPY OF ANY OMITTED SCHEDULE OR EXHIBIT, UPON REQUEST.

**share AND ASSET PURCHASE AGREEMENT**

This SHARE AND ASSET PURCHASE AGREEMENT is made and entered into as of January 20, 2023 (this "<u>Agreement</u>"), by and between Tabula Rasa HealthCare Group, Inc., a Delaware corporation ("<u>Seller</u>"), and DoseMe Operations Inc., a Delaware corporation ("<u>Buyer</u>"). Each of Buyer and Seller is sometimes referred to in this Agreement as a "<u>Party</u>" and collectively as the "<u>Parties</u>."

WHEREAS, (i) Seller holds all of the outstanding shares of, or ownership interests in DM Acquisition Pty Ltd ACN 630 250 583, a proprietary company limited by shares incorporated in Victoria and organized under the Laws of Australia ("<u>DMAP</u>"), (ii) DMAP holds all of the outstanding shares of, or ownership interests in DoseMe Holdings Pty Ltd ACN 168 742 336, a proprietary company limited by shares incorporated in Queensland and organized under the Laws of Australia ("<u>Holdings</u>"), and (iii) Holdings holds all of the outstanding shares of, or ownership interests in DoseMe Pty Ltd ACN 159 402 276, a proprietary company limited by shares incorporated in Queensland and organized under the Laws of Australia ("<u>DoseMe</u>," and together with DMAP, and Holdings, the "<u>Transferred Entities</u>").

WHEREAS, (i) Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, (a) all of the issued and outstanding shares of, and ownership interests in, DMAP (the "<u>Shares</u>"), and (b) all of Seller's rights, titles, and interests in and to the assets, properties and rights of Seller set forth in <u>Schedule A</u> (collectively, the "<u>Purchased Assets</u>"), and (ii) Buyer desires to assume, and Seller desires to have Buyer assume, all liabilities and obligations directly related to the Purchased Assets, including the liabilities and obligations set forth on <u>Schedule C</u>, in each case, upon the terms and subject to the conditions set forth in this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

1.<u>Purchase and Sale of Shares and Purchased Assets; Assumption of Liabilities; Extinguishment of Intercompany Indebtedness</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Subject to the terms and conditions set forth herein, at the Closing, Seller hereby (without any further action from any Party other than the payment of the Purchase Price in accordance herewith) sells, conveys, assigns, transfers and delivers to Buyer, free and clear of any mortgage, lien, pledge, charge, security interest (including security interests as defined in section 12(1) of the Personal Property Securities Act 2009 (Cth) (the " <u>PPSA</u> "), adverse claim or other encumbrance in respect of such property or asset (collectively, " <u>Liens</u> "), other than restrictions on transfers under applicable securities Laws, and Buyer hereby (without any further action from any Party other than the payment of the Purchase Price in accordance herewith) purchases, acquires and accepts from Seller, all of Seller's right, title and interest in and to the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Subject to the terms and conditions set forth herein, at the Closing, Seller hereby (without any further action from any Party other than the payment of the Purchase Price in accordance herewith) grants, sells, transfers, conveys and assigns to Buyer, all of Seller's right, title and interest, legal and equitable, in and to all of the Purchased Assets, free and clear of all Liens other than (i) liens for Taxes not yet due and payable; (ii) mechanics, carriers', workmen's, repairmen's or other like liens arising or incurred in the ordinary course of business; (iii) restrictions on transfers under applicable securities Laws; (iv) any lien or retention of title arrangement securing the unpaid balance of purchase money for property acquired in the ordinary course of business on the supplier's standard terms where such unpaid balance is not yet due and such security only affects the relevant property; (v) any encumbrance or security interest in relation to personal property (as defined in the PPSA and to which the PPSA applies) that is created or provided for by a transfer of an Account or Chattel Paper, a PPS Lease, or a

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Commercial Consignment (in each case, as defined in the PPSA) that is not a security interest within section 12(1) of the PPSA; and (vi) the interest of the lessor or owner in respect of assets subject to a finance or capital lease, a hire-purchase agreement or a conditional sale agreement (collectively, "<u>Permitted Liens</u>"), and Buyer hereby (without any further action from any Party other than the payment of the Purchase Price in accordance herewith) purchases, acquires and accepts from Seller, all of Seller's right, title and interest in and to the Purchased Assets. For the avoidance of doubt, the Purchased Assets do not include, and Seller is not granting, selling, transferring, conveying and assigning any of the assets, properties or rights of Seller or its affiliates not set forth on <u>Schedule A</u>, including but not limited to, the assets, properties or rights set forth on <u>Schedule B</u> (collectively, the "<u>Excluded Assets</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Upon the terms and subject to the conditions of this Agreement, Buyer hereby (without any further action from any Party) assumes all liabilities and obligations directly related to the Purchased Assets, whether known or unknown, contingent, matured or otherwise, including (without limitation) the liabilities set forth on <u>Schedule C</u>, in each case, whether arising at, prior to or after the Closing, excluding, however any pre-Closing liability or obligation with respect to the Customer Contracts (as such term is defined below) that are Purchased Assets other than as explicitly set forth in the Estimated Working Capital and/or Closing Working Capital (collectively, the " <u>Assumed Liabilities</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Notwithstanding any other provision of this Agreement to the contrary, this Agreement shall not constitute an assignment or transfer of any Purchased Asset or Assumed Liability if an attempted assignment or transfer thereof, without the consent of a third party, would constitute a breach or other contravention thereof or would in any way adversely affect the rights of Buyer or Seller (as applicable) thereto or thereunder, and such consent has not been obtained on or prior to the Closing. If on the Closing Date any such consent is not obtained, then (i) Seller and Buyer will cooperate in a mutually agreeable arrangement, under which Buyer would obtain the benefits and assume the obligations and bear the economic burdens associated with such Purchased Asset and Assumed Liabilities in accordance with this Agreement, including subcontracting, sublicensing or subleasing to Buyer, or under which Seller would, pursuant to written instructions by Buyer, enforce for the benefit of Buyer any of the applicable rights against a third party associated with such Purchased Asset or Assumed Liability (collectively, " <u>Third Party Rights</u> "), and Seller would promptly pay to Buyer when received all monies received by them under any such Purchased Asset, and (ii) for one (1) year after the Closing Date, Seller and Buyer will continue to use their respective commercially reasonable efforts to obtain any consent necessary for the transfer or assignment of any such Purchased Asset or Assumed Liability to Buyer, and, upon the receipt of such consent such Purchased Asset or Assumed Liability, as the case may be, will immediately (without any further action by any Party) transfer to Buyer. Any out-of-pocket costs or expenses related to the seeking and/or obtaining of such consents post-Closing shall be split equally between Buyer and Seller other than any expenses for legal counsel which shall be borne by the party incurring such expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Other than the Assumed Liabilities, Buyer is not assuming any liabilities or obligations of Seller of any kind, whether known or unknown, contingent, matured or otherwise, whether currently existing or hereinafter created.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. With no further action by any party, Seller hereby discharges and extinguishes in full all indebtedness owed by DMAP, Holdings and DoseMe to Seller.

2.<u>Closing Date</u>. The closing of the transactions contemplated by this Agreement (the "<u>Closing</u>") shall be effective as of 12:01 a.m., Eastern Time, on the date hereof and shall take place remotely via exchange of electronic documents and signatures or at such other time and place as Seller and Buyer may mutually agree. The date on which the Closing occurs is referred to in this Agreement as the "<u>Closing Date</u>".

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3. P<u>urchase Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The aggregate amount to be paid by Buyer on the Closing Date with respect to the Purchased Assets and Shares shall equal (the " <u>Purchase Price</u> "): (i) $2,000,000 <u>plus</u> the amount (which may be a negative number) equal to Estimated Working Capital <u>minus</u> $(715,795.98) (such amount, the " <u>Estimated Closing Payment</u> ") paid by Buyer to Seller on the Closing Date, (ii) $3,000,000, paid by Buyer in the form of a promissory note due January 20, 2027 (the " <u>Note</u> ") which is attached hereto as <u>Exhibit A</u> and subject to the conditions set forth in Section 3(b) and (iii) the assumption of the Assumed Liabilities. All amounts payable under clause (i) of this <u>Section 3(a)</u> shall be paid to an account designated in writing by Seller by wire transfer of immediately available funds. The Purchase Price is subject to adjustments in accordance with <u>Section 4</u>. All amounts set forth in the Estimated Working Capital and the Closing Working Capital that are referenced in foreign currencies other than United States Dollars shall be translated into United States Dollars, determined at the applicable exchange rates as reported by Bloomberg, as of the close of business on the day prior to the Closing Date, or such other method agreed to by the parties hereto in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Schedule 3(b) sets forth each customer contract that is an Assigned Contract (the " <u>Customer Contracts</u> ") together with the ARR (as defined below) affiliated with such Customer Contract, whether or not such Customer Contract requires consent from the counterparty thereto in connection with the consummation of the transactions set forth herein and whether such Customer Contract allows the counterparty thereto to terminate such agreement for convenience. In the event that any Customer Contract (i) that (A) requires consent to assign such Assigned Contract from the counterparty thereto in connection with the consummation of the transactions set forth herein or (B) allows the counterparty thereto to terminate such agreement for convenience is terminated by the counterparty thereto or written notice (email shall suffice) from the counterparty to the applicable Customer Contract that such counterparty affirmatively does not consent to the transactions contemplated hereby is received by Buyer within 90 days following the Closing (the " <u>Measurement Date</u> ") or (ii) is terminated by the counterparty thereto, prior to the Measurement Date, in accordance with its terms because of a breach by any party thereto commencing before the Closing (the agreements referred to in subclauses (i) and (ii), the " <u>Eligible Customer Contracts</u> " (and in the case of (i), each such Eligible Customer Contract is noted as such on Schedule 3(b)) and all such terminated agreements referenced in (i) and (ii), the " <u>Terminated Customer Contracts</u> "), then the Note shall be decreased by the Adjustment Amount (as such term is defined below). If any Eligible Customer Contract is terminated because of a breach arising after the Closing, other than as a result of the failure to obtain consents for the transactions contemplated herein, then the ARR with respect to such terminated Customer Contract shall be included in the calculation of the ARR as of the Measurement Date and such Customer Contract shall not be deemed a Terminated Customer Contract. For the period beginning at the Closing through the 90-day anniversary of the Closing, Buyer and solely in the case of the following subclasses (I) and (II), Seller, shall, and shall cause their respective affiliates to, (I) exercise good faith efforts to obtain all applicable consents for each Customer Contract requiring counterparty's consent to assign such Customer Contract to Buyer from such counterparty, (II) not take any action to intentionally undermine or prevent obtaining such consents and (III) operate the business in a manner substantially consistent with past practice, taking into account this Agreement and transactions contemplated hereunder, provided, however, that with respect to the foregoing subclauses (I) and (II), in no event shall any Party (or their respective affiliate) be obligated to make any out of pocket payments to any applicable third party. In no event shall the Adjustment Amount be an amount in excess of the principal amount of the Note plus any accrued interest thereon. With respect to the Terminated Customer Contracts, in case of any claims against the Buyer by the counterparty thereto or any third-party claims against the Buyer related to the Terminated Customer Contracts, the Parties agree that if such claims are covered by the Seller's then valid insurance policies, the Seller will use commercially reasonable efforts to seek recovery under such insurance policies and contribute such insurance proceeds, if any, to the Buyer, subject any present or future increase in premiums related thereto, calculated over a period of three years, and any reasonable costs associated with obtaining such insurance proceeds, including legal fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. " <u>Actual ARR</u> " means, as of the Measurement Date, the difference between the aggregate ARR for all Customer Contracts less the aggregate ARR for the Terminated Customer Contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. " <u>Adjustment Amount</u> " means, as of the Measurement Date, the sum of (x) three (3) *times* the difference between the Threshold Level and the Actual ARR, if such amount is positive, and in the event such difference is a negative number or zero, an amount equal to zero *plus* (y) one (1) *time* the aggregate ARR

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for the Terminated Customer Contracts. Attached as <u>Exhibit B</u> is an illustrative example of the calculation of Adjustment Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. " <u>ARR</u> " means the annual gross revenue provided for in the Customer Contract. The ARR for each Customer Contract shall be set forth adjacent to each such contract on Schedule 3(b), which may be adjusted by written mutual agreement of the parties hereto for any error revealed prior to the Measurement Date (" <u>Error Adjustment</u> "). Any ARR referenced in the applicable Customer Contracts in foreign currencies other than United States Dollars shall be translated into United States Dollars, determined at the applicable exchange rates as reported by Bloomberg, as of the close of business on the day prior to the Closing Date, or such other method agreed to by the parties hereto in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. " <u>Threshold Level</u> " is based on the parties' calculations as of the Closing, an amount equal to $1,503,550. The Threshold Level shall be subject to Error Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. For avoidance of doubt, the Note shall not be decreased in connection with any Customer Contract that (i) is not an Eligible Customer Contract, (ii) is an Eligible Customer Contract but is not terminated prior to the Measurement Date, unless a written notice (email shall suffice) from the counterparty to the applicable Customer Contract that such counterparty affirmatively does not consent to the transactions contemplated hereby is received by Buyer prior to the Measurement Date, or (iii) is an Eligible Customer Contract and is terminated prior to the Measurement Date because of a breach arising after the Closing, other than as a result of the failure to obtain consents for the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Consent Statement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. As promptly as practicable following the Measurement Date, or such later date as the Buyer and Seller may agree in writing (email shall suffice), Buyer shall prepare and deliver, or shall cause to be prepared and delivered, to Seller a written statement (the " <u>Consent Statement</u> "), setting forth Buyer's good-faith calculation of any adjustment to the Note in accordance with this <u>Section 3</u> or written confirmation that no adjustment is required pursuant to this <u>Section 3</u>, along with reasonable supporting detail to evidence such calculation (including, for the avoidance of doubt, any termination notices and/or written "no consent" notices, which may be in the email form). Buyer shall deliver all documents and information supporting the Consent Statement and the calculations therein as Seller may reasonably request in writing. Seller shall have reasonable access, during normal business hours and upon reasonable written notice to Buyer, to all books and records reasonably related to the Consent Statement to the extent such access is reasonably necessary for the determination of the accuracy of the Consent Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Within thirty (30) days after the delivery of the Consent Statement to Seller, Seller may deliver written notice (the " <u>Consent Protest Notice</u> ") to Buyer setting forth its specific disputes and objections with respect to the amounts and/or calculations set forth in the Consent Statement and the basis therefor. Any Consent Protest Notice shall specify in reasonable detail the nature of any disagreement so asserted. Buyer shall be permitted to review the supporting schedules, analyses and other documentation with respect to such Consent Protest Notice as the Buyer may reasonably request in writing. If Seller delivers a Consent Protest Notice within the prescribed time period, then Buyer and Seller will use reasonable efforts to resolve any disagreements in good faith as to any adjustment to the Note within thirty (30) days following the delivery of any Consent Protest Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If Buyer and Seller are unable to resolve any disagreement with respect to the Consent Statement as set forth in the Consent Protest Notice within thirty (30) days following the delivery of any Consent Protest Notice, except as explicitly set forth herein, the dispute resolution procedures set forth in Section 4(d)(ii) shall apply, *mutatis mutandis*.

4.<u>Purchase Price Adjustments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. At least two business days prior to the Closing Date, Seller will prepare, or cause to be prepared, and deliver to Buyer a statement (" <u>Estimated Working Capital Statement</u> "), which shall set forth Seller's good faith estimate of (i) Seller's current assets of the Business as of the Closing that are Purchased Assets and the current assets of the Transferred Entities as of the Closing <u>minus</u> (ii) the current liabilities included as part of the Assumed

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Liabilities as of the Closing and the current liabilities of the Transferred Entities as of the Closing ("<u>Estimated Working Capital</u>"). The Estimated Working Capital shall be calculated in accordance with the principles set forth on the <u>Working Capital Schedule</u> and, to the extent not set forth on such schedule, United States generally accepted accounting principles as consistently applied by Seller ("<u>GAAP</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Within 90 days after the Closing Date, Buyer will prepare, or cause to be prepared, and deliver to Seller a statement (the " <u>Closing Working Capital Statement</u> "), which shall set forth Buyer's calculation of (i) current assets of the Business as of the Closing that are Purchased Assets and the current assets of the Transferred Entities as of the Closing <u>minus</u> (ii) current liabilities included as part of the Assumed Liabilities as of the Closing and the current liabilities of the Transferred Entities as of the Closing (" <u>Closing Working Capital</u> "). The Closing Working Capital shall be calculated in accordance with the principles set forth on the <u>Working Capital Schedule</u> and, to the extent not set forth on such schedule, GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Upon receipt from Buyer, Seller shall have 60 days to review the Closing Working Capital Statement (the " <u>Review Period</u> "). During such review period, Seller shall have access, upon reasonable notice to Buyer, to all relevant books and records and work papers (including those of Buyer's accountants and auditors) during normal business hours for the purpose of verifying the Closing Working Capital Statement and all other items reasonably requested by Seller related thereto. If Seller disagrees with Buyer's computation of the Closing Working Capital, Seller may, on or prior to the last day of the Review Period, deliver written notice to Buyer (the " <u>Notice of Objection</u> "), which shall set forth its objections to Buyer's calculations of the Closing Working Capital. The Notice of Objection shall specify in reasonable detail any contested amounts and the basis therefor and shall include a schedule setting forth Seller's determination of Closing Working Capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. (i) Unless Seller delivers the Notice of Objection to Buyer within the Review Period, Seller shall be deemed to have accepted the Closing Working Capital Statement, including Buyer's calculations of the Closing Working Capital, and such Closing Working Capital Statement shall be final, binding and non-appealable by Buyer and Seller. If a Notice of Objection is delivered prior to the expiration of the Review Period, any amounts not disputed therein shall be final, binding and non-appealable by Buyer and Seller. If Seller delivers the Notice of Objection to Buyer within the Review Period, Buyer and Seller shall, during the 60 days following such delivery or any mutually agreed extension thereof, use their commercially reasonable efforts to reach agreement on the disputed items and amounts in order to determine the amount of the Closing Working Capital. If, at the end of such period or any mutually agreed extension thereof, Buyer and Seller are unable to resolve their disagreements, they shall jointly retain and refer their disagreements to Grant Thornton LLP (the " <u>Independent Expert</u> "). (ii) The Independent Expert shall base its determination solely on written submissions by Buyer and Seller and not on the Independent Expert's independent review. Buyer and Seller shall make available to the Independent Expert all relevant books and records and other items reasonably requested by the Independent Expert. The Parties shall request that the Independent Expert deliver to Buyer and Seller, as promptly as practicable but in no event later than 60 days after its retention, a report which shall set forth its resolution of the disputed items and amounts and its calculation of the Closing Working Capital or Consent Statement, as applicable. Any determination by the Independent Expert shall not be outside the range defined by the respective amounts in the Closing Working Capital Schedule or Consent Statement, as applicable, proposed by Buyer's and Seller's proposed adjustments thereto set forth in the Notice of Objection or Consent Protest Notice, as applicable, and absent manifest mathematical error, the decision of the Independent Expert shall be final, conclusive and binding on the Parties. The costs and expenses of the Independent Expert shall be allocated between Buyer, on the one hand, and Seller, on the other hand, based upon the percentage that the portion of the aggregate contested amount not awarded to such Party bears to the aggregate amount actually contested by such Party, as determined by the Independent Expert.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. The date on which the Estimated Closing Payment, including Closing Working Capital, is finally determined pursuant to <u>Section 4(d)</u> shall be referred to as the " <u>Determination Date</u> " and such amount shall be referred to as the " <u>Final Closing Payment</u> ". On the Determination Date, the Purchase Price shall be adjusted as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If the Final Closing Payment is less than the Estimated Closing Payment, Buyer and Seller shall offset an amount equal to such excess amount against the Note; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the Final Closing Payment is greater than the Estimated Closing Payment, Buyer and Seller shall increase the Note by an amount equal to such shortfall amount.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Any payment to be made under <u>Section 4(e)(1)</u> shall be made within three business days after the Determination Date, and shall be made by wire transfer of immediately available funds to an account designated in writing by Buyer. Buyer and Seller agree that any adjustment to the Purchase Price pursuant to this Section shall be treated as an adjustment to the Purchase Price for all tax purposes, and shall not take any inconsistent position for Tax purposes. Buyer and Seller shall file all Tax Returns (including amended returns and claims for refund) and information reports in a manner consistent with such allocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Buyer shall be entitled to deduct and withhold from the Purchase Price all taxes that Buyer may be required to deduct and withhold under any applicable tax law. All such withheld amounts shall be treated as delivered to Seller hereunder to the extent remitted to the appropriate governmental authority on behalf of Seller to which the withheld amounts pertain. Notwithstanding anything to the contrary in this Section 4(g), prior to deducting or withholding from any payments to be made under this Agreement, Buyer shall notify Seller of its intent to withhold or deduct from the Purchase Price and shall cooperate in good faith with Seller, to eliminate or reduce such withholding or deduction to the extent permitted by applicable Law. Seller shall be responsible for all out-of-pocket expenses that Buyer incurs in connection therewith. For the avoidance of doubt, for U.S. federal income tax purposes, no withholding is expected on the Purchase Price payable to Seller with respect to the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Deliveries at the Closing</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. At or before the Closing, Seller shall discharge and extinguish in full, and present evidence thereof, all indebtedness (if any) owed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. by Seller or any affiliate thereof to DMAP, Holdings and DoseMe; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. by DMAP, Holdings and DoseMe to Seller, or any affiliate thereof, other than amounts owing in the normal course of trading on arm's length terms. <sup></sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. At the Closing, Seller shall deliver, or cause to be delivered, to Buyer the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. documentation evidencing to the reasonable satisfaction of Buyer that all Liens (other than Permitted Liens) over the Shares have been discharged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. a duly executed and completed transfer in favor of Buyer of the Shares in registrable form together with the relevant share certificate(s) (if any) or a deed of indemnity for missing share certificates in customary Australian forms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. a resolution of the board of directors of each of DMAP, Holdings and DoseMe resolving that, subject to and effective as of the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the persons notified in writing by Buyer to Seller before the Closing to be appointed as directors, secretaries and public officers be appointed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the resignation of any director, secretary or public officer notified in writing by Buyer to Seller concurrently with the Closing as required to resign be accepted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) banking authority be given to the persons notified in writing by Buyer to Seller concurrently with the Closing, and all other banking authorities be revoked;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the registered office be changed to the address notified in writing by Buyer to Seller concurrently with the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) all existing powers of attorney given by any Transaction Entity in favor of any resigning director, secretary or public officer be revoked;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) in the case of DMAP only, DMAP approves the transfer of Shares to Buyer; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) any director or secretary be authorized to give all notices required to be given to regulatory authorities in relation to matters described above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. the Australian Securities and Investments Commission corporate key for each of DMAP, Holdings and DoseMe (or confirmation from Seller that a replacement corporate key has been applied for by each of DMAP, Holdings and DoseMe);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. the register of members for each of DMAP, Holdings and DoseMe;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. a certificate pursuant to Treasury Regulations Section 1.1445-2(b) that Seller is not a foreign person within the meaning of Section 1445 of the Internal Revenue Code of 1986, as amended (the " <u>Code</u> ") duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. a certificate of the Secretary or Assistant Secretary (or equivalent officer) of Seller certifying as to (A) the resolutions of the board of directors of Seller, duly adopted and in effect, which authorize the execution, delivery and performance of this Agreement and the transactions contemplated hereby, and (B) the names and signatures of the officers of Seller authorized to sign this Agreement and the documents to be delivered hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. all corporate books and records of the Transferred Entities (to the extent that such books and records are not otherwise located at the Transferred Entities).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At the Closing, Buyer shall deliver, or cause to be delivered, to Seller the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Estimated Closing Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the Note, duly executed by Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. each of the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the US law pledge and security agreement between the Seller and Buyer (the " <u>US Security Agreement</u> "), duly executed by Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Australian law specific security deed between the Seller and Buyer (the " <u>AU Buyer Security Agreement</u> " and, together with the US Security Agreement, the " <u>Buyer Security Agreements</u> "), duly executed by Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) each title document and blank transfer required to be provided by the Buyer to the Seller under any Buyer Security Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. a certificate of the Secretary or Assistant Secretary (or equivalent officer) of Buyer certifying as to (A) the resolutions of the board of directors of Buyer, duly adopted and in effect, which authorize the execution, delivery and performance by Buyer of this Agreement and the transactions contemplated hereby and of the Buyer Security Agreements (B) the names and signatures of the officers of Buyer authorized to sign this Agreement and the documents to be delivered hereunder (including the Buyer Security Agreements), and (C) customary security related matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. At the Closing, beneficial ownership of and risk in the Shares passes to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Security for Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. To secure the payment to the Seller of the Note, the Buyer must (in addition to the delivery at Closing of the Buyer Security Agreements under Section 5(c) above) on or before the date which is 45 days after Closing (the " <u>Whitewash Deadline Date</u> ") deliver to the Seller:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) each of the following documents which, in each case, where applicable, shall be (i) duly stamped or, if not duly stamped, evidence satisfactory to the Seller that they will be duly stamped; and (ii) in

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the joinder to the US Security Agreement under which the Transferred Entities become additional grantors under the US Security Agreement (the " <u>US Security Agreement Joinder</u> "), duly executed by each Transferred Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Australian law guarantee and indemnity between each Transferred Entity and the Seller (the " <u>AU Transferred Entity Guarantee</u> "), duly executed by each Transferred Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Australian law general security deed between each Transferred Entity and the Seller (the " <u>AU Transferred Entity Security Agreement</u> " and, together with the US Security Agreement Joinder, the AU Transferred Entity Guarantee, the " <u>Transferred Entity Security Agreements</u> "), duly executed by each Transferred Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) each title document and blank transfer required to be provided by a Transferred Entity to the Seller under any Transferred Entity Security Agreement and/or the US Security Agreement, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a certificate of a director of each Transferred Entity certifying as to, amongst other things, (A) the resolutions of the board of directors of each Transferred Entity, duly adopted and in effect, which authorize the execution, delivery and performance by such Transferred Entity of each Transferred Entity Security Agreement and the US Security Agreement and the transactions contemplated by them, (B) the names and signatures of the officers of the Transferred Entity authorized to sign the Transferred Entity Security Agreements and the documents to be delivered thereunder, and (C) customary security related matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Without limiting Section 5(e)(1), Buyer must take all steps required to procure that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the financial assistance constituted by the Transferred Entities entering into the Transferred Entity Security Agreements is approved by shareholders of the relevant company (and the shareholders of any ultimate Australian holding company) in accordance with section 260B of the Corporations Act 2001 (Cth) by no later than the date which is 2 business day after the Closing, including procuring all relevant entities prepare and send, as required, all notices of meeting and explanatory materials; and <sup></sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all relevant entities lodge at the requisite times all forms required to be lodged with government agencies (including the Australian Securities and Investments Commission) in connection with the relevant financial assistance and entry into the Transferred Entity Security Agreements, in each case, as required to enable the Transferred Entities to enter into the Transferred Entity Security Agreements on or before the Whitewash Deadline Date and in form and substance acceptable to the Seller. <sup></sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Buyer must, within 2 business days of the relevant document being finalized, provide to the Seller copies of each document referred to in Section 5(e)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Following Closing until the Transferred Entity Security Agreements are delivered to the Seller in accordance with Section 5(e)(1), the Buyer must procure that the Transferred Entities do not do, or attempt to do, anything that would result in any Transferred Entity breaching clause 5.3 (*Negative pledge and disposal of assets*) of the agreed form of the AU Transferred Entity Security Agreement (the " <u>Negative Pledge"</u>) as if the Transferred Entities had become bound by the Negative Pledge on and from Closing .

6.<u>Representations and Warranties of Seller</u>. Seller represents and warrants to Buyer as of the date hereof that the statements contained in this <u>Section 6</u> are true and correct as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Organization; Authority; Enforceability and Solvency</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Seller is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Delaware. Seller has full corporate power and authority to enter into this Agreement and the documents to be delivered hereunder, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance by Seller of this Agreement and the

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documents to be delivered hereunder and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of Seller. This Agreement and the documents to be delivered hereunder have been duly executed and delivered by Seller, and this Agreement constitutes the legal, valid and binding obligation of Seller, enforceable against it in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Each Transferred Entity is a proprietary company limited by shares, duly incorporated and validly existing under the Laws of the state of its incorporation and has full corporate power and authority to enter into each document to be delivered hereunder by it, to carry out its obligations thereunder and to consummate the transactions contemplated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. None of the following events has occurred in relation to any Transferred Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a receiver, receiver and manager, liquidator, provisional liquidator, administrator, trustee or similar officer has been appointed in respect of it or any of its assets or an event has occurred that reasonably gives any person the right to seek such an appointment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) an application has been made to a court or a valid and binding resolution has been passed or an order from a court has been made for the winding up or dissolution of it or an event has occurred that would reasonably give any person the right to make such an application;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) it has proposed or has taken steps to implement a scheme of arrangement or other compromise or arrangement with its creditors or any class of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) it has stopped paying its debts when they became due or has been declared under any applicable law to be insolvent or its board of directors has validly resolved that it is, or is reasonably likely to become at some future time, insolvent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) any person in whose favor any Transferred Entity has granted any Liens (other than Permitted Liens) has become entitled to enforce any security under such applicable Lien (other than any Permitted Lien) or any floating charge under any such Lien (other than any Permitted Lien) crystallizes.

&nbsp;&nbsp;&nbsp;&nbsp;b.<u>No Conflicts</u>. The execution, delivery and performance by Seller of this Agreement and the consummation of the transactions contemplated hereby do not (i) violate or conflict with the articles of incorporation, by-laws or other organizational documents of Seller (ii) violate or conflict with any applicable statute, law (including common law), constitution, treaty, ordinance, code, order, decree, judgment, rule, regulation and any other binding requirement or determination of any governmental entity (each, a "<u>Law</u>") applicable to Seller, the Shares or the Purchased Assets, other than as would not be reasonably expected to be material to the Seller, the Shares or Purchased Assets; (iii) violate or constitute a default or an event of default, or trigger any rights of any other entity or person under any contract to which Seller or any Transferred Entity is a party or a beneficiary or by which Seller, any Transferred Entity or any of their respective assets are bound, or (iv) result in the creation or imposition of any Lien on the Shares and Purchased Assets other than Permitted Liens and the Liens created or granted under the Buyer Security Agreements or any other document executed in connection with this Agreement. Except as set forth on <u>Schedule 6(b)</u>, no material consent, approval, waiver or authorization is required to be obtained by Seller or any Transferred Entity from any person or entity (including any governmental authority) in connection with the execution, delivery and performance by Seller of this Agreement and the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;c.<u>Compliance with Law; Authorizations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Seller, the Transferred Entities and, to the actual knowledge of Carolina Branco, Ross Carbone and Tim Sheehan (such actual knowledge, the " <u>Knowledge of Seller</u> "), each of their respective employees, contractors and consultants are and, for the four (4) years immediately prior to the date hereof, have been in compliance in all material respects, and none of Seller or any Transferred Entity is in material violation of, any Law to which the Shares or the Purchased Assets are subject, and none of Seller or any of the Transferred Entities have failed to obtain or adhere to the requirements, in any material respect, of any rights under any authorization, approval, consent, certificate, license, permit, franchise, registration, variance and similar rights (each, an " <u>Authorization</u> ") relating to Seller's ownership of the Shares and Purchased Assets.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All Authorizations required for Seller and the Transferred Entities to conduct their respective business as currently conducted or for the ownership and use of the Purchased Assets have been obtained by Seller and/or the Transferred Entities (as applicable) and are valid and in full force and effect, expect where the failure to obtain such Authorizations or such Authorizations not being in full force and effect would not reasonably be expected to have a material adverse effect on the Business, the Shares, the Purchased Assets or the Transferred Entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. True and complete copies of each written agreement or arrangement between each Transferred Entity and any regulatory authority have been disclosed to the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. No Transferred Entity has received any written order, direction or notice from any regulatory authority requiring monetary expenditure by the Transferred Entity or which may otherwise be reasonably expected to adversely affect the business of the Transferred Entities. To the Knowledge of Seller, no Transferred Entity is aware any circumstance existing that is reasonably likely to result in any such written order being made or written direction or notice being given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. No Transferred Entity has provided any goods or services that do not materially comply with any warranty made by the Transferred Entity in respect of those goods or services or any warranty standard or specification for those services required or implied by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;d.<u>Litigation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Except as set forth on <u>Schedule 6(d)</u>, there is no action that is or has been pending or, to the Knowledge of Seller, threatened (i) against or involving, directly or indirectly, the Transferred Entities or the business of the Transferred Entities or, with respect to Seller, the Purchased Assets, or (ii) seeking to prevent or challenge any of the transactions contemplated by this Agreement. There is no unsatisfied order, judgment or award, in each case, issued by a court of competent jurisdiction, against any Transferred Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. No Transferred Entity has been given written notice that it is the subject of any investigation, inquiry, prosecution or enforcement proceedings by any regulatory authority with jurisdiction over the applicable Transferred Entity, there are no such investigations, inquiries, prosecutions or proceedings pending or, to the Knowledge of the Seller, threatened in writing against any Transferred Entity and, to the Knowledge of Seller, no circumstance exists that is reasonably likely to give rise to any such investigation inquiry, prosecution or proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;e.<u>Assets and Properties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Seller owns outright and has good, valid and marketable title or valid leasehold interest in and to all of the tangible assets forming part of the Purchased Assets, free and clear of all Liens, other than Permitted Liens and the Transferred Entities have good, valid and marketable title or valid leasehold interest in and to all of their respective tangible assets, free and clear of all Liens, other than Permitted Liens . Each contract or lease forming part of the Purchased Assets to which Seller is a party is valid and effective in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Other than with respect to the services to be provided by Seller to the Transferred Entities or Buyer following the Closing, including the Transition Services Agreement (as defined below), the Purchased Assets and the assets of the Transferred Entities are sufficient for the continued conduct of the Business after the Closing in substantially the same manner as conducted immediately prior to the Closing and constitute all of the rights, property and assets necessary to conduct the Business as currently conducted. The Purchased Assets and the material assets of the Transferred Entities are in good condition and, subject to normal wear and ordinary routine maintenance, are adequate for the uses to which they are being put in the ordinary course of business, and none of the Purchased Assets or assets of the Transferred Entities are in need of maintenance or repairs (other than ordinary, routine maintenance and repairs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The real properties set forth in Schedule 6(e) (" <u>Leasehold Properties</u> ") comprise all of the real property leased, occupied or used by the Transferred Entities and no Transferred Entity is party to any agreement or arrangement to acquire, lease or occupy any real property other than the Leasehold Properties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. True and complete copies of each lease for the Leasehold Properties (" <u>Lease</u> ") have been disclosed to Buyer and except as disclosed there are no incentives, rent free periods, reduced rent periods or other reductions or abatements of rent or outgoings in relation to any of the Leasehold Properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. In relation to each Lease:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to the Knowledge of Seller, the Lease is valid, binding and enforceable and registered where required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the lessee Transferred Entity has made all payments that have become due and payable by the Lease, has otherwise materially complied with all terms of the Lease and has not received any written notice alleging that any circumstance exists that would reasonably constitute a breach of the Lease by such lessee Transferred Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the lessor under each applicable Lease has not given any written notice terminating or purporting to or advising of an intention to terminate the lease and, to the Knowledge of Seller, no circumstance exists that would reasonably entitle the lessor under the Lease to do so under the terms of the applicable Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The lessee Transferred Entity has exclusive possession, occupation and quiet enjoyment of the land leased to such Transferred Entity in each Leasehold Property and holds all easements, rights, interests and privileges in connection with that land, in each case, to the extent necessary to enable the Transferred Entity to carry on the Business as of immediately prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. No Transferred Entity has any direct or indirect ownership interest in any real property (being, for clarity, land, moorings, waterways, buildings or other fixed physical structures).

&nbsp;&nbsp;&nbsp;&nbsp;f.<u>Ownership of Acquired Entities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Seller owns 100% of the issued and outstanding shares of DMAP . DMAP owns 100% of the issued and outstanding shares of Holdings. Holdings owns 100% of the issued and outstanding shares of DoseMe .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All of the Shares have been duly authorized and are validly issued and fully paid. The Shares were issued and granted in compliance with (i) all applicable securities Laws and (ii) the organizational documents of Seller and the contracts to which Seller is a party. There are not, nor have there ever been, any preemptive rights or rights of first refusal with respect to the issuance of the Shares. Other than the organizational documents of each Transferred Entity, there are no (i) voting agreements, voting trusts, proxies, or other agreements or understandings with respect to the Shares, or (ii) arrangements or understandings relating to the registration, sale or transfer (including agreements relating to rights of first refusal, "co-sale" rights or "drag-along" rights) of any Transferred Entity's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. No person has any right to require the issue of any shares or other equity securities in any Transferred Entity and no Transferred Entity has made any offer that may result in any person having such a right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. No Transferred Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) has legal or beneficial right in, and has not agreed to acquire, subscribe for or purchase any shares or other equity securities in any company, any units in any unit trust or any other ownership interests in any other entity (other than, in each case, another Transferred Entity);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) controls (within the meaning of section 50AA of the Corporations Act 2001 (Cth)) any company or other entity, other than another Transferred Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) is a member of or party to any joint venture, consortium, partnership or unincorporated association, other than a recognized trade association; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) is a party to any agreement for participation with any other person in any business activity deriving profits, commissions or other income.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) have been fully and properly maintained in all material respects and contain complete and accurate records of all matters required to be entered in them by any law or regulation or by the relevant accounting standards, in each case, applicable to such Transferred Entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) are in the possession or control of a Transferred Entity, and the Transferred Entity has not received any written notice or allegation from any regulatory authority with jurisdiction over such Transferred Entity or any current for former shareholder that any of them is incorrect or should be rectified or amended.

&nbsp;&nbsp;&nbsp;&nbsp;g.<u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Schedule 6(g)</u> lists all of the following that is material or necessary to the business of the Transferred Entities as currently conducted by the Transferred Entities: (i) trademarks and service marks, including all applications and registrations; (ii) copyrights, including all applications and registrations related to the foregoing; (iii) trade secrets and confidential know-how; (iv) patents and patent applications; (v) internet domain name registrations; and (vi) other intellectual property and related proprietary rights, interests and protections (including the goodwill associated with the trademarks and service marks identified pursuant to subsection (i), and all rights to sue and recover and retain damages, costs and attorneys' fees for past, present and future infringement and any other rights relating to any of the foregoing), that in each case, is included in the Purchased Assets or owned by Transferred Entities (collectively the " <u>Scheduled Intellectual Property</u> "). All such Scheduled Intellectual Property is, to the Knowledge of Seller, valid, subsisting and in full force and effect; and (vii) with respect to the Scheduled Intellectual Property that is the subject of any issuance, registration or application by or with any governmental authority or authorized private registrar (collectively, the " <u>Registered Intellectual Property</u> "), Seller has paid all maintenance fees and made all filings required to maintain Seller's and Transferred Entities, as the case may be, ownership of such Registered Intellectual Property. For all such Registered Intellectual Property, <u>Schedule 6(g)</u> lists (as applicable) (A) the jurisdiction where the application or registration is located, (B) the application or registration number, and (C) the application or registration date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. To the Knowledge of Seller, Seller's and Transferred Entities' prior and current use of the Scheduled Intellectual Property has not and does not infringe, violate, dilute or misappropriate the intellectual property of any person or entity and there are no claims pending or, to the Knowledge of Seller, threatened by any person or entity with respect to the ownership, validity, enforceability, effectiveness or use of the Scheduled Intellectual Property. To the Knowledge of Seller, no person or entity is infringing, misappropriating, diluting or otherwise violating any of the Scheduled Intellectual Property, and neither Seller nor any Transferred Entity has made or asserted any claim, demand or written notice against any person or entity alleging any such infringement, misappropriation, dilution or other violation with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Transferred Entities own all right, title, and interest to the Scheduled Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Scheduled Intellectual Property together with any intellectual property licensed pursuant to any of the Transferred Entity Contracts constitutes all material intellectual property necessary for the Transferred Entities to conduct their business in the manner in which it is conducted at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. <u>Privacy Matters; Security</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. To the Knowledge of Seller, any personal information in connection with the Purchased Assets or in the Transferred Entities' possession, custody or control, or otherwise maintained, held or processed by or on behalf of each Transferred Entity, is maintained, held or processed in compliance with all applicable Laws in all material respects, including, to the extent applicable, HIPAA, the *Privacy Act 1988* (Cth), the National Privacy Principles contained in Schedule 3 to the Privacy Act 1988 (Cth) or an approved privacy code (as defined in the *Privacy Act 1988* (Cth)) and any state or territory Laws (" <u>State Privacy Laws</u> ") governing privacy and, security and the use and disclosure of personal information. Laws relating to the privacy and

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security of personal information are collectively referred to as "<u>Privacy Laws</u>." To the extent required by Privacy Laws, each Transferred Entity has implemented commercially reasonable written privacy and security policies that govern its collection, storage, use, processing, disclosure and transfer of personal information and that comply in all material respects with applicable Privacy Laws, and Sellers have made available to Buyer true, accurate and complete copies of such policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Neither Seller nor any Transferred Entity has received any written claim or complaint regarding its collection, use or disclosure of personal information. Neither Seller in connection with the Purchased Assets, nor any Transferred Entity is currently involved in or been the subject of, or has ever been involved in or the subject of, of any actions, allegations, demands, assessments, fines, or judgments related to Privacy Laws. Neither Seller in connection with the Purchased Assets, nor any Transferred Entity is currently party to any order, settlement or other similar agreement regarding data protection, privacy or the collection, use, disclosure, sale or licensing of personal information, or Privacy Laws. No material breach, security incident or material violation of any of the Seller's or Transferred Entities' data security policies in relation to any personal information held by Seller in connection with the Purchased Assets and any Transferred Entity has occurred during the three (3) years prior to the date of this Agreement. To the Knowledge of Seller, there has been no illegal processing of any personal information held by the Transferred Entities or Seller in connection with the Purchased Assets. To the Knowledge of Seller, no circumstance has arisen in which Privacy Laws would require any Transferred Entity or Seller to notify a governmental body or any other person of any data security breach, security incident or violation of any data security policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Each contractor engaged by any Transferred Entity for the purpose of undertaking any activity that has given rise to or may give rise to the creation of any Intellectual Property has executed an assignment of that Intellectual Property to the Transferred Entity, and any employee of any Transferred Entity who has devised any invention which is or may become the subject of any application for a patent or registered design outside Australia has executed an assignment of that invention, and the right to be granted a patent in relation to the invention, to the Transferred Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The applicable Transferred Entity holds a valid license to use, and has paid in full all license fees in respect of, each domain name set out in Schedule 6(g) and there are no other domain names used in the business at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Assigned Contracts</u>. Schedule 6(i) includes each contract included in the Purchased Assets and being assigned to and assumed by Buyer in accordance with this Agreement (the " <u>Assigned Contracts</u> "). Each Assigned Contract to which Seller is a party is valid and effective in accordance with its terms and is in full force and effect. Seller is not, and to the Knowledge of Seller, no other party is in breach of or default under (or is alleged to be in breach of or default under) any Assigned Contract and Seller has not provided or received any written notice of any intention to terminate, any Assigned Contract. Complete and correct copies of each Assigned Contract have been made available to Buyer. There are no disputes pending or, to the Knowledge of the Seller, threatened under any Assigned Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. <u>Contracts of Transferred Entities</u>. Except as set forth on <u>Schedule 6(j)</u>, none of Transferred Entities are a party to any:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. contract with any employee, contractor, agent or consultant for base compensation to be paid by such Transferred Entity in excess of $50,000 annually, other than arrangements terminable without notice or severance in excess of what is required under applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. contract to lease any material personal property of the Transferred Entities; <sup></sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. contract limiting or restraining Transferred Entities from engaging or competing in any lines of business with any person, including any contract that contains exclusivity or non-compete provisions and any contract with non-solicitation or no-hire provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. contract with any governmental authority involving payments to the Transferred Entities;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. contract involving the acquisition of equity or assets of another person, including by merger, consolidation or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. broker, finder, dealer, commission, reseller, distributor or other agency contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. joint venture, partnership or similar contract, or any contract providing for any sharing of revenues, losses or similar arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. contract pursuant to which Transferred Entities have granted, or agreed to grant, "most favored nation" pricing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. contract relating to: (a) licensed intellectual property that is included in the Purchased Assets; or (b) the Scheduled Intellectual Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. contract for any capital expenditure or leasehold improvements for the Transferred Entities in excess of $20,000, individually or in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. contract that was entered into outside the ordinary course of business or is not on arm's length terms; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Each of the contracts disclosed in connection with <u>Schedule 6(j)</u> (the " <u>Transferred Entity Contracts</u> ") to which a Transferred Entity is a party is valid and effective in accordance with its terms and is in full force and effect. No Transferred Entity is, and to the Knowledge of Seller, no other party is, in breach of or default under (or is alleged to be in breach of or default under) any Transferred Entity Contract and the Transferred Entities have not or have not provided or received any written notice of any intention to terminate, any Transferred Entity Contract. Complete and correct copies of each Transferred Entity Contract have been made available to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. <u>Financial Statements; Books of Account</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Seller has made available to Buyer prior to the date hereof correct and complete copies of: (i) the unaudited balance sheets of the Business as of December 31, 2021 and December 31, 2020, and the unaudited consolidated statements of operations of the Business for the fiscal years then ended (the " <u>Annual Financial Statements</u> ") and (ii) the unaudited balance sheet of the Business as of September 30, 2022, and the unaudited income statement of the Business for the nine (9)-month period then ended (the " <u>Interim Financial Statements</u> "). The Annual Financial Statements and the Interim Financial Statements are referred to collectively as the "Financial Statements".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as set forth in Schedule 6(k): (a) the Annual Financial Statements have been prepared in accordance with GAAP (subject to the absence of notes); (b) the Interim Financial Statements have been prepared in accordance with GAAP, subject to normal and recurring year-end adjustments (the effect of which will not be materially adverse) and the absence of notes; and (c) the Annual Financial Statements and Interim Financial Statements are based on the books and records of the Business and present fairly in all material respects the financial condition and results of operation of the Business at the dates and for the relevant periods indicated and otherwise comply with the requirements of the *Corporations Act 2001* (Cth). The unaudited balance sheets of the Business included in the Interim Financial Statements shall be referred to herein as the " <u>Most Recent Balance Sheets</u>," and the date thereof shall be referred to herein as the " <u>Most Recent Balance Sheet Date</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. <u>No Undisclosed Liabilities</u>. The Transferred Entities do not have any liabilities except for those liabilities that are (a) adequately reflected or reserved against on the Most Recent Balance Sheets, (b) not required to be reflected on a balance sheet of the Transferred Entities prepared in accordance with GAAP, (c) incurred in the ordinary course after the Most Recent Balance Sheet Date which, in all such cases, individually and in the aggregate, are not material or (d) future executing obligations to perform arising under any contract previously entered into by the Transferred Entities. To the Knowledge of Seller, there are no known material Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. <u>Banking Relationships</u>. Set forth on <u>Schedule 6(m)</u> are the names and addresses of all banks and other financial institutions in which Transferred Entities have banking accounts, investment accounts, lines of credit, lock boxes

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or safe deposit boxes, and with respect to each such account, line or credit, lock box or safe deposit box, the names of all persons with signing authority or other access thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. <u>Insurance</u>. Schedule 6(n)(i) sets forth a complete and correct list of all insurance policies (other than Benefits Plans) and fidelity bonds that cover the Transferred Entities or their respective businesses, properties, assets, directors or employees (the "Policies"). Such Policies are in full force and effect and none of the Transferred Entities are in default in any material respect with respect to its obligations under any such Policy in a manner that would permit the termination of such Policy or the limitation of any coverage thereunder. Schedule 6(n)(ii) sets forth a complete and correct list of all claims made with respect to all such Policies during the three (3) year period prior to the date of this Agreement, except claims under the Benefits Plans. Except as set forth on Schedule 6(n)(iii), none of the Transferred Entities have any self-insurance or co-insurance programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o. <u>Employee Benefit Plans and Employees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Schedule 6(o)</u> sets forth a true and complete list of each pension, superannuation fund, retirement, compensation, employment, consulting, profit-sharing, deferred compensation, incentive, bonus, performance award, phantom equity or other equity, change in control, retention, severance, vacation, paid time off, annual leave, long service leave, personal and carer's leave, health, medical, surgical, hospital, sickness, accident, disability, death, apprenticeship, training, daycare, scholarship, tuition reimbursement, education, adoption assistance, prepaid legal services, welfare, fringe-benefit and other similar agreement, plan, policy, program or arrangement (and any amendments thereto), in each case, which is or has been maintained, sponsored, contributed to, or required to be contributed to by the Transferred Entities for the benefit of any employee, officer, manager, independent contractor or consultant of the Transferred Entities (as listed on <u>Schedule 6(o)</u>, each, a " <u>Benefit Plan</u> "). Seller has made available to Buyer prior to the date hereof correct and complete copies of the material documents with respect to the Benefit Plans. For the avoidance of doubt, external superannuation funds to which the Seller or any Transferred Entity makes superannuation contributions on behalf of employees are not Benefit Plans for these purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. None of the Transferred Entities have any liability with respect to any benefit plans or arrangements other than the Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. There are no Benefit Plans outside the United States or Australia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Seller has provided Buyer with the name, position, location and start date of each employee of the Transferred Entities and each person who has accepted an offer of employment with a Transferred Entity but whose employment has not started.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. No Transferred Entity is party to or bound by any award, collective agreement or other registered or unregistered agreement with any group of employees or any trade union and no such awards or agreements otherwise apply to any employees of any Transferred Entity. There are no discussions or negotiations with any employees or trade unions or any of their representatives that may result in any Transferred Entity becoming party to or bound by any further such award or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Each Transferred Entity that is the employer of any employee is legally entitled to terminate the employment of each of its employees by 3 months' notice or less without liability for damages, redundancy or other compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Each Transferred Entity has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) paid all amounts due to each employee and former employee other than in respect of remuneration accrued for the current salary payment period and current expense claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) otherwise complied in all material respects with all of its obligations in relation to the employment of its employees including all obligations arising under any award or collective agreement (including correct classification of employees against awards) and all obligations in relation to occupational health and safety and workers' compensation; <sup></sup> and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Within the thirty (30)-day period preceding the date hereof, no employee of or consultant to a Transferred Entity has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) been given notice of dismissal or termination by the Transferred Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) given notice resigning from employment with the Transferred Entity or terminating that consultancy or has otherwise indicated an intention to terminate the employment or consultancy; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) been placed on gardening leave or any equivalent arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. No Transferred Entity is involved in any industrial dispute or other dispute with any trade or industrial union or an association, group of employees or individual employee, no such dispute has, to the Knowledge of the Seller, been threatened and, to the Knowledge of Seller, is aware no circumstance exists that is likely to give rise to any such dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. No employee of any Transferred Entity accrues benefits which are, or will be, determined by reference to a formula based on the employee's length of service and/or superannuation salary under any fund and, to the Knowledge of Seller, is aware no promise, assurance or representation has been made to any employee of any Transferred Entity that their accumulation benefits under any fund will at any point in the future equate (approximately or exactly) to or not be less than any particular amount however calculated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Each Transferred Entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) has made when due all contributions to each superannuation fund that the Transferred Entity is obliged to make or has voluntarily committed to make; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) has made all superannuation contributions required to avoid any liability for a superannuation guarantee charge under the *Superannuation Guarantee Charge Act 1992* (Cth).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p. <u>Absence of Certain Changes</u>. Except as set forth on <u>Schedule 6(p)</u> or as specifically contemplated by this Agreement, since the Most Recent Balance Sheet Date through the Closing, Seller and the Transferred Entities have conducted the business in the ordinary course and there has not been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. any change that has had or could reasonably be expected to have a material adverse effect on the Purchased Assets or the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. any declaration, setting aside or payment of any dividend or other distribution (whether in cash, equity or ownership interests or property) with respect to any equity security of the Transferred Entities, or any repurchase, redemption or other reacquisition of any equity security in the Transferred Entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. any increase in the compensation payable or to become payable to any director or manager employee of the Transferred Entities that would increase such director or manager's base compensation to exceed $50,000 except for increases for such directors or employees made in the ordinary course of business, or in accordance with any Benefits Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. other than in the ordinary course of business, any waiver or release of any claim or right or cancellation of any debt held, in each case, applicable to the Purchased Assets or the assets of the Transferred Entities with a value in excess of $20,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. with respect to the Transferred Entities, any incurrence of any debts for money borrowed in excess of $20,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. if any of the following would result in a material increase in the Tax liability of a Transferred Entity for any taxable period beginning after the Closing Date, any adoption or change of a Tax election, any settlement or compromise of a claim, notice, audit report, assessment or other action in respect of Taxes, any change of an annual Tax accounting period, any adoption or change of a method of Tax accounting, any filing of an amended Tax Return, any entry into a Tax allocation agreement, Tax sharing agreement, Tax indemnity

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agreement or closing agreement relating to any Tax, any surrender of a right to claim a Tax refund, or any consent to an extension or waiver of the statute of limitations period applicable to any Tax claim or assessment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q. <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Each Transferred Entity has timely filed with the appropriate governmental authority all material Tax Returns required to be filed by or on behalf of such Transferred Entity or any affiliated group (within the meaning of Section 1504 of the Code or any similar unitary, combined or consolidated group under state, local or foreign Law) of which Transferred Entities are or were a member and all such Tax Returns are true, correct and complete in all material respects. <u>Schedule 6(q)</u> contains a list of all jurisdictions (whether foreign or domestic) in which each Transferred Entity files Tax Returns. None of Transferred Entities is currently the beneficiary of any extension of time within which to file any Tax Return. None of Transferred Entities has received a written or any other claim by a governmental authority in a jurisdiction where such Transferred Entity does not file Tax Returns that such Transferred Entity is or may be subject to Tax by that jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All Taxes payable by or on behalf of Transferred Entities, or any affiliated or consolidated group of which Transferred Entities are or were a member, have been fully and timely paid, whether or not shown on any Tax Return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. There is no audit, examination, suit, proceeding or claim currently pending or, to the Knowledge of Seller, threatened in writing against the Transferred Entities in respect of any Taxes, and no written notice of any audit, examination or claim for Taxes, whether pending or, to the Knowledge of Seller, threatened, has been received by Transferred Entities. All Taxes resulting from any Tax proceeding relating to Transferred Entities have been fully paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Each Transferred Entity has withheld and timely paid over to the proper governmental authority all Taxes required to have been withheld and paid over by each Transferred Entity, and each Transferred Entity has complied with all information reporting and backup withholding requirements, including maintenance of required records with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. None of Transferred Entities has waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency which waiver is still in force.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. There are no Liens on the assets of Transferred Entities relating to or attributable to Taxes other than Permitted Liens. None of Transferred Entities is, or has been at any time, a party to, bound by, or subject to any obligation under a Tax sharing, Tax indemnity or Tax allocation contract or similar agreement (except for contracts entered into in the ordinary course of business the primary purpose of which is not related to Tax).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. None of Transferred Entities has consummated or participated in, or is currently participating in, any transaction which was or is a "listed transaction" or a "reportable transaction" as defined in Section 6707A of the Code or Treasury Regulation Section 1.6011-4(b) or any transaction requiring disclosure under a corresponding or similar provision of state, local or foreign Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. None of Transferred Entities is, or has been, a U.S. real property holding company (as defined in Section 897(c)(2) of the Code) during the applicable period specified in Section 897(c)(1)(A)(ii) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. In this section, " <u>Tax Act</u> " means the *Income Tax Assessment Act 1936* (Cth) and the *Income Tax Assessment Act 1997* (Cth) or either of them and " <u>Tax</u> " means a tax-related liability arising under the Tax Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) No Transferred Entity is or has ever been a member of a Consolidated Group (as defined in the Tax Act) other than the Consolidated Group of which DMAP is the Head Company (as defined in the Tax Act) (" <u>DMAP Consolidated Group</u> ").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) No Transferred Entity has in the 5 years before the date of this Agreement paid or become liable to pay any penalty, fine or interest under any law or regulation relating to Tax and, to the Knowledge of Seller, is aware no circumstance exists that may result in a Transferred Entity becoming liable to pay any such penalty, fine or interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) No Transferred Entity has in the 5 years before the date of this Agreement been the subject of any investigation or audit by, or in dispute with, any Tax authority and, to the Knowledge of Seller, is aware no such investigation, audit or dispute is pending or, to the Knowledge of the Seller, threatened and no circumstances exist that may result in any such investigation, audit or dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Complete copies of all material rulings, advices, consents, advance opinions and clearances from a Tax authority affecting any Transferred Entity (" <u>Rulings</u> ") have been disclosed to Buyer and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all transactions carried into effect in reliance on any Ruling have been implemented in the manner disclosed in the application for the relevant Ruling; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the applicable Transferred Entity has not taken any action which has or might alter or prejudice any arrangement which has been negotiated with a Tax authority or any Tax Ruling which has previously been obtained from or issued by any Tax authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Each Transferred Entity has retained in accordance with requirements in the Tax Act relating to the retention of records:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) copies of all returns and other documents lodged with any Tax authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all records and other documents required by the Transferred Entity to calculate income tax liabilities, capital gains, capital losses, net capital gains and net capital losses after the Closing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all other records and other documents required by any law or regulation relating to Tax to be retained by the Transferred Entity for the requisite period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Each Transferred Entity has accurately maintained a franking account in accordance with the Tax Act at all relevant times and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) complete and accurate details of the balance of each such franking account and any existing or pending franking debits have been provided to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Transferred Entity franked all dividends in accordance with the benchmark franking rule; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Transferred Entity will not have a franking deficit at the Closing or have a franking deficit after the Closing as a result of a matter, act, or event relating to a period on or before the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) No Transferred Entity has a tainted share capital account and has not taken any action that might cause its share capital account to become a tainted share capital account or made any election at any time to untaint its share capital account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) No amount has been waived, forgiven or otherwise abandoned by any person in respect of debts owed by a Transferred Entity to any other person which would give rise to a net forgiven amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) No Transferred Entity has sought capital gains tax rollover relief under the Tax Act with respect to any asset which it has acquired and owns at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)No Transferred Entity has made an interposed entity election within the meaning of schedule 2F of the Tax Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)No Transferred Entity is or has ever been liable to pay GST in respect of supplies made by any other entity, other than amounts payable under a 'GST gross up' clause in an agreement covering supplies made to that Transferred Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)A Transferred Entity has not made, or been a member of a corporate group that has made, an application for corporate reconstruction relief from stamp duty (or similar exemption or concession) in the 3 years up until the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)Each Transferred Entity has at all times since its formation been properly treated as a disregarded entity for U.S. federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r. <u>Brokers</u>. No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;s.No Other Representations or Warranties. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED IN THIS SECTION 6, NEITHER SELLER NOR ANY OTHER PERSON MAKES ANY OTHER EXPRESS OR IMPLIED (BY STATUTE OR OTHERWISE), REPRESENTATION OR WARRANTY WITH RESPECT TO SELLER, THE PURCHASED ASSETS, THE ASSUMED LIABILITIES, THE SHARES OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE LIABILITIES ASSUMED HEREUNDER AND ANY OTHER RIGHTS OR OBLIGATIONS TO BE TRANSFERRED HEREUNDER OR PURSUANT HERETO. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED IN THIS SECTION 6, SELLER HEREBY DISCLAIMS ALL LIABILITY AND RESPONSIBILITY FOR ANY REPRESENTATION, WARRANTY, PROJECTION, FORECAST, STATEMENT, OR INFORMATION MADE, COMMUNICATED OR FURNISHED (ORALLY OR IN WRITING) TO BUYER OR ITS AFFILIATES OR REPRESENTATIVES (INCLUDING ANY OPINION, INFORMATION, PROJECTION OR ADVICE THAT MAY HAVE BEEN OR MAY BE PROVIDED TO BUYER BY ANY DIRECTOR, OFFICER, EMPLOYEE, AGENT, CONSULTANT OR REPRESENTATIVE OF SELLER OR ANY OF ITS AFFILIATES OR ANY OTHER PERSON). SELLER MAKES NO REPRESENTATIONS OR WARRANTIES TO BUYER REGARDING THE PROBABLE SUCCESS OR PROFITABILITY OF THE PURCHASED ASSETS OR THE BUSINESS.

7.<u>Representations and Warranties of Buyer</u>. Buyer represents and warrants to Seller as of the date hereof that the statements contained in this <u>Section 7</u> are true and correct as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Organization; Authority and Enforceability</u>. Buyer is a limited liability company duly formed, validly existing and in good standing under the Laws of the State of Delaware. Buyer has full limited liability company power and authority to enter into this Agreement and the documents to be delivered hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance by Buyer of this Agreement and the documents to be delivered hereunder and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of Buyer. This Agreement and the documents to be delivered hereunder have been duly executed and delivered by Buyer, and this Agreement constitutes the legal, valid and binding obligation of Seller, enforceable against it in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;b.<u>No Conflicts</u>. The execution, delivery and performance by Buyer of this Agreement and the consummation of the transactions contemplated hereby do not (i) violate or conflict with the organizational documents of Buyer or any Law applicable to Buyer or the Purchased Assets or (ii) violate or constitute a default or an event of default, or trigger any rights of any other entity or person under any contract to which Buyer is a party or a beneficiary or by which Buyer or any of its assets are bound.

&nbsp;&nbsp;&nbsp;&nbsp;c.<u>Independent Investigation; Buyer Acknowledgement</u>. Buyer has conducted its own independent investigation and review and analysis the business, results of operations, prospects, condition (financial or otherwise) and assets of the Business, including the Purchased Assets and the assets of the Transferred Entities in a manner sufficient to make an informed investment decision. Buyer agrees and acknowledges that it is not entitled to any recission right. BUYER ACKNOWLEDGES THAT THE REPRESENTATIONS AND WARRANTIES BY SELLER CONTAINED IN THIS AGREEMENT CONSTITUTE THE SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES OF SELLER TO BUYER IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT BUYER HAS NOT RELIED ON

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ANY REPRESENTATION, WARRANTY OR OTHER STATEMENT BY ANY PERSON ON BEHALF OF SELLER (OTHER THAN THOSE SET FORTH IN <u>SECTION 6</u>) AND THAT ALL OTHER REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE EXPRESSED OR IMPLIED ARE SPECIFICALLY DISCLAIMED BY SELLER.

8.<u>Restrictive Covenants</u>. Seller is engaged in the business of development, operation, and support of precision dosing software for intravenous medications (the "<u>Business</u>").

&nbsp;&nbsp;&nbsp;&nbsp;a.Seller covenants that, for a period of five (5) years from the date of this Agreement (the "<u>Restricted Period</u>"), Seller shall not, and shall not permit any of its controlled subsidiaries to, directly or indirectly, (x) engage in or assist others in engaging, in the Business worldwide (such restricted area, the "<u>Territory</u>"); (y) have an interest in any person or entity that engages directly or indirectly in the Business in the Territory in any capacity, including as a partner, shareholder, member, employee, principal, agent, trustee, manager, director or consultant; or (z) intentionally interfere in any material respect with the business relationships (whether formed prior to or after the date of this Agreement) between Buyer or any of its subsidiaries or affiliates, on the one hand, and customers or suppliers of Buyer or any of its subsidiaries or affiliates, on the other hand.

&nbsp;&nbsp;&nbsp;&nbsp;b.Seller covenants that during the Restricted Period it will not, and shall cause its affiliates not to, directly or indirectly, in any capacity hire, solicit or otherwise enter into any business affiliation with any employee of Buyer; <u>provided</u>, <u>however</u>, that this restriction shall not prohibit (i) soliciting or recruiting for employment or employing or hiring any such person from and after the twelve month anniversary of the date such person's employment with Buyer terminated, or (ii) the solicitation for employment and subsequent hiring of such person who responds to a general solicitation through advertisements in newspapers or other media of general circulation advertising employment opportunities, to the extent that such advertisements are not aimed specifically at any such person.

&nbsp;&nbsp;&nbsp;&nbsp;c.Seller acknowledges that a breach of this <u>Section 8</u> would give rise to irreparable harm to Buyer, for which monetary damages would not be an adequate remedy, and hereby agrees that in the event of a breach by Seller of any such obligations, Buyer shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to seek equitable relief, including a temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond).

&nbsp;&nbsp;&nbsp;&nbsp;d.During the Restricted Period, Seller will not, and shall cause its affiliates not to, directly or indirectly, solicit or entice, or attempt to solicit or entice, any clients or customers that Seller knows or has reason to know are clients or customers of Buyer with the intent of diverting their business or services from Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;e.Seller acknowledges that the restrictions contained in this <u>Section 8</u> are reasonable and necessary to protect the legitimate interests of Buyer and constitute a material inducement to Buyer to enter into this Agreement and consummate the transactions contemplated by this Agreement. If a court of competent jurisdiction determines that the character, duration or geographical scope of the provisions of this <u>Section 8</u> are unreasonable, it is the intention and the agreement of the Parties that these provisions shall be construed by the court in such a manner as to impose only those restrictions on Seller's conduct that are reasonable in light of the circumstances and as are necessary to assure to Buyer the benefits of this Agreement in such jurisdiction. If, in any judicial proceeding, a court shall refuse to enforce all of the separate covenants of this <u>Section 8</u> because taken together they are more extensive than necessary to assure to Buyer the intended benefits of this Agreement, it is expressly understood and agreed by the Parties that the provisions hereof, if eliminated, would permit the remaining separate provisions to be enforced in such proceeding, and shall be deemed eliminated, for the purposes of such proceeding, from this Agreement. The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

9.<u>Employee Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Immediately prior to the Closing, Seller shall terminate all employees of Seller set forth on the <u>Terminated Employees Schedule</u>, and Buyer shall offer employment, effective immediately after the Closing, to any or all of such employees, which offers of employment shall contain (i) base salary or hourly wages (excluding equity or equity-based compensation) and (ii) welfare benefits (excluding, for the avoidance of doubt, retiree medical

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or other retiree welfare benefits), in each case which are substantially similar to those provided by Seller immediately prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Prior to the Closing, Seller shall pay to DoseMe, by wire of immediately available funds, $193,908.33 AUD for further distribution by DoseMe to the employees of DoseMe set forth on <u>Schedule 9(b)</u>. Upon receipt by Seller of a fully executed release, in the form acceptable to Seller, from each employee set forth on <u>Schedule 9(b)</u>, Seller shall cause DoseMe to pay to each such employee the amount set forth opposite such employee's name on <u>Schedule 9(b)</u>; provided, that if any payment to any such employee is not made prior to the Closing, upon Seller's receipt of the applicable release, Buyer shall cause DoseMe to pay each such employee the amount set forth opposite such employee's name on <u>Schedule 9(b)</u>.

10.<u>Allocation</u>. The Purchase Price shall be allocated among the covenants set forth in <u>Section 8</u> and the Purchased Assets for all purposes (including Tax and financial accounting purposes) in accordance with their respective fair market values pursuant to an allocation schedule prepared by Seller and delivered to Buyer following the Closing in accordance with Section 1060 of the United States Internal Revenue Code of 1986, as amended from time to time (the "<u>Asset Allocation</u>"). Buyer and Seller will (a) file or cause to be filed all Tax Returns in a manner consistent with the Asset Allocation (as determined pursuant to this <u>Section 10</u>) and (b) not take any action inconsistent therewith. Any adjustments to the Purchase Price subsequent to the initial delivery of the Asset Allocation by Seller to Buyer shall be reflected in amendments to the Asset Allocation made by Seller in a manner consistent with Treasury Regulation Section 1.1060-1. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. " <u>Pre-Closing Tax Period</u> " means any taxable period that ends on or prior to the Closing Date, or that includes the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. " <u>Tax</u> " or " <u>Taxes</u> " means any and all federal, state, local, or foreign net or gross income, gross receipts, net proceeds, sales, use, ad valorem, value added, franchise, withholding, payroll, employment, excise, property, stamp, transaction, unemployment, social security, workers' compensation and other taxes, assessments, customs, surcharges, duties, fees, levies, or other governmental charges of any nature whatever, whether disputed or not, together with any interest, penalties, fines, statutory charges, or additional amounts with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. " <u>Tax Returns</u> " means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

11.<u>Transfer Taxes</u>. All transfer, sales, use, registration, documentary, stamp, value added and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement shall be borne and paid by 50% by Seller on the one hand and 50% by Buyer on the other hand, provided, however, that all Australian stamp and similar duties or taxes shall be borne 100% by Buyer. Buyer shall, at its own expense, timely file any Tax Return or other document with respect to such Taxes or fees (and Seller shall cooperate with respect thereto as necessary); provided, that all parties shall reasonably cooperate with one another so as to reduce or eliminate any such Transfer Taxes to the extent permitted under applicable law.

12.<u>Public Announcements</u>. Buyer shall not issue any press release or otherwise make any public statements with respect to the transactions contemplated by this Agreement without Seller's prior written consent.

13.<u>Survival</u>. Except as set forth in the final sentence of this <u>Section 13</u>, (i) all representations and warranties contained in this Agreement other than Fundamental Representations shall survive for eighteen months following the date hereof and (ii) all Fundamental Representations shall survive for six years following the date hereof; provided, that Fundamental Representation in relation to any Transferring Entity in connection with the Tax Act shall survive until the date which is 7 years after the date for lodgment of the income tax return of that Transferring Entity for the period that includes the Closing Date. All covenants contained in this Agreement shall survive for the period explicitly specified therein. Any claims of Delaware common law fraud ("<u>Fraud</u>"), willful or intentional misrepresentation or willful misconduct by or on behalf of any applicable party shall survive for 90 days following the expiration of the applicable statute of limitations (including extensions thereof).

14.<u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Each Party hereby agrees to indemnify the other Party, its successors and assigns, and their officers, managers, members, employees, agents and affiliates from and against any loss, cost, expense (including reasonable

------

attorney's fees and disbursements), damage, liability, claim, judgment, damage or settlement, but excluding indirect, consequential, incidental, exemplary, special, punitive damages, damages measured by loss profits, diminution in value, "multiple of profits," and other similar damages (other than to the extent paid or payable to a third party) (collectively, "<u>Losses</u>") incurred or sustained by any one or more of them with respect to or arising out of (x) any inaccuracy in or breach of any warranty or representation made by such indemnifying Party in this Agreement (including all exhibits and schedules thereto) or any document required to be delivered hereunder, other than (i) that certain Transition Services Agreement entered into among the Parties as of the date hereof (the "<u>Transition Services Agreement</u>"), (ii) the Note, (iii) the Buyer Security Agreements, (iv) the Transferred Entity Security Agreements and (v) any document or other instrument entered in connection with foregoing and (y) breach of or non-fulfillment of any covenant, agreement, or obligation to be performed by such indemnifying Party pursuant to this Agreement (including all exhibits and schedules thereto) or any document required to be delivered hereunder, other than (i) the Transition Services Agreement, (ii) the Note, (iii) the Buyer Security Agreements, (iv) the Transferred Entity Security Agreements and (v) any document or other instrument entered in connection with foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In no event shall either Party be liable for Losses in excess of an aggregate amount equal to the Purchase Price as adjusted pursuant to <u>Section 3(b)</u> and/or <u>Section 4(e)(1)</u>; provided, that, in the case of the Losses arising out of or relating to any representation and warranty that is not a Fundamental Representation, the cumulative indemnification obligation shall not exceed ten percent (10%) of the Purchase Price, as adjusted pursuant to <u>Section 3(b)</u> and/or <u>Section 4(e)(1)</u>; <u>provided</u>, that neither Party shall be required to indemnify the other Party hereunder until the aggregate amount of all such Losses exceeds $60,000 (the " <u>Threshold</u> "), in which case the Buyer Indemnitee or Seller Indemnitee, as applicable, shall be entitled to indemnification for all Losses (including up to the Threshold). The Threshold shall not apply to any indemnification obligations of Seller or Buyer, as applicable for any inaccuracy or breach of any of the Fundamental Representations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Whenever any claim shall arise for indemnification hereunder, the party entitled to indemnification (the " <u>Indemnified Party</u> ") shall promptly (but, in any event, within 30 days after receipt of any notice from a third party, if applicable) provide written notice of such claim to the other party (the " <u>Indemnifying Party</u> "). Such notice by the Indemnified Party shall describe the any applicable claim in reasonable detail and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. In connection with any claim giving rise to indemnity hereunder resulting from or arising out of any action by a person or entity who is not a party to this Agreement, the Indemnifying Party, at its sole cost and expense and upon written notice to the Indemnified Party, may assume the defense of any such action with counsel reasonably satisfactory to the Indemnified Party. The Indemnified Party shall be entitled to participate in defense of any such action, with its counsel and at its own cost and expense (which, for the avoidance of doubt, shall not be a Loss hereunder). If the Indemnifying Party does not assume the defense of any such action, subject to the terms herein, the Indemnified Party may but shall not be obligated to, subject to the limitations herein, defend against such action in such manner as it may deem appropriate. In the event that the Indemnifying Party does elect to conduct the defense of the third-party claim, then the Indemnified Party will reasonably cooperate with and make available to the Indemnifying Party such assistance and materials as may be reasonably requested by the Indemnifying Party. The Indemnified Party shall have the right to compromise and settle a third party claim only with the prior written consent of the Indemnifying Party (such approval not to be unreasonably withheld, conditioned or delayed). The Indemnifying Party shall not settle any action without the Indemnified Party's prior written consent (such approval not to be unreasonably withheld, conditioned or delayed); provided, that the Indemnifying Party may enter into a settlement of such third party claim without the consent of the Indemnified Party if (i) pursuant to or as a result of such compromise or settlement where no injunctive or other equitable relief will be imposed against any Indemnified Party and the settlement involves only payment of monetary damages by the Indemnifying Party; and (ii) such compromise or settlement expressly, irrevocably and unconditionally releases the Indemnified Party from all liabilities and obligations with respect to such claim, without prejudice and without any admission of wrongdoing or liability on the part of any Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Subject to <u>Section 14(b)</u> above, the Indemnified Party shall be entitled to recover the amount of Loss thereof from the Indemnifying Party upon final determination in an arbitration proceeding in accordance with <u>Section 23(b)</u> that the underlying claim is subject to indemnification pursuant to this Section 14, including reasonable attorneys' fees, disbursements and amounts paid as the result of such proceeding (the " <u>Recoverable Loss Amount</u> ").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. For purposes of this Agreement, " <u>Fundamental Representations</u> " means the representations and warranties set forth in <u>Sections 6(a)</u>, <u>6(b)(i)</u>, <u>6(e)(1-6)</u> (other than the last sentence of (2)), <u>6(f)</u>, <u>6(g)</u>, <u>6(q)</u> and <u>6(r)</u>, and <u>Sections 7(a) and (b)(i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The Parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this <u>Section 14</u>; provided, however, that nothing herein shall preclude any Party from seeking any remedy under any Buyer Security Agreement or any Transferred Entity Security Agreement or any remedy based upon such other Party's fraudulent or intentional misrepresentation in the making of representations and warranties under this Agreement, willful misconduct, Fraud or equitable relief pursuant to <u>Section 8(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. For purposes of determining the amount of a Loss under this <u>Section 14</u> resulting from a breach of any representation or warranty of Seller contained in this Agreement (but not, for the avoidance of doubt, for purposes of determining whether there has been a breach or inaccuracy), all references therein to "Material Adverse Effect", "material," "in all material respects" and similar qualifications as to materiality shall be deemed to be deleted therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Notwithstanding anything to the contrary in this Agreement, if Seller has not satisfied the Recoverable Loss Amount within thirty (30) days of such Recoverable Loss Amount determination, Buyer and Seller shall offset the amount of such Recoverable Loss Amount against the Note.

&nbsp;&nbsp;&nbsp;&nbsp;i.<u>Insurance Proceeds</u><u>; Tax Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. To the extent required by applicable Law, the Indemnified Party shall use commercially reasonable efforts to mitigate the amount of any Losses for which it is entitled to seek indemnification pursuant to this <u>Section 14</u>. If any Loss incurred by an Indemnified Party for purposes of this <u>Section 14</u> are covered by insurance, then the Indemnified Party agrees to use commercially reasonable efforts to seek recovery under such insurance. If any payment has been made to an Indemnified Party in respect of any Losses pursuant to this <u>Section 14</u> and the Indemnified Party thereafter receives recovery from any third party (including any insurer (subject to <u>Section 14(g)(2)</u>) in respect of such Losses, the Indemnified Party shall pay to the Indemnifying Party upon receipt of such recovery the lesser of (i) any amount so recovered in respect of such Losses, and (ii) the amount paid to the Indemnified Party in respect of such Losses pursuant to this <u>Section 14</u>, in each case, subject to any applicable expenses, including legal fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Without limiting <u>Section 14(g)(1)</u>, for purposes of calculating the amount of Losses incurred by an Indemnified Party for purposes of this Agreement, such amount shall be reduced by (i) the amount of any insurance proceeds actually paid to such Indemnified Party in respect of such Losses, net of any deductible amounts paid by or on behalf of the Indemnified Party, any present or future increase in premiums related thereto, calculated over a period of three years, and any reasonable costs associated with obtaining such insurance proceeds, including legal fees, (ii) the amount of any indemnification, contribution, and other similar payment proceeds actually recovered by such Indemnified Party in respect of such Losses, net of any reasonable costs associated with obtaining such proceeds, including legal fees, and (iii) any amount which was (A) taken into account as a liability or deduct for purposes of calculating the Purchase Price and (B) actually reduced the amount of the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. For purposes of calculating the amount of Losses incurred by an Indemnified Party for purposes of this Agreement, such amount shall be reduced by the amount of any tax benefit received or reasonably likely to be received by such Indemnified Party in respect of such Losses, including any amount of any relief, allowance, exemption, exclusion, set off, deduction, loss, rebate, refund, right to repayment or credit granted or available in respect of a Tax or duty under any law obtained or obtainable by the Buyer or Transferred Entities and any amount by which any Tax for which the Buyer or Transferred Entities is or may be liable to be assessed or accountable is reduced or extinguished), arising directly or indirectly from the matter that gives rise to the Loss, net of any costs associated with obtaining such benefit, including legal fees.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Seller shall not be liable under this <u>Section 14</u> for any Losses based upon or arising out of any inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement if Buyer had actual knowledge of such inaccuracy or breach prior to the Closing.

15.<u>Bulk Sales Laws</u>. Buyer and Seller hereby waive compliance by Buyer and Seller with the bulk sales Law and any other similar Laws in any applicable jurisdiction in respect of the transactions contemplated by this Agreement; provided, however, that Seller shall pay and discharge when due all claims of creditors asserted against Buyer or the Purchased Assets by reason of such noncompliance, shall take promptly all necessary actions required to remove any Lien which may be placed upon any of the Purchased Assets by reason of such noncompliance and shall Seller indemnify Buyer against any Losses it suffers as a result of such non-compliance.

16.<u>Expenses</u>. Other than in respect of the indemnification obligations set forth in <u>Section 14</u> of this Agreement (or as set forth in the Buyer Security Agreements or the Transferred Entity Security Agreements), each Party shall bear its own costs and expenses in connection with this Agreement and the transactions contemplated hereby and thereby, including all legal, accounting, financial advisory, consulting and all other fees and expenses of third parties.

17.<u>Preservation of Books and Records</u>. Seller shall have the right to retain copies of all books and records in connection with Purchased Assets and Shares relating to periods ending on or prior to the Closing Date provided that such books and records are kept confidential in accordance with its normal confidentiality procedures.

18.<u>Notices</u>. All notices, requests, consents, claims, demands, waivers, and other communications hereunder (each, a "<u>Notice</u>") shall be in writing and addressed to the Parties at the addresses set forth on the signature pages of this Agreement (or to such other address that may be designated by the receiving party from time to time). All Notices shall be delivered by personal delivery, nationally recognized overnight courier, facsimile or email or certified or registered mail.

19.<u>Amendments and Waivers</u>. Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each Party, or in the case of a waiver, by the Party against whom the waiver is to be effective.

20.<u>Successors and Assigns</u>. This Agreement may not be assigned by either Party without the prior written consent of the other party; provided that, without such consent, Seller may transfer or assign this Agreement, in whole or in part or from time to time, to one or more of its affiliates. Subject to the foregoing, all of the terms and provisions of this Agreement shall inure to the benefit of and be binding upon the Parties and their respective executors, heirs, personal representatives, successors and assigns.

21.<u>Further Assurances</u>. From time to time after the Closing Date, each Party shall, upon the reasonable request of the other, execute and deliver or cause to be executed and delivered such further instruments of conveyance, assignment, transfer and assumption, and take such further actions, as may reasonably be requested in order to more effectively carry out the purposes and intent herein.

22.<u>No Third Party Beneficiaries</u>. Nothing expressed or referred to in this Agreement will be construed to give any person other than the Parties any legal or equitable right, remedy, or claim under or with respect to this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the Parties and their permitted successors and assigns.

23.<u>Governing Law; Arbitration; Consent to Jurisdiction; Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. This Agreement shall be governed by and interpreted and enforced in accordance with the Laws of the State of Delaware, without giving effect to any choice of law or conflict of laws rules or provisions that would cause the application of the Laws of any jurisdiction other than the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Except as expressly otherwise provided herein, all disputes arising out of, in connection with or related to this Agreement shall be addressed exclusively by confidential, binding arbitration in accordance with this <u>Section 23(b)</u>; provided, however, that this Section shall not preclude any Party from seeking equitable relief in a court of competent jurisdiction. Arbitration shall be held in Delaware under the auspices of the American Arbitration Association (the " <u>AAA</u> ") pursuant to the Commercial Arbitration Rules of the AAA, and shall be by one arbitrator, independent of the Parties, selected by mutual agreement of the Parties from a list provided by the

------

AAA in accordance with such Commercial Arbitration Rules; provided, that if the Parties are unable to agree on an arbitrator within thirty (30) days after receiving the AAA's proposed list of arbitrators, then each Party shall select an arbitrator from such list and such arbitrators shall together select a third arbitrator to act as the arbitrator; provided, further, that if any Party does not select an arbitrator within ten (10) days of written demand therefor by the other Party, then the arbitrator selected by the other Party shall act as the arbitrator. The arbitrator shall make his or her decision in writing within thirty (30) days after the close of the arbitration hearing. To the maximum extent permitted by Law, the decision of the arbitrator shall be final and binding and not be subject to appeal. If a Party against whom the arbitrator renders an award fails to abide by such award, the other Party or Parties may seek to enforce such award in a court of competent jurisdiction. The Parties shall allow and participate in discovery in accordance with the United States Federal Rules of Civil Procedure and unresolved discovery disputes shall be submitted to the arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Without limiting the requirement to arbitrate disputes as set forth herein, each Party irrevocably submits to the exclusive jurisdiction of (a) the State of Delaware, and (b) the United States District Court for the District of Delaware for the purposes of any action arising out of this Agreement. Each Party further agrees that service of any process, summons, notice or document by U.S. registered mail to such Party's respective address set forth below shall be effective service of process for any action in the State of Delaware with respect to any matters to which it has submitted to jurisdiction in this <u>Section 23</u>. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF SUCH PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. For the avoidance of doubt, nothing herein shall amend the governing law or jurisdiction provisions set forth in, and this Section 23 will not apply in respect of, the AU Buyer Security Agreement, the AU Transferred Entity Guarantee or the AU Transferred Entity Security Agreement.

24.<u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

25.<u>Entire Agreement</u>. This Agreement and the other documents delivered in connection herewith set forth the entire understanding of the Parties with respect to the transactions contemplated by this Agreement. Any previous agreements between the Parties regarding the subject matter hereof are superseded by this Agreement.

26.<u>Severability</u>. If any court of competent jurisdiction determines that the provisions of this instrument are illegal, invalid or unenforceable, then such provisions shall be construed so that the remaining provisions of this instrument shall not be affected, but shall remain in full force and effect, and any such illegal, invalid or unenforceable provisions shall be deemed, without further action on the part of any person or entity, to be modified, amended and/or limited to the extent necessary to render the same valid and enforceable.

27.<u>Certain Tax Returns</u>. Seller shall reasonably cooperate, and Buyer shall prepare or cause to be prepared and file or cause to be filed all Tax Returns for the Transferred Entities that are to be filed after the Closing Date. To the extent that Seller could have a liability with respect to such Tax Return or to indemnify Buyer or otherwise bear the cost of the Taxes reflected on such Tax Return (such Tax Return, a "<u>Relevant Return</u>"), Buyer shall provide Seller with a draft of such Relevant Return for review and approval (which approval shall not be unreasonably withheld or delayed) as soon as reasonably practicable and, in any event, no later than 30 days prior to the due date for such Relevant Return (or, in the case of any Relevant Return due within 30 days of the Closing Date or the end of the relevant Tax period, as soon as reasonably practicable). Buyer and Seller agree to consult and resolve in good faith any issue arising as a result of the review of such Relevant Return, and mutually to consent to the filing as promptly as possible.

28.<u>Closing Date Items / No 338 Election</u>. Buyer shall not make or cause to be made any extraordinary transaction or event on the Closing Date that would result in any increased Tax liability for which Seller would be required to provide indemnification pursuant to this Agreement or otherwise bear the incidence of Tax pursuant to this Agreement. Buyer shall not file or cause to be filed any election under Section 338 of the Code (or any similar provision of state, local, or foreign Law) with respect to the transactions contemplated by this Agreement.

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29. <u>Certain Post-Closing Tax Actions</u>. From and after the Closing, without the prior written consent of Seller, Buyer shall not and shall not allow a Transferred Entity to, (i) amend, refile, modify, or change any Tax Return filed by, or on behalf of, any Transferred Entity for any Pre-Closing Tax Period; (ii) make, change, rescind, revoke, or otherwise modify any Tax election or adopt or change any accounting method, period, or practices for, or that has retroactive effect to, any Pre-Closing Tax Period; (iii) surrender any right to claim a Tax refund, credit, or other offset of Taxes with respect to any Pre-Closing Tax Period; (iv) liquidate, dissolve, or take any other action, including, without limitation, by filing an entity classification election with the IRS or the Australian Taxation Office, to change the classification of any Transferred Entity for U.S. or Australian federal (and as applicable, state and local) income Tax purposes for any Pre-Closing Tax Period; or (v) file or otherwise pursue a voluntary disclosure agreement (or similar voluntary compliance or self-corrective action) or letter ruling with, or from, a Taxing authority with respect to any Pre-Closing Tax Period.

[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

**BUYER:**

**DOseme operations inc.**

By: <u>/s/ David Neiman</u>

Name: David Neiman

Title: Authorized Signatory

<u>Address for Notices to Buyer</u>:

222 Tresana Blvd, Unit 52

Jupiter, FL 33478

Attn: David Neiman

Email: dneiman@fairlongcapital.com

With a required copy to:

Tuttle Yick LLP

352 Seventh Avenue, 14<sup>th</sup> Floor

New York, NY 10001

Attn: Peter Dee

Email: pdee@tuttleyick.com

------

**SELLER:**

**Tabula Rasa Healthcare Group, Inc.**

By: <u>/s/ Brian W. Adams</u>

Name: Brian W. Adams

Title: Chief Executive Officer

<u>Address for Notices to Seller</u>:

Tabula Rasa HealthCare Group, Inc.

c/o Tabula Rasa HealthCare, Inc.<br>228 Strawbridge Drive<br>Moorestown, NJ 08057

Attn: General Counsel

E-Mail: legal@trhc.com

With a required copy to:

Morgan, Lewis & Bockius LLP

1701 Market Street

Philadelphia, PA 19103

Attn: Kevin S. Shmelzer

E-Mail: kevin.shmelzer@morganlewis.com

------

**EXHIBIT A**

**PROMISSORY NOTE**

Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally to the U.S. Securities and Exchange Commission a copy of any omitted schedule or exhibit upon request.

------

**EXHIBIT B**

**ILLUSTRATIVE EXAMPLE OF CALCULATION OF ADJUSTMENT AMOUNT**

Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally to the U.S. Securities and Exchange Commission a copy of any omitted schedule or exhibit upon request.

------

**SCHEDULE A**

**PURCHASED ASSETS**

Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally to the U.S. Securities and Exchange Commission a copy of any omitted schedule or exhibit upon request.

------

**SCHEDULE B**

**EXCLUDED ASSETS**

Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally to the U.S. Securities and Exchange Commission a copy of any omitted schedule or exhibit upon request.

------

**SCHEDULE C**

**ASSUMED LIABILITIES**

Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally to the U.S. Securities and Exchange Commission a copy of any omitted schedule or exhibit upon request.

------

**WORKING CAPITAL SCHEDULE**

Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally to the U.S. Securities and Exchange Commission a copy of any omitted schedule or exhibit upon request.

------

**TERMINATED EMPLOYEES SCHEDULE**

Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally to the U.S. Securities and Exchange Commission a copy of any omitted schedule or exhibit upon request.

------

**SCHEDULE 9(b)**

**Transferred Entity Sales Transaction Bonuses**

Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally to the U.S. Securities and Exchange Commission a copy of any omitted schedule or exhibit upon request.

------

## Exhibit 10.60

**Exhibit 10.60**

CERTAIN SCHEDULES AND EXHIBITS HAVE BEEN OMITTED PURSUANT TO ITEM 601(a)(5) OF REGULATION S-K. IN ADDITION, PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO ITEM 601(b)(2) of REGULATION S-K BECAUSE THEY (i) ARE NOT MATERIAL AND (ii) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED. THE COMPANY AGREES TO FURNISH SUPPLEMENTALLY TO THE COMMISSION AN UNREDACTED COPY OF THIS EXHIBIT, OR A COPY OF ANY OMITTED SCHEDULE OR EXHIBIT, UPON REQUEST.

**ASSET PURCHASE AGREEMENT**

**BY AND BETWEEN**

**TABULA RASA HEALTHCARE GROUP, INC., as Seller, SYMPHONY CLINIC, LLC,** 

**as Buyer, and solely for purposes of Section 2.8 hereof, CUREATR INC., as Buyer Guarantor**

Dated as of March 2, 2023

------

**TABLE OF CONTENTS**

**Page**

#### <sup>ARTICLE 1 DEFINITIONS; CONSTRUCTION</sup> 1
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1.1 Definitions</sup>[1](#_Toc128587166)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1.2 Construction</sup>[13](#_Toc128587167)

#### <sup>ARTICLE 2 PURCHASE AND SALE</sup> 13
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.1 Purchase and Sale of Assets</sup>[13](#_Toc128587169)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.2 Purchased Assets and Excluded Assets</sup>[14](#_Toc128587170)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.3 Assumed Liabilities and Excluded Liabilities</sup>[16](#_Toc128587171)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.4 Purchase Price</sup>[16](#_Toc128587172)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.5 Payment</sup>[16](#_Toc128587173)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.6 Closing Date Purchase Price Adjustment</sup>[18](#_Toc128587174)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.7 Post-Closing Purchase Price Adjustment</sup>[18](#_Toc128587175)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.8 Earnout Payment; Buyer Guaranty.</sup>[19](#_Toc128587176)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.9 Non-Transferable Assets</sup>[20](#_Toc128587177)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.10 Transfer of Assets</sup>[21](#_Toc128587178)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>2.11 Withholding Tax</sup>[21](#_Toc128587179)

#### <sup>ARTICLE 3 CLOSING</sup> 22
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>3.1 Closing</sup>[22](#_Toc128587181)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>3.2 Deliveries at the Closing.</sup>[22](#_Toc128587182)

#### ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF SELLER 23
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.1 Organization and Qualifications</sup>[23](#_Toc128587184)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.2 Authority and Enforceability</sup>[23](#_Toc128587185)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.3 No Violation of Laws or Agreements; Consents</sup>[23](#_Toc128587186)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.4 Financial Statements</sup>[24](#_Toc128587187)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.5 Absence of Undisclosed Liabilities</sup>[24](#_Toc128587188)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.6 No Changes</sup>[24](#_Toc128587189)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.7 Taxes</sup>[25](#_Toc128587190)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.8 Title to Purchased Assets; Sufficiency</sup>[27](#_Toc128587191)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.9 Real Property</sup>[27](#_Toc128587192)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.10 No Pending Litigation</sup>[28](#_Toc128587193)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.11 Compliance With Law</sup>[28](#_Toc128587194)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.12 Intellectual Property</sup>[28](#_Toc128587195)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.13 Labor Matters</sup>[32](#_Toc128587196)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.14 Employee Related Agreements and Plans; ERISA</sup>[33](#_Toc128587197)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.15 Environmental Matters</sup>[34](#_Toc128587198)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.16 Material Contracts</sup>[34](#_Toc128587199)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.17 Customers and Vendors</sup>[36](#_Toc128587200)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.18 Licenses, Permits and Authorizations; HIPAA</sup>[36](#_Toc128587201)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.19 Compliance with Healthcare Laws</sup>[37](#_Toc128587202)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.20 Transactions with Affiliates</sup>[38](#_Toc128587203)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.21 Anti-bribery; Sanctions</sup>[38](#_Toc128587204)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.22 Brokers</sup>[38](#_Toc128587205)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>4.23 Disclaimer of Warranties</sup>[38](#_Toc128587206)

#### <sup>ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF BUYER</sup> 38
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>5.1 Organization</sup>[39](#_Toc128587208)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>5.2 Authority and Enforceability</sup>[39](#_Toc128587209)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>5.3 No Violation of Laws; Consents</sup>[39](#_Toc128587210)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>5.4 No Pending Litigation or Proceedings</sup>[39](#_Toc128587211)

i

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>5.5 Brokers</sup>[39](#_Toc128587212)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>5.6 Buyer Acknowledgement</sup>[39](#_Toc128587213)

#### <sup>ARTICLE 6 OTHER AGREEMENTS</sup> 40
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.1 Tax Matters</sup>[40](#_Toc128587215)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.2 Employees and Employee Benefit Plans</sup>[41](#_Toc128587216)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.3 Confidentiality; No Public Announcement.</sup>[42](#_Toc128587217)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.4 Expenses</sup>[42](#_Toc128587218)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.5 Access to Books and Records</sup>[42](#_Toc128587219)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.6 Corporate Names</sup>[42](#_Toc128587220)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.7 Shared Contracts</sup>[43](#_Toc128587221)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.8 Bulk Sales Laws</sup>[43](#_Toc128587222)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

[6.9](#_Toc128587223) [Noncompetition; Nonsolicitation; Confidentiality](#_Toc128587223)[43](#_Toc128587223)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>6.10 Permits</sup>[44](#_Toc128587224)

#### <sup>ARTICLE 7 SURVIVAL; INDEMNIFICATION</sup> 45
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

[7.1](#_Toc128587226) [Survival of Representations and Warranties and Covenants](#_Toc128587226)[45](#_Toc128587226)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.2 Indemnification by Seller</sup>[45](#_Toc128587227)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.3 Indemnification by Buyer</sup>[46](#_Toc128587228)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.4 Certain Limitations</sup>[46](#_Toc128587229)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.5 Procedures</sup>[47](#_Toc128587230)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.6 Set-Off Right</sup>[49](#_Toc128587231)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.7 Sole Remedy; Recovery.</sup>[49](#_Toc128587232)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>7.8 Adjustments to Purchase Price</sup>[49](#_Toc128587233)

#### <sup>ARTICLE 8 MISCELLANEOUS</sup> 50
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.1 Further Assurances</sup>[50](#_Toc128587235)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.2 Notices</sup>[50](#_Toc128587236)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.3 Assignment</sup>[51](#_Toc128587237)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.4 Governing Law; Venue</sup>[51](#_Toc128587238)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.5 Specific Performance</sup>[51](#_Toc128587239)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.6 Amendment and Waiver</sup>[52](#_Toc128587240)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

[8.7](#_Toc128587241) [Entire Agreement; No Third Party Beneficiaries](#_Toc128587241)[52](#_Toc128587241)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.8 Severability</sup>[52](#_Toc128587242)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>8.9 Counterparts; Signatures</sup>[52](#_Toc128587243)

ii

------

**Exhibits**

Exhibit ANet Working Capital of the Business

Exhibit BForm of Seller Note

Exhibit CForm of Bill of Sale

Exhibit DForm of Transition Services Agreement

Exhibit EForm of IP Assignment Agreement

Exhibit FForm of Consulting Agreement

i

------

**ASSET PURCHASE AGREEMENT**

This **ASSET Purchase Agreement** (this "**Agreement**"), is made as of March 2, 2023, by and among Tabula Rasa HealthCare Group, Inc., a Delaware corporation ("**Seller**"), Symphony Clinic, LLC, a Delaware limited liability company ("**Buyer**"), and solely for purposes of <u>Section 2.8</u> hereof, Cureatr Inc., a Delaware corporation (the "**Buyer Guarantor**"). Each of Buyer and Seller is sometimes referred to in this Agreement as a "**Party**" and collectively as the "**Parties**."

**BACKGROUND**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Seller operates an unincorporated business division formerly called SinfoniaRx, which provides both full-service and software as a service (SaaS) solutions to health plans, pharmacy benefit managers, care delivery organizations, pharmaceutical manufacturers, and pharmacies to support medication therapy management (MTM), and Medicare Star (the "**Business** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Seller desires to sell to Buyer the Purchased Assets, and Buyer wishes to purchase from Seller the Purchased Assets and assume from Seller all of the Assumed Liabilities, all on the terms and conditions set forth in, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Seller owns and operates multiple other business divisions and assets, and this Agreement relates only to the purchase and sale of the Business.

**STATEMENT OF AGREEMENT**

**NOW, THEREFORE**, in consideration of the representations, warranties, covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, each intending to be legally bound hereby, agree as set forth below.

#### ARTICLE 1 <br> DEFINITIONS; CONSTRUCTION
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1**Definitions.** As used in this Agreement, the following terms have the meanings specified in this <u>Article 1</u>.

"**Action**" means any action, suit, arbitration or proceeding of any nature or kind whatsoever, whether civil, criminal or administrative, at law or in equity, by or before any Governmental Body or arbitrator.

"**Affiliate**" means, with respect to any Person, any other Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such Person, where "control" (and its variants) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting interests, contract, or otherwise.

"**Agreed Amount**" has the meaning set forth in <u>Section</u> <u>7.5.1(b)</u>.

"**Agreement**" has the meaning set forth in the preamble, and includes all Disclosure Schedules and Exhibits attached hereto.

"**Allocation Methodology**" has the meaning set forth in <u>Section</u> <u>6.1.4</u>.

"**Allocation Schedule**" has the meaning set forth in <u>Section</u> <u>6.1.4</u>.

"**Ancillary Agreements**" means the Bill of Sale, the Transition Services Agreement, the IP Assignment Agreement, and the other agreements, instruments and documents required to be delivered at the Closing hereunder.

"**Annual Financial Statements**" has the meaning set forth in <u>Section</u> <u>4.4.1</u>.

------

"**Assumed Contracts**" has the meaning set forth in <u>Section</u> <u>2.2.1(c)</u>.

"**Assumed Leases**" has the meaning set forth in <u>Section</u> <u>2.2.1(b)</u>.

"**Assumed Liabilities**" has the meaning set forth in <u>Section</u> <u>2.3.1</u>.

"**Assumed Permits**" has the meaning set forth in <u>Section 2.2.1(i)</u>.

"**Author**" has the meaning set forth in <u>Section 4.12.4</u>.

"**Base Purchase Price**" has the meaning set forth in <u>Section</u> <u>2.4</u>.

"**Bill of Sale**" has the meaning set forth in <u>Section</u> <u>3.2.1(a)</u>.

"**Business**" has the meaning set forth in the recitals to this Agreement.

"**Business Day**" means each day other than Saturday, Sunday or a day on which banking institutions in New York are authorized or obligated by law or executive order to close.

"**Business Employee**" means any full or part time employee of the Seller or one of its Affiliates who spends substantially all of his or her work time working for the Business as identified in <u>Section 4.13.1</u> of the Disclosure Schedules.

"**Business Intellectual Property**" means any and all Business-Utilized Intellectual Property and any and all Third-Party Intellectual Property that is used or held for use primarily in connection with the Business.

"**Business Intellectual Property Agreements**" means any Contract relating to any Business Intellectual Property to which Seller is a party, including any co-existence or settlement agreements, forbearances to sue, or consents, but excluding (i) any Contracts for Third-Party Intellectual Property consisting primarily of software (including software provided as a service) that is generally, commercially available for less than $10,000 pursuant to a "shrink-wrap," "click-through" or similar non-negotiable non-exclusive license (such Contracts, "**Off-the-Shelf Licenses**"), (ii) non-disclosure agreements entered in the ordinary course of business, the subject matter of which is limited to the use, nondisclosure and confidentiality of information exchanged by the parties thereto and that do not include a license or access to Business Intellectual Property, (iii) non-exclusive licenses granted to customers in the ordinary course of business and that do not include access to Business Source Code, and (iv) Proprietary Information Agreements with current and former Business Employees and independent contractors of Seller.

"**Business Privacy Commitments**" has the meaning set forth in <u>Section 4.12.10(a)</u>.

"**Business Products**" means all products and services that have been or are currently produced, marketed, licensed, sold, supported or maintained with respect to the Business and all products or services currently under development by Seller, including any product or services that form the basis, in whole or in part, of any financial statements or sales projections provided to Buyer.

"**Business Registered Intellectual Property**" means United States, international and foreign: (a) patents and patent applications (including provisional applications), (b) registered trademarks and service marks, applications to register trademarks and service marks, intent-to-use applications, or other registrations or applications related to trademarks and service marks, (c) registered Internet domain names, and (d) registered copyrights and applications for copyright registration, in each case with respect to any Business-Utilized Intellectual Property.

"**Business Source Code**" means any Source Code of any Business-Utilized Intellectual Property or Business Products.

"**Business-Utilized Intellectual Property**" means any and all Intellectual Property that is owned or purported to be owned by Seller and used or held for use primarily in connection with the Business.

------

"**Buyer**" has the meaning set forth in the preamble.

"**Buyer Delivered Documents**" means this Agreement and each of the other agreements, instruments, and documents to be executed and delivered by Buyer pursuant to this Agreement.

"**Buyer Fundamental Representations**" means the representations and warranties contained in <u>Section 5.1</u> (Organization), <u>Section 5.2</u> (Authority and Enforceability), and <u>Section 5.5</u> (Brokers).

"**Buyer Guarantor**" has the meaning set forth in the preamble.

"**Buyer Indemnification Basket**" means one million dollars ($1,000,000).<u> </u>

"**Buyer Indemnified Parties**" means Buyer and its officers, managers, directors, employees, agents and representatives.

"**CHM Agreement**" means that certain Master Services Agreement, dated as of November 27, 2019, by and between Comprehensive Health Management, Inc. and Tabula Rasa HealthCare Group, Inc. (f/k/a TRHC OpCo, Inc.).

"**Claim-Related Expenses**" means any and all third party expenses incurred in connection with investigating or defending any claim, action, suit or proceeding incident to any matter indemnified against hereunder, including court filing fees, court costs, arbitration fees or costs, witness fees and reasonable and documented fees and disbursements of legal counsel, investigators, expert witnesses, accountants and other professionals.

"**Claimed Amount**" has the meaning set forth in <u>Section</u> <u>7.5.1(a)</u>.

"**Closing**" has the meaning set forth in <u>Section</u> <u>3.1</u>.

"**Closing Date**" has the meaning set forth in <u>Section</u> <u>3.1</u>.

"**Closing Date Payment Amount**" has the meaning set forth in <u>Section 2.5.1</u>.

"**Closing Date Working Capital Amount**" means the Net Working Capital as of the Effective Time.

"**Closing Statement**" has the meaning set forth in <u>Section</u> <u>2.5.1</u>.

"**COBRA**" the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

"**Code**" means the United States Internal Revenue Code of 1986, as amended from time to time, and the applicable rulings and regulations thereunder.

"**Consent Offset Amount**" means an amount equal to $154,560.00.

"**Contested Amount**" has the meaning set forth in <u>Section</u> <u>7.5.1(b)</u>.

"**Contract**" means any contract, promissory note, indenture, mortgage, deed of trust, financial instrument, lease, license, whether written or oral, or other agreement of any kind that is binding on a Person under applicable Law.

"**Copyleft License**" shall mean any license of software that requires, as a condition of use, modification or distribution of the software licensed under such license (the "**Copyleft Software**"), that the software, or other Technology incorporated into, derived from, used, or distributed with the Copyleft Software: (i) be made available or distributed in a form other than binary code or object code form (e.g., Source Code form); (ii) be licensed for the purpose of preparing derivative works; (iii) be licensed under terms that allow the other Technology incorporated into, derived from, used, or distributed with the Copyleft Software, or portions thereof or interfaces therefor, to be reverse engineered, reverse assembled or disassembled (other than by operation of Law); or (iv) be redistributable at no license

------

fee. For all purposes of and under this Agreement, "Copyleft Licenses" shall include the GNU General Public License, the GNU Lesser General Public License, the GNU Affero General Public License, the Mozilla Public License, the Common Development and Distribution License, and the Eclipse Public License.

"**COVID-19**" means the 2019 novel coronavirus disease, COVID-19 virus (SARS_COV-2 and related strains and sequences), or mutations or antigenic shifts thereof.

"**Data Security Program**" has the meaning set forth in <u>Section 4.12.10(c)</u>.

"**Deductible**" has the meaning set forth in <u>Section</u> <u>7.4.1</u>.

"**Disclosure Schedules**" means the Disclosure Schedules attached to this Agreement (including all attachments thereto).

"**Earnout Amount**" means the total amount payable to Seller pursuant to <u>Section 2.8</u>, but in no event more than one million dollars ($1,000,000) in the aggregate.

"**Earnout Conditions**" means, in connection with an amendment to the regulations governing the Medicare Prescription Drug Benefit (Part D) program, each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the reduction of the cost threshold for annual medications from four thousand nine hundred and fifty-three dollars ($4,953.00) to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an amount ranging from three thousand eight hundred forty-nine dollars and one cent ($3,849.01) to four thousand three hundred and forty dollars ($4,340.00) (the "**10% Medication Cost Condition**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an amount ranging from three thousand five hundred and six dollars and one cent ($3,506.01) to three thousand eight hundred forty-nine dollars ($3,849.00) (the "**20% Medication Cost Condition**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an amount ranging from three thousand two hundred eleven dollars and one cent ($3,211.01) to three thousand five hundred six dollars ($3,506.00) (the "**30% Medication Cost Condition**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) an amount ranging from three thousand fifteen dollars and one cent ($3,015.01) to three thousand two hundred eleven dollars ($3,211.00) (the "**40% Medication Cost Condition**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) an amount ranging from two thousand eight hundred forty-three dollars and one cent ($2,843.01) to three thousand fifteen dollars ($3,015.00) (the "**50% Medication Cost Condition**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) an amount ranging from two thousand seven hundred twenty-one dollars and one cent ($2,721.01) to two thousand eight hundred forty-three dollars ($2,843.00) (the "**60% Medication Cost Condition**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an amount ranging from two thousand six hundred twenty-three dollars and one cent ($2,623.01) to two thousand seven hundred twenty-one dollars ($2,721.00) (the "**70% Medication Cost Condition**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an amount ranging from two thousand five hundred forty-nine dollars and one cent ($2,549.01) to two thousand six hundred twenty-three dollars ($2,623.00) (the "**80% Medication Cost Condition**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) an amount ranging from two thousand five hundred dollars and one cent ($2,500.01) to two thousand five hundred and forty-nine dollars ($2,549.00) (the "**90% Medication Cost Condition**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) an amount equal to or less than two thousand five hundred dollars ($2,500.00) (the "**100% Medication Cost Condition"** and collectively with the 90% Medication Cost Condition, 80% Medication Cost Condition, 70% Medication Cost Condition, 60% Medication Cost Condition, 50% Medication Cost

------

Condition, 40% Medication Cost Condition, 30% Medication Cost Condition, the 20% Medication Cost Condition and the 10% Medication Cost Condition, the "**Medication Cost Conditions**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the reduction of the medication count threshold from eight (8) to (a) seven (7) (the "**50% Medication Count Condition**") or (b) six (6) or less (the "**100% Medication Count Condition**", and together with the 50% Medication Count Condition, the "**Medication Count Conditions**").

"**Earnout Period**" has the meaning set forth in <u>Section 2.8.1</u>.

"**Effective Time**" has the meaning set forth in <u>Section</u> <u>3.1</u>.

"**Employee Benefit Plan**" means any (a) "employee benefit plan," within the meaning of Section 3(3) of ERISA (whether or not subject to ERISA), (b) stock or membership interest option, stock or membership interest purchase, stock or membership interest appreciation, restricted stock or restricted membership interest, equity purchase, VEBA, profit sharing, pension, retirement, bonus, commission, retention, change in control, severance pay plans, programs or arrangements, deferred compensation, incentive compensation, medical, dental or other health or welfare, life insurance, flexible spending account, cafeteria plan, disability, accident, salary continuation, paid time off, holiday, vacation, supplemental retirement and unemployment benefit plan or program (whether or not insured), employment agreements, independent contractor or (c) other employee benefit plan, program or fringe benefit plan, fund, policy, program, practice agreement or arrangement (whether written or unwritten, qualified or nonqualified, funded or unfunded, insured or self-insured) providing compensation or other benefits to Business Employees, or that the Seller or an Affiliate of Seller has currently or previously established, maintained, sponsored or contributed to for the benefit of any Business Employee.

"**Encumbrance**" means any mortgage, deed of trust, pledge, security interest, easement, lien, charge, conditional sale or other title retention agreement, defect in title or other restriction of a similar kind.

"**Environmental Law**" means Laws relating to (a) the control of any pollutant, contaminant, or hazardous material, the protection of human health, or the protection or restoration of the environment (including air, water and land) or natural resources; and (b) the generation, manufacture, processing, use, handling, treatment, storage, disposal, release, distribution and transportation of solid, gaseous or liquid wastes, or hazardous materials, including the Clean Air Act (42 U.S.C. §7401 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. §6901 et seq.), the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.), the Federal Water Pollution Control Act, as amended by the Clean Water Act (33 U.S.C. §1251 et seq.), the Comprehensive Environmental Response, Compensation, and Liability Act, as amended by the Superfund Amendments and Reauthorization Act (42 U.S.C. §9601 et seq), the Toxic Substances Control Act (15 U.S.C. §2601 et seq.), the Oil Pollution Act of 1990 (33 U.S.C. §2701 et. seq.), the Emergency Planning and Community Right to Know Act (42 U.S.C. §11001 et seq.), and the Hazardous Materials Transportation Act (49 U.S.C. §5101 et seq.).

"**ERISA**" means the United States Employee Retirement Income Security Act of 1974, as amended, and the applicable rulings and regulations thereunder.

"**ERISA Affiliate**" means, with respect to any entity, any trade or business, whether or not incorporated, that together with such entity would be deemed a "single employer" within the meaning of Section 414(b), (c), (m), or (o) of the Code.

"**ESI Agreement**" means that certain Master Services Agreement, dated as of January 31, 2017, by and between SinfoniaRx, Inc. and Express Scripts Holding Company, as amended by the First Amendment to the Master Services Agreement, dated as of August 8, 2017, by and between SinfoniaRx, Inc. and Express Scripts Holding Company, as further amended by the Second Amendment to the Master Services Agreement, dated as of April 15, 2020, by and between SinfoniaRx, Inc. and Express Scripts Holding Company , as further amended by the Third Amendment to the Master Services Agreement, dated as of October 13, 2021, by and between Evernorth Health Inc. f/k/a Express Scripts Holding Company and Tabula Rasa HealthCare Group, Inc. (as successor-in-interest to SinfoniaRx, Inc.).

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"**Estimated Working Capital Amount**" has the meaning set forth in <u>Section</u> <u>2.6</u>.

"**Excluded Assets**" has the meaning set forth in <u>Section</u> <u>2.2.2</u>.

"**Excluded Liabilities**" has the meaning set forth in <u>Section</u> <u>2.3.2</u>.

"**Exhibits**" means the exhibits attached to this Agreement.

"**Federal Health Care Program**" or "**Federal Healthcare Program**" means any plan or program that provides health benefits directly, through insurance, or otherwise that is directly funded in whole or part by the US government (other than the Federal Employees Health Benefits Program (5 U.S.C. §§ 8901 to 8914)) or a state health care program funded by the US federal government directly or through any allotment, as set forth at 42 C.F.R. § 1000.10, as the same may be amended from time to time.

"**Financial Statements**" has the meaning set forth in <u>Section</u> <u>4.4.1</u>.

"**GAAP**" means United States generally accepted accounting principles in effect for the relevant time period.

"**General Survival Date**" has the meaning set forth in <u>Section</u> <u>7.1.1</u>.

"**Governing Documents**" means, with respect to any Person who is not a natural Person, the certificate or articles of incorporation, certificate or articles of formation or organization, bylaws, operating agreement, articles of association, or other charter documents or organizational or governing documents or instruments of such Person.

"**Governmental Body**" means any court or government (federal, state, local, foreign or provincial) or any political subdivision thereof, including any department, commission, board, bureau, agency or other regulatory, administrative or governmental authority or instrumentality.

"**Governmental Order**" means any order, judgment, injunction, decree, writ, stipulation, resolution or settlement agreement, determination or award entered by or with any Governmental Body.

"**Healthcare Laws**" means all Laws applying to Persons involved in the provision or administration of, or the submission of claims for or the receipt of payment for, healthcare products or services by reason of the nature of their businesses and including: (a) the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)), the Civil Monetary Penalties Law (42 U.S.C. § Section 1320a-7), the Exclusions Law (42 U.S.C. § 1320a-7a), the Physician Self-Referral Law, commonly known as the "Stark Law" (42 U.S.C. §§ 1395nn and 1396b), the civil False Claims Act (31 U.S.C. § 3729 et seq.), the Federal Criminal False Claims Act (18 U.S.C. § 287), the False Statements Relating to Health Care Matters Law (18 U.S.C. § 1035), Health Care Fraud (18 U.S.C. § 1347) and any regulations promulgated pursuant to such statutes, (b) Medicare (Title XVIII of the Social Security Act), the regulations promulgated thereunder that has the force of Law, (c) Medicaid (Title XIX of the Social Security Act), including the regulations promulgated thereunder that has the force of Law, (d) TRICARE (10 U.S.C. § 1071 et seq.) and the regulations promulgated thereunder, (e) the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010, (f) the Federal Food, Drug, and Cosmetic Act, as amended, 21 U.S.C. § 301 et seq., the Public Health Service Act, the U.S. Food and Drug Administration regulations promulgated thereunder, (g) quality and safety Laws relating to the regulation, storage, provision or administration of, or payment for, healthcare products or services, including prescription products and controlled substances, and (h) licensure Laws relating to the regulation, provision or administration of, or payment for, healthcare items, services or goods, and (i) any implementing regulations of a Third-Party Payor Program that has the force of Law.

"**HIPAA**" has the meaning set forth in <u>Section</u> <u>4.18.2</u>.

"**Indebtedness**" means, at a particular time and without duplication, (i) indebtedness for borrowed money (including principal and interest), (ii) amounts owing as deferred purchase price for property or services, (iii) indebtedness evidenced by any note, bond, debenture, or other debt instrument or debt security, and any capitalized lease obligations, (iv) any amounts owed under a letter of credit or performance bond, (v) guarantees of another

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Person's indebtedness, but excluding obligations in respect of open purchase orders for inventory, supplies or services entered into in the ordinary course of business that are included in the Purchased Assets, (vi) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to acquired property, (vii) any obligations, contingent or otherwise, under acceptance credit, letters of credit or similar facilities, (viii) all obligations arising from cash/book overdrafts, (ix) all obligations secured by a lien other than a Permitted Encumbrance, (x) all indebtedness under interest rate or currency swap transactions, (xi) all accrued interest, prepayment premiums or penalties related to any of the foregoing, and (xii) any guaranty of any of the foregoing. Indebtedness will not include any Liabilities included in the calculation of Net Working Capital.

"**Indemnified Party**" has the meaning set forth in <u>Section</u> <u>7.5.1(a)</u>.

"**Indemnifying Party**" has the meaning set forth in <u>Section</u> <u>7.1.1</u>.

"**Independent Accountant**" has the meaning set forth in <u>Section</u> <u>2.7.2</u>.

"**Intellectual Property**" means (i) Intellectual Property Rights and (ii) Technology.

"**Intellectual Property Rights**" means any and all intellectual property rights whether protected, created, or arising under the Laws of the United States or any other jurisdiction throughout the world, including all rights in, arising out of, or associated therewith with any of the following: (a) patents, utility models, and applications therefor and all reissues, divisions, re-examinations, renewals, extensions, provisionals, continuations and continuations-in-part thereof and equivalent or similar rights in inventions and discoveries anywhere in the world, including invention disclosures, common law and statutory rights associated with trade secrets, confidential and proprietary information and know-how, ideas, designs, concepts, compilations of information, methods, techniques, procedures and processes (whether patentable or unpatentable and whether or not reduced to practice), industrial designs, and any registrations and applications for any of the foregoing; (b) trade names, corporate names, product names, logos, slogans, trade dress, trademarks and service marks, trademark and service mark registrations, trademark and service mark applications, all other designations of source, origin, sponsorship, endorsement or certification, and any and all goodwill associated with and symbolized by the foregoing items; and (c) Internet domain name applications and registrations, Internet and World Wide Web URLs or addresses.

"**Interim Financial Statements**" has the meaning set forth in <u>Section</u> <u>4.4.1</u>.

"**IP Assignment Agreement**" has the meaning set forth in <u>Section</u> <u>3.2.1(d)</u>.

"**IRS**" means the United States Internal Revenue Service.

"**Law**" means any applicable statute, law, ordinance, code, rule, regulation, rule, order, guidance, judgment, decree or legally binding decisions enacted, adopted, issued or promulgated by any Governmental Body.

"**Leased Real Property**" has the meaning set forth in <u>Section 4.9.1</u>.

"**Leases**" has the meaning set forth in <u>Section 4.9.1</u>.

"**Lease Assignments**" has the meaning set forth in <u>Section 3.2.1(k)</u>.

"**Liability**" means, with respect to any Person, any liability or obligation of such Person of any kind, character or description, whether known or unknown, absolute or contingent, accrued or unaccrued, disputed or undisputed, liquidated or unliquidated, secured or unsecured, joint or several, due or to become due, vested or unvested, executory, determined, determinable or otherwise, and whether or not the same is required to be accrued on the financial statements of such Person.

"**Losses**" means, without duplication, any and all reasonably foreseeable losses, Liabilities, costs, settlement payments, judgments, fines, penalties, damages, or Claim-Related Expenses.

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"**Lower Target Working Capital Amount**" means an amount equal to one million three hundred seventy-five thousand dollars $(1,375,000).

"**Material Adverse Effect**" means any event, condition, effect, change, development or circumstance that, individually or when considered together with all other events, conditions, effects, changes, developments or circumstances, has had or would reasonably be expected to have a materially adverse effect on the business, assets, financial condition or results of operations of the Business, <u>provided</u>, <u>however</u>, that in no event shall any of the following, alone or in combination, be deemed to constitute, nor shall any of the following be taken into account in determining whether there has been, a Material Adverse Effect: any facts, circumstances, events, changes, effects or occurrences (a) resulting from the execution and delivery of this Agreement or attributable to the announcement of this Agreement or the transactions contemplated by this Agreement; (b) resulting from or relating to political conditions or any acts of terrorism, military action, or war (whether or not declared) or any escalation or worsening thereof or any epidemic, pandemic or disease outbreak (including COVID-19); (c) relating to generally applicable economic conditions (including the state of the financial, debt, credit or securities markets, in the United States or elsewhere) or the industries in which the Business operates in general; (d) relating to any stoppage or shutdown of any Governmental Body (including any default by a Governmental Body or delays in payments or delays or failures to act by any Governmental Body), or any continuation of any such stoppage or shutdown; (e) resulting from or relating to any change in Laws or GAAP or authoritative interpretations thereof; (f) resulting from or relating to any natural or man-made disaster or acts of God; (g) resulting from or relating to the failure of the Business to meet projections, forecasts or estimates delivered to any Person (provided that the underlying cause of such failure may be taken into account in determining whether there has been a Material Adverse Effect); or (h) resulting from changes or conditions generally affecting the industry in which Seller operates the Business; <u>provided</u>, <u>further</u>, <u>however</u>, that any effect referred to in clauses (a), (b), (c), (e) or (h) may be taken into account in determining whether or not there has been a Material Adverse Effect to the extent any such effect adversely affects the Business in a material and disproportionate manner relative to other companies in the same industry.

"**Material Contracts**" has the meaning set forth in <u>Section 4.16.1</u>.

"**Medication Cost Condition**" has the meaning set forth in the definition of Earnout Conditions in this <u>Section 1.1</u>.

"**Medication Count Condition**" has the meaning set forth in the definition of Earnout Conditions in this <u>Section 1.1</u>.

"**Most Recent Balance Sheet**" has the meaning set forth in <u>Section</u> <u>4.4.2</u>.

"**Most Recent Balance Sheet Date**" has the meaning set forth in <u>Section</u> <u>4.4.2</u>.

"**MTM-Qualified Member**" means an Evernorth Health Inc. f/k/a Express Scripts Holding Company ("**ESI**") plan member who has either (i) been provided to Buyer directly by ESI as MTM-qualified, or (ii) been determined by Buyer in its reasonable discretion to be MTM-qualified based on the qualification rules published by CMS as modified by the Business pursuant to customer requests.

"**Net Working Capital**" means an amount equal to (i) the sum of the current assets of the Business described in **Exhibit A** that are included in the Purchased Assets *minus* (ii) the sum of the current liabilities of the Business described in **Exhibit A** that are included in the Assumed Liabilities, in each case, as calculated in accordance with **Exhibit A** and GAAP.

"**Non-Transferable Asset**" has the meaning set forth in <u>Section</u> <u>2.8</u>.

"**Notice of Claim**" has the meaning set forth in <u>Section</u> <u>7.5.1(a)</u>.

"**Objections**" has the meaning set forth in <u>Section</u> <u>2.7.2</u>.

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"**Open Source Materials**" means any software that is distributed under an open source, public source, or freeware license, which includes (i) any license approved by the Open Source Initiative or any similar license, (ii) any license that meets the "Open Source Definition" of the Open Source Initiative or the "Free Software Definition" of the Free Software Foundation, (iii) any Creative Commons license and (iv) to the extent not included in the foregoing (i), (ii), and (iii), any Copyleft License.

"**Ordinary Course of Business**" means the ordinary and usual course of day-to-day operations of the Business through the date hereof consistent with past custom and practice (including with respect to quantity and frequency).

"**Paid Indebtedness**" has the meaning set forth in <u>Section 2.5.3(a)</u>.

"**Party**" and "**Parties**" has the meaning set forth in the preamble to this Agreement.

"**Payoff Letters**" has the meaning set forth in <u>Section 2.5.3(a)</u>.

"**Periodic Non-Income Taxes**" has the meaning set forth in <u>Section 6.1.1</u>.

"**Permits**" has the meaning set forth in <u>Section</u> <u>4.18.1</u> and includes the following: License Number PH32694 issued by the Florida Board of Pharmacy and License Number Y008306 issued by the Arizona State Board of Pharmacy.

"**Permitted Encumbrances**" means (a) liens for Taxes and other governmental charges and assessments that are not yet due and payable or that are being contested in good faith, (b) liens or rights of lessors, landlords, carriers, warehousemen, mechanics, materialmen and repairmen and other similar liens arising in the ordinary course of business for sums not yet due and payable, (c) easements, rights of way and liens or restrictions on use that are imposed by Law relating to zoning, building or land use, (d) other non-monetary liens on, or imperfections of (or defects in) title with respect to, and encroachments upon, property that do not materially impair the ability to use of the property affected thereby as it is currently being used (including in each case matters that would be reflected on any real property survey), (e) those non-exclusive licenses to Intellectual Property listed on <u>Schedule 1.1</u>, and (f) with respect to securities, restrictions imposed by applicable securities Laws.

"**Person**" means and includes a natural person, a corporation, an association, a partnership, a limited liability company, a trust, a joint venture, an unincorporated organization or a Governmental Body.

"**Personal Data**" shall mean any information that relates to an identified or identifiable natural Person or otherwise constitutes personally identifiable information, personal information, personal data or similar information protected by Law, including a natural Person's (including a customer's or an employee's) name, street address, telephone number, e-mail address, photograph, social security number, driver's license number, passport number or customer or account number, health information, consumer report information, device identifiers, transaction identifier, IP addresses, physiological and behavioral biometric identifiers or any other piece of information that alone or in combination with other information directly or indirectly collected, held or otherwise managed by or for Seller allows the identification of or contact with a natural person, or could reasonably be associated with, linked to, or otherwise used to identify a natural person (and which, for greater certainty, includes all such information with respect to employees).

"**Post-Closing Adjustment Amount**" has the meaning set forth in <u>Section 2.7.3</u>.

"**Post-Closing Period**" means any Tax Period starting on or after the Closing Date, or the portion of any Straddle Period starting on the Closing Date.

"**Post-Closing WC Statement**" has the meaning set forth in <u>Section</u> <u>2.7.1</u>.

"**Pre-Closing Period**" means any Tax Period (or portion of any Straddle Period) other than a Post-Closing Period.

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"**Privacy Laws**" shall mean any applicable Laws relating to (i) the confidentiality, secrecy, security, protection, disposal, use, disclosure, international transfer or other processing of Personal Data (other than HIPAA), (ii) incident reporting and data breach notifying requirements regarding Personal Data (other than HIPAA), and (iii) email, text message, or telephone communications. Without limiting the foregoing, Privacy Laws include, as applicable: the Federal Trade Commission Act, the Telephone Consumer Protection Act, the Telemarketing and Consumer Fraud and Abuse Prevention Act, the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, the Children's Online Privacy Protection Act, the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act of 2020, the Computer Fraud and Abuse Act, the Electronic Communications Privacy Act, the Fair Credit Reporting Act, the Fair and Accurate Credit Transaction Act, the Gramm-Leach-Bliley Act, the Family Educational Rights and Privacy Act, and all other similar international, federal, state, provincial, and local Laws.

"**Processing**" means the collection, creation, receipt, access, use, handling, recording, compilation, analysis, organizing, monitoring, maintenance, retention, storage, holding, transmission, transfer, protection, disclosure, amendment, distribution, erasure, destruction, or disposal of Personal Data.

"**Proprietary Information Agreement**" has the meaning set forth in <u>Section 4.12.4</u>.

"**Purchase Price**" has the meaning set forth in <u>Section</u> <u>2.4</u>.

"**Purchased Assets**" has the meaning set forth in <u>Section</u> <u>2.2.1</u>.

"**Purchased IP Rights**" has the meaning set forth in <u>Section 2.2.1(e)</u>.

"**Response Notice**" has the meaning set forth in <u>Section</u> <u>7.5.1(b)</u>.

"**Restricted Period**" has the meaning set forth in <u>Section</u> <u>6.9.1</u>.

"**Review Period**" has the meaning set forth in <u>Section</u> <u>2.7.1</u>.

"**Seller**" has the meaning set forth in the preamble.

"**Seller Delivered Documents**" means this Agreement and each of the other agreements, instruments, and documents to be executed and delivered by Seller pursuant to this Agreement.

"**Seller Fundamental Representations**" means the representations and warranties contained in <u>Section 4.1</u> (Organization and Qualifications), <u>Section 4.2</u> (Authority and Enforceability), <u>Section 4.8.1</u> (Title to Purchased Assets; Sufficiency), and <u>Section 4.22</u> (Brokers).

"**Seller Indemnification Basket**" means one million dollars ($1,000,000).<u> </u>

"**Seller Indemnified Parties**" means Seller, any Affiliate of Seller, and the respective officers, managers, members, directors, employees, agents and representatives of any of them.

"**Seller Note**" has the meaning set forth in <u>Section 2.5.2</u>

"**Seller Note Amount**" has the meaning set forth in <u>Section 2.5.2</u>.

"**Seller Special Representations**" means the representations and warranties contained in <u>Section 4.19</u> (Compliance with Healthcare Laws).

"**Seller Taxes**" means, without duplication, (a) any and all Taxes imposed on Seller for any taxable period, (b) any and all Transfer Taxes required to be paid by Seller pursuant to <u>Section 6.1.3</u>; (c) any and all Taxes of or imposed on or with respect to the Business or the Purchased Assets for any and all Pre-Closing Periods; (d) any and all Taxes of or imposed on Buyer or any of its Affiliates as a result of an inclusion under Section 951(a) of the Code

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(or any similar provision of state or local Law) attributable to (i) "subpart F income," within the meaning of Section 952 of the Code (or any similar provision of state or local Law) received prior to the Closing Date that is related or attributable to Seller or (ii) the holding of "United States property," within the meaning of Section 956 of the Code (or any similar provision of state or local Law) prior to the Closing Date that is related or attributable to Seller, in each case, determined as if the taxable year of Seller ended on the day before the Closing Date, (e) any and all amounts payable (including Taxes) by Buyer with respect to the Purchased Assets or the Business as a result of transferee, successor or similar liability (including bulk transfer or similar Laws) by operation of Law or otherwise that relates to or arises from an event or transaction occurring before the Effective Time; (f) any and all Taxes incurred by or imposed on Buyer or its Affiliates as the result of any inaccuracy in or breach of any of the representations or warranties contained in <u>Section 4.7</u>; (g) any (i) deferred amounts of Taxes under the Coronavirus Aid, Relief, and Economic Security Act (U.S. Public Law 116-136), as thereafter amended (the "**CARES Act**"), whether employment Taxes under Section 2302 of the CARES Act or otherwise, (ii) disallowance of or deficiency or assessment with respect to any ‎claimed Tax credits under Sections 7001 through 7005 of the Families First ‎Coronavirus Response Act (U.S. Public Law 116-127, enacted in 2020) or Section 2301 of the CARES Act, and (iii) other Taxes (including the employee portion of any payroll Taxes) otherwise deferred under, or in ‎response to, any other Laws enacted or issued in response to COVID-19 or any pandemic or public health emergency resulting therefrom, in all such cases with respect to any employees of or other service providers to Seller or any of its Affiliates relating to any Tax Period; and (h) any and all Taxes required to be deducted and withheld with respect to payments made by Buyer to Seller (or in connection with the transactions pursuant to this Agreement) pursuant to applicable Tax Laws in connection with the transactions contemplated under this Agreement.

"**Seller's Knowledge**" and all permutations thereof, means the actual knowledge of Brian Adams, Kevin Boesen, Kelli Kovak, and Thomas Cancro, in each case after reasonable inquiry.

"**Shared Contract**" has the meaning set forth in <u>Section</u> <u>6.7</u>.

"**Source Code**" means software source code or database specifications or designs, in a form other than object code form, including programmer comments, annotations and help text therein, data structures, instructions and procedural, object-oriented and other code, or any material proprietary information or algorithm contained in any software source code or database specifications or designs, which may be printed out or displayed in human readable form.

"**Special Representation Basket**" means two million dollars ($2,000,000).

"**Stipulated Amount**" has the meaning set forth in <u>Section 7.5.1(e)</u>.

"**Straddle Period**" means any taxable year or period beginning on or before and ending after the Closing Date.

"**Tabula Rasa Marks**" has the meaning set forth in <u>Section 6.6</u>.

"**Tax**" or "**Taxes**" means any and all (a) taxes, charges, withholdings, fees, levies, customs, duties, imposts, and governmental charges or fees or other like assessments or charges of any kind whatsoever in the nature of taxes, imposed by or payable to any United States federal, state, local, or non-U.S. or other Governmental Body, including those related to income, net income, gross income, receipts, capital, windfall profits, utility, severance, production, ad valorem, real or personal property, production, value added, sales, goods and services, use, business or occupation, license, excise, registration, franchise, employment, unemployment, payroll, social security, workers compensation, deductions at source, withholding, alternative or add-on minimum, intangibles, transfer, gains, capital gains, stamp, estimated, transaction, title, capital, paid-up capital, net worth, profits, premium, recording, inventory and merchandise, business privilege, federal highway use, commercial rent or environmental tax; (b) interest, penalties, fines, additions to tax or additional amounts imposed by any Governmental Body in connection with (i) any item described in clause (a), or (ii) the failure to comply with any requirement imposed with respect to any Tax Return; and (c) liability in respect of any items described in clauses (a) or (b) payable by reason of contract (including any tax sharing agreement), assumption, transferee, successor or similar liability (including bulk transfer or similar Laws), operation of law (including pursuant to Treasury Regulations Section 1.1502-6 (or any predecessor or successor thereof or any analogous or similar state, local, or non-U.S. Law)) or otherwise.

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"**Tax Period**" means any period for which a Tax Return is filed or required to be filed or, with respect to any Tax, the period for which the Tax is paid or reported or required to be paid or reported, as provided under the Code or other applicable Tax Laws.

"**Tax Return**" means any return, declaration, form, report, claim for refund, or information return or statement relating to any Tax, including any schedule or attachment thereto, and including any amendment thereof.

"**Technology**" means any and all of the following: works of authorship, computer programs, Source Code and executable code, whether embodied in software, firmware or otherwise, assemblers, applets, compilers, user interfaces, application programming interfaces, protocols, architectures, documentation, annotations, comments, designs, files, records, schematics, test methodologies, test vectors, emulation and simulation tools and reports, hardware development tools, models, tooling, prototypes, breadboards and other devices, data, data structures, databases, data compilations and collections, inventions (whether or not patentable), invention disclosures, discoveries, improvements, technology, proprietary and confidential ideas and information, know-how and information maintained as trade secrets, tools, concepts, techniques, methods, processes, formulae, patterns, algorithms and specifications, customer lists and supplier lists and any and all instantiations or embodiments of the foregoing.

"**Third-Party Claim**" has the meaning set forth in <u>Section 7.5.1(a)</u>.

"**Third-Party Intellectual Property**" shall mean any and all Intellectual Property owned by a third party.

"**Third-Party Payor Agreements**" has the meaning set forth in <u>Section 4.19.4</u>.

"**Third-Party Payor Programs**" means all third-party payor programs, including Medicare, Medicaid, TRICARE and any other state or Federal Health Care Program, as well as managed care plans or other private insurance program or administered self-funded employer or union plans.

"**Top Customers**" has the meaning set forth in <u>Section 4.17</u>.

"**Top Vendors**" has the meaning set forth in <u>Section 4.17</u>.

"**Transaction Expenses**" means the fees and expenses incurred on or before the Closing and payable by Seller to third parties directly relating to or arising out of the transactions contemplated hereby, including legal, accounting, investment banking and other professional fees, in each case that are not paid prior to the Closing Date.

"**Transfer Tax**" has the meaning set forth in <u>Section</u> <u>6.1.3</u>.

"**Transferred Employee**" has the meaning set forth in <u>Section 6.2.1</u>.

"**Transition Services Agreement**" has the meaning set forth in <u>Section</u> <u>3.2.1(b)</u>.

"**Treasury Regulations**" means the final and temporary regulations promulgated under the Code by the United States Department of the Treasury.

"**Upper Target Working Capital Amount**" means an amount equal to one million four hundred twenty-five thousand dollars ($1,425,000).

"**U.S.**" or "**United States**" means the United States of America.

"**WARN Act**" has the meaning set forth in <u>Section</u> <u>6.2.2</u>.

"**CHM Opp**" means an opportunity to engage a Comprehensive Health Management, Inc. ("**CHM**") plan member for adherence intervention that is provided by CHM to Buyer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2**Construction.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1Unless the context otherwise requires, as used in this Agreement: (i) an accounting term not otherwise defined herein has the meaning ascribed to it in accordance with GAAP; (ii) "including" and its variants mean "including, without limitation" and its variants; (iii) words defined in the singular have the parallel meaning in the plural and vice versa; (iv) words of one gender shall be construed to apply to all genders; (v) the terms "hereof", "herein", "hereby", "hereto", and derivative or similar words refer to this entire Agreement, including the Schedules and Exhibits hereto, as may be amended from time to time; (vi) the terms "Article", "Section", "Exhibit" and "Schedule" refer to the specified Article, Section, Exhibit or Schedule of or to this Agreement; (vii) titles and captions used in this Agreement are inserted only as a matter of convenience and in no way define, limit, extend or describe the scope of this Agreement or the intent of any of its provisions; and (viii) the word "or" shall be deemed to have the inclusive meaning represented by the phrase "and/or".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2A reference to any Person includes such Person's successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3Any reference to "days" means calendar days unless Business Days are expressly specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.4Any references to "dollars" or "$" means dollars of the United States of America.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.5The Disclosure Schedules and Exhibits to this Agreement are incorporated herein by reference and made a part hereof for all purposes. The information and disclosures set forth in each section of the Disclosure Schedules shall be deemed to be disclosed and incorporated by reference in each other section and subsection thereof where the applicability of such information or disclosure to such other section or subsection is reasonably apparent on the face of the disclosure that such information or disclosure is responsive to such other representations and warranties. The disclosure of any item or information in the Disclosure Schedules is not an admission that such item or information is material or required to be disclosed in the Disclosure Schedules or is of a nature that would constitute a Material Adverse Effect. The information and disclosures contained in the Disclosure Schedules shall not be deemed to expand in any way the scope or effect of the representations and warranties set forth in this Agreement. No disclosure in the Disclosure Schedules relating to any possible breach or violation of any Contract or Law shall be construed as an admission or indication that any such breach or violation exists or has actually occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.6For purposes of this Agreement, including all annexes, exhibits, and schedules hereto and the Disclosure Schedules, the phrase "made available to Buyer" and similar expressions in respect of any document or information will be construed for all purposes as meaning that a copy of such document or information was filed and made available for viewing by Buyer in the electronic data room hosted by Datasite by 5:00 pm, Eastern Time, at least two (2) Business Days prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.7The Parties, each represented by legal counsel, have each participated in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation should arise, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or burdening either Party by virtue of the authorship of any of the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.8Unless otherwise explicitly specified, reference in this Agreement to any specific statutory, regulatory, or other provisions of Law or to any specific Governmental Body means and includes any successor provisions of Law, or successor Governmental Body, as the case may be.

#### ARTICLE 2 <br> PURCHASE AND SALE
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1**Purchase and Sale of Assets.** Upon the terms and conditions set forth in this Agreement and subject to the exclusions set forth in <u>Section 2.2.2</u>, on the Closing Date, Seller shall sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase and accept from Seller, all of Seller's right, title, and interest in and to the Purchased Assets to the extent existing immediately prior to the Closing, free and clear of all Encumbrances other than Permitted Encumbrances.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Purchased Assets and Excluded Assets.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1***Purchased Assets***. "**Purchased Assets**" means all of Seller's right, title and interest in and to all assets, properties and rights (other than the Excluded Assets) owned, leased or held for use by Seller and used primarily in the operation of the Business, including Seller's right, title and interest in and to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)all personal property and interests therein, including computers, office furniture, fixtures, office equipment, communications equipment, operating supplies, primarily used in the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the leases related to the Business set forth in <u>Section 2.2.1(b)</u> of the Disclosure Schedules (the "**Assumed Leases**"), including any security deposits held by lessors thereunder, and any refunds or allowances due to lessee thereunder, copies of which Seller has delivered to Buyer, including all amendments, modifications and changes thereto, and any assignments thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)all Contracts primarily related to the Business, including the Contracts set forth in <u>Section 2.2.1(c)</u> of the Disclosure Schedules (the "**Assumed Contracts**"), copies of which Seller has delivered to Buyer, including all amendments, modifications and changes thereto, and any assignments thereof. Seller has described in <u>Section 2.2.1(c)</u> of the Disclosure Schedules all of the material provisions of all oral Assumed Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the portion of any Shared Contracts which primarily relates to the Business and not to any other business of Seller, including those set forth in <u>Section 2.2.1(d)</u> of the Disclosure Schedules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the Business-Utilized Intellectual Property, including the Intellectual Property set forth in <u>Section 2.2.1(e)</u> of the Disclosure Schedules (the "**Purchased IP Rights**"), including all causes of action, claims and remedies for past, current, and future infringement, misappropriation, and similar violations of the Purchased IP Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)the other assets and rights of the Business set forth in <u>Section 2.2.1(f)</u> of the Disclosure Schedules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)subject to <u>Section 2.2.2(b)</u>, all claims and rights of action against any third party that relate to or arise out of the Purchased Assets, or the Assumed Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)subject to <u>Section 2.2.2(e)</u>, originals (or if Seller does not have originals, then copies) of all agreements and other documents that constitute an Assumed Liability, and all other books and records, including all records, files, papers, plans, data, accounting records, financial records and related information, in whatever media or form, of Seller and its Affiliates primarily relating to the assets, properties, business, and operations of the Business or the Purchased Assets, including all personnel files for the Transferred Employees, but excluding those records set forth in <u>Section 2.2.2(e)(ii)</u> or as prohibited by applicable Law, and provided that the financial and tax records will be copies of the original records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)all Permits related to the Business to the extent assignable (the "**Assumed Permits**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)subject to <u>Section 2.2.2(f)</u>, all insurance benefits, including rights and proceeds, to the extent relating to claims in respect of the Purchased Assets or the Assumed Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)all rights of Seller under the Confidential Information, Non-Competition and Invention Assignment Agreements entered into by the individuals listed on <u>Section 2.2.1(k)</u> of the Disclosure Schedule to the extent such rights relate to the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)all goodwill and similar intangible assets primarily associated with, used in, or related to, the Business or any of the Purchased Assets; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)all accounts receivable of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)without duplication of any items listed in clauses (a) through (m) above, any current assets included in the calculation of the Closing Date Working Capital Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2***Excluded Assets***. Notwithstanding the provisions of <u>Section 2.2.1</u>, Buyer shall acquire no right, title or interest in any Excluded Asset under or pursuant to this Agreement or as a result of the transactions contemplated hereby. The "**Excluded Assets**" consist of all assets, properties and rights of Seller and its respective Affiliates other than the Purchased Assets, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)all cash and cash equivalents, bank accounts, deposits, marketable securities and prepaid items other than prepaid items and deposits of the Business included in the calculation of the Closing Date Working Capital Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)all claims and rights of action of any nature whatsoever either (i) to the extent necessary or useful in defending any claim that may be asserted against Seller or for which indemnification has been sought by a Buyer Indemnified Party pursuant to <u>ARTICLE 7</u> or (ii) against any Person relating to any of the Excluded Assets or Excluded Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)all Employee Benefit Plans, and all rights under, and assets held by, the Employee Benefit Plans and other employee benefit plans, programs, arrangements and agreements, including any retirement benefit and post-retirement health benefit plans, programs, arrangements and agreements, but not including any agreements set forth in <u>Section 2.2.1(c)</u> or <u>Section 2.2.1(f)</u> of the Disclosure Schedules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)all Intellectual Property of Seller or its Affiliates other than the Purchased IP Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Seller's and its Affiliates' (i) minute books, Governing Documents, share records and Tax Returns, (ii) books and records that Seller or any of its Affiliates is required by Law to retain; <u>provided</u>, <u>however</u>, that copies of such books and records are, to the extent permitted by Law, included in the Purchased Assets to the extent primarily related to the Business; (iii) all records, reports, correspondence and memoranda prepared or received by Seller or any of its Affiliates (including all analyses relating to the Business or Buyer so prepared or received), and all valuations, expressions of interest and bids received from all Persons, in each case, in connection with the sale of the Business or the transactions contemplated hereby; (iv) all financial statements of Seller or its Affiliates (other than those that relate primarily to the Business) and all records (including working papers) related thereto; (v) a copy of all consolidating and consolidated financial information and all other accounting records prepared or used in connection with the preparation of the Financial Statements (including working papers); and (vi) any document or other item subject to attorney-client privilege;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)all insurance policies, including insurance policies in respect of directors and officers, and all claims against insurance carriers thereunder to the extent related to any claim for which indemnification is owed by Seller pursuant to <u>ARTICLE 7</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)any claims, rights and interest in and to any refunds of income Taxes of Seller, and its Affiliates with respect to the operation of the Business or the Purchased Assets for any taxable years or periods ending on or prior to the Closing Date, and all beneficial interests in any portion of such a refund with respect to the operation of the Business or the Purchased Assets for any taxable year or period beginning before and ending after the Closing Date, for the portion of such taxable year or period ending on or prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)the portion of any Shared Contracts which relate to a business other than the Business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)all rights which accrue or will accrue to Seller under this Agreement and the Seller Delivered Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)the assets listed on <u>Section</u> <u>2.2.2(j)</u> of the Disclosure Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3**Assumed Liabilities and Excluded Liabilities.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1***Assumed Liabilities***. Upon the terms and subject to the conditions of this Agreement, Buyer shall assume, as of the Effective Time, and shall pay, perform and discharge when due, (a) the Liabilities of Seller under the Assumed Leases, Assumed Contracts, and Assumed Permits arising from and after the Closing, but only to the extent such Liabilities do not relate to any failure to perform, improper performance, warranty or other breach, default or violation by Seller prior to the Closing, (b) all trade accounts payable of Seller to third parties in connection with the Business and other current liabilities, in each case solely to the extent included in the Closing Date Working Capital Amount (including any adjustment pursuant to <u>Section 2.7</u>), and (c) all liabilities for Taxes imposed with respect to ownership of the Purchased Assets or the Assumed Liabilities, or relating to the ownership and operation of the Business, for any Post-Closing Period (calculated for a Straddle Period in accordance with <u>Section 6.1.1</u>) (the "**Assumed Liabilities**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2***Excluded Liabilities***. Anything to the contrary in this Agreement notwithstanding, other than the Assumed Liabilities, Buyer does not assume and will not be liable for any of Seller's or any of its Affiliates' Liabilities or Liabilities otherwise related to the Purchased Assets or the Business (the "**Excluded Liabilities**"), which Liabilities will be retained by and remain obligations of Seller to be satisfied and discharged by Seller in accordance with their terms, including (a) all Liabilities arising out of or related to the Excluded Assets; (b) all Liabilities for Seller Taxes, including any liability of Seller (or any Affiliate of Seller) for Taxes of any Person under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local, or foreign law), as a transferee or successor, by contract (including any tax sharing agreements), or otherwise, all Liabilities for Taxes that arise out of the consummation of the transactions contemplated by this Agreement or that are the responsibility of Seller pursuant to <u>Section 6.1</u>, all Liabilities for Taxes relating to the ownership and operation of the Business, the Purchased Assets or the Assumed Liabilities for any Pre-Closing Period (calculated for a Straddle Period in accordance with <u>Section 6.1.1</u>), and all Liabilities for Taxes of Seller (or any Affiliate of Seller) that become a Liability of Buyer or its Affiliates under any common law doctrine of transferee or successor liability or otherwise by operation of contract or law; (c) Liabilities arising from the ownership, conduct, and operation of the Business or the ownership of the Purchased Assets in any Pre-Closing Period; (d) all Liabilities for Indebtedness of Seller; (e) all Liabilities related to or arising out of any Contract not included in the Assumed Leases or Assumed Contracts; (f) all Liabilities related to or arising out of any Assumed Lease or Assumed Contract to the extent such Liability relates to the time period prior to the Closing, including with respect to any breach thereof or default thereunder by Seller; (g) all Liabilities in respect of any claims, actions or causes of action in respect of Seller, the Purchased Assets or the Business existing prior to the Closing or relating to events occurring prior to the Closing; (h) all Liabilities of Seller for vacation, paid time off, bonuses, or commissions accrued, payable or otherwise owed to any current or former employee, consultant, manager, trustee, director, officer or independent contractor, including any change-in-control, transaction bonus, retention or other similar payments (together with the employer portion of any Taxes arising from or incurred in connection with any such obligations), and all Liabilities of Seller for severance accrued, payable or otherwise owed to any former employee, director, officer or independent contractor; (i) all Liabilities, rights or obligations of the Seller or any of its Affiliates arising under, or with respect to, any of the Employee Benefit Plans, including any income or payroll Tax withholding obligations applicable thereto; (j) all payroll costs of Seller (and its Affiliates); and (k) any liability of Seller under abandoned or unclaimed property, escheat, or similar Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4**Purchase Price** **.** The aggregate purchase price payable by Buyer to Seller for the Purchased Assets is equal to five million dollars ($5,000,000) (the "**Base Purchase Price**"), subject to adjustment in accordance with the provisions of <u>Section 2.5</u>, <u>Section 2.6</u> and <u>Section</u> <u>2.7</u>, plus the Earnout Amount if payable pursuant to <u>Section 2.8</u> (the "**Purchase Price**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5**Payment.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.1***Closing Date Payments***. Upon the terms and subject to the conditions of this Agreement, at the Closing, Buyer shall pay to Seller by wire transfer of immediately available funds to an account designated by Seller an amount (the "**Closing Date Payment Amount**") equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Base Purchase Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*plus*, the excess, if any, of the Estimated Working Capital Amount over the Upper Target Working Capital Amount, or *minus* the excess, if any, of the Lower Target Working Capital Amount over the Estimated Working Capital Amount, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*less* the aggregate amount of the Paid Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*less* the aggregate amount of the Transaction Expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*less* the Seller Note Amount;

all as set forth on a closing statement to be agreed to and acknowledged by the Parties no later than one (1) Business Day prior to the Closing Date (the "**Closing Statement**"). With respect to the deductions from the Base Purchase Price described in this <u>Section 2.5.1</u> above, at the Closing, Buyer shall make such payments to third parties on behalf of Seller in accordance with <u>Sections 2.5.2</u> and <u>2.5.3</u> below, which such payments will be set forth on the Closing Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.2***Seller Note.*** Upon the terms and subject to the conditions of this Agreement, at the Closing, Buyer shall issue a promissory note in the form of **Exhibit B** attached hereto (the "**Seller Note**") in the principal amount of three million six hundred thousand dollars ($3,600,000) (the "**Seller Note Amount**") to the order of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.3***Indebtedness and Transaction Expense Payments****.* Upon the terms and subject to the conditions of this Agreement, at the Closing, Buyer shall make the following payments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the amount, if any, necessary to pay off the items of outstanding Indebtedness of Seller listed on <u>Section 2.5.3</u> of the Disclosure Schedules (collectively, the "**Paid Indebtedness**"), which amount shall be paid by Buyer at the Closing by wire transfer to the holders of such Paid Indebtedness in accordance with valid pay-off letters from the holders of such Paid Indebtedness, in form and substance reasonably satisfactory to Buyer (the "**Payoff Letters**"), which provide for, among other things, the release, discharge, removal and termination of all Encumbrances or restrictions on transfer on the Purchased Assets upon payment of the amounts set forth therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the amount, if any, necessary to pay off the Transaction Expenses outstanding as of the Closing Date, which amount shall be paid by Buyer at the Closing by wire transfer to the applicable creditor therefor, and such Transaction Expenses shall be documented by pay-off letters or invoices from each applicable creditor for the Transaction Expenses, which shall include the names of each Person to which such Transaction Expense is owed and, in each case, otherwise be in form and substance reasonably satisfactory to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.4***Consent Offset***. From the date hereof until the date that is one hundred and twenty (120) days after the Closing Date (the "**Consent Offset Release Date**"), Seller shall use its commercially reasonable efforts to obtain the required third party consents to assignment with respect to the Contracts set forth on <u>Section 2.5.4</u> of the Disclosure Schedule (the "**Post-Closing Required Consents**"). If neither of the Post-Closing Required Consents is obtained by Seller prior to the Consent Offset Release Date, the principal amount of the Seller Note shall be reduced by the Consent Offset Amount. If only one of the Post-Closing Required Consents is obtained by Seller prior to the Consent Offset Release Date, the principal amount of the Seller Note shall be reduced by an amount equal to the portion of the Consent Offset Amount applicable to the Post-Closing Required Consent that has not been received. By way of example, if at the Consent Offset Release Date, the Post-Closing Required Consent from Molina has been obtained by Seller, but the Post-Closing Required Consent from Humana has not been obtained by Seller, then the

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principal amount of the Seller Note will be reduced by $58,560. If both of the Post-Closing Required Consents are obtained by Seller prior to the Consent Offset Release Date, the principal amount of the Seller Note shall not be reduced. Notwithstanding anything contained herein to the contrary, the provisions set forth in this <u>Section 2.5.4</u> shall not affect any Buyer Indemnified Party's right to a set off against the Seller Note as set forth in <u>Section 7.6</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.5***Customer Offset***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)If the number of total active MTM-Qualified Members after qualification in May 2023 is equal to thirty-one thousand five hundred seventy-nine (31,579) (the "**MTM-Qualified Member Threshold**"), the principal amount of the Seller Note will be reduced by $1,097,856.00. For each such MTM Qualified Member below the MTM-Qualified Member Threshold, the principal amount of the Seller Note will be further reduced by $8.69, such that if there are zero MTM Qualified Members after qualification in May 2023, the principal amount of the Seller Note will be reduced by $1,372,320.00. Buyer will determine the total active MTM-Qualified Members after qualification in May 2023 promptly after Buyer receives the May 2023 member roster from ESI and completes its good faith reconciliation of the same, which in no event will be later than May 31, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If the aggregate number of CHM Opps from the date hereof up to and including May 2023 (the "**CHM Opp Period**") is equal to thirty-three thousand (33,000) (the "**CHM Opp Threshold**"), the principal amount of the Seller Note will be reduced by $378,000. For each CHM Opp in the CHM Opp Period below the CHM Opp Threshold, the principal amount of the Seller Note will be further reduced by $11.45, such that if there are zero CHM Opps for the CHM Opp Period, the principal amount of the Seller Note will be reduced by $756,000. Buyer will determine the aggregate number of CHM Opps for the CHM Opp Period promptly after Buyer receives the May 2023 CHM Opps roster from CHM, which in no event will be later than May 31, 2023. Notwithstanding the foregoing, if CHM provides an updated forecast to Buyer or its Affiliates before May 31, 2023 that reflects CHM Opps projected full year CHM Opps equal to or greater than 182,850, then the principal amount of the Seller Note shall not be reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)From the date hereof through May 31, 2023, Buyer shall not act or fail to act in a manner that is intended to reduce the MTM-Qualified Members below the MTM-Qualified Member Threshold or the CHM Opps below the CHM Opps Threshold, as applicable, for the purpose of reducing the MTM-Qualified Members below the MTM-Qualified Member Threshold or the CHM Opps below the CHM Opps Threshold, as applicable, or that would constitute gross negligence or willful misconduct under the ESI Agreement or CHM Agreement, as applicable. Buyer will provide Seller with its determination of the total active MTM-Qualified Members in accordance with <u>Section 2.5.5(a)</u> and the aggregate number of CHM Opps in accordance with <u>Section 2.5.5(b)</u>. If Seller objects to Buyer's determination of the total active MTM-Qualified Members or the aggregate number of CHM Opps, Buyer and Seller will endeavor in good faith to resolve the dispute. If Buyer and Seller are unable to resolve the dispute despite using good faith efforts to do so, the dispute will be resolved in accordance with the provisions set forth in <u>Section 2.7.2</u> *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6**Closing Date Purchase Price Adjustment** **.** No later than one (1) day prior to the Closing Date, Seller shall have delivered to Buyer a statement setting forth Seller's estimate of the Closing Date Working Capital Amount (such estimate, the "**Estimated Working Capital Amount**"), which amount shall be the basis for the applicable adjustments set forth in <u>Section 2.5.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7**Post-Closing Purchase Price Adjustment.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.1***Buyer's Calculation***. As soon as practicable, but in no event later than sixty (60) days, after the Closing Date, Buyer shall prepare or cause to be prepared and shall deliver to Seller a statement (the "**Post-Closing WC Statement**") setting forth Buyer's good faith calculation of the Closing Date Working Capital Amount, prepared in accordance with **Exhibit A** and GAAP. Following Seller's receipt of the Post-Closing WC Statement, Seller will have forty-five (45) days (the "**Review Period**") to review the Post-Closing WC Statement. During the

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Review Period and thereafter as reasonably requested by Seller, Buyer will provide Seller and its accountants reasonable access to the books and records of the Business and personnel to the extent that such books and records and personnel relate to or were engaged in preparing the Post-Closing WC Statement, and to such historical financial information (to the extent in Buyer's possession) relating to the Post-Closing WC Statement as Seller may reasonably request for the purpose of reviewing the Post-Closing WC Statement and preparing any objections. If prior to the end of the Review Period Seller objects to any of such Buyer calculations contained in the Post-Closing WC Statement, Seller shall notify Buyer prior to the end of the Review Period, setting forth with reasonable specificity the objections (the "**Objections**"), and Seller's proposed revisions to the Post-Closing WC Statement and the basis therefor. Thereafter, Buyer and Seller will endeavor in good faith, during the thirty (30)-day period commencing on the date of delivery of such notice of Objections (or such longer period as the Parties may then agree in writing), to resolve the Objections. If Seller fails to deliver any notice of Objections within the Review Period, Seller is deemed to have accepted Buyer's determination of the Closing Date Working Capital Amount set forth in the Post-Closing WC Statement, and the Post-Closing WC Statement will be final and binding on all parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.2***Dispute Resolution***. If at the end of such thirty (30)-day period referenced in <u>Section</u> <u>2.7.1</u> above there are any unresolved Objections, Seller and Buyer will promptly engage and submit the calculation and resolution of such unresolved Objections to BDO USA LLP (the "**Independent Accountant**"). The Independent Accountant will be instructed to resolve the Objections and such resolution shall be (a) set forth in writing and signed by the Independent Accountant, (b) delivered to Buyer and Seller as soon as practicable after the Objections are submitted to the Independent Accountant but not later than the 30th day after such submission, (c) made in accordance with this Agreement, and (d) absent fraud or manifest error, conclusive and binding on the Parties on the date of delivery of such resolution. The Independent Accountant shall only decide the Objections submitted to it. With respect to each such Objection, the Independent Accountant may not assign any value that is greater than the highest value for such amount claimed by either Seller or Buyer or that is less than the lowest value for such amount claimed by either Seller or Buyer, in each case, as presented to the Independent Accountant. The costs and fees of the Independent Accountant will be paid by Seller on the one hand, and Buyer on the other hand, in the inverse proportion that the contested amounts relating to the Objections submitted to the Independent Accountant and awarded to such Party bears to the total contested amounts relating to such Objections, as determined by the Independent Accountant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.3***Adjustment Amount***. Following Buyer's and Seller's mutual agreement upon, or if applicable the determination by the Independent Accountant of, the Closing Date Working Capital Amount, the Purchase Price shall be adjusted as described herein. If the Closing Date Working Capital Amount (as finally determined pursuant to this <u>Section 2.7</u>) differs from the Estimated Working Capital Amount, the Closing Date Payment Amount shall be recalculated using the Closing Date Working Capital Amount in lieu of the Estimated Working Capital Amount, and (i) the amount, if any, by which the Closing Date Payment Amount paid at Closing in accordance with <u>Section 2.5</u> is less than such re-calculated Closing Date Payment Amount shall be paid to Seller by Buyer, or (ii) the amount, if any, by which the Closing Date Payment Amount paid at Closing in accordance with <u>Section 2.5</u> exceeds such re-calculated Closing Date Payment Amount shall be paid to Buyer by Seller. In either case, such payment (the "**Post-Closing Adjustment Amount**") will be made as described in <u>Section 2.7.4</u> below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.4***Payment***. If the Post-Closing Adjustment Amount is payable by Buyer, (such amount, the "**Seller Adjustment Amount**"), then Buyer shall pay, or cause to be paid, the Seller Adjustment Amount by wire transfer of immediately available funds to Seller. If the Post-Closing Adjustment Amount is payable by Seller (such amount, the "**Buyer Adjustment Amount**"), then the principal amount of the Seller Note will be reduced by the Buyer Adjustment Amount. Buyer hereby agrees that its sole source of recovery under this <u>Section 2.7.4</u> shall be limited to, and shall not exceed in the aggregate, the amount of the Seller Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8**Earnout Payment; Buyer Guaranty.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.1If during the period beginning on the Closing Date and ending on December 31, 2023 (the "**Earnout Period**") any of the Earnout Conditions are satisfied, Buyer will promptly (but not later than thirty (30) days) after the earlier of (i) the end of the Earnout Period and (ii) the date of a Qualified Financing (as defined in the Seller Note), but only if such Earnout Condition is achieved prior to such date, pay or cause to be paid to Seller the following amounts with respect to the achievement of the applicable Earnout Condition; <u>provided</u> that, for the

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avoidance of doubt, Buyer will only be responsible for payment with respect to the highest achieved (as measured by the amount payable to Seller) Medication Cost Condition or Medication Count Condition, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Medication Cost Conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the 100% Medication Cost Condition is achieved, $670,000.00

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the 90% Medication Cost Condition is achieved, $603,000.00,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the 80% Medication Cost Condition is achieved, $536,000.00,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the 70% Medication Cost Condition is achieved, $469,000.00,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the 60% Medication Cost Condition is achieved, $402,000.00,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the 50% Medication Cost Condition is achieved, $335,000.00,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the 40% Medication Cost Condition is achieved, $268,000.00,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the 30% Medication Cost Condition is achieved, $201,000.00,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the 20% Medication Cost Condition is achieved, $134,000.00, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the 10% Medication Cost Condition is achieved, $67,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Medication Count Conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the 100% Medication Count Condition is achieved, $330,000.00, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the 50% Medication Count Condition is achieved, $165,000.00.

If none of the Earnout Conditions is achieved during the Earnout Period, then no portion of the Earnout Amount will be paid or payable to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.2The contingent right to receive the Earnout Amount or any portion thereof will not be represented by any form of certificate or other instrument, is not transferable, and does not constitute an ownership interest in Buyer or any of its Affiliates. No interest is payable with respect to the Earnout Amount or any portion thereof. Seller acknowledges and agrees that (i) following the Closing, Buyer and its Affiliates have the right to operate their respective businesses, including the Business, in any way that Buyer or such Affiliate deems appropriate in Buyer's or such Affiliate's sole discretion, (ii) Buyer has no obligation to operate its business, including the Business, in order to achieve the Earnout Conditions, (iii) the achievement of the Earnout Conditions is speculative and subject to numerous factors outside the control of Buyer, and (iv) there is no assurance that Seller will receive the Earnout Amount or any portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.3The Buyer Guarantor, as primary obligor, unconditionally and irrevocably guarantees, by way of a continuing guarantee to Seller, the payment by Buyer, when due (i) any portion of the Earnout Amount, if any, to the extent it becomes payable pursuant to <u>Section 2.8</u>, and (ii) the Seller Note, and the Buyer Guarantor shall pay on demand such amounts which become due by Buyer with respect to the Earnout Amount and the Seller Note which is unpaid, and such demand may be made at any time on or after the due date for any such payments. The guarantee in this <u>Section 2.8.3</u> shall remain in full force and effect until all of Buyer's payment and performance obligations have been irrevocably and unconditionally paid or otherwise settled or discharged in full in connection with or related to the Earnout Amount and the Seller Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9**Non-Transferable Assets**. Nothing in this Agreement shall be determined to transfer or assign to Buyer any Contract or other asset that would otherwise be included in the Purchased Assets if an attempted transfer

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or assignment (a) without the consent of any Person would constitute a breach or default of such Contract or asset or create a termination right under such Contract, and such Person does not give its consent, or (b) would otherwise be unlawful, ineffective or would materially impair Buyer's rights under the Contract or asset in question so that Buyer would in effect not acquire the benefit of such rights (each a "**Non-Transferable Asset**"). Seller shall use commercially reasonable efforts, and shall reasonably cooperate with Buyer, to obtain any required consent, authorization, approval or waiver, or any release, substitution or amendment required for the sale, assignment, transfer, conveyance or delivery of the Non-Transferable Assets. Without limiting the immediately preceding sentence, for a period of twelve (12) months from and after the Closing, Seller shall use commercially reasonable efforts to promptly obtain any consent, authorization, approval or waiver required to assign to Buyer each customer Contract that was not assigned to Buyer at the Closing. Once such consent, authorization, approval, waiver, release, substitution or amendment is obtained, Seller will sell, assign, transfer, convey and deliver to Buyer the relevant Non-Transferable Asset to which such consent, authorization, approval, waiver, release, substitution or amendment relates for no additional consideration. Applicable Transfer Taxes in connection with such sale, assignment, transfer, conveyance or license shall be paid in accordance with <u>Section 6.1.3</u> of this Agreement. With respect to each such Non-Transferable Asset, (i) Seller will cooperate in any reasonable and lawful arrangements designed to provide to Buyer all of the benefits, economic and otherwise, of such Non-Transferable Asset (including promptly remitting to Buyer any revenue received by Seller on account of any such Non-Transferable Asset related to the Post-Closing Period), (ii) Seller will not terminate, alter or amend any such Non-Transferable Asset except with Buyer's express written consent, and (iii) until such Non-Transferable Asset is assigned to Buyer, Seller will use its reasonable best efforts to enforce, at the reasonable direction and for the account, at the sole expense, of Buyer, any right of Seller arising under any such Non-Transferable Asset against any counterparty thereto or other Person (including the right to amend or terminate any such Non-Transferable Asset in accordance with the terms thereof). Seller will provide Buyer with notice of any claim asserted by any Person against or with respect to any Non-Transferable Asset after the Closing as soon as practicable after becoming aware of any such claim. If any such claim is asserted, Buyer will have the right to direct the defense of such claim at Buyer's sole cost and expense, whether or not litigation, arbitration or other dispute resolution proceedings have been instituted and even if Buyer is not named as a party to such claim. Nothing in this <u>Section 2.8</u> shall be deemed to apply to any Shared Contract, it being understood that Shared Contracts are governed by <u>Section 6.7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10**Transfer of Assets**. Seller will deliver all of the Purchased Assets to Buyer pursuant to <u>Section 2.1</u> and <u>Section 2.2</u>. Seller will take all such other steps reasonably requested by Buyer to put Buyer in actual possession and operating control of the Purchased Assets and the Business. Seller will deliver to Buyer such assignments and other instruments of conveyance and transfer as are necessary or desirable to vest in Buyer all rights, title and interest of Seller in and to the Purchased Assets and Assumed Liabilities. Seller will assist Buyer in the prompt and orderly transition of the Purchased Assets to Buyer and will cooperate with Buyer and its representatives and counsel in the preparation of any documents or instruments that may be required in connection with the sale and transfer of the Purchased Assets and the Business to Buyer. From and after the Closing, if Seller or any of its Affiliates receives or collects any funds related to the Business or the Assumed Contracts, Seller will, or will cause such Affiliate to, promptly (and in any event within five (5) Business Days after its receipt thereof) remit such funds to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11**Withholding Tax.** Notwithstanding any other provision of this Agreement, Buyer shall be entitled to deduct and withhold from any amount otherwise payable pursuant to this Agreement such amounts as are required to be deducted and withheld with respect to the making of such payment under the Code or any provision of state, local, foreign, or other Tax Laws. If Buyer determines that an amount is required to be deducted or withheld (other than with respect to compensatory payments), Buyer will use commercially reasonable efforts to provide written notice within three (3) Business Days of any expected deduction or withholding to the Person with respect to which the deduction or withholding is to be made and to cooperate with such Person to reduce or eliminate any such deduction or withholding. Any such deducted or withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of which such deduction and withholding was made. To the extent that amounts are so withheld and remitted to the appropriate Governmental Body, Buyer will provide written notice of the amounts so deducted or withheld to the Person with respect to which such amounts were paid.

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#### ARTICLE 3 <br> CLOSING
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1**Closing**. The consummation of the transactions contemplated by this Agreement (the "**Closing**") will take place remotely via the exchange of documents and signatures, on the date hereof (the "**Closing Date**"). The Closing shall be effective as of 12:01 a.m. Eastern Time on the Closing Date (the "**Effective Time**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2**Deliveries at the Closing.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1***By Seller***. Seller shall deliver or cause to be delivered to Buyer at or prior to the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)a bill of sale and assignment and assumption agreement in the form attached to this Agreement as **Exhibit C** (the "**Bill of Sale**"), duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)a transition services agreement, in the form attached to this Agreement as **Exhibit D** (the "**Transition Services Agreement**"), duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)a copy of the Closing Statement, duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)an intellectual property assignment and assumption agreement in the form attached hereto as **Exhibit E** (the "**IP Assignment Agreement**") by which Seller assigns to Buyer all of Seller's right, title, and interest in and to the Purchased IP Rights, duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)a consulting agreement, in substantially the form attached hereto as **Exhibit F**, duly executed by each of Kevin Boesen, Chad Stonecipher, and Ricardo Rodriguez (collectively, the "**Consulting Agreements**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)a duly completed and executed IRS Form W-9;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)a certificate of the secretary of Seller certifying as to (i) the resolutions of the board of directors of Seller and the sole stockholder of Seller approving this Agreement, the transactions contemplated hereby and the consummation thereof, and (ii) the incumbency and authority of the officers of Seller authorized to negotiate and execute this Agreement and the other contracts, agreements and certificates required or contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)the Payoff Letters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the consents listed on <u>Section 3.2.1(i)</u> of the Disclosure Schedules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)all original, or, if original are not available, copies of all, books and records of the Business that are included in the Purchased Assets and/or Assumed Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)an assignment and assumption of leases for each Assumed Lease (collectively, the "**Lease Assignments**"), duly executed by Seller and the applicable lessor under such Assumed Lease, together with a consent and estoppel certificate duly executed by each lessor under an Assumed Lease; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)the Transferred Employee Information in accordance with <u>Section 6.2.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2***By Buyer***. Buyer shall deliver or cause to be delivered to Seller at the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)payment of the Closing Date Payment Amount in accordance with <u>Section 2.5</u> and the Closing Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the Bill of Sale, duly executed by Buyer;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the Transition Services Agreement, duly executed by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the Seller Note, duly executed by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the Consulting Agreements, duly executed by Buyer Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)a copy of the Closing Statement, duly executed by Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)the Lease Assignments, duly executed by Buyer.

#### ARTICLE 4 <br> REPRESENTATIONS AND WARRANTIES OF SELLER
Except as specifically disclosed in the Disclosure Schedules (referencing the disclosure schedule sections) delivered by Seller to Buyer on the date of this Agreement, which contain exceptions and qualifications to the representations and warranties of Seller in this Agreement, Seller represents and warrants to Buyer as follows as of the date of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1**Organization and Qualifications.** Seller is a corporation duly organized and validly existing under the laws of the state of Delaware. Seller has the necessary power and authority to own, operate or lease its properties and assets and to carry on its business as now conducted. Seller is duly qualified to do business and in good standing in each jurisdiction in which the character of the properties owned, operated or leased by it or the nature of the activities conducted by it make such qualification and good standing necessary, except where the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2**Authority and Enforceability.** Seller has the corporate or other applicable organizational power and authority to execute and deliver each Seller Delivered Document and to consummate the transactions contemplated by each of the Seller Delivered Documents and otherwise to comply with and perform Seller's obligations under each of the Seller Delivered Documents. The execution and delivery by Seller of each Seller Delivered Document, and the consummation by Seller of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of Seller in accordance with the terms of its Governing Documents. No other action on the part of Seller is necessary to authorize the execution and delivery of any Seller Delivered Document by Seller, or the consummation by Seller of the transactions contemplated hereby or thereby. Each Seller Delivered Document has been duly executed and delivered by Seller, and, assuming the due authorization, execution and delivery by the other parties hereto and thereto, constitute Seller's valid and binding obligations enforceable against it in accordance with their respective terms, except (i) as such enforcement may be limited by bankruptcy, reorganization, insolvency or other Laws of general application relating to the enforcement of creditors' rights generally (including statutory or other Laws regarding fraudulent transfers), and (ii) as to the availability of specific performance or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3**No Violation of Laws or Agreements; Consents.** Except as set forth in <u>Section 4.3</u> of the Disclosure Schedules, the execution and delivery by Seller of each Seller Delivered Document, the consummation of the transactions contemplated by the Seller Delivered Documents, and the compliance with or fulfillment of the respective terms, conditions or provisions of the Seller Delivered Documents by Seller do not and will not (with or without notice or lapse of time, or both):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1contravene or result in a violation of any provision of the Governing Documents of Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2conflict with in any material respect, materially violate any provision of, result in a material breach of, or give rise to a right of termination, cancellation or acceleration of any material obligation or to a loss of a material benefit under, or to increased, additional, accelerated or guaranteed rights or entitlements of any Person under any Assumed Contract or any material Contract to which any Purchased Assets are subject, or create an Encumbrance on any of the Purchased Assets; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.3result in a violation of any Law to which Seller or any of Seller's assets, including the Purchased Assets, is subject or otherwise require the consent, approval, authorization of, or registration or filing with, or require any notification to, any Person, including any Governmental Body, in each case (i) that has not been obtained prior to the Closing and (ii) other than as would be immaterial to the Business, Purchased Assets and Assumed Liabilities taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4**Financial Statements.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1<u>Section</u> <u>4.4.1</u> of the Disclosure Schedules includes true and correct copies of the following financial statements: (i) the unaudited balance sheet of the Business as of December 31, 2021, and the unaudited consolidated income statement of the Business for the fiscal year then ended (the "**Annual Financial Statements**") and (ii) the unaudited balance sheet of the Business as of December 31, 2022, and the unaudited income statement of the Business for the twelve (12)-month period then ended (the "**Interim Financial Statements**"). The Annual Financial Statements and the Interim Financial Statements are referred to collectively as the "**Financial Statements**".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2Except as set forth in <u>Section 4.4.2</u> of the Disclosure Schedules: (a) the Annual Financial Statements have been prepared in accordance with GAAP on a consistent basis through the indicated period; (b) the Interim Financial Statements have been prepared in accordance with GAAP on a consistent basis throughout the indicated period, subject to normal and recurring year-end adjustments and the absence of notes; (c) the Financial Statements have been prepared from the books and records of Seller, and (d) the Annual Financial Statements and Interim Financial Statements present fairly in all material respects the financial condition and results of operation of the Business at the dates and for the relevant periods indicated. The unaudited balance sheet of the Business included in the Interim Financial Statements shall be referred to herein as the "**Most Recent Balance Sheet**," and the date thereof shall be referred to herein as the "**Most Recent Balance Sheet Date**".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5**Absence of Undisclosed Liabilities.** Except as set forth in <u>Section 4.5</u> of the Disclosure Schedules, there exist no Liabilities, whether absolute or contingent, of the Business, other than (i) Liabilities that are reflected, reserved for or disclosed in the Financial Statements, (ii) Liabilities incurred in the Ordinary Course of Business since the Most Recent Balance Sheet Date, (iii) Liabilities that are executory obligations arising in the Ordinary Course of Business under any Contracts (and not as a result of any breach thereof), or (iv) liabilities incurred in the connection with the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6**No Changes.** Except as contemplated by this Agreement or as set forth in <u>Section 4.6</u> of the Disclosure Schedules, since December 31, 2022, Seller has conducted its business and operations with respect to the Business only in the Ordinary Course of Business, and there has not been with respect to the Business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.1any event or occurrence which, individually or in the aggregate, has had or is reasonably likely to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.2grant of any waiver or release by Seller of any right or claim associated with or related to any of the Purchased Assets or the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.3payment, discharge or satisfaction of any claim or Liability of the Business, other than payment, discharge or satisfaction of claims and Liabilities in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.4transfer, assignment, or grant of any exclusive license of any rights under or with respect to any Business-Utilized Intellectual Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.5damage, destruction or loss, or any interruption in use, of any assets material to the Business, whether or not covered by insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.6termination, extension or material amendment or modification of the terms of any Material Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.7entry into a Contract that would constitute a Material Contract;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.8any material increase in the salary, wage or bonus payable by Seller to any Business Employee, except as required by applicable Laws or employment or retention contracts in existence as of the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.9any change in any method of the Business's accounting, other than as required by GAAP or applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.10any sale, lease or other disposition of any assets (whether tangible or intangible) of the Business, other than sales of inventory in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.11any purchase, lease or other acquisition of the right to own, use or lease any property or assets in connection with the Business for an amount in excess of ten thousand dollars ($10,000), except in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.12any capital expenditures or commitments for any capital expenditures relating to the Business exceeding twenty-five thousand dollars ($25,000) individually or seventy-five thousand dollars ($75,000) in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.13any mortgage or pledge of any assets included in the Purchased Assets, except for Permitted Encumbrances arising in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.14any failure to pay any Top Vendor any material amount owed to such Top Vendor when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.15any acceleration of the collection of or application of any discount to any accounts receivable of the Business or delay of the payment of any accounts payable less than sixty (60) days past due or deferment of any expenses of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.16any commencement, settlement or notice of any Action against Seller relating to or affecting the Purchased Assets or the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.17any Tax election made, rescinded, or amended any filing of an amended Tax Return, any signing or entry into any closing agreement or settlement with regard to any claim or assessment of Tax liability, any settlement or compromise of any claim or assessment of Tax liability, any offset or any other reduction in Tax liability, or any consent to any extension or waiver of the limitations period applicable to any claim or assessment with respect to Taxes, that, in any of such events, would affect any Taxes imposed on or with respect to the Purchased Assets after the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.18any adoption of a plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy under any provisions of federal or state bankruptcy Law, or consent to the filing of any bankruptcy petition against Seller under any similar Law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.19any agreement or commitment to do any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7**Taxes**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.1Except as set forth in <u>Section 4.7.1</u> of the Disclosure Schedules, all Tax Returns required to be filed by or with respect to Seller with respect to the Business or the Purchased Assets prior to the Effective Time have been filed in a timely manner (taking into account any applicable extension periods), and all Taxes due and owing by or with respect to Seller with respect to the Business or the Purchased Assets have been paid. Such Tax Returns are true, accurate, and complete in all material respects. Seller, with respect to the Business and the Purchased Assets, is not currently the beneficiary of any extension of time within which to file any Tax Return.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.2Except as set forth on <u>Section 4.7.2</u> of the Disclosure Schedules, there are no Encumbrances for Taxes upon the Purchased Assets, except for liens for Taxes and other governmental charges and assessments that are not yet due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.3Except as set forth on <u>Section 4.7.3</u> of the Disclosure Schedules, no Actions, audits, assessments or other administrative or court proceedings are presently pending or in progress with regard to any Taxes or Tax Returns of Seller with respect to the Business or the Purchased Assets, and Seller has not received in writing any, and to Seller's Knowledge there is no, threatened Action, audit, assessment, or other administrative or court proceeding against Seller with regard to Taxes with respect to the Business or the Purchased Assets. There are no unpaid deficiencies asserted in writing or written assessments made by any taxing authority against or with respect to Seller. No presently effective waivers or extensions of statutes of limitation with respect to Taxes have been given with respect to Seller for any taxable years. No claim has been made by a Governmental Body in a jurisdiction where Tax Returns are not filed by or with respect to Seller in connection with the Business or the Purchased Assets that it is or may be subject to taxation by that jurisdiction. No claim has been made by a Governmental Body in a jurisdiction where Seller does not currently file a particular type of Tax Return or pay a particular type of Tax in connection with the Business or the Purchased Assets that Seller is or may be required to file such a Tax Return or pay such type of Tax (including obligations to withhold amounts with respect to Tax) in that jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.4Seller has complied in all material respects with all applicable Laws relating to the payment and withholding of Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.5Seller is not and has not been a party to any "listed transaction" within the meaning of Section 6707A(c)(2) of the Code or Section 1.6011-4(b)(2) of the Treasury Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.6Seller has (i) duly and collected and remitted all sales, use, excise or similar Taxes related or attributable to the Purchased Assets or the Business in material accordance with applicable Law, and (ii) collected and maintained all resale certificates and other documentation required to qualify for any exemption from the collection of any sales or use Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.7Seller is not a party to or bound by, and does not have any obligation under, any closing or similar agreement, Tax abatement or similar agreement or any other agreement with any Governmental Body relating to Taxes with respect to the Business or the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.8There are no Tax rulings, requests for rulings, or closing agreements relating to Taxes for which the Business or any Purchased Assets may be liable, or with respect to which they may be subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.9Seller does not have any application pending with any Governmental Body requesting permission for any changes in accounting methods that would apply to the Business or Purchased Assets for any period after the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.10Seller has no powers of attorney or other authorizations in effect that grant to any Person the authority to represent any Seller in connection with any Action concerning a Tax matter that could pertain to or affect the Purchased Assets or the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.11None of the Purchased Assets is or will have ever consisted of any equity interest or other interest (i) in any entity, plan or arrangement that is treated for federal or any applicable state or local income Tax purposes as a partnership, (ii) in any corporation or other entity treated under any applicable Tax Law as a corporation or other type of separate entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.12None of the Purchased Assets or any of the assets that have ever been part of the Business has been subject to Tax, been used or engaged in business, or had or been part of a permanent establishment, in each case, in any jurisdiction outside of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.13None of the Purchased Assets is (i) required to be treated as being owned by another Person pursuant to the so-called "safe harbor lease" provisions of former Section 168(f)(8) of the Internal Revenue

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Code of 1954, as amended, (ii) subject to Section 168(g)(1)(A) of the Code, (iii) subject to a disqualified leaseback or long-term agreement as defined in Section 467 of the Code, or (iv) directly or indirectly securing any debt, the interest on which is exempt from Tax under Section 103(a) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.14None of the Purchased Assets is tax-exempt use property within the meaning of Section 168(h) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8**Title to Purchased Assets; Sufficiency.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8.1Except as set forth in <u>Section 4.8.1</u> of the Disclosure Schedules, Seller owns, leases or has the legal right to use all of the Purchased Assets (excluding the Intellectual Property, which is the subject of <u>Section 4.12</u>) and has good and valid title in and to (or in the case of leased Purchased Assets, valid leasehold interest in) all Purchased Assets (excluding the Intellectual Property, which is the subject of <u>Section 4.12</u>), free and clear of all Encumbrances, except Permitted Encumbrances. Except as set forth on <u>Section 4.8.1</u> of the Disclosure Schedules, the Purchased Assets, together with the rights granted to Buyer pursuant to this Agreement and the Ancillary Agreements, will constitute at the Effective Time all of the assets necessary to conduct the Business in substantially the same manner as the Business is presently conducted. Seller is not party to any contract, agreement or commitment for the sale or disposition of any of the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8.2Except as reflected in the Financial Statements or as set forth in <u>Section 4.8.2</u> of the Disclosure Schedules, the tangible assets included in the Purchased Assets, whether owned or leased by Seller, are free from material defects (patent and latent), have been maintained in accordance with normal industry practice, are in good operating condition and repair, subject to normal wear and tear, and are adequate and suitable for the purposes for which they are presently being used or held for use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9**Real Property.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.1<u>Section 4.9.1</u> of the Disclosure Schedules sets forth each parcel of real property leased by Seller for use in the Business as currently conducted (but excluding any locations from which Seller or its Affiliates perform shared services for the Business and from which material operations of the Business are not conducted) (the "**Leased Real Property**"), including with respect to each Leased Real Property, the address and a description of the applicable lease agreement (the **"Leases**"). Except as set forth in <u>Section 4.9.1</u> of the Disclosure Schedules, with respect to each Assumed Lease:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)such Assumed Lease is valid, binding, enforceable and in full force and effect, and Seller enjoys peaceful and undisturbed possession of the Leased Real Property subject to that Assumed Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Seller is not in material breach or default under such Assumed Lease, Seller has not received any notice of any breach or default under such Assumed Lease from any counterparty to such Assumed Lease, and Seller has paid all rent due and payable under such Assumed Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)to Seller's Knowledge, no other party to any Assumed Lease is in default under such Assumed Lease, and no party to such Assumed Lease has exercised any termination rights with respect to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Seller has not subleased, assigned or otherwise granted to any person the right to use or occupy any Leased Real Property that is subject to such Assumed Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Seller has not pledged, mortgaged or otherwise granted an Encumbrance on its leasehold interest in any Leased Real Property that is subject to an Assumed Lease; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)to Seller's Knowledge, each Leased Real Property under the Assumed Leases is currently in compliance with the Americans With Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.), as amended and supplemented.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.2Seller does not own and has not owned any real property used in the Business, and has not owned or operated real property other than the Leased Real Property (excluding any locations from which Seller or its Affiliates perform shared services for the Business and from which material operations of the Business are not conducted).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10**No Pending Litigation.** Except as set forth in <u>Section 4.10</u> of the Disclosure Schedules, as of the date of this Agreement, there are no, and for the past three (3) years, there have been no, pending or, to Seller's Knowledge, threatened, Actions against Seller, any of its properties (tangible or intangible) or any of its officers, directors, employees, trustees or representatives in their respective capacities as such that involves or would be expected to have any materially adverse impact on the Purchased Assets or the Business or that, if adversely determined, would reasonably be expected to prevent, materially delay, make illegal, impose material limitations or conditions on, or otherwise materially interfere with, the transactions contemplated by this Agreement. To Seller's Knowledge, no event has occurred, and no claim, dispute or other condition or circumstance exists, that will, or that could reasonably be expected to, give rise to or serve as a basis for the commencement of any such Action. Seller has not received any notification of, and to Seller's Knowledge, there is no, investigation by any Governmental Body involving the Business or the Purchased Assets. There is no unsatisfied judgment, penalty or award against Seller with respect to the Business or the Purchased Assets. There is no action, suit, claim or proceeding of any nature pending, or which Seller has commenced preparations to initiate, by Seller against any Person in respect of the Purchased Assets or the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11**Compliance With Law.** Except as disclosed in <u>Section 4.11</u> of the Disclosure Schedules, (a) Seller, with respect to the Business, is currently and has for the last three (3) years been in material compliance with all Laws (excluding Healthcare Laws, which are addressed separately in <u>Section 4.19</u> below), (b) no investigation or review by any Governmental Body has been conducted in the last three (3) years, or is pending or threatened in writing, or, to Seller's Knowledge, is otherwise threatened against Seller with respect to the Business or the Purchased Assets, and (c) there is no Governmental Order binding upon the Business or the Purchased Assets. Seller has not received any written communication from a Governmental Body that alleges that the Business or any Purchased Asset is not in material compliance with any such applicable Law (excluding Healthcare Laws, which are addressed separately in <u>Section 4.19</u> below), Governmental Order or Action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12**Intellectual Property.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.1***Business Registered Intellectual Property****.* <u>Section 4.12.1</u> of the Disclosure Schedules lists all (i) Business Registered Intellectual Property (including the jurisdictions in which it has been issued or registered or in which any application for such issuance and registration has been filed, the record owner and the applicable registration, application or serial number or similar identifier) as of the date of this Agreement, (ii) any proceedings or actions before any court, tribunal, or Governmental Body involving any of the Business Registered Intellectual Property, but excluding non-final routine prosecution proceedings before the applicable Governmental Body not involving a third party and (iii) material unregistered trademarks included in the Business-Utilized Intellectual Property. Each item of Business Registered Intellectual Property is valid, subsisting, and excluding pending applications, enforceable. All registration, maintenance and renewal fees currently due in connection with such Business Registered Intellectual Property have been paid, and all other deadlines for maintaining and/or prosecuting the Business Registered Intellectual Property up to and including the Closing Date have been satisfied. There are no actions that must be taken within one hundred twenty (120) days of the date hereof, including the payment of any registration, maintenance or renewal fees or the filing of any documents, applications or certificates for the purposes of maintaining, perfecting or preserving or renewing any Business Registered Intellectual Property. To Seller's Knowledge, there exist no materials, information, facts or circumstances, including any information or fact that would constitute prior art, that would render any of the Business Registered Intellectual Property that is not an application invalid or unenforceable, or would adversely affect any pending application for any Business Registered Intellectual Property. The Seller has not received and has no Knowledge of any written notice or claim challenging or questioning the validity or enforceability or alleging the misuse of any Business Registered Intellectual Property. No Business Registered Intellectual Property has been or is now involved in any interference, reissue, re-examination, inter-partes review, post-grant review, or opposition proceeding. No event or circumstance (including a failure to exercise adequate quality controls and an assignment in gross without the accompanying goodwill) has occurred or exists that has resulted in, or could reasonably be expected to result in, the abandonment of any material trademark (whether registered or unregistered) included in the Business Intellectual Property. No Business

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Registered Intellectual Property at any time has been cancelled, abandoned, allowed to lapse or not renewed, except where the Seller has, in its reasonable business judgment, decided to cancel, abandon, allow to lapse or not renew such Business Registered Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.2***Status***. Seller is the sole owner of all Business-Utilized Intellectual Property. No third party has any ownership right, title, interest, claim in or lien on any of the Business-Utilized Intellectual Property. Seller has not agreed to transfer (in whole or in part) ownership of any Business-Utilized Intellectual Property to any third party. The Business Intellectual Property collectively constitutes all of the Intellectual Property necessary for Buyer's conduct of the Business in the same manner as conducted by Seller prior to the Closing, or that are primarily used in or primarily held for use in the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.3***Business Products***. <u>Section 4.12.3</u> of the Disclosure Schedules lists all of the Business Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.4***Protection of Business-Utilized Intellectual Property***. Seller has taken commercially reasonable steps to protect and preserve the proprietary aspects of the Business Products and other Business-Utilized Intellectual Property that is material to the Business, and to maintain the confidentiality of any trade secrets and other confidential information included in the Business Intellectual Property. All Persons who contributed to or participated in the conception, reduction to practice, creation or development of any Intellectual Property for the Business, including the Business-Utilized Intellectual Property, including named inventors of patents and patent applications included in the Business-Utilized Intellectual Property (any such Person an "**Author**"): (i) assigned to Seller unencumbered and unrestricted exclusive ownership of, all of the Authors' right, title and interest in and to such Intellectual Property and (ii) are bound by written obligations of confidentiality with respect to all confidential information and trade secrets included in the Business Intellectual Property, and to Seller's Knowledge, there have been no breaches of such agreements. Seller has, and enforces, a policy requiring each Business Employee and all independent contractors involved in the creation of Intellectual Property for Seller to execute a proprietary information, confidentiality and invention assignment contract in the form(s) made available to Buyer (each a "**Proprietary Information Agreement**"), and all such Persons have executed such a Proprietary Information Agreement. No Author has retained any rights, licenses, claims or interest whatsoever with respect to any Business Intellectual Property. Seller has made available to Buyer copies of all forms of such disclosure and assignment executed by Authors. Seller has, with respect to the Business, implemented and maintained reasonable security, disaster recovery and business continuity plans consistent with industry practices of companies offering similar services, and acts in compliance therewith and have tested such plans on a periodic basis. To Seller's Knowledge, the Business has not experienced any breach of security or other unauthorized access by third parties that has caused any substantial disruption of or interruption to the conduct of the Business, including any material loss, destruction, damage, or harm of or to the Business and its operations, personnel, property, or other assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.5***Non-Infringement***. To Seller's Knowledge, there is no unauthorized use, unauthorized disclosure, infringement, misappropriation or other violation of any Business-Utilized Intellectual Property by any third party, and Seller has not brought any Action or sent any written notices to any third party regarding the foregoing. The operation of the Business has not infringed, misappropriated, or otherwise violated in the past five (5) years, and does not currently infringe, misappropriate, or otherwise violate, any Third-Party Intellectual Property. Seller, with respect to the Business, has not been sued in any Action or received any written communications: (i) alleging that the Business has infringed, misappropriated, or otherwise violated or, by conducting the Business, would infringe, misappropriate, or otherwise violate any Third-Party Intellectual Property, or (ii) challenging the validity, registrability, or enforceability of any Business-Utilized Intellectual Property. No Business-Utilized Intellectual Property or Business Product is subject to any Action, order, or settlement agreement that restricts in any manner the use, transfer or licensing thereof by Seller, excluding orders of general applicability not specifically directed to the Business-Utilized Intellectual Property or Business Products, such as Laws that restrict the export of technologies to embargoed countries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.6***Intellectual Property Agreements***. <u>Section 4.12.6</u> of the Disclosure Schedules set forth a complete and accurate list of all Business Intellectual Property Agreements. With respect to the Business Intellectual Property Agreements:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)each such agreement is valid and subsisting and has, where required, been duly recorded or registered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Seller is not in breach of any Business Intellectual Property Agreement, and the consummation of the transactions contemplated by this Agreement will not result in the modification, cancellation, termination, suspension of, or acceleration of any payments, rights, obligations or remedies with respect to any Business Intellectual Property Agreements, or give any non-Seller party to any Business Intellectual Property Agreement the right to do any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)to Seller's Knowledge, no counterparty to any Business Intellectual Property Agreement is in breach thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)no third party has ownership or license rights to improvements or derivative works made by the Seller with respect to Third-Party Intellectual Property that has been licensed to the Seller; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)none of the Business Intellectual Property Agreements grants any third party (i) exclusive rights to or under any Business-Utilized Intellectual Property or (ii) the right to sublicense any Business-Utilized Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.7***Open Source Software***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Section 4.12.7(a)</u> of the Disclosure Schedules contains a complete and accurate list of all Open Source Materials that have been incorporated into, linked with, or distributed with any Business Product or Business-Utilized Intellectual Property in any way and describes the manner in which such Open Source Materials were incorporated or used with respect to the Business Product or Business-Utilized Intellectual Property (such description shall include whether (and, if so, how) the Open Source Materials were modified and/or distributed by the Seller or any of its subsidiaries and whether (and if so, how) such Open Source Materials were incorporated into and linked in any Business-Utilized Intellectual Property).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Except as set forth in <u>Section 4.12.7(b)</u> of the Disclosure Schedules, Seller has not: (i) incorporated Open Source Materials into, or combined Open Source Materials with, any Business Products; or (ii) distributed or provided Open Source Materials in conjunction with, or for use with, any Business Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Except as set forth in <u>Section 4.12.7(c)</u> of the Disclosure Schedules, Seller has not used Open Source Materials in a manner that requires or purports to require any Business-Utilized Intellectual Property to be subject to any Copyleft Licenses (or any of the obligations or attributes thereof as specified in (i) through (iv) of the definition thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Except as set forth in <u>Section 4.12.7(d)</u> of the Disclosure Schedules, Seller has been at all times and is currently in full compliance with all licenses for Open Source Materials applicable thereto, including any and all Intellectual Property notice and attribution requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.8***Source Code***. Except for disclosures to Business Employees, the Business Source Code has not be disclosed or licensed to any Person and Seller has not agreed or obligated itself to disclose, deliver or license Business Source Code to any Person, nor has there been any unauthorized or inadvertent disclosure of any Business Source Code. No event has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time, or both) will, or would reasonably be expected to, result in the disclosure, delivery or license by of any Business Source Code, other than disclosures to employees and consultants involved in the development of Business Products. Without limiting the foregoing, neither the execution nor performance of this Agreement nor the consummation of any of the transactions contemplated by this Agreement will result in a release from escrow or other delivery to a third party of any Business Source Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.9***Product Defects***. All Business Products comply in all material respects with applicable Laws and warranties. To Seller's Knowledge, there have not been and there are no material defects or deficiencies in the Business Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.10***Privacy and Personal Data***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Seller's Processing of Personal Data in connection with the Business complies with, and for the past three (3) years has complied in all material respects with (i) all Privacy Laws, (ii) the Business's published privacy statements and other notices provided to any Person regarding the Business's Processing of their Personal Data, (iii) the requirements of any Contract to which Seller or the Business is a party relating to the Processing of Personal Data, and (iv) any applicable industry self-regulatory standards relating the Processing of Personal Data, such as the Payment Card Industry Data Security Standard (PCI DSS) (all of the foregoing in (i)-(iv), collectively the "**Business Privacy Commitments**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Seller, with respect to the Business, has for the last three (3) years: (i) as required by the Business Privacy Commitments, provided any necessary notices and privacy choices to, and obtained any necessary consents from, any Persons that are required for the collection and Processing of such Persons' Personal Data as conducted by or for the Business and (ii) if and as required by the Business Privacy Commitments, abided by any privacy choices (including opt-in and opt-out preferences) of Persons relating to their Personal Data and the Business's collection and Processing thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Seller, with respect to the Business, has established and has at all times maintained a comprehensive written information security program designed to protect the confidentiality, integrity, and availability of Personal Data and other confidential information and protect it against accidental, unauthorized, or unlawful use or Processing ("**Data Security Program**"). The Data Security Program includes commercially reasonable technical, physical, and organizational measures, including policies, procedures, security systems, and technologies, and complies in all material respects with the Business Privacy Commitments. Seller, with respect to the Business, has taken commercially reasonable steps to ensure the reliability of its employees, contractors, and personnel of its service providers that Process Personal Data or have access to confidential information of the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Except as set forth on <u>Section 4.12.10(d)</u> of the Disclosure Schedules, (i) there has been no actual or reasonably suspected material unauthorized acquisition or disclosure of, or access to, Personal Data in the Business's possession or control or held, Processed, or managed by any vendor, processor, or other third party for or on behalf of the Business, (ii) there has been no material compromise of the Business's Data Security Program, (iii) there has otherwise been no material unauthorized or unlawful Processing of any Personal Data in the Business's possession or control or held, Processed, or managed by any vendor, processor, or other third party for or on behalf of the Business that would constitute a material violation of any Business Privacy Commitment, and (iv) no circumstance has arisen in which any Business Privacy Commitments would require the Business to notify a Governmental Body or other Person of a data security breach, security incident, or other unauthorized or unlawful Processing of Personal Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Seller, with respect to the Business, has not received written notices, requests, complaints, correspondence, or other communication from any Person regarding, nor is aware of any circumstance (including any circumstance arising as the result of an audit or inspection carried out by any Governmental Body) that would reasonably be expected to give rise to, any Action, order, warrant, regulatory opinion, or other allegation from any Person or Governmental Body relating to Seller's compliance or alleged failure to comply with Privacy Laws or Business Privacy Commitments. Seller, with respect to the Business, has not been named as a party in any Actions involving a material breach or alleged material breach of relevant Privacy Laws or other Business Privacy Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby, including the transfer to Buyer of any Personal Data in the possession or control of the Seller in connection with the Business, do not and will not: (i) materially conflict with or result in a material violation or breach of any Business Privacy Commitments (as currently

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existing or as existing at any time during which any Personal Data was collected or Processed by or for Seller in the conduct of the Business); or (ii) require the consent of or notice to any Person concerning such Person's Personal Data. Upon the Closing, Buyer will continue to have the right to use Personal Data transferred to Buyer that was in the possession or control of the Seller in connection with the Business on materially the same terms and conditions as Seller enjoyed immediately prior to the Closing subject to applicable Business Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13**Labor Matters.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13.1<u>Section 4.13.1</u> of the Disclosure Schedules sets forth a complete and accurate list (unless such information has otherwise been furnished or made available to Buyer) of (a) all current Business Employees, as well as their (i) name, (ii) date of hire, (iii) current title, (iv) exempt or non-exempt classification under the Fair Labor Standards Act and similar state Law, (v) work location, (vi) current annual salary rate or current hourly wage, and (vii) amount of annual bonus eligibility; and (b) all independent contractors and consultants currently engaged by Seller in connection with the Business, including their (i) name, (ii) a brief description of the services provided, (iii) the primary location where such services are provided, (iv) their base fee rate and the frequency with which such fees are paid, and (v) the notice required for termination. Each natural person who is performing or has performed services to the Business has properly been classified by Seller as an employee or independent contractor under applicable Law (and, for each Business Employee, as exempt or nonexempt under the Fair Labor Standards Act and similar state Law), other than any failure to be so properly classified that would not result in or reasonably be expected to result in material liability to the Business, and with respect thereto, Seller has, within the time and in the manner prescribed by Law, withheld and paid to the proper Governmental Body all amounts required to be so withheld and paid under applicable Law. During the past five (5) years, Seller has not had any material liability (including with respect to wages, Taxes, workers' compensation, benefit plans or otherwise) as a result of any failure to properly classify any current or former employees or independent contractors of the Business, to pay any wages payable or to provide any benefits such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13.2Except as set forth in <u>Section 4.13.2</u> of the Disclosure Schedules: (i) Seller is in compliance in all material respects with all Laws applicable to it respecting employment and employment practices, terms and conditions of employment and wages and hours, including Laws and regulations regarding equal employment opportunity, nondiscrimination, immigration, harassment, disability and accommodation, retaliation, the payment of wages (including minimum wage and overtime compensation), pay equity, employee and contractor classification, meal and rest breaks, paid and unpaid leaves of absence (including sick leave, family and medical leave, maternity leave, military leave and similar state, local or other Laws regarding leave), occupational safety and health, immigration and the employment of non-citizens, layoffs and reductions in force (including the WARN Act and comparable state, local or other Laws), workers' compensation, unemployment insurance, employer posting and notice obligations and requirements, and the withholding, collection and payment of income Taxes and social security contributions, and there are no pending or, to Seller's Knowledge, threatened claims, charges or lawsuits with respect to such Laws; (ii) there are no collective bargaining agreements or similar Contracts with any labor organization that are binding on Seller, and there are no union or labor-related organizing efforts, election activities or requests or demands for negotiation with or representation by a labor union or similar organization, pending or, to Seller's Knowledge, threatened, with respect to the Business Employees; (iii) there are no material strikes, slowdowns, work stoppages or similar labor activities pending or, to Seller's Knowledge, threatened by any Business Employees with regard to Seller; and (iv) during the prior three (3) years, Seller has not engaged in any unfair labor practices as defined in the National Labor Relations Act and there are no unfair labor practices, charges or complaints against Seller pending or, to Seller's Knowledge, threatened before the National Labor Relations Board or any similar state agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13.3Except as set forth on <u>Section 4.13.3</u> of the Disclosure Schedules, Seller is not, with respect to the Business Employees, bound by: (a) any Contract that entitles a Business Employee to receive any salary continuation or severance payment; or (b) any Contract that requires Seller to make any payment to a Business Employee solely as a result of the transactions contemplated by this Agreement, including any "change in control" provisions or agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13.4Seller has not made, started or contemplated any "plant closing" or "mass layoff" (as those terms are defined in the WARN Act) that would trigger the WARN Act or any other similar applicable Law, rule or

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regulation with respect to any site of employment or facility of Seller, and no layoffs are currently contemplated that could reasonably be expected to result in a violation of such Laws or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13.5Seller is not, under any Assumed Contract, a government contractor or subcontractor for purposes of any Laws with respect to the terms and conditions of employment, including the Service Contracts Act or prevailing wage laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13.6Seller is in compliance with and, during the past five (5) years, has been in material compliance with all immigration Laws, including Form I-9 requirements and any applicable mandatory E-Verify obligations. There are no pending, or to Seller's Knowledge, threatened, Actions relating in any way to compliance by Seller with respect to any immigration Laws or any other Laws regulating employment or work authorization of citizens or non-citizens of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14**Employee Related Agreements and Plans; ERISA.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14.1***List and Types of Plans***. Set forth in <u>Section 4.14.1(a)</u> of the Disclosure Schedules is an accurate and complete list of all material Employee Benefit Plans. Except as set forth in <u>Section 4.14.1(b)</u> of the Disclosure Schedules, neither Seller nor any ERISA Affiliate of the Seller has, at any time preceding the date of this Agreement, sponsored, contributed to, or had any obligations or incurred any liability under any Employee Benefit Plan that is (i) a single employer defined benefit pension plan (within the meaning of Section 3(35) of ERISA) that is subject to Title IV of ERISA, Section 302 of ERISA, or Section 412 of the Code, (ii) a "multiple employer plan" as described in Section 413(c) of the Code or Sections 4063, 4064 or 4066 of ERISA, (iii) a "multiple employer welfare arrangement" as defined in Section (3)(40) of the Code, (iv) a "multiemployer plan" as defined in Sections 3(37) or 4001 of ERISA, or (v) a voluntary employees beneficiary association within the meaning of Section 501(c)(9) of the Code. No Employee Benefit Plan provides for post-employment health or life insurance, except as required by COBRA or any similar state Law or benefits in the nature of severance pay pursuant to one or more employment agreements set forth in <u>Section 4.14.1(c)</u> of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14.2***Employee Benefit Plan Documents***. With respect to each Employee Benefit Plan intended to qualify under Section 401(k) of the Code, including Seller's 401(k) Plan, Seller has furnished to Buyer, as applicable: (i) a true and complete copy of the plan documents (including any underlying trust or other funding arrangement) and any amendments; (ii) copies of the most recently filed Form 5500 annual report and accompanying schedule, if any; (iii) a copy of the most recently received IRS determination letter, opinion or advisory letter; (iv) copies of the non-discrimination testing results, if any, for the three (3) most recent plan years; and (v) copies of any non-routine correspondence with a Governmental Body or plan participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14.3***General Compliance***. Each Employee Benefit Plan has been maintained and operated in all material respects consistent with its terms and in compliance with the requirements of applicable Law (including ERISA, the Code, the Patient Protection and Affordable Care Act, and COBRA or similar state law). There are no actions, suits or claims pending or, to Seller's Knowledge, threatened against any Employee Benefit Plan as of the date hereof (other than routine claims for benefits). As of the date hereof, Seller has not received any written notice that any Employee Benefit Plan is presently the subject of an audit, investigation or examination by any Governmental Body.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14.4***Tax Qualification***. With respect to each Employee Benefit Plan intended to be qualified under Section 401(a) of the Code, such Employee Benefit Plan and each corresponding trust intended to be tax-exempt under Section 501(a) of the Code has received a favorable determination, advisory, or opinion letter issued by the IRS as to such Employee Benefit Plan's qualification under the Code, and nothing has occurred since the date of such letter that reasonably could be expected to adversely affect the qualified status of such Employee Benefit Plan or any related trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14.5***Contributions***. Seller has made timely payment in all material respects of all amounts respectively required to be paid by it as contributions or premiums to any Employee Benefit Plan that are due as of the date of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14.6***Prohibited Transactions***. Neither Seller nor, to Seller's Knowledge, any other Persons who participate in the operation of any Employee Benefit Plan has engaged in any transaction with respect to any Employee Benefit Plan, or breached any applicable fiduciary responsibilities or obligations under Title I of ERISA, that would subject Seller to a material Tax, penalty or liability for "prohibited transactions" (within the meaning of Section 406 of ERISA and Section 4975 of the Code and not exempt under Section 408 of ERISA and regulatory guidance thereunder) or breach of any applicable fiduciary obligations under ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14.7***Code Section 409A***. Each Employee Benefit Plan that is a "nonqualified deferred compensation plan" within the meaning of Section 409A(d)(1) of the Code that is subject to Section 409A of the Code complies and has complied in form and operation with the requirements of Section 409A of the Code as in effect from time-to-time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14.8***Contingent Payments***. Except as set forth on <u>Section 4.14.8</u> of the Disclosure Schedules, neither the execution of this Agreement nor the consummation of the transactions contemplated hereby (either alone or together with any other event that would not, standing alone, trigger such payment or benefit) will: (i) entitle any Business Employee to any payment or benefit, including any bonus, retention, severance, change in control, retirement or job security payment or benefit; (ii) accelerate the time of payment or vesting or forgiveness of indebtedness or trigger any payment or funding (through a grantor trust or otherwise) of compensation or benefits under, or increase the amount payable or trigger any other obligation or benefit under, any Employee Benefit Plan, in each case to or for the benefit of a Business Employee; (iii) provide for payment or benefits to any Business Employee that would reasonably be expected to constitute an "excess parachute payment" under Section 280G of the Code; or (iv) result in the forgiveness in whole or in part of any outstanding loans to any Business Employee. Seller does not have any obligation to gross up, indemnify, or otherwise reimburse any Business Employee for any taxes, interest, or penalties incurred under Section 409A, Section 457A or Section 4999 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15**Environmental Matters.** Seller, with respect to the Business, is and has been in material compliance with all Environmental Laws. The Business has not received written notice of any pending or threatened violation, liability or claim under Environmental Laws that has resulted in or would reasonably be expected to result in material liability of Seller. Seller, with respect to the Business, has not handled, disposed of, arranged for the disposal of, manufactured, distributed, exposed any Person to, or released any hazardous substance or petroleum, or owned or operated any property or facility contaminated by any hazardous substance or petroleum, that has given rise to or would reasonably be expected to give rise to material liabilities pursuant to Environmental Laws. Seller holds and is and has been in material compliance with all Permits, required under Environmental Law, for the operation of the Business and the Leased Real Property. Seller has delivered to Buyer complete and accurate copies of any reports, studies, analyses, tests or monitoring relating to the presence of materials regulated under Environmental Laws in, on or under and real property operated by Seller with respect to the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16**Material Contracts.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16.1***Listing***. <u>Section 4.16.1</u> of the Disclosure Schedules sets forth a true, complete, and correct list of all Contracts (including amendments thereto and excluding Employee Benefit Plans) (i) by which any of the Purchased Assets are bound or (ii) relating primarily to the Business and to which Seller is a party, in the following categories (together with the Assumed Leases, the "**Material Contracts**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)all Contracts, with respect to the Business, that relate to the pending acquisition or disposition of any business, a material amount of stock or assets of any other person or any real property (whether by merger, sale of stock, sale of assets or otherwise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)all Contracts for the sale of any of the Purchased Assets or for the grant to any person of any option, right of first refusal or preferential or similar right to purchase any of the Purchased Assets, other than Contracts for the sale, distribution or provision of products or services of the Business in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)all Contracts with Top Customers and Top Vendors;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)all Contracts concerning a partnership or joint venture or similar arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)all collective bargaining agreements or other Contracts with a labor organization relating to the Business Employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)all notes, debenture, bond, equipment trust, letter of credit, capital lease obligation, loan or other Contract for the borrowing or lending of money (other than to employees for travel expenses in the Ordinary Course of Business) or otherwise pertaining to Indebtedness or that is a Contract for a line of credit or guarantee, pledge or undertaking of the Indebtedness of any other Person in connection with the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)all Contracts with any Governmental Body;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)all Contracts pursuant to which Seller leases any real property for the benefit of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)all Contracts that involve revenues or expenditures by Seller with respect to the Business in excess of fifty thousand dollars ($50,000) per annum (excluding sale orders entered into in the Ordinary Course of Business) and not terminable upon notice of ninety (90) days or less;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)all Contracts containing covenants that materially limit or purport to limit the ability of the Business to compete in any line of business or with any Person or in any geographic area during any period of time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)all Contracts that relate to the compromise or settlement of any litigation or arbitration or other proceeding involving the Business or the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)all Business Intellectual Property Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)any hedging, swap, forward, future, interest rate, commodity or currency exchange agreement or similar hedging or derivative instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)all Contracts (or groups of related Contracts with the same party) for the lease of personal property to or from any Person in connection with the Business providing for lease payments in excess of ten thousand dollars ($10,000) per annum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)any Contract with any Affiliate of Seller primarily related to the Business or Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)all Contracts that require the Business to purchase its total requirements of any product or service from a third party or that contains "take or pay" provisions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)all Contracts (or groups of related Contracts with the same party) the absence or termination of which could have a Material Adverse Effect, which are not otherwise listed in <u>Section 4.16.1</u> of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16.2***Status***. Except as set forth in <u>Section 4.16.2</u> of the Disclosure Schedules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)each Material Contract is (i) a valid and binding obligation of Seller, subject to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and other Laws of general application relating to or affecting creditors' rights and to general equity principles, (ii) to Seller's Knowledge, a valid and binding obligation of each other party thereto, and (iii) is in full force and effect; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)(i) Seller is not in material breach of any Material Contract, and Seller has not received written notice of any event or circumstance that, with notice or lapse of time or both, would constitute a material breach or event of default under any such Material Contract, (ii) to Seller's Knowledge, no other party to any such Material Contract is in material breach or material default under such Material Contract, (iii) Seller has performed, in all material respects, all terms, covenants, conditions and agreements of each of the Material Contracts that are required to be performed by Seller, and (iv) no act or omission on the part of Seller (or on the part of any other party thereto) has occurred which, with the giving of notice or lapse of time, or both, would constitute a material breach or violation of any Assumed Contract, or that would permit termination or acceleration by any other party thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.17**Customers and Vendors.** <u>Section 4.17</u> of the Disclosure Schedules contains a complete and accurate list of the names of the Business's top ten (10) customers by revenue for the calendar year ended December 31, 2022 (based on revenues earned from customers in such period) (collectively, the "**Top Customers**"), and the top ten (10) vendors for the calendar year ended December 31, 2022 (by expenditures in such period) (collectively, the "**Top Vendors**"). Except as set forth in <u>Section 4.17</u> of the Disclosure Schedules, no Top Customer or Top Vendor has as of the date of this Agreement cancelled or terminated in writing, or to Seller's Knowledge provided any other notice, to Seller that it intends to cancel or otherwise terminate or materially reduce its relationship with the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.18**Licenses, Permits and Authorizations; HIPAA.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.18.1Seller has all of the material licenses, certificates, approvals, clearances, exemptions, consents, filings, registrations, notifications, authorizations and permits from any Governmental Body necessary to permit Seller to own, operate, use and maintain the Purchased Assets and the Business in the manner in which they are now operated and maintained and currently conducted (collectively, "**Permits**"), as listed in <u>Section 4.18.1</u> of the Disclosure Schedules. Seller is currently in compliance in all material respects with its obligations under, and the terms of, each Permit, and (i) no event has occurred or condition or state of facts exists which constitutes or after notice or lapse of time or both, would constitute a breach or default in any material respects under any such Permit or which permits or, after notice or lapse of time or both, would permit revocation or termination of any such Permit, or which would materially and adversely affect the rights of Seller under any such Permit, (ii) for the last three (3) years, no notice of cancellation, revocation, non-renewal, suspension, limitation or of material default concerning any such Permit has been received by the Business or to the Knowledge of the Seller is pending or threatened against the Purchased Assets and the Business, and (iii) each such Permit is valid, subsisting and in full force and effect, except where renewal of such Permit has been suspended as a result of the COVID-19 pandemic or related state declarations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.18.2The Business complies and has for the last three (3) years complied in material respects with all Laws relating to patient, medical or individual health information, including the Health Insurance Portability and Accountability Act of 1996, as amended, and its implementing regulations promulgated thereunder, all as amended from time to time (collectively "**HIPAA**"), including the standards for the privacy of Individually Identifiable Health Information at 45 C.F.R. Parts 160 and 164, Subparts A and E, the standards for the protection of Electronic Protected Health Information set forth at 45 C.F.R. Part 160 and 45 C.F.R. Part 164, Subpart A and Subpart C, the standards for transactions and code sets used in electronic transactions at 45 C.F.R. Part 160, Subpart A and Part 162, and the standards for Breach Notification for Unsecured Protected Health Information at 45 C.F.R. Part 164, Subpart D, all as amended from time to time. Seller, with respect to the Business, has entered into, Business Associate agreements that satisfy all applicable requirements of HIPAA with (i) any Covered Entities on whose behalf Seller creates, receives, maintains or transmits Protected Health Information, and (ii) any Person that creates, receives, maintains, or transmits Protected Health Information on behalf of Seller, and Seller is in compliance in all material respects with the terms of all such Business Associate agreements to which Seller is a party or otherwise bound. Seller, with respect to the Business, has created and maintained written policies and procedures designed to protect the privacy and security of all Protected Health Information, provided training to all employees and agents as required under HIPAA, and has implemented appropriate security procedures, including physical, technical and administrative safeguards, designed to protect Protected Health Information stored or transmitted in electronic form. Seller, with respect to the Business, has undertaken all necessary surveys, audits, inventories, reviews, analyses and/or assessments (including risk analyses and technical and nontechnical evaluations) of all areas of the Business and Seller's Processing of Protected Health Information as required by HIPAA and has implemented appropriate corrective action to address or is in the process of addressing all material vulnerabilities in their HIPAA safeguards

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and controls identified through such assessments. Seller, with respect to the Business, has not received any written notices, requests, complaints, correspondence, or other communication from the Office for Civil Rights for the U.S. Department of Health and Human Services or any other Governmental Body or Person regarding its compliance with or any alleged failure to comply with HIPAA or any other state Law or regulation applicable to the protection of individually identifiable health information or personally identifiable information. Seller, with respect to the Business, is not and could not reasonably be expected to become, the subject of any civil or criminal penalty, process, claim, Action or proceeding, or any administrative or other regulatory review, survey, process or proceeding or Governmental Order in connection with any actual or potential violation by the Business of HIPAA. No successful Security Incident, Breach of Unsecured Protected Health Information or breach of personally identifiable information under applicable state or federal Laws has occurred with respect to any information maintained or transmitted by or to Seller with respect to the Business, or an agent or third party subject to a Business Associate Agreement with Seller that would require Seller to make a disclosure to any Person or Governmental Body. All capitalized terms in this <u>Section</u> <u>4.18.2</u> not otherwise defined in this Agreement shall have the meanings set forth under HIPAA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.19**Compliance with Healthcare Laws.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.19.1Except as set forth on <u>Section 4.19.1</u> of the Disclosure Schedules, the Business is, and at all times during the six (6)-year period prior to the Closing, has been in compliance in all material respects with all Healthcare Laws, including all legal and regulatory requirements related to participation in or the provision of services to beneficiaries enrolled in any Federal Health Care Program. No Action has been filed, commenced or, to Seller's Knowledge, threatened against Seller alleging any failure of the Business so to comply with any Healthcare Law in any respect, and Seller has not received any written notice from any Governmental Body or agent thereof of any alleged violation of, default under or any citation for noncompliance with respect to the Business with any Healthcare Laws. Except as set forth on <u>Section 4.19.1</u> of the Disclosure Schedules, to Seller's Knowledge, no facts, events, circumstances or conditions exist that would reasonably be expected to form the basis for any Action against or affecting the Business relating to or arising under any Healthcare Law. Except as set forth on <u>Section 4.19.1</u> of the Disclosure Schedules, Seller has not at any time received any written notice from any Governmental Body or to Seller's Knowledge is aware of any pending, active or threatened Actions pertaining to the Business with respect to any Healthcare Laws prohibiting, governing, regulating or relating to fee-splitting, self-referrals or payment or receipt of kickbacks in return for or to induce referrals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.19.2During the past six (6) years, neither Seller, nor, to Seller's Knowledge, the Business Employees have (i) been reprimanded, sanctioned, excluded or disciplined by any licensing board or any other body, or Third-Party Payor Program, (ii) had a judgment entered against it, him or her in connection with a malpractice or similar action, (iii) been found liable or responsible for any civil offense reasonably related to qualifications or competence relating to professional practice or (iv) been terminated from employment for cause related to any of the actions described in this <u>Section 4.19.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.19.3The Business has not billed or received any payment or reimbursement from a Third-Party Payor Program in excess of amounts allowed by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.19.4<u>Section 4.19.4</u> of the Disclosure Schedules sets forth a list of the top 5 Contracts between Seller, with respect to the Business, on the one hand, and any Third-Party Payor Program, on the other hand (collectively, the "**Third-Party Payor Agreements**"). Each Third-Party Payor Agreement is in full force and effect and is valid and binding on Seller. Seller is not in material breach of, or material default under, any Third-Party Payor Agreement, and no event has occurred that, with the giving of notice or lapse of time or both, would constitute a material breach or material default thereunder by Seller. Seller has made available a correct and complete copy of each Third-Party Payor Agreement together with all material amendments and waivers thereto. No Third-Party Payor Agreement is currently subject to or is expected to be subject to cancellation or any other material modification by the other party thereto or is subject to or is expected to be subject to any penalty, right of set off or other charge by the other party thereto for late performance or delivery, other than modifications, set-offs or charges implemented in the ordinary course of business consistent with past practice. No party to any Third-Party Payor Agreement has asserted to Seller, with respect to the Business, any claim, defense, setoff (other than set-offs or charges implemented in the ordinary course of business consistent with past practice) or counterclaim under or, to Seller's Knowledge, threatened to terminate any Third-Party Payor Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.20**Transactions with Affiliates.** Except as set forth in <u>Section 4.20</u> of the Disclosure Schedules, there have not been any material transactions between Seller, on the one hand, and any Affiliate or stockholder, officer, director, or employee of Seller, on the other hand, in each case, that relate to the Business or the Purchased Assets. No current director, officer, employee, or stockholder of Seller has any ownership interest in the Purchased Assets, and to Seller's Knowledge, any Top Vendor or Top Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.21**Anti-bribery; Sanctions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.21.1In its operation of the Business, Seller has not, and no officer, director, employee, or to Seller's Knowledge, agent or other Person acting for or on behalf of Seller has, directly or indirectly, (a) made or offered any unlawful payment or promised to make or offer any unlawful payment of anything of value, to or for the benefit of any government official, candidate for public office, political party or political campaign, for the purpose of (i) influencing any act or decision of such government official, candidate, party or campaign, (ii) inducing such government official, candidate, party or campaign to do or omit to do any act in violation of a lawful duty, (iii) obtaining or retaining business for or with any Person, (iv) expediting or securing the performance of official acts of a routine nature, or (v) otherwise securing any improper advantage, (b) obtained, received, requested or entered into any arrangement with respect to any bribe, kickback, or other similar unlawful payment from any insured party or other Person, (c) paid, accepted or received any unlawful contributions, payments, expenditures or gifts, (d) established or maintained any unlawful fund of corporate monies or other properties related to the foregoing, or (e) created any intentionally false, misleading or inaccurate books and records related to any of the foregoing. Seller has not received any written notice from any other Person alleging the occurrence of any of the matters set forth in clauses (a) through (e) of the preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.21.2Seller is not a Person who is directly or indirectly 50% or more owned by any Person currently included on the Specially Designated Nationals and Blocked Persons List or the Consolidated Sanctions List maintained by the Office of Foreign Assets Control, US Department of the Treasury ("**OFAC**") or other similar list maintained by any Governmental Body.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.21.3Seller has not, and has not permitted any third parties to, directly or indirectly, export, reexport, or release any items, software or technical data ("**Regulated Products**") to any jurisdiction to which, or any party to whom, the export, reexport, or release of any Regulated Products is prohibited by applicable Law. In the past three (3) years, Seller has complied with all applicable Laws, and completed all required undertakings (including obtaining any necessary export authorization or other governmental approval), prior to exporting, reexporting, or releasing any Regulated Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.22**Brokers.** Except as set forth in <u>Section 4.22</u> of the Disclosure Schedules, neither Seller nor any of its Affiliates has employed, nor are any of them subject to any valid claim of liability or obligation to, any broker, finder, consultant or other intermediary in connection with the transactions contemplated by this Agreement who are entitled to a fee or commission in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.23**Disclaimer of Warranties.** Except for the representations and warranties contained in this <u>Article 4</u> (including the related portions of the Disclosure Schedules), neither Seller nor any other Person on behalf of Seller has made or makes any express or implied representation or warranty, either written or oral, including any representation or warranty as to (a) the accuracy or completeness of any information regarding the Business furnished or made available to Buyer and its representatives, (b) any information, documents or material made available to Buyer in an internet data room, in a management presentation or in any other form in expectation of the transactions contemplated hereby, or (c) as to the future revenue, profitability or success of the Business.

#### ARTICLE 5 <br> REPRESENTATIONS AND WARRANTIES OF BUYER
Buyer represents and warrants to Seller as follows as of the date of this Agreement:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1**Organization.** Buyer is a limited liability company validly existing and in good standing under the Laws of its state of organization and has the requisite entity power and authority to own, operate or lease its properties, and carry on its business as now conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2**Authority and Enforceability.** Buyer has the requisite power and authority to execute and deliver the Buyer Delivered Documents and to consummate the transactions contemplated by the Buyer Delivered Documents and otherwise comply with and perform Buyer's obligations under the Buyer Delivered Documents. The execution and delivery by Buyer of the Buyer Delivered Documents and the consummation by Buyer of the transactions contemplated on its part thereby have been duly authorized by its manager in accordance with the terms of its Governing Documents. No other action on the part of Buyer is necessary to authorize the execution and delivery of the Buyer Delivered Documents by Buyer or the consummation by Buyer of the transactions contemplated by this Agreement or the other Buyer Delivered Documents. The Buyer Delivered Documents will, when executed and delivered by Buyer, assuming the due authorization, execution and delivery by the other parties hereto and thereto, constitute Buyer's valid and binding obligations enforceable against Buyer in accordance with their terms, except (i) as such enforcement may be limited by bankruptcy, reorganization, insolvency or other Laws of general application relating to the enforcement of creditors' rights generally (including statutory or other Laws regarding fraudulent transfers), and (ii) as to the availability of specific performance or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3**No Violation of Laws; Consents.** The execution and delivery by Buyer of each Buyer Delivered Document, the consummation of the transactions contemplated by the Buyer Delivered Documents, and the compliance with or fulfillment of the respective terms, conditions or provisions of the Buyer Delivered Documents do not and will not (with or without notice or lapse of time, or both):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1contravene or result in a violation of any provision of the Governing Documents of Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.2conflict with in any material respect, materially violate any provision of, result in a material breach of, or give rise to a right of termination, cancellation or acceleration of any material obligation or to a loss of a material benefit under, or to increased, additional, accelerated or guaranteed rights or entitlements of any Person under any material Contract of Buyer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.3result in a violation of any Law to which Buyer or any of Buyer's assets is subject, or otherwise require the consent, approval, authorization of, registration or filing with, or require any notification to, any Person, including any Governmental Body, in each case (i) that has not been obtained prior to the Closing and (ii) other than as would be immaterial to the Buyer's ability to consummate the transactions contemplated by the Buyer Delivered Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4**No Pending Litigation or Proceedings.** No Action is pending or, to the knowledge of Buyer, threatened against Buyer that challenges, or if adversely determined, would reasonably be expected to prevent, delay, make illegal, impose limitations or conditions on, or otherwise materially interfere with, the transactions contemplated by this Agreement. As of the date hereof, there is no outstanding judgment, decree or order of any Governmental Body against or affecting Buyer in connection with the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5**Brokers.** Neither Buyer nor any of its Affiliates has employed, nor is any of them subject to any valid claim of liability or obligation to, any broker, finder, consultant or other intermediary in connection with the transactions contemplated by this Agreement who are entitled to a fee or commission in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6**Buyer Acknowledgement.** BUYER ACKNOWLEDGES THAT THE REPRESENTATIONS AND WARRANTIES BY SELLER CONTAINED IN THIS AGREEMENT CONSTITUTE THE SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES OF SELLER TO BUYER IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT BUYER HAS NOT RELIED ON ANY REPRESENTATION, WARRANTY OR OTHER STATEMENT BY ANY PERSON ON BEHALF OF SELLER (OTHER THAN THOSE SET FORTH IN <u>ARTICLE 4</u>) AND THAT ALL OTHER REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE EXPRESSED OR IMPLIED ARE SPECIFICALLY DISCLAIMED BY SELLER.

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#### ARTICLE 6 <br> OTHER AGREEMENTS
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1**Tax Matters.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1***Tax Liability***. Seller (and its Affiliates) will be liable for all Taxes imposed on or with respect to the Purchased Assets or the Business for the Pre-Closing Period, and, as between Seller (and its Affiliates) on the one hand and Buyer on the other hand, Buyer will be liable for all Taxes imposed on or with respect to the Purchased Assets or the Business for the Post-Closing Period. For all purposes of this Agreement, the amount of any ad valorem, real or personal property Taxes or other similar periodic Taxes not based on income or receipts ("**Periodic Non-Income Taxes**") allocable to the portion of a Straddle Period ending on the Closing Date shall be deemed to be the amount of such Periodic Non-Income Taxes for the entire Straddle Period multiplied by a fraction, the numerator of which is the number of calendar days in the portion of the Straddle Period ending on and including the Closing Date and the denominator of which is the number of calendar days in the entire relevant Straddle Period. To the extent the actual amount of Periodic Non-Income Taxes that are assessed on, or in respect of, the Purchased Assets and attributable to a Straddle Period is not determinable at Closing, Buyer and Seller shall utilize the most recent information available in estimating the amount of Periodic Non-Income Taxes for which Seller is responsible pursuant to this <u>Section 6.1.1</u> at Closing. Upon determination of the actual amount of Periodic Non-Income Taxes that are assessed on, or in respect of, the Purchased Assets and attributable to a Straddle Period, (A) Seller shall pay to Buyer within fifteen (15) Business Days an amount equal to the excess of the actual amount of Periodic Non-Income Taxes attributable to the portion of any Straddle Period up to and including the Closing Date over the amount of such Taxes as calculated at Closing and (B) Buyer shall pay to Seller within fifteen (15) Business Days an amount equal to the excess of the amount of Periodic Non-Income Taxes attributable to the portion of any Straddle Period up to and including the Closing Date as calculated at Closing over the actual amount of such Taxes attributable to the portion of any Straddle Period up to and including the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2***Assistance and Cooperation***. After the Closing Date, Seller and Buyer shall provide each other with such assistance as may be reasonably requested in connection with the preparation of any Tax Return, any audit or other examination by any taxing authority, or any Action relating to Taxes imposed on or with respect to the Purchased Assets or the Business. Such cooperation shall include the retention and (upon any other Party's request) the provision of records and information that are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. The Party requesting assistance hereunder shall reimburse the other for reasonable out-of-pocket expenses incurred in providing such requested assistance. In addition, the Parties agree to (i) retain all books and records with respect Tax matters relating to the Business and the Purchased Assets relating to any taxable period beginning on or before the Closing Date until the expiration of the statute of limitations (including any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority, and (ii) give the other Party reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the other Party so requests, Seller on the one hand, or Buyer on the other hand, as the case may be, shall allow the other Party to take possession of such books and records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3***Transfer Taxes***. All federal, state, local, foreign and other transfer, documentary, sales, use, excise, stamp, registration, filing, bulk sales, recording, valued-added and other similar Taxes and fees (including any penalties and interest thereon) (each a, "**Transfer Tax**") applicable to, imposed upon or arising out of the transfer of the Purchased Assets, or assumption of the Assumed Liabilities, pursuant to this Agreement or any other transaction contemplated by this Agreement, if any, shall be borne equally by Buyer and Seller and will be timely paid when due to the appropriate Tax authority by the Person having the obligation to pay such Transfer Tax under applicable Law. Any Tax Returns or other document that must be filed in connection with Transfer Taxes will be prepared with the cooperation from Seller and Buyer, and each Party will use its reasonable best efforts to provide such Tax Returns to the other party at least five (5) Business Days prior to the date such Tax Returns are due to be filed. Buyer and Seller will reasonably cooperate in the timely completion and filing of all such Tax Returns. Notwithstanding anything to the contrary contained in this Agreement, "Transfer Taxes" shall not include any income Taxes or any other Taxes required to be deducted and withheld with respect to payments made by Buyer to Seller (under the Code or Treasury Regulations thereunder or any applicable provision of state, local or non-U.S. Law) in connection with the transactions contemplated by this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.4***Purchase Price Allocation***. The Purchase Price (including any Assumed Liabilities and any other items properly treated as consideration for the Purchased Assets for Tax purposes) shall be allocated among the Purchased Assets in accordance with the methodology set forth in <u>Section 6.1.4</u> of the Disclosure Schedules (the "**Allocation Methodology**"). Within sixty (60) days after the final determination of the Closing Date Working Capital Amount and any Post-Closing Adjustment Amount under <u>Section 2.7</u>, Buyer will deliver to Seller a schedule allocating the Purchase Price (including any Assumed Liabilities and any other items properly treated as consideration for the Purchased Assets for Tax purposes) among the Purchased Assets for all purposes (the "**Allocation Schedule**"). The Allocation Schedule shall be prepared in accordance with Section 1060 of the Code and the Allocation Methodology. The Allocation Schedule shall be deemed final unless Seller notifies Buyer in writing that Seller objects to one or more items reflected in the Allocation Schedule within thirty (30) days after delivery of the Allocation Schedule to Seller. In the event of any such objection, Seller and Buyer shall negotiate in good faith to resolve such dispute (any such resolution shall be final and binding on the parties); <u>provided</u>, <u>however</u>, that if Seller and Buyer are unable to resolve any dispute with respect to the Allocation Schedule within forty-five (45) days after the delivery of the Allocation Schedule to Seller, such dispute shall be resolved by the Independent Accountant in accordance with the provisions set forth in <u>Section</u> <u>2.7.2</u> *mutatis mutandis* (and any such determination shall be final and binding on the parties absent manifest error or fraud). If the Purchase Price is adjusted pursuant to this Agreement, Seller shall revise the Allocation Schedule as necessary to reflect adjustments to the Purchase Price, which Buyer shall deliver to Seller within thirty (30) days following the date of such adjustment, and which shall be subject to Seller's review and comment and subject to the dispute resolution mechanism set forth in the immediately preceding sentence. The Allocation Schedule, as finalized pursuant to this <u>Section 6.1.4</u> shall be binding upon the parties hereto and their respective Affiliates. Seller (or its Affiliates) and Buyer agree to file all Tax Returns (including their respective IRS Forms 8594, if applicable) in accordance with the Allocation Schedule, as finalized pursuant to this <u>Section 6.1.4</u>, and to not take any action inconsistent with the Allocation Schedule, as finalized pursuant to this <u>Section 6.1.4</u>, unless otherwise required by a "determination" within the meaning of Section 1313 of the Code. If any Governmental Body disputes the Allocation Schedule (or any revision thereto), the party hereto receiving notice of the dispute shall promptly notify the other party hereto of such dispute, and the parties hereto shall cooperate in good faith in responding to such dispute in order to preserve the effectiveness of the Allocation Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2**Employees and Employee Benefit Plans.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1Upon the Closing, Seller and its Affiliates will terminate the employment of all Transferred Employees (as defined below) with Seller or the applicable Affiliate. Buyer shall determine in its sole discretion which Business Employees will be given offers of employment. Seller shall, upon request, use commercially reasonable efforts to assist Buyer in delivering the applicable offers to such Business Employees. Employment or engagement for such employees or consultants by Buyer shall begin on the first Business Day following the Closing Date, subject to the successful completion of Buyer's typical employment authorization verification process (e.g., completion of Form I-9 and Buyer's typical background checks). Each Business Employee who is given an offer of employment or engagement and who accepts an offer of employment or engagement from Buyer pursuant to this Section is referred to herein as a "**Transferred Employee**". No later than forty-eight (48) hours prior to the Closing Date, Seller shall deliver to Buyer all information reasonably requested by Buyer to onboard the Transferred Employees (the "**Transferred Employee Information**") in the format supplied by Buyer to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2Buyer will be responsible for any action after Closing with respect to the Transferred Employees that results in a "mass layoff" or "plant closing" under the Workers Adjustment and Retraining Notification Act (the "**WARN Act**"), exclusive of any "employment losses," as defined under the WARN Act, effected by Seller on or before the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.3Seller shall provide Buyer with such information, cooperation and assistance, on a timely basis, as Buyer shall reasonably request to enable Buyer to implement the employment and related actions contemplated by this <u>Section 6.2</u>. Seller shall be solely responsible for providing continuation coverage under COBRA, or similar federal or state statute, if applicable, with respect to those individuals who are M&A qualified beneficiaries (as defined in Treasury Regulations Section 54.4980B-9, Q&A-4(a)) with respect to the transactions contemplated by this Agreement. Sellers are hereby assigned the costs of COBRA consistent with Treasury Regulations Section 54-4980B-9, Q/A-7.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.4This <u>Section 6.2</u> shall be binding upon and inure solely to the benefit of each of the Parties, and nothing in this <u>Section 6.2</u>, express or implied, shall confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this <u>Section 6.2</u>. Nothing contained herein, express or implied, shall be construed to establish, amend or modify any benefit plan, program, agreement or arrangement. The Parties acknowledge and agree that the terms set forth in this <u>Section 6.2</u> shall not create any right in any Business Employee or any other Person to any continued employment with Seller, Buyer or any of their respective Affiliates or compensation or benefits of any nature or kind whatsoever. Nothing in this Agreement shall be deemed to confer upon any Person (nor any beneficiary thereof) any rights under or with respect to any plan, program or arrangement described in or contemplated by this Agreement, and each Person (and any beneficiary thereof) shall be entitled to look only to the express terms of any such plan, program or arrangement for his or her rights thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3**Confidentiality; No Public Announcement** **.** Seller and its Affiliates, on the one hand, and Buyer and its Affiliates, on the other hand, each shall (a) consult with each other before issuing any press release or otherwise making any public statement with respect to the transactions contemplated by this Agreement, (b) provide to the other Party for review a copy of any such press release or public statement and (c) not issue any such press release or make any such public statement prior to such consultation and review and the receipt of the prior consent of the other Party to this Agreement (which consent will not be unreasonably withheld, conditioned or delayed), unless required by applicable Law or regulations of any applicable stock exchange, in which case, the Party required to issue the press release or make the public statement shall, prior to issuing such press release or making such public statement, use its commercially reasonable efforts to allow the other Party reasonable time to comment on such release or statement to the extent practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4**Expenses.** Except as otherwise specifically provided in this Agreement, each Party will pay all costs and expenses incident to its negotiation and preparation of this Agreement and the other agreements, instruments and documents to be delivered in connection with this Agreement and to its performance and compliance with all the agreements and conditions contained in this Agreement and such other agreements, instruments and documents on its part to be performed or complied with, including the fees, expenses and disbursements of its counsel, investment bankers and independent public accountants**.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5**Access to Books and Records.** After the Closing Date, and until the seventh (7th) anniversary of the Closing Date, each Party will retain and permit the other Party to have reasonable access to the books and records relating to the Business, the Purchased Assets, or the Assumed Liabilities in its possession and pertaining to the Pre-Closing Period and to make copies of them upon the following conditions: (a) the requesting Party providing notice to the other which sets forth a valid business, legal or Tax reason for the request for access and (b) the access being at such times and on such other reasonable conditions appropriate to avoid any material interference with the other Party's business operations. However, neither Buyer nor Seller shall be obligated to provide the other Party with access to any books or records pursuant to this <u>Section 6.5</u> where such access would (i) violate any Law or (ii) result in the loss or waiver of any attorney-client privilege or similar protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6**Corporate Names.** Buyer acknowledges that, other than with respect to the registered trademarks listed on <u>Section 6.6</u> of the Disclosure Schedules and the names, marks, trade names and trademarks included in the Purchased Assets, from and after the Closing, Seller and its Affiliates shall have and retain the absolute and exclusive proprietary right to all of Seller's and such Affiliates' respective names, marks, trade names, trademarks, service marks, and domain names (collectively, the "**Tabula Rasa Marks**") including all names, marks, trade names, trademarks and domain names incorporating "Tabula Rasa HealthCare", "Tabula Rasa," or "TRHC" by itself or in combination with any other mark and that none of the rights thereto or goodwill represented thereby or pertaining thereto are being transferred hereby or in connection herewith. Following the Closing Date, Buyer will not, nor will it permit its Affiliates to, use any Tabula Rasa Mark in or on any of its or their properties, literature, sales materials or products or otherwise in connection with the sale of any products or services; <u>provided</u>, <u>however</u>, that (a) Buyer and its Affiliates will be permitted to use and reference the Tabula Rasa Marks solely in connection with transitioning the Business from Seller to Buyer for a period of not more than two (2) weeks following the Closing Date and (b) Buyer and its Affiliates will have six (6) months to remove any Tabula Rasa Marks that are embedded in any of the products of the Business. Effective as of the Closing Date, any license agreement pursuant to which Seller or any Affiliate of Seller has granted to the Business the right to use trademarks, trade names, service marks, domain names or logos shall be cancelled. Seller and its Affiliates hereby agree to discontinue the use of the registered trademarks listed on

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<u>Section 6.6</u> of the Disclosure Schedules and the names, marks, trade names and trademarks included in the Purchased Assets or otherwise primarily related to the Business as promptly as practicable following the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7**Shared Contracts.** Following the date hereof, unless Buyer and Seller mutually agree otherwise with respect to a Shared Contract, the parties shall use their commercially reasonable efforts to enter into or to grant, and to cause each third-party counterparty to any contract that directly benefits both the Excluded Assets and Business, as set forth on <u>Section 6.7</u> of the Disclosure Schedules (each a "**Shared Contract**"), to enter into or to grant, any new agreements, bifurcations or consents as are reasonably necessary to permit Buyer and its Affiliates (on behalf of the Business) and Seller and its Affiliates (with respect to the Excluded Assets), as applicable, to, on an independent basis following the Closing, derive substantially similar benefits, and to assume any obligations and economic burdens related to such benefits, as each such Person derives from such Shared Contract immediately prior to the Closing. Additionally, until such third-party agreement or consent is obtained, Buyer and Seller agree to cooperate reasonably to reach a mutually acceptable arrangement under which Buyer and its Affiliates would, where commercially reasonable and in compliance with applicable Law, obtain the appropriate benefits and assume the related obligations and bear the related economic burdens in respect of the portion of the Shared Contracts primarily related to the Business, including by means of subcontracting, sublicensing or subleasing arrangements, or enforcement by the party to such Shared Contract for the benefit (and at such party's own expense) of Buyer or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8**Bulk Sales Laws.** The Parties acknowledge that no waivers or clearances are being obtained under, and no other actions are being taken to comply with, state Laws, if any, providing for notices or Tax or similar clearances in connection with sales of assets; and, thus, notwithstanding anything to the contrary in this Agreement, no representation or warranty is made as to whether any Encumbrance arises in or with respect to the Purchased Assets by reason of the foregoing Laws; <u>provided</u>, <u>however</u>, that Seller will file within the required periods all Tax Returns required to be filed by Seller under applicable Law with respect to Taxes that could result in any such Encumbrances and to pay all Taxes of Seller for periods covered by such returns, all of which, in addition to any liabilities arising out of the failure of Seller to comply with the requirements and provisions of any such Laws of any jurisdiction, are Excluded Liabilities. The foregoing acknowledgments are not an agreement, acknowledgment or admission that the asset transfers contemplated by this Agreement are transfers or sales subject to any of the foregoing Laws. Nothing in this <u>Section 6.8</u> is intended to change the allocation of responsibility for Pre-Closing Period Taxes and Post-Closing Period Taxes as set forth in <u>Section 6.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9**Noncompetition; Nonsolicitation; Confidentiality.** Seller acknowledges that in order to assure Buyer that Buyer will retain the value of the Business as a "going concern," it is necessary and reasonable that Seller agrees not to utilize its knowledge of the Business and its relationships with other Persons to compete with the Business. Therefore, Seller agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9.1For a period of twelve (12) months from and after the Closing Date (the "**Restricted Period**"), Seller will not engage, directly or indirectly through any Person, in any business that competes with the Business in the United States; <u>provided</u>, that nothing contained in this <u>Section 6.9.1</u> shall preclude any such Person from holding any investment in a company not exceeding 5% in total of any class of security dealt with on a recognized stock exchange; <u>provided</u>, <u>further</u>, that Seller may engage in the specific activities listed on <u>Section 6.9.1</u> of the Disclosure Schedules without violating this <u>Section 6.9.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9.2During the Restricted Period, Seller will not, directly or indirectly through any Person: (i) intentionally interfere with, solicit or endeavor to entice away from Buyer or the Business the business of any Person who is a customer or client of the Business, or was solicited by Seller during the twelve (12)-month period prior to the Closing Date, for the purpose of offering or providing to that Person products or services which are the same as or competitive with the Business Products; or (ii) supply any product or provide any service which is the same as or similar to those which the Business provides to or for any person who was a customer or client of the Business or who was solicited by the Business during the twelve (12)-month period prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9.3During the Restricted Period, Seller agrees that it will not, directly or indirectly through any Person, solicit for employment any employee of the Business or cause or induce any such employee to leave such employment; <u>provided</u>, however, that general solicitations by Seller through advertisements in newspapers or other media of general circulation advertising employment opportunities, do not constitute a violation of this <u>Section</u> 

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<u>6.9.3</u> to the extent that such advertisements and resulting employment are not aimed specifically at any employees of the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9.4Seller agrees not to, and to cause its respective Affiliates not to, except in furtherance of the business of Buyer or in preparation of any Tax Return or financial statements, disclose or use at any time any Confidential Information. Seller further agrees to take all commercially reasonable and appropriate steps (and to cause each of its Affiliates to take all commercially reasonable and appropriate steps) to safeguard the Confidential Information and to protect it against disclosure, misuse, espionage, loss and theft. In the event Seller or any of its Affiliates is required by Law to disclose any Confidential Information, Seller will (to the extent legally permissible) promptly notify Buyer in writing (email being deemed sufficient) of such requirement, reasonably cooperate with Buyer (at Buyer's expense) to preserve the confidentiality of such information consistent with any applicable Law, and, in any event, only disclose such Confidential Information as is actually required by law to be disclosed. As used herein "***Confidential Information***" means any information of or concerning the Purchased Assets, the Business, this Agreement, the Ancillary Agreements, or the transactions contemplated hereby or thereby that is confidential or propriety by nature; <u>provided</u>, that Confidential Information will not include: (a) information that at the time of disclosure is generally available to the public or is otherwise available to the receiving party other than on a confidential basis; (b) information that, after disclosure, becomes generally available to the public by publication or otherwise through no fault of the receiving party; or (c) information disclosed to the receiving party by a third party not under any known obligation of confidentiality to the disclosing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9.5If a court of competent jurisdiction determines that the character, duration or geographical scope of the provisions of this <u>Section 6.9</u> are unreasonable, it is the intention and the agreement of the Parties that these provisions shall be construed by the court in such a manner as to impose only those restrictions that are reasonable in light of the circumstances and as are necessary to assure to Buyer the benefits of this Agreement. If, in any judicial proceeding, a court shall refuse to enforce all of the separate covenants of this <u>Section 6.9</u> because taken together they are more extensive than necessary to assure to Buyer the intended benefits of this Agreement, it is expressly understood and agreed by the Parties that the provisions hereof that, if eliminated, would permit the remaining separate provisions to be enforced in such proceeding, shall be deemed eliminated, for the purposes of such proceeding, from this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9.6Seller acknowledges that each of the covenants set forth in this <u>Section 6.9</u> are an essential element of this Agreement and that, but for the agreement of Seller to comply with these covenants, Buyer would not have entered into this Agreement. The Parties agree that the covenants set forth in this <u>Section 6.9</u> are reasonable, necessary and proper. Seller agrees and acknowledges that remedies at law for any breach of their obligations under this <u>Section 6.9</u> are inadequate and that, in addition thereto, in the event of any such breach, Buyer will be entitled to seek and obtain equitable relief, including temporary, preliminary or permanent injunctive relief and specific performance to compel Seller's and its Affiliates' compliance with, and enjoin Seller and its Affiliates from continuing or commencing any activity which would violate any of, the covenants set forth in this <u>Section 6.9</u>, without the necessity of posting bond or any other security. If a Party breaches any covenant set forth in this <u>Section 6.9</u>, the duration of any covenant so violated will automatically be tolled with respect to such Party from the date of the first breach until the date judicial relief providing effective remedy for such breach or breaches is obtained by Buyer, or until Buyer states in writing that it will seek no judicial relief for such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10**Permits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10.1Seller and Buyer acknowledge that the Permits may not be transferred to Buyer prior to the Closing Date, and Seller agrees, subject to and in accordance with the terms and conditions of the Transition Services Agreement, to remain the licensee under each such Permit until such time as Buyer has received all Permits (or other confirmation acceptable to Seller and Buyer that Buyer is duly licensed to operate the Business) necessary to operate the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10.2As soon as practicable, but in no event later than thirty (30) days following the Effective Date, and subject to Seller having provided such documents and information as reasonably requested by Buyer in connection with same, Buyer shall submit or cause to be submitted filings, notifications, applications, and/or submissions with the applicable Governmental Bodies to initiate obtaining the Permits and, thereafter, will use good

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faith commercially reasonable efforts to obtain the Permits as soon as reasonably practicable. For its part, prior to the date that is thirty (30) days following the Effective Date (and in any event using commercially reasonable efforts to take such action contemporaneous with Buyer's filings, notifications, applications and/or submissions necessary to obtain the Permits), Seller shall submit applicable change of ownership notifications to the applicable Governmental Bodies and any additional information as required by applicable Law in connection with the change of ownership and any other requirements with respect to the Permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10.3Buyer and Seller shall each cooperate with, and do all things reasonably practicable to assist, one another: (i) in the prompt preparation and filing of all required, proper or advisable notifications and/or filings to be made in connection with the Permits within the timeframe set forth in <u>Section 6.10.2</u>, hereof, and the parties shall cooperate with, and do all things reasonably practicable to assist each other in connection with the making of all such notifications and/or filings; (ii) in determining whether action by or in respect of, or filing with, any Governmental Body is required, proper or advisable; and (iii) in seeking to timely obtain all of the Permits or to make any such notifications and/or filings. The parties shall keep each other reasonably apprised of the status of any communications with, and any inquiries or requests for additional information from any applicable Governmental Body with respect to any Permits and related audits, inspections, reviews or investigations, and shall comply reasonably and promptly with any such inquiry or request and shall reasonably and promptly provide any supplemental information requested in connection with the notifications and/or filings made hereunder pursuant to any other applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10.4Buyer shall bear all customary fees and charges imposed by the applicable Governmental Body in order to obtain the Permits. In no event shall Buyer be required to institute any litigation or other adversarial proceeding in order to obtain such Permits.

#### ARTICLE 7 <br> SURVIVAL; INDEMNIFICATION
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1**Survival of Representations and Warranties and Covenants**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1<u>General Survival</u>. The representations and warranties made by Seller and Buyer in this Agreement shall survive the Closing until the date that is eighteen (18) months after the Closing Date (the "**General Survival Date**"). Notwithstanding the foregoing, (i) the Seller Fundamental Representations, the Buyer Fundamental Representations, and any claim in respect of fraud, intentional misrepresentation or willful breach, shall survive until sixty (60) days after the expiration of any applicable statute of limitations (including any extensions or tolling thereof) and (ii) the Seller Special Representations will survive until the date that is three (3) years after the Closing Date. The applicable period of survival set forth in <u>Section 7.1</u> is referred to herein as the "**Survival Period**". If any Buyer Indemnified Party or Seller Indemnified Party properly asserts and delivers to the Seller on the one hand, or Buyer, on the other hand (in either case, the "**Indemnifying Party**") a Notice of Claim pursuant to <u>Section 7.5</u> prior to the expiration of the Survival Period of the representation or warranty that is the basis for such claim, then such representation or warranty will survive until such time as such claim is fully and finally resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2<u>Survival of Covenants</u>. All covenants and agreements of the parties hereto contained herein shall survive the Closing until fully performed or complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2**Indemnification by Seller.** From and after the Closing, Seller shall indemnify and defend the Buyer Indemnified Parties against, and shall hold them harmless from and reimburse them for, any and all Losses resulting from, arising out of or otherwise related to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.1any inaccuracy in or breach of any representation or warranty made by Seller in this Agreement or any Seller Delivered Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.2any breach of, non-compliance with, or any non-performance of any covenant of Seller contained in this Agreement or any Seller Delivered Document which by its terms is to be performed (in whole or in part) after the Closing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.3any Seller Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.4any Excluded Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.5any Excluded Liabilities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.6any matter set forth on <u>Section 7.2.6</u> of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3**Indemnification by Buyer.** From and after the Closing, Buyer shall indemnify and defend the Seller Indemnified Parties against, and shall hold them harmless from and reimburse them for, any and all Losses resulting from or arising out of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3.1any inaccuracy in or breach of any representation or warranty made by Buyer in this Agreement or any Buyer Delivered Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3.2any breach of, non-compliance with, or non-performance of any covenant of Buyer contained in this Agreement or any Buyer Delivered Document which by its terms is to be performed (in whole or in part) after the Closing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3.3any Assumed Liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4**Certain Limitations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.1The Indemnifying Party shall not be liable to the Indemnified Party for indemnification under <u>Section 7.2.1</u> or <u>Section 7.3.1</u>, as the case may be, until the aggregate amount of all Losses in respect of indemnification under <u>Section 7.2.1</u> or <u>Section 7.3.1</u> (other than for any breach of a Seller Fundamental Representation or a Buyer Fundamental Representation, respectively, or any claim in respect of fraud, intentional misrepresentation or willful breach) exceeds one hundred thousand dollars ($100,000) (including for breaches of the Seller Special Representations) (the "**Deductible**"), in which event the Indemnifying Party shall only be required to pay or be liable for Losses in excess of the Deductible. The maximum aggregate liability of an Indemnifying Party under <u>Section 7.2.1</u> for any breach of a Seller Special Representation will be limited to the Special Representation Basket. Other than for (A) any breach of a Seller Fundamental Representation or a Seller Special Representation, or a Buyer Fundamental Representation, respectively, or (B) any claim in respect of fraud, intentional misrepresentation or willful breach, the maximum aggregate liability of an Indemnifying Party under <u>Section 7.2.1</u> or <u>Section 7.3.1</u>, as the case may be, will be limited to (i) the Buyer Indemnification Basket, or (ii) the Seller Indemnification Basket, respectively. For clarity, any breach by Buyer (or the Buyer Guarantor) for payment of any amounts due in connection with the Earnout Payment or the Seller Note will not be subject to the Deductible or any limitations set forth in this <u>Section 7.4.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.2Notwithstanding anything to the contrary contained in this Agreement, the maximum amount of liability that Seller will have to Buyer and the Buyer Indemnified Parties for any Losses arising pursuant to or under this Agreement will not exceed the Purchase Price, except in the case of fraud, intentional misrepresentation or willful breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.3Notwithstanding anything to the contrary herein, an Indemnifying Party shall not be liable for any Losses pursuant to this Agreement to the extent that the Loss has been previously included in the calculation of the Closing Date Payment Amount or the Post-Closing Adjustment Amount, as finally determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.4Payments by an Indemnifying Party pursuant to this Agreement in respect of any Loss shall be limited to the amount of any liability or damage that remains after deducting therefrom any insurance proceeds and any indemnity, contribution or other similar payment actually received by the Indemnified Party in respect of any such claim (less reasonable expenses incurred by such Indemnified Party in procuring such recovery, including the costs, if any, resulting from premium adjustments with respect to such insurance policies). The Indemnified Party shall use commercially reasonable efforts to recover amounts available under any applicable insurance policies or indemnity, contribution or other similar agreements for any Losses. In the event any such

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amounts are received by an Indemnified Party after payment of a Loss hereunder by an Indemnifying Party for the same Loss, such Indemnified Party shall promptly repay the Indemnifying Party, up to the amount so received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.5No Indemnifying Party shall be liable to any Indemnified Party for any punitive or special damages relating to a breach or alleged breach of this Agreement, except to the extent awarded in connection with a Third-Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.6Each Indemnified Party shall take, and shall cause its Affiliates to take, all reasonable steps to mitigate any Loss upon becoming aware of any event or circumstance that would be reasonably expected to, or does, give rise thereto, including incurring costs only to the minimum extent necessary to remedy the breach that gives rise to such Loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.7The representations and warranties made under this Agreement by Seller will not be affected or deemed waived by reason of any investigation made by or on behalf of Buyer (including by any of its Affiliates or Buyer's or its Affiliates' advisors, consultants, agents or representatives) or by reason of the fact that Buyer or any such Affiliates, advisors, consultants, agents or representatives knew or should have known that any such representation or warranty is or might be inaccurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.8For the purposes of this <u>Article 7</u>, all representations and warranties in <u>Article 4</u> will be deemed to have been made without giving effect to qualifications as to materiality or Material Adverse Effect contained in such representations and warranties when determining the amount of damages or losses resulting from any breach of such representations and warranties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5**Procedures** **.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.1***Notice of Claim; Dispute Procedures***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)If a Buyer Indemnified Party or a Seller Indemnified Party, as the case may be (an "**Indemnified Party**") (i) received notice of any Action by a third party (a "**Third Party Claim**") or (ii) sustains any Loss not involving a Third party Claim, in each case that such Indemnified Party reasonably believes may give rise to a claim for indemnification from an Indemnifying Party hereunder, such Indemnified Party may deliver a notice of claim (a "**Notice of Claim**") to the applicable Indemnifying Party. Each Notice of Claim shall: (i) state that such Indemnified Party reasonably believes that it is or may be entitled to indemnification, compensation or reimbursement under this <u>Article 7</u>; (ii) contain a brief description of the facts and circumstances supporting the Indemnified Party's claim and include copies of all material written evidence thereof; and (iii) contain a good faith, non-binding, preliminary estimate of the aggregate amount of the actual and potential Losses that the Indemnified Party believes have arisen and may arise as a result of such facts and circumstances if such Losses are ascertainable at the time the Indemnified Party delivers the Notice of Claim (the aggregate amount of such estimate, as it may be modified by such Indemnified Party in good faith from time to time, being referred to as the "**Claimed Amount**"); <u>provided</u>, that any delay in providing such Notice of Claim shall not relieve the Indemnifying Party of its indemnification obligations, except to the extent that it is actually prejudiced by such delay. The Indemnified Party shall allow the Indemnifying Party and its advisors to investigate the matter or circumstance alleged to give rise to the claim set forth in the Notice of Claim, and whether and to what extent any amount is payable in respect thereof, and the Indemnified Party shall reasonably assist the Indemnifying Party's investigation by giving such information and assistance as the Indemnifying Party or any of its advisors may reasonably request, except to the extent any attorney-client privilege would thereby be vitiated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)During the sixty (60)-day period commencing upon delivery by an Indemnified Party to the applicable Indemnifying Party of a Notice of Claim (the "**Claim Dispute Period**"), the applicable Indemnifying Party may deliver to the Indemnified Party who delivered the Notice of Claim a written response (the "**Response Notice**") in which the Indemnifying Party: (i) agrees that the full Claimed Amount is owed to the Indemnified Party; (ii) agrees that part, but not all, of the Claimed Amount (such agreed portion, the "**Agreed Amount**") is owed to the Indemnified Party; or (iii) indicates that no part of the Claimed Amount is owed to the Indemnified Party. If the Notice of Claim relates to a Third Party Claim, the Response Notice shall also specify whether or not the Indemnifying Party desires to assume control of the defense of

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such Third Party Claim subject to <u>Section 7.5.2(a)</u>. Any part of the Claimed Amount that is not agreed to be owed to the Indemnified Party pursuant to the Response Notice (or the entire Claimed Amount, if the Indemnifying Party asserts in the Response Notice that no part of the Claimed Amount is owed to the Indemnified Party) is referred to in this Agreement as the "**Contested Amount**" (it being understood that the Contested Amount shall be modified from time to time to reflect any good faith modifications by the Indemnified Party to the Claimed Amount).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If: (i) the Indemnifying Party delivers a Response Notice agreeing that the full Claimed Amount is owed to the Indemnified Party; or (ii) the Indemnifying Party does not deliver a Response Notice during the Claim Dispute Period, then, within three (3) Business Days following the receipt of such Response Notice by the Indemnified Party or within three (3) Business Days after the expiration of the Claim Dispute Period, as the case may be, the Indemnifying Party shall pay to the applicable Indemnified Party an amount in cash equal to the full Claimed Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)If the Indemnifying Party delivers a Response Notice during the Claim Dispute Period agreeing that less than the full Claimed Amount is owed to the Indemnified Party, then within three (3) Business Days following the receipt of such Response Notice, the Indemnifying Party shall pay to the applicable Indemnified Party an amount in cash equal to the Agreed Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)If the Indemnifying Party delivers a Response Notice during the Claim Dispute Period indicating that there is a Contested Amount, the Indemnifying Party and the Indemnified Party shall attempt in good faith to resolve the dispute related to the Contested Amount. If the Indemnified Party and the Indemnifying Party resolve such dispute, a settlement agreement stipulating the amount owed to the Indemnified Party (the "**Stipulated Amount**") shall be signed by the Indemnified Party and the Indemnifying Party. Within three (3) Business Days following the execution of such settlement agreement, the Indemnifying Party shall pay to the applicable Indemnified Party an amount in cash equal to the Stipulated Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.2***Defense of Third Party Claims***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)With respect to any Third Party Claim, subject to the rights of or duties to any insurer or other third Person having liability therefor, the Indemnifying Party shall be entitled to participate in and, subject to the terms herein, to assume the legal defense thereof at the Indemnifying Party's expense. Notwithstanding the foregoing, the Indemnifying Party will not be entitled to assume or continue the defense thereof if such Third Party Claim (i) relates to or arises in connection with any criminal action, indictment, allegation or investigation against the Indemnified Party, (ii) presents, under applicable standards of professional conduct, a conflict on any significant issue between the Indemnified Party and the Indemnifying Party, (iii) involves injunctive or equitable relief, or (iv) is likely to establish a precedent materially adverse to the Indemnified Party if settled or entry of judgment is consented to. If the Indemnifying Party provides notice to the Indemnified Party of its intent to assume the legal defense of a Third Party Claim in accordance with this <u>Section 7.5.2</u>, the Indemnifying Party may only assume the legal defense of such Third Party Claim if it first (i) confirms, in writing, its obligation to indemnify and hold the Indemnified Party harmless with respect to such Losses, (ii) to reasonably demonstrates that it has the financial resources necessary to defend the matter and fulfill its indemnity obligation, and (iii) covenants to and will defend the Third-Party Claim actively, diligently and in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In the event that the Indemnifying Party assumes the defense of any Third-Party Claim, it shall have the right, subject to <u>Section 7.5.3</u> below, to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to such Action in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such Action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the Indemnified Party unless (i) the payment of such counsel's fees and expenses shall have been specifically agreed upon in writing by the Indemnifying Party or (ii) the Indemnifying Party shall have failed to assume the defense of such Action. In any such case, the Indemnifying Party shall not, in connection with any one Action or separate but substantially similar or related Actions in the same jurisdiction arising out of

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the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for the Indemnified Party. After notice from the Indemnifying Party to the Indemnified Party of its election to assume the defense of an Action, the Indemnifying Party shall not be liable to the Indemnified Party under this <u>Section 7.5.2</u> for any attorneys' fees or other expenses subsequently incurred by the Indemnified Party in connection with the defense thereof. If the Indemnifying Party does not assume the defense of the Third Party Claim, does not comply with the foregoing provisions of this <u>Section 7.5.2</u>, or is not entitled to assume such defense, then the Indemnified Party will be entitled to assume and control such defense and to settle or agree to pay in full such Third Party Claim without the consent of the Indemnifying Party and without prejudice to the ability of the Indemnified Party to enforce its claim for indemnification against the Indemnifying Party hereunder; <u>provided</u>, <u>however</u>, the Indemnified Party will not, without the prior written consent of the Indemnifying Party (which consent shall not be unreasonably withheld, conditioned or delayed) settle or compromise or consent to the entry of any judgment with respect to any pending or threatened Action unless such settlement, compromise or consent results solely in the payment of money damages and includes an unconditional release of the Indemnified Party from all liability arising out of such pending or threatened Action. In all cases, the Parties hereto shall, and shall cause their Affiliates to, cooperate with each other in all reasonable respects in connection with the defense of any Third Party Claim, including making available records and employees relating thereto as may be reasonably requested, without expense to the requesting party, other than reimbursement of actual out-of-pocket expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.3***Settlement; Compromise***. An Indemnifying Party will not, without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed), settle or compromise or consent to the entry of any judgment with respect to any pending or threatened Action for which indemnification is sought hereunder unless such settlement, compromise or consent results solely in the payment by the Indemnifying Party of the full amount of money damages and includes an unconditional release of the Indemnified Party from all liability arising out of such pending or threatened Action; <u>provided</u>, that the Indemnifying Party will have made arrangements for the payment of all such damages in a manner reasonably satisfactory to the Indemnified Party. In all other events, the Indemnifying Party will not consent to the entry of judgment or enter into any settlement without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6**Set-Off Right.** Any amounts that become due to Buyer under this Agreement, or to any Buyer Indemnified Party pursuant to this <u>Article 7</u> (subject to the limitations set forth in this <u>Article 7</u>), shall first be satisfied by set-off against the amount due to Seller under the Seller Note, or if the principal amount of the Seller Note has been reduced to $0 pursuant to Buyer's set-off rights under this Agreement, against the Earnout Amount or any portion thereof, if earned pursuant to <u>Section 2.8</u>. This right to set off against the Seller Note and Earnout Amount (or any portion thereof) is not intended to limit Seller's indemnification obligations under <u>Article 7</u> for any amounts due under this <u>Article 7</u>, or to act as a cap on Seller's liability hereunder except as otherwise set forth herein. If any Buyer Indemnified Party properly asserts and delivers to Seller a Notice of Claim pursuant to <u>Section 7.5</u> prior to the expiration of the Survival Period of the representation or warranty that is the basis for such claim and prior to the Maturity Date of the Seller Note, then Buyer may withhold the amount of such claim from any amount then due and payable under the Seller Note until such time as such claim is fully and finally resolved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7**Sole Remedy; Recovery**. Subject to <u>Section 8.5</u>, and except in the case of fraud, intentional misrepresentation or willful breach, the Parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this <u>Article 7</u>. Nothing in this <u>Section 7.7</u> shall limit any Person's right to seek and obtain any specific performance, injunction or other equitable relief to which any Person shall be entitled pursuant to <u>Section 8.5</u>; <u>provided</u>, <u>however</u>, that no Party shall be entitled to rescission of this Agreement as a result of a breach of any other Party's representations, warranties, covenants or agreements, or for any other matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8**Adjustments to Purchase Price.** Buyer and Seller agree to treat any amounts payable after the Closing by Seller to Buyer (or by Buyer to Seller) pursuant to this Agreement (including, for the avoidance of doubt, any indemnification and other payments made pursuant to this <u>Article 7</u>) as an adjustment to the Purchase Price,

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unless a final "determination" (within the meaning of Section 1313(a) of the Code) by the appropriate Governmental Body causes any such payment not to be treated as an adjustment to the Purchase Price for Tax purposes.

#### ARTICLE 8 <br> MISCELLANEOUS
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1**Further Assurances.** Buyer, on the one hand, and Seller, on the other hand, shall at any time and from time to time on and after the Closing Date, upon request by the other Party or Parties, take or cause to be taken such actions and execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such instruments, documents, transfers and conveyances as may be reasonably necessary or proper to give effect to the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2**Notices.** All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed to have been duly given or made (a) three (3) Business Days after the date of mailing, if delivered by registered or certified mail, postage prepaid, return receipt requested; (b) upon delivery, if delivered personally; (c) upon delivery, if sent by prepaid courier, with a record of receipt; or (d) the next day after the date of dispatch, if sent by e-mail of a PDF document, to the Parties at the following addresses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)if to Buyer, to:

Symphony Clinic, LLC

c/o Cureatr Inc.

17 W. 20<sup>th</sup> Street, 3<sup>rd</sup> Floor

New York, NY 10011-3702

Attention: Richard Resnick, Chief Executive Officer

E-Mail: richardresnick@cureatr.com

with a copy, which will not constitute notice, to:

Wyrick Robbins Yates & Ponton LLP

4101 Lake Boone Trail, Suite 300

Raleigh, NC 27607

Attention: Amy Risseeuw; Allie Coggins

E-Mail: arisseeuw@wyrick.com; acoggins@wyrick.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)if to Seller, to:

Tabula Rasa HealthCare Group, Inc.

c/o Tabula Rasa HealthCare, Inc.<br>228 Strawbridge Drive<br>Moorestown, NJ 08057<br>Attention: Brian W. Adams, President and Interim CEO

E-mail: badams@trhc.com

with a required copy, which will not constitute notice, to:

O'Melveny & Myers LLP

610 Newport Center Drive, 17<sup>th</sup> Floor<br>Newport Beach, CA 92660

Attention: Mark Peterson

Email: mpeterson@omm.com

O'Melveny & Myers LLP

Times Square Tower

7 Times Square, 26<sup>th</sup> Floor

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New York, NY 10036

Attention: Viq Shariff

E-mail: vshariff@omm.com

A Party may change the address to which notice to it, or copies thereof, shall be addressed by giving notice thereof to the other Parties in conformity with the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3**Assignment.** This Agreement and all the rights and powers granted hereby shall bind and inure to the benefit of the Parties and their respective permitted successors and permitted assigns. This Agreement and the rights, interests and obligations hereunder may not be assigned by any Party without the written consent of the other Party, except that Buyer may assign its rights and delegate its obligations hereunder to its Affiliates so long as Buyer remains obligated to perform those obligations required to be performed by Buyer hereunder. Any attempted assignment in violation of this <u>Section 8.3</u> shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4**Governing Law; Venue.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.1***Governing Law****.* All matters relating to or arising out of this Agreement or the transactions contemplated by this Agreement (whether sounding in contract, tort or otherwise) will be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.2***Consent to Jurisdiction and Service of Process***. EACH PARTY HERETO CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN NEW CASTLE COUNTY IN THE STATE OF DELAWARE AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT MAY BE LITIGATED IN SUCH COURTS. EACH PARTY HERETO ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF SUCH COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF SUCH COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY AT THE ADDRESS SPECIFIED IN THIS AGREEMENT. NOTHING HEREIN SHALL IN ANY WAY BE DEEMED TO LIMIT THE ABILITY OF EITHER PARTY HERETO TO SERVE ANY SUCH LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.3The Parties agree that any judgment obtained in any Action referred to above may, in the discretion of such Party (or its permitted successors or assigns), be enforced in any jurisdiction, to the extent permitted by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.4***Waiver of Jury Trial***. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AND ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF ANY PARTY HERETO IN NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5**Specific Performance.** The Parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the Parties shall be entitled to specific performance, an injunction or injunctions, and other equitable remedies to prevent and restrain breaches or threatened breaches of this Agreement and to enforce specifically the performance of the terms and provisions of this Agreement, in addition to any other remedy to which they are entitled at law or in equity. The parties hereby knowingly and affirmatively waive, in any Action for specific performance, the defense of adequacy of a remedy at law and the necessity of demonstrating damages or posting any bond or other security in connection therewith. Each Party further agrees that neither the other Party nor any other Person shall be required to obtain, furnish or post any bond or similar

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instrument in connection with or as a condition to obtaining any remedy referred to in this <u>Section 8.5</u>, and each Party hereto irrevocably waives any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument. Each Party further agrees that the only permitted objection that it may raise in response to any action for equitable relief is that it contests the existence of a breach or threatened breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6**Amendment and Waiver.** To be effective, any amendment or waiver under this Agreement must be in writing and signed by the Party against whom enforcement of the same is sought. Neither the failure of any Party to exercise any right, power or remedy provided under this Agreement or to insist upon compliance by another Party with its obligations hereunder, nor any custom or practice of the Parties at variance with the terms hereof shall constitute a waiver by such Party or Parties of the right to exercise any such right, power or remedy or to demand such compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7**Entire Agreement; No Third Party Beneficiaries.** This Agreement, the Schedules and Exhibits attached to this Agreement (each of which are incorporated into this Agreement), the Ancillary Agreements and the documents and instruments and other agreements among the parties hereto referenced herein set forth all of the promises, covenants, agreements, conditions and undertakings between the Parties with respect to the subject matter hereof, and supersede all prior or contemporaneous agreements and understandings, negotiations, inducements or conditions relating thereto, express or implied, oral or written. This Agreement is not intended to confer upon any Person other than the Parties any rights or remedies hereunder, except for the provisions of <u>Article 7</u> to the extent they relate to Indemnified Parties not a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8**Severability.** If any term or other provision of this Agreement is held by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced under any rule of Law in any particular respect or under any particular circumstances, such term or provision shall nevertheless remain in full force and effect in all other respects and under all other circumstances, and all other terms, conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to Buyer or Seller. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9**Counterparts; Signatures.** This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall be deemed one and the same instrument. A signed copy of this Agreement (or a signature page hereto) delivered by e-mail, ".pdf" format, or other means of electronic transmission (including any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com) shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

[*Remainder of this page intentionally left blank.*]

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IN WITNESS WHEREOF, the Parties have executed this Asset Purchase Agreement as of the day and year first above written.

**SELLER**:**TABULA RASA HEALTHCARE GROUP, INC.**

By: <u>/s/ Brian W. Adams</u>

Name: Brian W. Adams<br>Title: President and Interim CEO

**BUYER:** **SYMPHONY CLINIC, LLC**

By: <u>/s/ Richard Resnick</u>

Name: Richard Resnick<br>Title: Chief Executive Officer

**BUYER GUARANTOR:** **CUREATR INC.**

By: <u>/s/ Richard Resnick</u>

Name: Richard Resnick<br>Title: Chief Executive Officer<u> </u>

[*Signature Page to Asset Purchase Agreement*]

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## Exhibit 21.1

**Exhibit 21.1**

**Tabula Rasa HealthCare, Inc. Subsidiaries**

The following are the Company's subsidiaries as of December 31, 2022 and the states or jurisdictions in which they are organized; provided, however, the names of particular subsidiaries have been omitted because, considered in the aggregate as a single subsidiary, they would not constitute, as of December 31, 2022, a "significant subsidiary" as that term is defined in Rule 1-02(w) of Regulation S-X under the Securities Exchange Act of 1934, as amended.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**NAME** | &nbsp;&nbsp;**JURISDICTION OF ORGANIZATION OR INCORPORATION** |
| &nbsp;&nbsp;Tabula Rasa HealthCare Group, Inc. | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;DM Acquisition Pty Ltd | &nbsp;&nbsp;Australia |
| &nbsp;&nbsp;DoseMe Holdings Pty Ltd | &nbsp;&nbsp;Australia |
| &nbsp;&nbsp;DoseMe Pty Ltd | &nbsp;&nbsp;Australia |
| &nbsp;&nbsp;TRHC TPA, LLC | &nbsp;&nbsp;Wisconsin |

---

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## Exhibit 23.1

#### Exhibit 23.1

#### Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the registration statements (Nos. 333-263059, 333-258566, 333-253570, 333-236821, 333-230046, 333-223658, 333-216674, and 333-214025) on Form S-8 of our report dated March 10, 2023, with respect to the consolidated financial statements of Tabula Rasa HealthCare, Inc.

/s/ KPMG LLP

Philadelphia, Pennsylvania

March 10, 2023

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER** 

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002** 

I, Brian W. Adams, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of Tabula Rasa HealthCare, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| 3<br>|  |
| Date: March 10, 2023 | /s/ BRIAN W. ADAMS |
|  | Brian W. Adams |
|  | Interim Chief Executive Officer |
|  | Principal Executive Officer |

---

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER** 

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Thomas J. Cancro, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of Tabula Rasa HealthCare, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| 3<br>|  |
| Date: March 10, 2023 | /s/ THOMAS J. CANCRO |
|  | Thomas J. Cancro |
|  | Chief Financial Officer |
|  | Principal Financial and Accounting Officer |

---

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER** 

**PURSUANT TO** 

**18 U.S.C. SECTION 1350,** 

**AS ADOPTED PURSUANT TO**

 **SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Tabula Rasa HealthCare, Inc. (the "Company") on Form 10-K for the fiscal year ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Brian W. Adams, Interim Chief Executive Officer of the Company, and I, Thomas J. Cancro, Chief Financial Officer of the Company, each hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: March 10, 2023 | By: | /s/ BRIAN W. ADAMS |
|  | Name: | Brian W. Adams |
|  | Title: | Interim Chief Executive Officer<br>(Principal Executive Officer) |

---

---

| | | |
|:---|:---|:---|
| Date: March 10, 2023 | By: | /s/ THOMAS J. CANCRO |
|  | Name: | Thomas J. Cancro |
|  | Title: | Chief Financial Officer<br>(Principal Financial and Accounting Officer) |

---

\* This certification accompanies the Form 10-K to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Tabula Rasa HealthCare, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-K), irrespective of any general incorporation language contained in such filing.

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