Document:

IT Services Agreement

 Exhibit 10.35 
 EXECUTION COPY 
 IT SERVICES AGREEMENT 
 By and Between 
 KINDRED HEALTHCARE OPERATING, INC. 
 and 
 PHARMERICA CORPORATION 

 Table of Contents 
  

					
	 	  	 	  	Page
	1.	  	Definitions	  	1
	2.	  	Term	  	8
	3.	  	Services Provided	  	8
	4.	  	Services Retained by Customer	  	9
	5.	  	Service Locations	  	9
	6.	  	Responsibility for Resources	  	9
	7.	  	Service Levels	  	17
	8.	  	Pricing	  	18
	9.	  	Payments to Service Provider	  	19
	10.	  	Relationship Management and Change Control Procedures	  	20
	11.	  	Data Ownership	  	21
	12.	  	Disaster Recovery	  	23
	13.	  	Transition	  	24
	14.	  	Force Majeure	  	24
	15.	  	Confidentiality/Data Security	  	24
	16.	  	Human Resources	  	26
	17.	  	Taxes	  	28
	18.	  	Governance	  	29
	19.	  	Audits	  	29
	20.	  	Dispute Resolution	  	31
	21.	  	Termination	  	32
	22.	  	Limitation of Liabilities	  	33
	23.	  	Exclusive Remedies	  	34
	24.	  	Indemnification	  	34
	25.	  	Representations and Warranties	  	36
	26.	  	Insurance and Risk of Loss	  	38
	27.	  	Miscellaneous	  	38

  

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 SCHEDULES 
  

					
	SCHEDULE A	 	-	    	Statement of Work
			
	SCHEDULE B	 	-	    	Operations Manual
			
	SCHEDULE C	 	-	    	Inventories
			
	SCHEDULE D	 	-	    	RESERVED
			
	SCHEDULE E	 	-	    	Service Locations
			
	SCHEDULE F	 	-	    	Service Levels
			
	SCHEDULE G	 	-	    	Allocated Services
			
	SCHEDULE H	 	-	    	Governance
			
	SCHEDULE I	 	-	    	Termination Obligations and Termination/Expiration Assistance
			
	SCHEDULE J	 	-	    	Affected Employees
			
	SCHEDULE K	 	-	    	Transition Plan
			
	SCHEDULE L	 		    	Project Executives
			
	SCHEDULE M	 		    	Business Associate Addendums
			
	SCHEDULE N	 		    	Technology Escrow Agreement

  

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 IT SERVICES AGREEMENT 
 This IT Services Agreement is entered into as of July 31, 2007 (the “Effective Date”) by and between Kindred Healthcare
Operating, Inc., a Delaware corporation (“Service Provider”), and PharMerica Corporation, a Delaware corporation (“Customer”) with reference to the following facts: 
 RECITALS 
 A. Service Provider,
through its wholly owned subsidiaries, owns and operates hospitals, nursing centers, institutional pharmacies and a contract rehabilitation services business across the United States. 
 B. Customer, AmerisourceBergen Corporation, a Delaware corporation (“ABC”), Kindred Healthcare, Inc., a Delaware corporation
(“Kindred”), PharMerica Long-Term Care, Inc. (formerly known as PharMerica, Inc.), a Delaware corporation (“PharMerica”), and certain other parties entered into a Master Transaction Agreement dated as
of October 25, 2006 (the “Master Transaction Agreement”), pursuant to which, as of the Effective Time (as defined in the Master Transaction Agreement), PharMerica and certain of its subsidiaries (“PharMerica
LTC”) and Kindred Pharmacy Services, Inc., a Delaware corporation, and certain of its subsidiaries (“KPS”) became wholly-owned subsidiaries of Customer, all as provided in the Master Transaction Agreement.

 C. Customer, through its wholly owned subsidiaries PharMerica LTC and KPS and their respective direct and indirect subsidiaries, owns,
operates or manages pharmacies on behalf of long term care facilities, hospitals and other third parties, and distributes pharmaceuticals and other supplies thereto (the “Pharmacy Business”). 
 D. Pursuant to the Master Transaction Agreement, Customer and Service Provider desire to enter into this Agreement to provide for an outsourcing
relationship wherein Service Provider will be the provider of certain information management services for Customer and manage and maintain certain components of Customer’s technology infrastructure, as set forth in this Agreement. 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and promises contained herein, and intending to be bound hereby, the
parties agree as follows: 
 AGREEMENT 
 1. Definitions 
 1.1. Certain Definitions. 
 (a) “ABC” shall have the meaning set forth in Recital B. 
 (b) “Account Data” shall mean all Customer Data which relates to Customer’s clients other than Kindred and its Affiliates.

  

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 (c) “Acquisition Services” shall have the meaning set forth in Section
5.2. 
 (d) “Affected KND Employees” shall have the meaning set forth in Section 16.1. 
 (e) “Affected PLTC Employees” shall have the meaning set forth in Section 16.1. 
 (f) “Agreement” shall mean this IT Services Agreement and all Schedules and Exhibits hereto, as amended in writing by mutual
agreement of the parties from time to time. 
 (g) “Affiliate” shall mean, with respect to any Person, any other
Person controlling, controlled by or under common control with such Person. 
 (h) “Allocated Costs” shall mean the
product of (i) the actual costs and expenses incurred by Service Provider in connection with the Allocated Services and (ii) the number of Authorized Users who are employed by or on behalf of Customer divided by the total number of
Authorized Users affiliated with Customer and Service Provider. 
 (i) “Allocated Services” shall mean those items
described in Schedule G. 
 (j) “Application Support Services” shall mean those services described on
Schedule A under Section IV Application Support Services. 
 (k) “Applications Software” or
“Applications” shall mean the Software that performs specific user related data processing and telecommunications tasks, and which is set forth on Schedule C as it may be updated from time to time upon the mutual
agreement of the parties. 
 (l) “Asserted Liabilities” shall have the meaning set forth in Section 24.3.

 (m) “Authorized Users” shall mean the individual end users who have been assigned a network log-in identification
to access a network supported by Service Provider. 
 (n) “Business Day” means a day, other than Saturday, Sunday or
any other day on which commercial banks in New York, New York are authorized or required by law or regulation to close or any other day on which Service Provider or Customer is scheduled to be closed. 
 (o) “Cause” shall have the meaning set forth in Section 16.1. 
 (p) “Change in Control Event” shall mean: (a) the consolidation or merger of a party with or into any Person in which such
party is not the surviving Person of such consolidation or merger; (b) the sale, transfer or other disposition of all or substantially all of the assets of a party; or (c) any change in the beneficial ownership of fifty-one percent
(51%) or more of the stock of the outstanding voting securities or other ownership interests of a party. 
  

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 (q) “Change Control Procedures” shall mean the controls employed to change the
scope of the Services, as described in Section 10.2 and the Operations Manual. 
 (r) “Claim” shall have
the meaning set forth in Section 24.3. 
 (s) “Closing” shall mean the closing of the transactions
contemplated by the Master Transaction Agreement. 
 (t) “Commercially Reasonable Efforts” shall mean taking such
steps and performing, in the case of Service Provider, in the same manner and quality as it provides services to itself, and, in the case of Customer, in a prudent and reasonable manner. 
 (u) “Competitor” shall mean any Person in the Pharmacy Business, and other Persons mutually agreed upon by Customer and Service
Provider from time to time but at all times, to the extent permitted in the Master Transaction Agreement, specifically excluding Kindred Healthcare, Inc. and its subsidiaries and successors. For avoidance of doubt, nothing in this Agreement shall be
interpreted to allow either party to create an Affiliate for the purpose of avoiding the protections afforded to the other party by any provision of this Agreement. 
 (v) “Confidential Information” shall have the meaning set forth in Section 15.1. 
 (w) “Contract Change Request” and “CCR” shall have the meaning set forth in Section 10.1. 
 (x) “Contract Support Services” shall mean those services described on Schedule A under Section V Contract Support Services. 
 (y) “Consideration” shall have the meaning set forth in Section 8.1. 
 (z) “Costs” shall mean the sum of the Direct Costs and the Allocated Costs but specifically excluding any Pass-Through Costs.

 (aa) “Customer” shall have the meaning set forth in the introductory paragraph of this Agreement. 
 (bb) “Customer Data” shall mean all information of Customer and Account Data, derived by or on behalf of Customer from such
information, including as stored in or processed through the Services Software or the Services Equipment, excluding all Service Provider pre-existing data, information derived from such pre-existing data and any other information owned by Service
Provider prior to or after the Effective Date. 
 (cc) “Customer Software” shall have the meaning set forth in
Section 6.1(a). 
 (dd) “Customer Works” shall have the meaning set forth in Section 6.1(f).

 (ee) “Damages” shall have the meaning set forth in Section 24.1. 
  

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 (ff) “Data Center” shall mean the data center(s) of Customer and Kindred.

 (gg) “Deliverables” shall have the meaning set forth in Section 6.1(f)(5). 
 (hh) “Derivative Work” shall have the meaning ascribed to it under the United States Copyright statute, 17 USC § 101.

 (ii) “Direct Costs” shall mean specifically identifiable costs incurred by Service Provider to provide any
Services under this Agreement, including, by way of example, the cost of all compensation and benefits incurred by the Service Provider with respect to (A) personnel working exclusively to provide the Services and (B) personnel working on
a non-exclusive basis to provide the Services, but only to the extent of the actual documented time spent by such non-exclusive personnel to provide the Services. 
 (jj) “Disaster Recovery” shall have the meaning set forth in Section 12.1. 
 (kk) “Disclosing Party” shall have the meaning set forth in Section 15.2. 
 (ll)
“Disposition Services” shall have the meaning set forth in Section 5.3 
 (mm)
“Dispute” shall have the meaning set forth in Section 20.1(a). 
 (nn) “Effective
Date” shall be the date set forth in the introductory paragraph of this Agreement. 
 (oo) “Employing
Party” shall have the meaning set forth in Section 16.2. 
 (pp) “Enhancement” means a major
modification or enhancement by the Service Provider or Customer, including any customization, addition, revision or improvement, which materially improves the performance of a product (including a Software product) or substantially improves or
enhances its utility, functionality or features. The term “Enhancement” does not include any Updates. 
 (qq)
“Equipment” shall mean (i) computer equipment, including personal computers and all computer and associated attachments, features, accessories, peripheral devices, and other equipment; and (ii) network equipment,
including PBXs, multiplexors, modems, hubs, bridges, internal routers and other network equipment. The term “Equipment” includes operating system software on such Equipment. 
 (rr) “Force Majeure Event” shall have the meaning set forth in Section 14.1. 
 (ss) “HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as amended. 
 (tt) “Indemnified Party” shall have the meaning set forth in Section 24.3. 
 (uu) “Indemnifying Party” shall have the meaning set forth in Section 24.3. 
  

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 (vv) “Infrastructure Services” shall mean those services described on
Schedule A under Section III Infrastructure Services. 
 (ww) “Initial Term” shall have the meaning set
forth in Section 2.1. 
 (xx) “Intellectual Property” shall mean any and all technology, technical
information, technical data, inventions, invention disclosures, discoveries, processes, formulae, algorithms, know-how, Software, designs, design elements, product features, product specifications, works of authorship, drawings, non-public materials
and any other technical subject matter related thereto. Intellectual Property also includes all intellectual property rights or similar proprietary rights related to the foregoing, in any jurisdiction, whether owned or held for use under license,
whether registered or unregistered, including (i) patent rights and utility models, (ii) copyrights and database rights, (iii) trademarks and trade dress and the goodwill associated therewith, (iv) trade secrets, (v) mask
works, and (vi) industrial design rights; in each case, including any registrations of, applications to register, and renewals and extensions of, any of the foregoing with or by any governmental authority in any jurisdiction. 
 (yy) “Kindred” or “KND” shall have the meaning set forth in Recital B. 
 (zz) “KPS” shall have the meaning set forth in Recital B. 
 (aaa) “Licensable” means, with respect to any specified Intellectual Property licensed by a party, the right of such party to
license or sublicense such Intellectual Property to the other party in the manner specified, without incurring any costs, obligations or liabilities to any other Person or violating any obligations to any other Person. 
 (bbb) “Master Transaction Agreement” shall have the meaning set forth in Recital B. 
 (ccc) “Monthly Service Fee” shall have the meaning set forth in Section 8.1. 
 (ddd) “Object Code” means computer programming code, substantially or entirely in binary form, which is intended to be directly
executable by a computer after suitable processing but without the intervening steps of compilation or assembly. 
 (eee)
“Operations Manual” shall have the meaning set forth in Section 10.1. 
 (fff) “Pass-Through
Costs” shall have the meaning set forth in Section 8.1. 
 (ggg) “Person” shall mean an
individual, corporation, partnership, limited liability company, association, trust or other entity or organization. 
 (hhh)
“Pharmacy Business” shall have the meaning set forth in Recital C. 
 (iii) “PharMerica”
shall have the meaning set forth in Recital B. 
 (jjj) “PharMerica LTC” or “PLTC” shall have
the meaning set forth in Recital B. 
  

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 (kkk) “Project Change Request” or “PCR” shall have the
meaning set forth in Section 10.1. 
 (lll) “Project Executive” shall have the meaning given in
Section 16.3(a). 
 (mmm) “Publicity” shall have the meaning given in Section 27.2. 
 (nnn) “Receiving Party” shall have the meaning set forth in Section 15.2. 
 (ooo) “Renewal Period” shall have the meaning set forth in Section 2.2. 
 (ppp) “Request for Service” or “RFS” shall have the meaning set forth in Section 10.1. 
 (qqq) “Required Consents” shall mean the consents required for the assignment or transfer to Service Provider of, or for
sublicensing to Service Provider, Third Party Software. 
 (rrr) “Responsibilities” shall have the meaning set forth
in Section 3.5. 
 (sss) “SAP/PharMerica Interfaces” shall have the meaning set forth in
Section 6.1(f)(3). 
 (ttt) “Service Category” shall have the meaning set forth in
Schedule F. 
 (uuu) “Services” shall mean Application Support Services, Infrastructure Services,
Acquisition Services, Disposition Services and Contract Support Services. 
 (vvv) “Service Level(s)” shall mean the
measurement(s) used to assess Service Provider’s performance of certain Service Categories as set forth in Schedule F, as the same may be amended from time to time upon mutual agreement of the parties. 
 (www) “Service Level Penalties” shall have the meaning set forth in Section 7.1. 
 (xxx) “Service Locations” shall have the meaning set forth in Section 5.1 
 (yyy) “Service Provider Data” shall mean all information of Service Provider, including as stored in or processed through the
Services Software or the Services Equipment. 
 (zzz) “Service Provider Software” shall have the meaning set forth in
Section 6.1(b). 
 (aaaa) “Service Provider Works” shall have the meaning set forth in
Section 6.1(f). 
 (bbbb) “Services Equipment” shall mean the Equipment used in connection with the
Services, as set forth in Schedule C. 
  

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 (cccc) “Services Software” shall mean Applications Software and Systems Software.

 (dddd) “Software” means computer programs, whether represented in Object Code, Source Code,
including system utilities, data security software, network monitors, database managers, data files and application programming interfaces, as well as supporting documentation and media. 
 (eeee) “Source Code” means computer programming code other than Object Code, and includes code that may be displayed in a form
readable and understandable by a programmer of ordinary skill. 
 (ffff) “Staffed Service Locations” shall have the
meaning set forth in Section 5.1. 
 (gggg) “Systems Software” shall mean the Software that performs
tasks basic to the functioning of Customer’s Equipment and which is required to operate the Applications Software or otherwise support the provision of Services by Service Provider, and which is set forth on Schedule C as it may be
updated from time to time upon the mutual agreement of the parties. 
 (hhhh) “Technology Escrow Agreement” shall
have the meaning set forth in Section 20.3. 
 (iiii) “Term” shall have the meaning set forth in
Section 2.2. 
 (jjjj) “Termination/Expiration Assistance” shall have the meaning set forth in
Section 21.5. 
 (kkkk) “Third Party Modifications” shall have the meaning set forth in
Section 6.1(f)(4). 
 (llll) “Third Party Software” shall mean Services Software owned by third parties,
including, without limitation, operating system software located on the Services Equipment and the Services Software licensed to either Service Provider or Customer, as the case may be, as set forth on Schedule C as it may be updated from
time to time upon the mutual agreement of the parties. 
 (mmmm) “Transaction Taxes” shall have the meaning set forth
in Section 17.2. 
 (nnnn) “Transition Period” shall mean the period of time commencing on the Effective
Date and terminating on the date when the Transition Plan set forth in Schedule K has been fully implemented. 
 (oooo)
“Transition Plan” shall mean the plan mutually agreed upon by Service Provider and Customer, a copy of which shall be attached hereto as Schedule K, which identifies the tasks, timeframes and assignments of Customer
and Service Provider to enable Customer to transition to the Services. 
  

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 (pppp) “Unidentified Resources” shall have the meaning set forth in
Section 6.3. 
 (qqqq) “Updates” means a change, modification, new release or other update made to
provide a patch or correct an error (such as a bug fix), defect or other problem and/or to maintain the operational quality of software products, or to address regulatory changes or add new functionality or performance enhancements. The term
“Updates” does not include any Enhancements. 
 2. Term 
 2.1. Initial Term. The term of this Agreement shall begin on the Effective Date and shall expire five (5) years thereafter (“Initial Term”), unless terminated earlier or extended in
accordance with Section 2.2 below. 
 2.2. Renewal. This Agreement shall automatically renew for successive one-year
periods after the expiration of the Initial Term (each a “Renewal Period”), unless either party provides the other party written notice of non-renewal at least one hundred twenty (120) days prior to the expiration of the
Initial Term or the then-current Renewal Period. All charges, terms and conditions in effect during the final six (6) months of the Initial Term (or the then-current Renewal Period) shall remain in effect during the subsequent Renewal Period
except as otherwise mutually agreed by the parties in writing. The Initial Term and all Renewal Periods are collectively referred to herein as the “Term”. 
 3. Services Provided 
 3.1. General. 
 (a) Service Provider shall provide the Services and satisfy the responsibilities described in this Agreement as it may be supplemented, enhanced or
modified, upon mutual written agreement of the parties, during the Term. 
 (b) If any services, functions or responsibilities not
specifically described in this Agreement are inherent subtasks of the Services and are reasonably necessary for provision of the Services, they shall be deemed to be implied by and included within the scope of the Services to the same extent and in
the same manner as if specifically described in this Agreement. 
 3.2. RESERVED 
 3.3. RESERVED 
 3.4.
Exclusivity. Service Provider will be the sole provider to the Customer of the Services, including any new, additional, or replacement services that perform substantially similar functions as the Services, unless the parties mutually agree in
writing to waive such exclusivity. 
  

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 3.5. Responsibilities. In order to ensure that the Services are timely and promptly delivered as
contemplated in this Agreement, each party shall perform its respective responsibilities including those identified in Schedule A (the “Responsibilities”) using Commercially Reasonable Efforts. 
 4. Services Retained by Customer 
 Service Provider
shall only be responsible for providing the Services as described on Schedule A. Customer will retain responsibility for all other aspects of Customer’s IT environment, including, without limitation, providing itself or obtaining from a
third-party all other services related to Customer’s information systems and technology infrastructure. 
 5. Service Locations 
 5.1. General. The locations where Service Provider will provide the Services (each, a “Service Location” and collectively,
the “Service Locations”) are set forth in Schedule E attached hereto as updated in accordance with Schedule E in connection with Customer’s addition or deletion of locations. The locations where the Service
Provider will provide staff on site are also set forth in Schedule E (the “Staffed Service Locations”). 
 5.2.
Acquisitions. Service Provider will provide the services required by the Customer to assimilate an acquired or newly opened pharmacy location into Customer’s operations and to operate such location after completion of the acquisition, as
set forth on Schedule E (“Acquisition Services”). Service Provider will provide the same set of Acquisition Services during the Initial Term and any Renewal Periods. 
 5.3. Dispositions. Service Provider will provide the services required by the Customer to dispose of a Service Location (either by closing such
Location or transferring responsibility for the Location to another entity) as set forth on Schedule E attached hereto (“Disposition Services”). Service Provider will provide the same set of Disposition Services during
the Initial Term and any Renewal Periods. 
 6. Responsibility for Resources 
 6.1. Software. Service Provider and the Customer shall cooperate and use Commercially Reasonable Efforts to obtain all licenses for the Services
Software as follows: 
 (a) Customer Software. As of the Effective Date, to assist in providing Services for the Term and any
Termination/Expiration Assistance period, Customer hereby grants to Service Provider, during the Term and any Termination/Expiration Assistance period, a non-exclusive, non-transferable, royalty-free, fully paid-up, worldwide license, under all of
Customer’s Intellectual Property, to use, disclose, execute, copy, reproduce, modify, display, perform, link, combine with other Software or hardware and prepare or have prepared Derivative Works (with respect to which Service Provider shall
have the same such rights) of, the Services Software owned by Customer, which is identified on Schedule C as Customer Software (“Customer Software”), and any Updates and Enhancements thereto; in each case, to the
extent necessary for Service Provider to provide the Services or the Termination/Expiration Assistance, as applicable, in accordance with the Agreement, . The license granted to Service Provider under 

  

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this Section 6.1(b) includes rights to the Object Code as well as the Source Code of the Customer Software, as necessary. The license granted to
Service Provider under this Section 6.1(b) includes the right to grant sublicenses of similar or lesser scope to any and all Service Provider agents, provided that such sublicense shall be pursuant to a written agreement, which imposes
on the sublicensee the same confidentiality and other obligations imposed on Service Provider hereunder, and which shall terminate on the date of termination of the license granted to Service Provider. Service Provider shall not use, distribute,
sell, assign, transfer, copy, sublicense or otherwise make available to any Person, the Customer Software except as expressly permitted in this Agreement. Any decompiling, disassembly, reverse-engineering or modification of the Customer Software
(except as mutually agreed upon by the parties) is strictly prohibited. As between the parties, Customer Software is and shall remain the exclusive property of Customer. Service Provider shall not be permitted to use Customer Software for the
benefit of any Person other than Customer without the prior written consent of Customer, which may be withheld at Customer’s sole discretion. Service Provider shall not remove, alter or otherwise render illegible any copyright or similar
proprietary notices placed on any full or partial copy, modified or unmodified, of the Customer Software. Except as otherwise requested or approved by Customer, Service Provider shall cease all use of Customer Software upon expiration or termination
of this Agreement (or after any applicable Termination/Expiration Assistance period). 
 (b) Service Provider Software. As of
the Effective Date, to assist in providing Services for the Term and any Termination/Expiration Assistance period, Service Provider hereby grants to Customer, during the Term and any Termination/Expiration Assistance period, a non-exclusive,
non-transferable, royalty-free, fully paid-up, worldwide license, under all of Service Provider’s Intellectual Property, to use, disclose, execute, copy, reproduce, display, perform, link and combine with other Software or hardware, the
Services Software owned by Service Provider, which is identified on Schedule C as Service Provider Software (“Service Provider Software”), and any Updates and Enhancements thereto; in each case, to the extent necessary
for Customer to receive the Services or the Termination/Expiration Assistance, as applicable, in accordance with the Agreement, . The license granted to Customer under this Section 6.1(b) includes rights solely to the Object Code of the
Service Provider Software. The license granted to Customer under this Section 6.1(b) includes the right to grant sublicenses of similar or lesser scope to any and all Customer agents, provided that such sublicense shall be pursuant to a
written agreement, which imposes on the sublicensee the same confidentiality and other obligations imposed on Customer hereunder, and which shall terminate on the date of termination of the license granted to Customer. Customer shall not use,
distribute, sell, assign, transfer, copy, sublicense or otherwise make available to any Person, the Service Provider Software except as expressly permitted in this Agreement. Any decompiling, disassembly, reverse-engineering or modification of the
Service Provider Software (except as mutually agreed upon by the parties) is strictly prohibited. As between the parties, Service Provider Software is and shall remain the exclusive property of Service Provider. Customer shall not be permitted to
use Service Provider Software for the benefit of any Person other than Customer without the prior written consent of Service Provider, which may be withheld at Service Provider’s sole discretion. Customer shall not remove, alter or otherwise
render illegible any copyright or similar proprietary notices placed on any full or partial copy, modified or unmodified, of the Service Provider Software. Except as otherwise requested or approved by Service Provider, Customer shall cease all use
of Service Provider Software upon expiration or termination of this Agreement (or after any applicable Termination/Expiration Assistance period). During the 

  

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Term, Service Provider shall have the responsibility for support and maintenance of the Service Provider Software for Customer, including by using
Commercially Reasonable Efforts to diagnose, correct and resolve reported errors or problems within a reasonable period, taking into account the nature of the error or problem, delivering resolution of errors and problems as Updates and
Enhancements, providing other appropriate Updates and Enhancements to the Service Provider Software on an “as available” basis, tracking all problems that are reported by Customer, and paying, as a Pass-Through Cost to Customer, any fees
or other financial obligations related to the Service Provider Software, if any. Service Provider Software licensed to Customer in this Section 6.1(b) and Service Provider Works will be deposited in escrow in accordance with the form of
technology escrow agreement attached hereto as Schedule N. 
 (c) No Other License. Each party acknowledges and agrees that no
license is granted herein by any party, either directly or by implication, estoppel or otherwise under this Agreement with respect to any Intellectual Property, other than as expressly provided in this Agreement. 
 (d) No Inconsistent Action. No party shall take any action inconsistent with such party’s acknowledgments and agreements set forth in this
Agreement. Without limiting the foregoing, each party acknowledges and agrees, both during the Term and thereafter, that to the extent permitted by law, no party shall challenge the other party’s ownership of such other party’s
Intellectual Property as acknowledged in the provisions of this Agreement, or the validity or enforceability thereof. 
 (e) Third Party
Software. 
 (1) As to Third Party Software necessary for Service Provider to provide the Services to Customer, each of Service Provider
and Customer hereby grant to the other party sublicense rights to any such Third Party Software that is Licensable by the granting party, for the purposes of, and to the extent necessary for, providing or receiving, as applicable, the Services or
the Termination/Expiration Assistance, as applicable, in accordance with the Agreement. 
 (2) As to Third Party Software licensed to
Customer as identified on Schedule C, and which is not Licensable by any party, Customer, with Service Provider’s reasonable cooperation, shall be responsible for obtaining all Required Consents necessary to enable Service Provider to
use such Third Party Software for the purposes of providing the Services to Customer. As to Third Party Software licensed to Service Provider as identified on Schedule C, and which is not Licensable by any party, Service Provider, with
Customer’s reasonable cooperation, shall be responsible for obtaining all Required Consents necessary to enable Service Provider to use such Third Party Software for the purposes of providing the Services to Customer. The parties shall
endeavor, to the extent practicable, to obtain a separate license for Customer for any Third Party Software necessary for the Services. 
 (3) In the event that any Required Consent is not obtained, then the parties shall cooperate with each other in achieving a reasonable alternative arrangement, for providing the Services to Customer while allowing Customer to continue its
work with minimum interference to its business operations; provided, however, if such a reasonable alternative 

  

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arrangement is not obtained with respect to Third Party Software licensed to Customer for which Required Consents are not obtained, Customer shall indemnify
and hold Service Provider harmless for any Damages incurred or suffered by Service Provider arising out of or in connection with the Services for which consent is necessary. All costs and expenses associated with obtaining Required Consents for
Third Party Software licensed to Customer are Direct Costs, except for consent or similar fees which are Pass-Through Costs. All costs and expenses associated with obtaining Required Consents for Third Party Software licensed to Service Provider are
Allocated Costs. 
 (4) Customer may introduce new Third Party Software in accordance with the applicable Change Control Procedures.
Customer shall use Commercially Reasonable Efforts to obtain a perpetual, non-exclusive license to use, and the right to sublicense third parties, including the Service Provider, to use, for the sole benefit of Customer, such new Third Party
Software, which will, to the extent that the respective third party so agrees, continue to be effective during any Termination/Expiration Assistance period. If Customer does not have the legal right to grant Service Provider such a sublicense, or if
there is a cost associated with obtaining such rights, Customer shall not introduce such Third Party Software except as follows: 
 (i) Prior
to introducing such Third Party Software, Customer shall notify Service Provider in writing of its inability to obtain such a license for the benefit of Service Provider, the cost of such a license or the cost and viability of any other Third Party
Software that is capable of performing the requisite functions and with respect to which Customer has the ability to obtain such a license for Service Provider. 
 (ii) Unless and until Service Provider confirms in writing that Customer’s use of the Third Party Software is acceptable to Service Provider, Customer shall not introduce such Third Party Software for use in
providing the Services. 
 (5) Service Provider may introduce new Third Party Software in accordance with the applicable Change Control
Procedures. Service Provider shall use Commercially Reasonable Efforts to obtain a perpetual, non-exclusive license to use, and the right to sublicense third parties to use, for the benefit of Customer, such new Third Party Software which will, to
the extent that the respective third party so agrees, continue to be effective during any Termination/Expiration Assistance period. If Service Provider does not have the legal right to grant Customer such a sublicense, or if there is a cost
associated with obtaining such rights, Service Provider shall not introduce such Third Party Software except as follows: 
 (i) Prior to
introducing such Third Party Software, Service Provider shall notify Customer in writing of its inability to obtain such a license for the benefit of Customer, the cost of such a license or the cost and viability of any other Third Party Software
that is capable of performing the requisite functions and with respect to which Service Provider has the ability to obtain such a license for Customer. Such notice shall contain the Third Party Software provider’s then-current terms and
conditions, if any, for making the Software available to Customer after expiration or termination of this Agreement. 
  

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 (ii) Unless and until Customer confirms in writing that Service Provider’s use of the Third Party
Software is acceptable to Customer, Service Provider shall not introduce such Third Party Software for use in providing the Services. 
 (6)
The ownership and license rights granted in this Agreement are subject to any Intellectual Property rights held by, and the terms of any license agreements with, applicable Third Party Software providers. 
 (f) Proprietary Rights and Additional Licenses. 
 (1) Ownership of Service Provider Works. Service Provider shall retain all right, title and interest in and to all Intellectual Property owned by Service Provider as of the Effective Date, including the Service
Provider Software, and shall be, as between the parties, the sole owner of all right, title and interest in and to any and all Derivative Works thereof, and Updates, Enhancements and modifications thereto (the “Service Provider
Works”), subject to any licenses provided to Customer under this Agreement. For the avoidance of doubt, Service Provider Works shall include, and Service Provider shall exclusively own, all right, title and interest in and to, any and
all Updates, Enhancements, Derivative Works or other modifications of Intellectual Property owned by Service Provider as of the Effective Date, (i) regardless of whether or not such Updates, Enhancements, Derivative Works or other modifications
were made, created, developed or conceived at the request of Customer in connection with this Agreement; and (ii) whether developed solely by Service Provider or jointly by Customer and Service Provider. Customer hereby assigns and transfers to
Service Provider and its successors and assigns, and Service Provider hereby accepts from Customer, all of Customer’s right, title and interest in and to the Service Provider Works and any Intellectual Property therein, together with the right
to sue and recover damages for future, present and past infringements. 
 (2) Ownership of Customer Works. Customer shall retain all
right, title and interest in and to all Intellectual Property owned by Customer as of the Effective Date, including Customer Software, and shall be, as between the parties, the sole owner of all right, title and interest in and to any and all
Derivative Works thereof, and Updates, Enhancements and modifications thereto (the “Customer Works”), subject to any licenses provided to Service Provider under this Agreement. For the avoidance of doubt, Customer Works shall
include, and Customer shall exclusively own, all right, title and interest in and to, any and all Updates, Enhancements, Derivative Works or other modifications of Intellectual Property owned by Customer as of the Effective Date, (i) regardless
of whether or not such Updates, Enhancements, Derivative Works or other modifications were made, created, developed or conceived at the request of Service Provider in connection with this Agreement; and (ii) whether developed solely by Customer
or jointly by Customer and Service Provider. Service Provider hereby assigns and transfers to Customer and its successors and assigns, and Customer hereby accepts from Service Provider, all of Service Provider’s right, title and interest in and
to the Customer Works and any Intellectual Property therein, together with the right to sue and recover damages for future, present and past infringements. 
 (3) Ownership of SAP/PharMerica Interfaces. The parties acknowledge that prior to the Effective Date, Service Provider has developed application 

  

 -13- 

 
programming interfaces between SAP and certain PharMerica Software, which are described in Schedule C (the “SAP/PharMerica
Interfaces”). Service Provider is the sole owner of, and Service Provider shall retain, all right, title and interest in and to the SAP/PharMerica Interfaces subject to any licenses provided to Customer under this Agreement. 

(4) Ownership of Third Party Modifications. Subject to any Intellectual Property rights held by, and the terms of any license agreements with,
applicable Third Party Software providers, and subject to any licenses provided to Service Provider under this Agreement, Customer shall be the sole owner, as between the Parties, of all right, title and interest in and to any Updates or
Enhancements to Third Party Software, which are made, created, developed or conceived in connection with the performance of this Agreement (“Third Party Modifications”), whether developed solely by Service Provider or jointly
by Customer and Service Provider. Service Provider hereby assigns and transfers to Customer and its successors and assigns, and Customer hereby accepts from Service Provider, all of Service Provider’s right, title and interest in and to the
Third Party Modifications and any Intellectual Property therein, together with the right to sue and recover damages for future, present and past infringements. 
 (5) Ownership and Exploitation of New Deliverables. Unless they are deemed to be Service Provider Works, Customer Works, SAP/PharMerica Interfaces or Third Party Modifications pursuant to Sections
6.1(f)(1) – 6.1(f)(4), Customer and Service Provider shall have joint ownership of any newly created Intellectual Property made, created, developed or conceived (whether jointly or solely by Service Provider) in connection with the
performance of this Agreement (the “Deliverables”). Each of Customer and Service Provider shall have the right to exploit the Deliverables, including by granting licenses to third parties (including exclusive licenses to
their interest therein) or assigning their interest therein, without the consent of or accounting to the other joint owner; provided, however, that (i) Customer may not use any Service Provider Data, and Service Provider may not use any
Customer Data, in connection with any such exploitation; and (ii) Service Provider may not license or assign its interest in any Deliverable to any Competitor of Customer. 
 (6) Additional Licenses to Customer. Service Provider hereby grants to Customer a perpetual, irrevocable, non-exclusive, royalty-free, fully
paid-up, worldwide license to use, disclose, practice, execute, copy, reproduce, modify, display, perform, link, distribute, translate into any language or form, combine with other software or hardware, transfer, transmit, and prepare or have
prepared Derivative Works of (with respect to which Customer shall have the same such rights), (i) the SAP/PharMerica Interfaces and (ii) any Service Provider Works made, created, developed or conceived in connection with the performance
of this Agreement; in each case, in Object Code and Source Code form, and for any purpose. The license granted in this Section 6.1(f)(6) shall include the right to sublicense to any person. Customer shall not remove, alter or otherwise
render illegible any copyright or similar proprietary notices placed on any full or partial copy, modified or unmodified, of the SAP/PharMerica Interfaces or Service Provider Works licensed hereunder. 
 (7) Additional Licenses to Service Provider. Customer hereby grants to Service Provider a perpetual, irrevocable, non-exclusive, royalty-free,
fully paid-up, worldwide license to use, disclose, practice, execute, copy, reproduce, modify, display, perform, link, distribute, translate into any language or form, combine with other software or hardware, 

  

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transfer, transmit, and prepare or have prepared Derivative Works of (with respect to which Service Provider shall have the same such rights), (i) the
Third Party Modifications (subject to any Intellectual Property rights held by, and the terms of any license agreements with, applicable Third Party Software providers), and (ii) any Customer Works made, created, developed or conceived by
Service Provider in connection with the performance of this Agreement; in each case, in Object Code and Source Code form, and for any purpose. The license granted in this Section 6.1(f)(7) shall include the right to sublicense to any
person, excluding any Competitors. Service Provider shall not remove, alter or otherwise render illegible any copyright or similar proprietary notices placed on any full or partial copy, modified or unmodified, of the Third Party Modifications or
Customer Works licensed hereunder. 
 (8) Ownership and License of Other New Intellectual Property. To the extent that Service
Provider develops, for its own use at its sole cost and expense, any newly created Intellectual Property which is useful in connection with the Services, Service Provider shall be, as between the parties, the sole owner of all right, title and
interest in and to any and all such Intellectual Property, unless such new Intellectual Property is deemed to be Service Provider Works, Customer Works, SAP/PharMerica Interfaces, Third Party Modifications or Deliverables pursuant to Sections
6.1(f)(1) – 6.1(f)(5). In the event that Service Provider considers that Customer may derive material benefit from using such new Intellectual Property, Service Provider shall notify Customer in writing of the existence of such new
Intellectual Property and Customer may request, and the parties shall mutually agree upon, a license to use such Intellectual Property, which is consistent with, and not more broad than, the license granted to Customer under Section 6.1(b) of
this Agreement. 
 (9) Each party shall promptly execute, acknowledge and deliver, or shall cause to be promptly executed, acknowledged and
delivered, all such further assignments or other instruments or documents, and shall do all such other acts, as the other party may reasonably request to give effect to the assignments, and otherwise carry out the intention, of this Agreement.

 (10) This Agreement sets forth the parties’ respective Intellectual Property rights. Each of Customer and Service Provider reserves
all rights regarding any Intellectual Property not expressly assigned herein, subject to any license rights granted in this Agreement. 
 6.2. Third Party Software and Service Obligations. Service Provider shall cease all use of the Third Party Software that relates solely to the Services provided to Customer and not to any other businesses owned or operated by Service
Provider or its Affiliates, upon expiration or termination of this Agreement, except where necessary to provide Services in any Termination/Expiration Assistance period. During the Term, Service Provider shall, to the extent permitted under the
respective license agreement with the third-party owner of the Third Party Software, have the responsibility for support and maintenance of such Software, including by using Commercially Reasonable Efforts to diagnose, correct and resolve reported
errors or problems within a reasonable period, taking into account the nature of the error or problem, delivering resolution of errors and problems as Updates and Enhancements, providing other appropriate Updates and Enhancements to the Third Party
Software on an “as available” basis, tracking all problems that are reported by Customer, and paying, as a Pass-Through Cost to 

  

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Customer, any fees or other financial obligations owed to the owner/licensor of the Third Party Software, all to the same extent as if Service Provider were
the licensee of such Software. 
 6.3. Unidentified Resources. The parties recognize that the lists of Services Equipment, and
Software set forth in Schedule C may not be complete. For any Equipment or Software not identified in Schedule C and used to provide the Services (“Unidentified Resources”) the following shall apply:
(i) each party shall notify the other party in writing as soon as it identifies any previously Unidentified Resources; (ii) until such Equipment or Software has been identified in Schedule C, Customer will provide Service Provider,
to the extent permitted under the agreement with the respective third-party, with access to, and use and benefit of, the rights and benefits under any such Unidentified Resources, and Service Provider will cooperate with Customer to manage such
Equipment and Software to provide the Services to the extent permitted under the agreement with the respective third-party; (iii) Service Provider will have no financial responsibility for any Customer Unidentified Resources except as required
by the Master Transaction Agreement, but Service Provider and Customer will share financial responsibility, as an Allocated Cost, for any Service Provider Unidentified Resources; and (iv) upon identification by the parties, such Equipment or
Software shall be considered by the parties for inclusion in the scope of Services and shall be added to Schedule C using the applicable Change Control Procedures. Service Provider and Customer will mutually determine which party shall be
managerially and financially responsible for such Equipment or Software that is added to Schedule C using the applicable Change Control Procedures. 
 6.4. Service Locations. 
 (a) Each party will provide the other with the use of space, Equipment, and
support at each other’s facilities, including the Staffed Service Locations, for all personnel reasonably necessary for the performance of the Services. This includes all heat, light, power, air conditioning, uninterruptible power supply and
other similar utilities, reasonable standard office space, furniture, secure storage space and equipment staging facilities, administrative standard office supplies, local telephone service, office support services (including security and
janitorial), and coordination of Service Location access security. If Customer relocates the Staffed Service Location, Customer will provide similar space and amenities at the new location as described in this Section 6.4(a). Each party
will provide the other with full and safe access to their respective facilities, including Staffed Service Locations, as contemplated in the Operations Manual; and the same or similar access to workplace services, such as parking and cafeteria
facilities, if any, as such party provides to its employees and subcontractors. 
 (b) If Customer closes a Service Location, or the portion
of a Service Location used by Service Provider to provide the Services, Customer will provide Service Provider with space, utilities and support in a new Service Location that is sufficient to provide the Services or, if such a new Service Location
is not available, Service Provider shall relocate the Equipment and personnel from the closed Service Location to a new location selected by Service Provider. 
 (c) Service Provider’s use of the Service Locations does not, and shall not be deemed to, constitute or create a leasehold interest. 
  

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 (d) To the extent that Equipment owned by Service Provider or Service Provider Software is located at a
Service Location, Service Provider may mark such Equipment or Service Provider Software and, for informational purposes only, prepare related filings under the Uniform Commercial Code, or similar filings, in connection with such Equipment and
Service Provider Software. In no case shall Service Provider have a lien on any Equipment owned by Customer. 
 6.5. Technology
Refresh. 
 (a) Technology Improvements. Customer and Service Provider will work together to establish technology standards
for the provision of the Services. Service Provider may introduce technology, Software and Equipment improvements impacting Services provided to Customer; provided, however, that if such changes relate solely to Equipment owned by Customer and will
increase costs to Customer, Service Provider will provide (i) cost/benefit analysis for such improvements; (ii) a transition plan; and (iii) estimated costs to execute such plan. 
 (b) Existing Equipment. Services Equipment owned by Service Provider dedicated to serving KPS was transferred to Customer as a contribution
to capital of KPS immediately prior to the Closing. Equipment owned by PharMerica was retained by PharMerica. Service Provider shall have administrative responsibility for all Services Equipment, regardless of whether previously owned by KPS or
PharMerica, and may relocate such Services Equipment upon mutual agreement of the parties, provided that Service Provider may relocate data centers and network operating centers providing the Services in the Service Provider’s reasonable
discretion upon prior written notice to, and coordination with, Customer and Customer shall reasonably cooperate in such relocation. Notwithstanding anything in this Agreement to the contrary, Customer shall have no ownership rights in any Equipment
owned by Service Provider. 
 (c) Replacement/Refresh. Service Provider and Customer shall mutually agree on whether and when
to refresh or replace the Equipment and Software used in providing the Services; provided, however, that the costs to refresh or replace Services Equipment or Services Software owned by Customer shall be Pass-Through Costs and the costs to refresh
or replace Services Equipment or Services Software owned by Service Provider shall be Allocated Costs. 
 7. Service Levels 
 7.1. General. Schedule F attached hereto sets forth (i) Service Levels and (ii) applicable penalties for failure by Service
Provider to perform in accordance with the Service Levels (the “Service Level Penalties”). Notwithstanding anything in this Agreement to the contrary, the maximum liability of Service Provider for all Service Level Penalties in any given
month shall not exceed Fifty Thousand Dollars ($50,000) in the aggregate. 
  

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 8. Pricing 
 8.1. General. 
 (a) As consideration for the Services and for all of Service Provider’s activities in connection with
this Agreement, each month during the Term and any Termination/Expiration Assistance period, Service Provider shall charge Customer, and Customer shall pay Service Provider the following amounts (collectively, the
“Consideration”): 
 (i) a monthly service fee (the “Monthly Service Fee”) in an amount equal
to $147,516; 
 (ii) an amount equal to the Pass-Through Costs; 
 (iii) an amount equal to Costs; and 
 (iv)
an amount equal to 10% of Costs. 
 The term “Pass-Through Costs” shall mean: 
  

	 	(i)	Service Provider’s travel expenses; 

  

	 	(ii)	capital expenses, including software license fees, made by the Service Provider in order to deliver Services to the Customer; 

  

	 	(iii)	lease expenses, if any, paid by the Service Provider for Equipment; 

  

	 	(iv)	property taxes incurred on any capital owned by the Service Provider and utilized to deliver Services to the Customer; 

  

	 	(v)	severance benefits, relocation expenses and equity awards to Affected PLTC Employees and Affected KND Employees; 

  

	 	(vi)	severance benefits to Service Provider personnel working exclusively to deliver or support the delivery of the Services to Customer; 

  

	 	(vii)	maintenance of sufficient data center or other work space and utilities infrastructure to provide the Services; 

  

	 	(viii)	any depreciation incurred on the Equipment; 

  

	 	(ix)	consent or similar fees for any Required Consents in accordance with Section 6.1(e); 

  

	 	(x)	Transaction Taxes, except as provided in Section 17.3; 

  

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	 	(xi)	consent or similar fees for introducing new Third Party Software in accordance with the applicable Change Control Procedures and Section 6.1(e); and

  

	 	(xii)	any additional or unusual costs incurred by Service Provider during a Force Majeure Event as set forth in Section 14.2. 

 (b) The parties acknowledge that as of the Effective Date the Allocated Cost is approximately twenty-five percent (25%) to Customer and seventy-five
percent (75%) to Service Provider. If Customer’s Allocated Cost goes above thirty percent (30%) or below twenty percent (20%), then the parties shall re-evaluate the Allocated Cost and mutually agree on a formula based on unit cost
metrics. 
 8.2. Cost Reviews. If the aggregate Consideration for any year is expected to exceed 2.0% of the revenues of Customer for
any year after the second full year of the Term based on the performance of the prior year, then Service Provider and Customer shall meet for a period of sixty (60) days within which time period the parties shall agree on reductions to costs,
and changes to the Services, to reach the 2.0% level or below. For purposes of clarity, the initial review will be at the end of year two of the Term looking back on costs for the Services rendered (excluding transition services) for the prior
twelve (12) months in order to project the costs for Services in year three of the Term. The next review will be at the end of year three of the Term looking back on the Services rendered for the prior twelve (12) months in order to
project the costs for services in year four of the Term and similarly for year five of the Term and any Renewal Period. Nothing in this Section limits the parties ability to periodically discuss costs and approaches to reduce costs. 
 8.3. Fairness of Pricing. The parties acknowledge that the pricing set forth herein is equal to fair market value and that the Agreement, taken as
a whole, is commercially reasonable. 
 9. Payments to Service Provider 
 9.1. Monthly Invoices. Service Provider shall deliver a statement to Customer on or about
the 15th day of each month identifying the Consideration to be paid by Customer under this Agreement for the preceding month. Such statement shall set
forth a brief description of the Services and other activities provided by Service Provider during such period and the total amounts owed by Customer in each of the following categories: (i) the Monthly Service Fee, (ii) Pass-Through
Costs, (iii) Costs and (iv) 10% of Costs. 
 9.2. Payment Due. Payment for undisputed amounts set forth in each
invoice provided for under Section 9.1 shall be due and payable in U.S. Dollars by wire transfer of immediately available funds no later than thirty (30) days following Customer’s receipt thereof without setoff, defense or
counterclaim, except as provided in this Section 9. 
 9.3. Proration. Periodic charges under this Agreement are to be
computed on a calendar month basis and shall be prorated for any partial month. 
 9.4. Late Fees. Undisputed fees or payments owed to
Service Provider that are not paid in accordance with the terms of this Section 9 shall accrue interest from the original 

  

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payment due date at the rate of one percent (1%) per month. Disputed fees or payments which are determined to be valid charges to Customer shall accrue
interest from the original payment due date at the rate of one percent (1%) per month. 
 9.5. Material Breach. Customer’s
failure to pay in accordance with this Section 9 constitutes a material breach by Customer of this Agreement; provided, however, such failure to pay shall not be a material breach of this Agreement if (i) Customer disputes in good
faith an invoice (or series of invoices) in writing; (ii) the total amount disputed is at least One Hundred Thousand Dollars ($100,000) in the aggregate; and (iii) the Customer places the disputed amounts in an interest-bearing escrow
account (with an escrow agent mutually agreed upon by the parties) such that the parties will allocate the money in the escrow account in accordance with the resolution of the dispute and the terms of this Agreement. 
 10. Relationship Management and Change Control Procedures 
 10.1. Operations Manual. 
 (a) Customer and Service Provider shall cooperate to draft a manual (the “Operations
Manual”) mutually agreeable to both Customer and Service Provider no later than one hundred eighty (180) days following the Effective Date, which upon completion shall be attached as Schedule B hereto. The Operations Manual
shall, among other things, describe how Service Provider and Customer will interface and interact regarding the performance of the Services under this Agreement, the Equipment and Software being used, and the documentation (e.g., operations manuals,
user guides, specifications and management reporting) which provide further details of such activities. The Operations Manual shall describe the activities Service Provider proposes to undertake in order to provide the Services and describe the
operating processes and procedures governing the performance of Services and further including acceptance testing and quality assurance procedures. In addition, the Operations Manual will contain notification procedures with respect to any scheduled
or unscheduled downtime. The Operations Manual also shall identify Responsibilities to ensure that the Services are timely and promptly delivered as contemplated in this Agreement. The Operations Manual shall identify appropriate contract and
decision making personnel at Customer and also shall specify that the procedures for Request for Service (“RFS”), Project Change Request (“PCR”), Contract Change Request
(“CCR”). The RFS, PCR, CCR and Change Control Procedures shall be fully described in the written document entitled “Governance”. 
 (b) Service Provider shall update the Operations Manual on an as needed basis but no less than annually in order to reflect changes in the operations or
procedures described therein. Updates of the Operations Manual shall be provided to Customer for review, comment, and written approval. In the event of a conflict between the provisions of this Agreement and the Operations Manual, the provisions of
this Agreement shall control. 
 (c) The parties shall incorporate specific procedures (roles, responsibilities, timing) for safety and
security, which shall be consistent with industry standard procedures, into the Operations Manual. 
  

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 (d) Customer and Service Provider will maintain and utilize the applicable sections of the existing
procedures manuals of PharMerica LTC and KPS until the new Operations Manual is developed by Customer and Service Provider. 
 10.2.
Change Control Procedure. 
 (a) Customer and Service Provider shall cooperate to prepare a detailed and complete Change Control
Procedures, which, once mutually agreed to, shall be deemed a part of the Operations Manual. The Change Control Procedures may not modify or change the scope of the Services to be provided under, or any other terms or conditions of, this Agreement
unless otherwise agreed to expressly in writing by the parties. 
 (b) The Change Control Procedures shall provide, among other things, that
Service Provider shall exercise control over the portion of the Customer’s IT environment related to the Services by: 
 (1) Prior to
using any Software or Equipment in Customer’s dedicated environment (other than in a shared environment) to provide the Services, Service Provider shall obtain verification from Customer that the item has been properly tested and installed, as
defined in the Operations Manual and is performing consistent with the Services and Schedule F. 
 (2) Service Provider will prepare
reports mutually agreeable to Service Provider and Customer regarding the status of changes periodically determined by the parties. 
 (3)
Except in emergency situations, as described below, Service Provider shall make no change that materially and adversely affects the function or performance of, or decreases to any significant degree the resource efficiency of, the Services,
including implementing changes in technology, without first obtaining Customer’s written approval, which approval Customer may withhold in its sole discretion. An emergency situation shall include those which result in business interruption or
a condition which may adversely impact the business if not handled immediately. Service Provider may make temporary changes required by an emergency and shall, if reasonably practicable, contact an appropriate Customer manager to obtain prior
approval. Service Provider shall document and promptly report such emergency changes to Customer as soon as practical, but in no event later than five Business Days after the change is made. 
 (4) Service Provider shall move all Software from development and test environments to production environments in a controlled and documented manner. No
changes shall be introduced into the programs during such activity except in accordance with the policies set forth in the Operations Manual. 
 11. Data
Ownership 
 11.1. Ownership of Customer Data. All Customer Data is, or shall be, and shall remain the property of Customer.

  

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 11.2. Use of Data. 
 (a) Customer Data. Without Customer’s consent (subject to Customer’s sole discretion) or as otherwise directed by Customer or as required for the performance of the Services under this Agreement, or
any other agreement between Customer and Service Provider or their respective Affiliates, Customer Data, excluding any Customer Data pertaining to Service Provider or its Affiliates, shall not be (a) accessed, used, disclosed, monitored,
analyzed, individualized, anonymized, aggregated, stored, copied, sold, assigned, leased or otherwise provided to third parties, (b) commercially exploited in any form (including any individualized, anonymized or aggregated form), or
(c) otherwise used in any manner, by Service Provider, Service Provider’s Affiliates or Service Provider’s agents, subcontractors and employees other than in connection with its performance under this Agreement. Service Provider, with
respect to Customer Data in its possession, shall at all times comply with Customer’s retention, use and privacy standards applicable to such Customer Data to the extent Customer has disclosed such standards in writing to Service Provider and
all laws applicable to Service Provider relating to Service Provider’s access to Customer Data. 
 (b) Service Provider Data. All
Service Provider Data is, or shall be, and shall remain the property of Service Provider. Service Provider Data shall not be (a) accessed, used, disclosed, monitored, analyzed, individualized, anonymized, aggregated, stored, copied, sold,
assigned, leased or otherwise provided to third parties, (b) commercially exploited in any form (including any individualized, anonymized or aggregated form), or (c) otherwise used in any manner, by Customer, Customer’s Affiliates or
Customer’s agents, subcontractors and employees other than in connection with its performance under this Agreement. 
 (c)
Responsibility for Data. Customer shall be responsible for the substance, meaning, results and analysis of Customer’s use of any Customer Data, and Service Provider shall not incur any liability resulting from such use of Customer Data.
Nothing herein is intended to diminish Service Provider’s obligations under this Agreement or relieve Service Provider from such obligations. 
 11.3. Data Security. Service Provider will not transfer any Customer Data across a country border unless Service Provider obtains Customer’s prior written consent. Additional system security and access control policies and
procedures applicable to the Services shall be set forth in the Operations Manual in accordance with Section 10.1(c). 
 11.4.
Breach of Data Security. In the event of any actual or threatened breach of the security of Customer Data, including breach of the firewall referenced in Section 11.7 below, Service Provider will fully cooperate with Customer to secure
the Customer Data. Service Provider agrees to notify Customer in writing immediately upon becoming aware of such breach and take appropriate action to remedy the situation. 
 11.5. Correction of Errors. Service Provider, at Customer’s expense, will promptly correct any errors or inaccuracies in Customer Data, of
which Service Provider becomes aware, regardless of the cause. 
  

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 11.6. Return of Data. Customer can request, at any time, Service Provider to return to Customer
the Customer Data in, to the extent practicable, the format and on the media requested. Customer can request, at any time, Service Provider to erase or destroy any Customer Data in the Service Provider’s possession. 
 11.7. Firewall. Service Provider shall construct a firewall, and use all Commercially Reasonable Efforts necessary, to prohibit access by Service
Provider, and its agents, employees and Affiliates, to any Customer Data, except to the extent necessary to provide the Services. The Operations Manual will describe the conditions under which Service Provider employees shall have access to Customer
Data. 
 12. Disaster Recovery 
 12.1.
Disaster Recovery Plan. Subsequent to the Closing, Service Provider will update, test and execute the disaster recovery procedures for Customer’s operations, which shall include Data Center operations and recovery of Services
(“Disaster Recovery”), that are in effect immediately prior to the Effective Date for PharMerica LTC and KPS. Service Provider and Customer will work together to develop new Disaster Recovery for Customer within one
(1) year following the Effective Date. Service Provider is not excused from executing Disaster Recovery as a result of a Force Majeure Event. Service Provider and Customer will work together to designate critical services and recovery time
period (hours or days) and Service Levels applicable during Disaster Recovery. Customer and Service Provider can modify the Disaster Recovery plan upon mutual agreement at any time provided there is no adverse affect on Service Provider’s
ability to restore Services. 
 12.2. Periodic SAS 70 Tests. At Customer’s expense, Service Provider will conduct annual Type II
Statement of Auditing Standards (“SAS 70”) audits of the Services. To the extent that there is a replacement or successor to this SAS 70 audit, Service Provider will conduct that successor audit of the Services to meet its
compliance certification requirements. Service Provider will promptly provide Customer or, if sufficient for Customer’s compliance purposes, Service Provider’s auditor may provide Customer’s auditor directly, with SAS 70 Type II
report summaries that apply to the Services, and other SAS 70 Type II report summaries which cover areas of the Services, as soon as reasonably practicable, but no more than thirty (30) days after the report is delivered to Service Provider.
All such report summaries will be general in nature (i.e., not customer specific). If any such audit determines that a material deficiency exists for a Service, Service Provider will, upon learning of the determination, notify Customer in writing
regarding the material deficiency and will take Commercially Reasonable Efforts to remediate or mitigate such deficiency, with Customer’s cooperation as may be required by the nature of the deficiency. Customer and Service Provider’s share
of the expense to remediate such deficiency shall be borne by each party in proportion to each party’s liability for such deficiency. Customer will be financially responsible for any audits, and any remediation related to such audits under this
Section 12.2 unless such audits are commissioned by Service Provider for Service Provider’s benefit for the Services. 
  

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 13. Transition 
 Service Provider and Customer shall cooperate to execute the Transition Plan during the Transition Period. Service Provider and Customer will provide the other periodic status reports regarding progress of the
Transition Plan. 
 14. Force Majeure 
 14.1. Definition. Neither party shall be liable to the other for any default or delay in performance of obligations where such default or delay is caused, directly or indirectly, by fire, flood, earthquake, elements of nature, acts
of God, acts of war, terrorism, riots, civil disorders, rebellions or revolutions in the United States, strikes, lockouts or labor difficulties, or other similar cause beyond the reasonable control of the party (a “Force Majeure
Event”). For purposes of this Agreement, a Force Majeure Event shall not include any Force Majeure Event the effect of which could have been avoided by the disaster recovery services provided under this Agreement. 
 14.2. Effect. In a Force Majeure Event, Service Provider may reduce or eliminate its Services under this Agreement without obligation to Customer
during the period of the Force Majeure Event except that Service Provider’s reduction or elimination of Services to Customer shall be the same as any reduction or elimination of services relating to Service Provider’s internal capacity and
to Service Provider’s other customers or Affiliates. With respect to any Service affected by such Force Majeure Event, the exclusivity requirement in Section 3.4 will be waived during such Force Majeure Event. In the event Customer
elects to continue receiving Services from Service Provider during the Force Majeure Event, Customer acknowledges that Service Provider may incur additional and unusual costs during a Force Majeure Event, which will be chargeable to Customer as a
Pass-Through Cost. 
 14.3. Termination. Customer may terminate the Agreement in the event that Services are reduced or eliminated as
a result of a Force Majeure Event which lasts one hundred twenty (120) days or longer. 
 15. Confidentiality/Data Security 
 15.1. Confidential Information. Service Provider and Customer each acknowledge that Confidential Information may be disclose to the other party in
connection with this Agreement. Except as otherwise specifically provided by the parties, “Confidential Information” shall mean: (i) all information that, if disclosed in tangible form, is marked confidential,
restricted, or proprietary by either party; (ii) all information that, if disclosed orally, is (x) identified at the time of disclosure as Confidential Information and (y) is summarized in a writing sent to the Recipient within thirty
(30) days after disclosure; and (iii) regardless of whether it is marked or identified as confidential, Customer Data (excluding, with respect to Service Provider, any Customer Data pertaining to Service Provider or its Affiliates),
Service Provider Data, Service Provider Software, New Applications, protected health information as set forth in HIPAA and either party’s information regarding business planning and operations or either party’s administrative, financial,
marketing and research and development activities. Confidential Information includes any copies of the foregoing, regardless of form. 
  

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 15.2. Obligations. 
 (a) Each party (in such capacity, the “Receiving Party”) acknowledges and agrees to (i) use with respect to the Confidential Information of the other party (in such capacity, the
“Disclosing Party”) the same care and discretion to prevent such Confidential Information from being disclosed, published or disseminated as it employs to avoid disclosure, publication or dissemination of its own similar
Confidential Information (but in no event less than reasonable care); (ii) use the Disclosing Party’s Confidential Information only for the purpose for which it was disclosed; and (iii) not disclose or disseminate the Disclosing
Party’s Confidential Information to any Person other than those employees and agents who have a need to know it in order to assist the Receiving Party in performing its obligations hereunder, or to permit the Receiving Party to exercise its
rights under this Agreement. 
 (b) Notwithstanding the foregoing, the Receiving Party may disclose the Confidential Information to
subcontractors or third parties involved in providing Services under this Agreement where: (i) such disclosure is necessary to permit the subcontractor or third party to perform its duties hereunder; (ii) the Receiving Party causes the
subcontractor or third party to be bound to the same obligations regarding Confidential Information as the parties are subjected to in this Section 15; and (iii) the Receiving Party assumes full responsibility for the acts or
omissions of its subcontractor, no less than if the acts or omissions were those of the Receiving Party. 
 (c) Without limiting the
generality of the foregoing, neither party will publicly disclose the terms of this Agreement, unless required by applicable law or regulation, without the prior written consent of the other; provided, however, that the parties acknowledge that this
Agreement has been disclosed in the Customer’s Securities and Exchange Commission Registration Statement (also known as the S1/S4). Furthermore, neither Service Provider nor Customer will: (i) make any use of the Confidential Information
of the other except as contemplated in this Agreement; (ii) acquire any right in or assert any lien against the Confidential Information of the other party, other than as provided in this Agreement; (iii) sell, assign, lease or otherwise
dispose of Confidential Information of the other to third parties or commercially exploit such Confidential Information, other than as permitted in this Agreement; or (iv) refuse for any reason (including a default or material breach of this
Agreement by the other party) to promptly return, provide a copy of or destroy such Confidential Information upon the request of the other party, except where such request conflicts with an express license right granted in this Agreement;

 (d) Upon expiration or any termination of this Agreement and completion of a party’s obligations under this Agreement, each party, as
Receiving Party, shall (except as otherwise provided in this Agreement and except where this conflicts with an express license right granted in this Agreement), return or destroy, as the Disclosing Party may direct, all documentation in any medium
that contains the Disclosing Party’s Confidential Information, and retain no copies, other than one archival copy for evidentiary purposes. In addition, the parties shall take reasonable steps by agreement or otherwise so that their employees,
agents and subcontractors comply with these confidentiality provisions. 
  

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 15.3. Exclusions. Notwithstanding anything to the contrary in the foregoing, Confidential
Information does not include, and this Section 15 will not apply to, any information that Service Provider and Customer, as Receiving Party, can demonstrate was: 
 (a) at the time of disclosure to it, in the public domain; 
 (b) after disclosure of it, published or otherwise becomes part of the public domain through no fault of the receiving party; 
 (c) in the possession of the receiving party at the time of disclosure to it; 
 (d) received after
disclosure to it from a third party who had a lawful right to disclose such information to it; 
 (e) independently developed by the
Receiving Party without reference to Confidential Information of the Disclosing Party; or 
 (f) is required to be disclosed pursuant to an
applicable law, rule, regulation, government requirement or court order, or the rules of any stock exchange (provided, however, that the Receiving Party shall advise the Disclosing Party of such required disclosure promptly upon learning thereof in
order to afford the Disclosing Party a reasonable opportunity to contest, limit and/or assist the Receiving Party in crafting such disclosure). 
 15.4. Loss of Confidential Information. In the event of any disclosure or loss of, or inability to account for, Confidential Information, the Receiving Party will notify the furnishing party immediately in writing. 
 15.5. Period of Confidentiality. Confidential Information disclosed pursuant to this Agreement will be subject to the terms of this Agreement for
three (3) years following the expiration or termination of this Agreement. 
 15.6. Business Associate Addendum. Concurrent with
the execution of this Agreement, the parties shall execute the Business Associate Addendums attached as Schedule M. 
 16. Human Resources 

 16.1. Affected Employees. 
 (a) As of the Closing, all individuals identified on Schedule J as Affected PLTC Employees (the “Affected PLTC Employees”) were formerly employed by PharMerica LTC and shall be employees of Service Provider as
of the Effective Date. The Affected PLTC Employees will be at-will employees of Service Provider subject to the same benefits and policies and procedures as other similarly situated employees of Service Provider and as may be in effect from time to
time. Service Provider will provide any Affected PLTC Employee who is terminated during such employee’s first year of employment by Service Provider, for any reason other than Cause, an amount equal to Customer’s severance package in
existence on the Effective Date, as set forth in further detail in Schedule J. The term “Cause” means an employee’s (i) failure to adequately render services, or fulfill duties, to Service Provider;
(ii)

  

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commission of any act of fraud or embezzlement; (iii) commission of, conviction of, or plea of nolo contendere to, any felony, financial crime or
any crime involving theft, fraud or moral turpitude; or (iv) material violation of any of the Service Provider’s policies. 
 (b)
As of the Closing, all individuals identified on Schedule J as Affected KND Employees (the “Affected KND Employees”) were formerly employed by Kindred or its subsidiary and shall be employees of Customer as of the
Effective Date. The Affected KND Employees will be at-will employees of Customer subject to the same benefits and policies and procedures as other similarly situated employees of Customer and as may be in effect from time to time. Customer will
provide any Affected KND Employee who is terminated during such employee’s first year of employment by Customer, for any reason other than Cause, an amount at least equal to Customer’s severance package in existence on the Effective Date,
as set forth in further detail in Schedule J. 
 16.2. Transfer of Personnel. After the Affected KND Employees and the Affected
PLTC Employees have been transferred, neither party shall directly or indirectly solicit for employment with it the personnel of the other party performing information services functions for such other party during the Term or the twelve
(12) months following termination or expiration of the Agreement. Notwithstanding the foregoing, a party (the “Employing Party”) may, at any time, hire any employee of the other party that responds to an indirect
solicitation aimed at the general public placed by such Employing Party (e.g., through the Employing Party’s Web-Site, a newspaper, magazine or trade journal advertisement). 
 16.3. Project Executives. 
 (a) The
Project Executives for each of Customer and Service Provider shall be the personnel identified in Schedule L (the “Project Executive”). Service Provider’s Project Executive shall be interviewed and approved (such
approval not to be unreasonably withheld) by Customer prior to commencing their tasks under this Agreement. 
 (b) During the employment of
the Project Executive with Service Provider, Service Provider shall cause Project Executive to provide Services under this Agreement to Customer for the earlier of (i) eighteen (18) months from the date of the Project Executive’s
employment to provide Services under this Agreement, or (ii) the termination or expiration of this Agreement, unless the Agreement terminates earlier or the person earlier resigns from employment; is dismissed from employment with the Service
Provider in any capacity; fails to perform his obligations; or is unable to work. Before assigning an individual to a Project Executive position, whether as an initial assignment or a subsequent assignment, Service Provider shall notify Customer of
the proposed assignment, shall introduce the individual to Customer’s Project Executive, and shall, to the extent permissible under applicable law, provide Customer with a resume and other information (excluding the individual’s personnel
file) about the individual reasonably requested by Customer. If Customer objects to the proposed assignment within ten (10) working days after being notified thereof, then Service Provider agrees to discuss such objections with Customer and
attempt to resolve such concerns on a mutually agreeable basis. If the parties have not been able to resolve Customer’s concerns within five (5) additional working days, Service Provider shall not assign the individual to that 

  

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position and shall propose to Customer the assignment of another individual of suitable ability and qualifications. 
 (c) Service Provider shall not permit Service Provider Project Executive to provide services that are reasonably similar to the Services being provided
by Service Provider to Customer under this Agreement for the benefit of any Competitor, during the Term and for a period of no less than one (1) year following the termination or expiration of this Agreement, assuming Service Provider Project
Executive continues to be employed by Service Provider during such period. Service Provider is permitted to provide any Services, including services reasonably similar or the same as the Services, to other businesses of Service Provider and its
Affiliates; provided, however, that Service Provider shall not (i) use or disclose any Confidential Information of Customer; or (ii) violate the terms of Section 11.7 of this Agreement. 
 16.4. Replacement, Qualifications, and Retention of Service Provider Personnel. In the event that Customer determines in good faith that Service
Provider personnel who provide Services on site at the Service Locations have violated Customer’s customary safety, security or other material policies and procedures, Customer may give Service Provider written notice to that effect requesting
that the employee be replaced and including an explanation of the basis for Customer’s determination. Promptly after its receipt of such a request by Customer, Service Provider shall investigate the matters stated in the request and take
reasonably appropriate action in accordance with the Governance process. 
 16.5. Use of Subcontractors and Third Parties. 

(a) Service Provider may utilize subcontractors or third parties who are not Competitors of Customer in connection with the provision of Services under
the Agreement; provided, however, that Service Provider shall remain fully liable for the performance of the Services under the Agreement and shall be responsible for any failure by any subcontractor or third party (or personnel of
either) to perform in accordance with the Agreement or to comply with any duties or obligations imposed on Service Provider under the Agreement to the same extent as if such failure to perform or comply was committed by Service Provider or any
Service Provider employee. 
 (b) Service Provider shall periodically consult with Customer to review the use of subcontractors or third
parties in connection with the provision of Services under the Agreement. If Customer objects to the use of any subcontractors or third parties on any significant project, Customer may request that Service Provider seek available alternatives to
replace the subcontractors or third parties with appropriate staffing. Service Provider shall use Commercially Reasonable Efforts in connection with its staffing. 
 17. Taxes 
 17.1. Each party shall be responsible for any personal property taxes on property it owns or leases, for
franchise and privilege taxes on its business and for taxes on its net income or gross receipts and for all taxes, assessments, and other levies on its owned or leased real property. 
  

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 17.2. Subject to Section 8 of this Agreement, Service Provider shall be responsible for any
sales, use, excise, value-added, and other taxes and duties payable by Service Provider (such taxes, collectively the “Transaction Taxes”) on any goods or services included or consumed by Service Provider in providing the
Services where the tax is imposed on Service Provider’s acquisition or use of such goods or services and the amount of tax is measured by Service Provider’s costs in acquiring such goods or services. 
 17.3. Customer shall reimburse Service Provider for any Transaction Taxes during the Term of this Agreement that are assessed on the provision of the
Services as a whole or on any particular Service received by Customer from Service Provider or on the use of Equipment or other assets owned by Customer. If such Transaction Taxes relate to an Allocated Cost, any such reimbursement shall be
proportionate to the Allocated Cost. 
 17.4. In the event that Service Provider is entitled not to charge any Transaction Taxes as a result
of Customer providing a certification of an exemption from Transaction Taxes, the Service Provider will not add any Transaction Taxes covered by the exemption certificate to the price or fees for Services hereunder nor include it on the related
invoice. For the avoidance of doubt, if in these circumstances a taxing authority subsequently assesses Service Provider for such Transaction Taxes, Customer will pay such Transaction Taxes to the Service Provider upon Service Provider issuing a
proper invoice, and Customer will reimburse Service Provider for any related penalties and/or interest and/or surcharges levied on Service Provider. 
 17.5. Customer shall be responsible for any Transaction Taxes on any products it acquires for its own use or use by Service Provider. 
 18. Governance 
 Service Provider and Customer shall cooperate to establish governance processes
pertaining to their performance under this Agreement. Such processes shall be set forth in a written document entitled “Governance” which, once executed by the parties, shall be attached hereto as Schedule H.

 19. Audits 
 19.1. General.
Service Provider shall provide to Customer, its auditors (including outside and internal audit staff), inspectors, regulators and other representatives, as Customer may from time to time designate in writing, access at all reasonable times and after
no less than twenty-four (24) hours prior written notice, to the parts of any facility at which Service Provider is providing the Services. Service Provider will also provide access, at mutually agreeable times, to the Service Provider
personnel (including Service Provider subcontractors) providing the Services, and to the data and records relating to the Services for the purpose of performing audits and inspections of Customer and its businesses, to verify the integrity of data
owned by Customer, to examine the systems that process, store, support and transmit that data, and to examine Service Provider’s performance of the Services hereunder to assist Customer, among other things, in meeting its Sarbanes-Oxley
certification requirements. The foregoing audit rights shall include, to the extent applicable to the Services performed by Service Provider and to the charges therefore, audits of (i) practices and procedures, (ii) systems and all
supporting 

  

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documentation, (iii) all application and general controls and security practices and procedures, (iv) disaster recovery and backup procedures, and
(v), as described in Section 19.2 below, costs (including direct third party costs) serving as a basis for charges of Service Provider in performing the Services (but only to the extent affecting cost-based charges for the Services), as
well as any audits necessary to enable Customer to meet applicable regulatory requirements. Service Provider shall use Commercially Reasonable Efforts to provide to such auditors, inspectors, regulators, and representatives such assistance as they
reasonably require, including, without limitation, in testing Customer’s data file and programs, and installing and operating audit software and tools, as reasonably requested by Customer. Service Provider shall use Commercially Reasonable
Efforts to cooperate with Customer or their designees in connection with audit functions and with regard to examinations by regulatory authorities. 
 19.2. Audit of Charges. 
 (a) Service Provider shall maintain complete and accurate records of and supporting documentation
for the amounts billed and billable to and payments made by Customer hereunder, and shall maintain and retain such records in accordance with Service Provider’s record retention policy as this policy may be adjusted from time to time or in
accordance with Customer’s instruction provided to Service Provider in writing. Service Provider agrees to provide Customer with both paper and electronic documentation with respect to each invoice delivered under Section 9.1
sufficient to verify accuracy of such invoices. Customer and its authorized agents and representatives shall have access to such records for purposes of audit during normal business hours during the Term and during the period for which Service
Provider is required to maintain such records as set forth above. Customer may conduct audits under this Section 19.2 no more than twice in any twelve (12) month period. 
 (b) If Service Provider and Customer mutually agree upon the findings of such audit and if any audit or examination reveals that Service Provider’s
invoices for the audited period are not correct for such period, overcharges and undercharges shall be resolved as follows: (i) if an overcharge of more than five percent (5%) is found, Service Provider will credit Customer for such
overcharge amount on Customer’s next monthly invoice; and (ii) if an undercharge of greater than five percent (5%) is found, Service Provider will charge Customer for such undercharge amount on Customer’s next monthly invoice.

 (c) Service Provider may redact from its books, records and other documents provided to Customer and any third party participating in an
audit (i) any information that reveals the identity or confidential information of other customers of the Service Provider and (ii) any books, records or other documents to which the attorney-client or the attorney work privileges apply,
the provision of which, as determined by the Service Provider’s in-house counsel, may eliminate the privilege pertaining to such books, records or other documents. 
 19.3. Audit Findings and Reports. 
 (a) Following a Customer audit or examination, Customer shall conduct (in
the case of an internal audit), or request its external auditors or examiners to conduct, an exit conference with Service Provider to discuss the issues identified in the review. Following Customer’s request, Service Provider may in its sole
discretion, subject to Section 12.2, make 

  

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available promptly to Customer the results of any review or audit conducted by Service Provider or its Affiliates, or their contractors, agents or
representatives (including internal and outside auditors), relating to Service Provider’s operating practices and procedures to the extent relevant to the Services or Customer. Subject to Section 12.2, Service Provider has no
obligation to disclose to Customer any results of, or information relating to, any such review or audits and, in the event that Service Provider agrees to make available to Customer information in relating to such reviews or audits, the nature and
extent of any such information disclosed by Service Provider, and the terms upon which such information is disclosed, will be determined by Service Provider in its sole discretion. 
 (b) The parties agree that (i) audits shall not be performed on a contingent fee basis; (ii) audits shall not be performed by a competitor of
Service Provider; and (iii) auditors, inspectors, regulators and other representatives shall be required to comply with Service Provider’s reasonable security and confidentiality policies, including execution of a non-disclosure agreement.

 (c) Service Provider and Customer shall meet to review each Customer or regulatory audit report promptly after the issuance thereof and to
mutually agree upon the appropriate manner, if any, in which to respond to the changes suggested by such report. In the event changes are necessary, Service Provider shall cooperate with Customer to provide action and remediation plans in writing
within a reasonable time. 
 (d) Service Provider shall implement the requirements of Customer’s auditors and regulators. 
 19.4. Sarbanes-Oxley. Service Provider shall reasonably cooperate with Customer and its outside auditors to satisfy Sarbanes-Oxley requirements.

 20. Dispute Resolution 
 20.1.
Binding Arbitration. Prior to the initiation of any court action or proceeding under this Agreement to resolve any dispute, controversy or claim of any kind or nature arising under or in connection with this Agreement, including disputes as
to the creation, validity, interpretation, breach or termination of this Agreement (a “Dispute”) between the parties, the parties shall make a good faith effort to resolve any such disputes informally through negotiation
between representatives of the parties with decision-making power as outlined below. 
 If a Dispute arises, then within ten Business Days of
a written request by either party, the Project Executives of each party as identified on Schedule L shall meet and attempt to resolve the Dispute. If the Project Executives cannot resolve the Dispute within ten Business Days of the meeting,
then the Dispute shall be submitted to each party’s President. If the Presidents cannot resolve the Dispute within ten Business Days of the submission of the Dispute to them, then either party shall have the right to refer the Dispute to
arbitration (except for matters dealing with injunctive or equitable relief) and the Dispute shall be resolved by arbitration in Chicago, Illinois in accordance with the Arbitration Rules of the American Arbitration Association for the time
being in force, which rules are deemed to be incorporated by reference in this Section. The decision or award of the arbitral tribunal shall be final and binding 

  

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upon both parties, shall not be appealable, and shall be enforceable in any court of competent jurisdiction. For critical service issues, all time
frames pertaining to the pre-arbitration dispute resolution process shall be reduced from ten Business Days to five Business Days.  
 A party seeking injunctive or equitable relief as the result of a Dispute shall first inform the President of the other party. If the Presidents are unable to resolve the Dispute within five (5) days of the submission to them of the
Dispute, the aggrieved party shall be entitled to seek such relief in a court of competent jurisdiction. 
 20.2. Continued
Performance. Each party agrees to continue performing its obligations under this Agreement while any dispute is being resolved unless and until such obligations are terminated by the termination or expiration of this Agreement; provided,
however, that Customer shall place in an interest-bearing escrow account (with an escrow agent mutually agreed upon by the parties) payments in Dispute for Services which total at least One Hundred Thousand Dollars ($100,000) in the aggregate.
The parties will allocate the money in the escrow account based on the resolution of the Dispute. 
 20.3. Technology Escrow.
Concurrent with execution of this Agreement, Service Provider and Customer shall execute the comprehensive preferred escrow agreement attached hereto as Schedule N (the “Technology Escrow Agreement”). 
 21. Termination 
 21.1. For Cause. Subject to
the cure periods set forth below, in the event that either party materially breaches any of its material duties or obligations under this Agreement, the non-breaching party may, by giving thirty (30) days written notice of such breach thereof
to the breaching party, terminate this Agreement, as to all or a portion of the Services, for cause. If the non-breaching party elects to terminate this Agreement for cause as to a portion of the Services pursuant to its termination rights under
this Agreement, the parties will negotiate in good faith and implement an equitable adjustment to this Agreement to accommodate such termination. The breaching party shall have thirty (30) days after written notice of its material breach to
cure such breach; or with respect to a breach that the breaching party demonstrates to the reasonable satisfaction of the non-breaching party cannot with due diligence be cured within thirty (30) days of notice thereof, the breaching party
shall: (1) proceed promptly and diligently to correct the breach, (2) develop within thirty (30) days of notice of breach a mutually agreed to and complete plan for curing the breach, and (3) cure the breach within sixty
(60) days of notice thereof. 
 21.2. Change in Control Event. If the Service Provider has a Change in Control Event and the
party acquiring control of Service Provider is a Competitor, then Customer may terminate the Agreement by providing written notice to the Service Provider within ninety (90) days following the closing of such Change in Control Event.

 21.3. Termination for Insolvency. In the event that either party (a) files for bankruptcy; (b) becomes or is declared
insolvent, or is the subject of any unchallenged proceedings related to its bankruptcy, liquidation, insolvency, moratorium, or the appointment of a receiver or similar officer for it, or for a winding-up or for the dissolution or reorganization
(other than a solvent reorganization); (c) makes an assignment for the benefit of all or substantially all of its creditors; 

  

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or (d) enters into an agreement for the composition, extension, or readjustment of substantially all of its obligations, then the other party may, by
giving written notice of termination to the first party, terminate the Agreement as of a date specified in such notice of termination or, if not specified, thirty (30) days after the date of such notice. 
 21.4. Termination/Expiration Assistance. Commencing on the effective date of termination or expiration of this Agreement, as the case may be, and
continuing for a period of one hundred eighty (180) days, Service Provider shall provide to Customer, or at Customer’s request to Customer’s designee, the reasonable termination/expiration assistance requested by Customer to allow the
Services to continue without interruption or adverse effect and to facilitate the orderly transfer of the Services to Customer or its designee (“Termination/Expiration Assistance”). The Termination/Expiration Assistance shall
include the assistance described in Schedule I. Customer agrees to pay Service Provider for all such services under this Section 21.4 in accordance with Section 8 of this Agreement. Service Provider shall be obligated
to provide Termination/Expiration Assistance regardless of whether this Agreement is terminated in connection with a material breach by Customer, provided, that Customer (i) pays undisputed payments due under this Agreement; and (ii) makes
assurance of prompt payment or advance payment to Service Provider for the Termination/Expiration Assistance. 
 21.5. Use of Materials
Placed in Technology Escrow. To the extent that Service Provider Software and Service Provider Works placed in technology escrow in accordance with Section 6.1(b) and Section 20.3, is released pursuant to a release
condition in Exhibit C of the Technology Escrow Agreement, Customer may use such Service Provider Software to the extent permitted by Exhibit C of the Technology Escrow Agreement. 
 22. Limitation of Liabilities 
 22.1. Disclaimer of Liability. Neither party shall be liable to
the other party whether in contract or in tort (including breach of warranty, misrepresentation, negligence or strict liability in tort) for any indirect, special, punitive, exemplary, incidental or consequential losses or damages, including,
without limitation, loss of revenue, loss of customers or clients, loss of goodwill, or loss of profits, or any loss of business, howsoever caused, or arising in any manner from the Agreement and the performance or nonperformance of obligations
hereunder, regardless of whether either party has been advised of the possibility of such damages. 
 22.2. Liability Cap. Except as
set forth in Section 22.3 below, the maximum liability of either party for all claims as a result of or in connection with this Agreement and the transactions contemplated herein shall not exceed Fifteen Million Dollars ($15,000,000).

 22.3. Exclusions. The limitations on liability set forth in Section 22.2 above shall not apply to: any Damages
resulting from personal injury or property damage, amounts owed to Service Provider by Customer, tax obligations, Damages resulting from infringement claims, willful misconduct, gross negligence and intentional breaches of obligations under the
Agreement, Damages resulting from a breach of Section 11.2, Section 11.4, Section 11.7, Section 15, Section 25.2(e), Section 25.3(f) and Section 27.13 of this
Agreement, Damages resulting from violations of law or otherwise covered by insurance. 
  

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 23. Exclusive Remedies 
 The remedies set forth in the this Agreement are the exclusive remedy for any claims by or against Customer, on the one hand, or by or against Service Provider, on the other hand, arising as a result of or in
connection with the Agreement and the transactions contemplated herein except for the excluded claims set forth in Section 22.3 above. Notwithstanding the foregoing, Customer and Service Provider shall be entitled to injunctive relief
requiring specific performance by the other party, as the case may be, of Section 11, Section 15, Section 25.2(e), Section 25.3(f) and Section 27.13 of this Agreement. 
 24. Indemnification 
 24.1. By Customer.
Customer shall indemnify and hold harmless Service Provider, its Affiliates and its and their respective officers, directors, employees, managers, partners or agents against and from any and all damage, loss, liability and expense (including
reasonable expenses of investigation and reasonable attorneys’ fees and expenses in connection with any action, suit or proceeding whether involving a third party claim or a claim solely between the parties) (“Damages”)
actually incurred or suffered by Service Provider arising out of or in connection with any breach of the Agreement by Customer, except for such Damages caused by the gross negligence or willful misconduct of Service Provider or its affiliates or its
or their respective officers, directors, employees, managers, partners or agents. 
 24.2. By Service Provider. Service Provider shall
indemnify and hold harmless Customer, its Affiliates and its and their respective officers, directors, employees, managers, partners or agents against and from any Damages actually incurred or suffered by Customer arising out of or in connection
with any breach of the Agreement by Service Provider, except for such Damages caused by the gross negligence or willful misconduct of Customer or its affiliates or its or their respective officers, directors, employees, managers, partners or agents.

 24.3. Breach of Data Security. In addition to the indemnification obligations set forth in Sections 24.1 and 24.2
above, the parties hereby agree as follows: 
 (a) Customer shall indemnify, defend and hold harmless Service Provider, its Affiliates and its
and their respective officers, directors, employees, managers, partners or agents against and from any Damages actually incurred or suffered by Service Provider arising out of or in connection with Customer’s use of Customer Data and/or
Customer’s breach of its obligations under Section 11 of this Agreement, except for such Damages caused by the gross negligence or willful misconduct of Service Provider or its affiliates or its or their respective officers, directors,
employees, managers, partners or agents. Such Damages may include, without limitation, (i) the actual verifiable cost, if any, of notification of all persons affected by such breach of Section 11; and (ii) the actual verifiable cost,
if any, to mitigate the effect of any such breach of Section 11. 
 (b) Service Provider shall indemnify, defend and hold harmless
Customer, its Affiliates and its and their respective officers, directors, employees, managers, partners or agents against and from any Damages actually incurred or suffered by Customer arising out of or in connection with Service Provider’s
use of Customer Data and/or Service Provider’s breach of 

  

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its obligations under Section 11 of this Agreement, except for such Damages caused by the gross negligence or willful misconduct of Customer or its
affiliates or its or their respective officers, directors, employees, managers, partners or agents. Such Damages shall include, without limitation, (i) the actual verifiable cost, if any, of notification of all persons affected by such breach
of Section 11; and (ii) the actual verifiable cost, if any, to mitigate the effect of any such breach of Section 11. 
 24.4.
Procedures. A party seeking indemnification under the Agreement (the “Indemnified Party”) shall give prompt notice to the party against whom indemnity is sought (the “Indemnifying Party”) of the
assertion of any claim, or the commencement of any suit, action or proceeding (each, a “Claim”) in respect of which indemnity may be sought under and will provide the Indemnifying Party such information and documents with
respect thereto that the Indemnifying Party may reasonably request. The failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligations, except to the extent such failure shall have actually materially
prejudiced the Indemnifying Party. 
 The Indemnifying Party shall have the right, at its option, exercisable within 30 days after receipt of
such notice to assume the defense of, at its own expense and by its own counsel (which counsel shall be reasonably satisfactory to the Indemnified Party), any matter involving the asserted liability of the Indemnified Party (“Asserted
Liabilities”), subject to the limitations set forth herein. If the Indemnifying Party intends to compromise, settle or defend any such Asserted Liability, it shall promptly notify the Indemnified Party of its intention to do so, and the
Indemnified Party agrees to cooperate fully with the Indemnifying Party and its counsel in the compromise or settlement of, or defense against, any such Asserted Liability; provided, however, that the Indemnifying Party shall not settle any such
Asserted Liability without the written consent of the Indemnified Party unless such settlement (i) releases the Indemnified Party from all liabilities and obligations with respect to the Asserted Liability, (ii) does not contain a
stipulation to, or an admission or acknowledgement of, any wrongdoing (whether in tort or otherwise) on the part of the Indemnified Party, and (iii) does not impose a restriction on Indemnified Party’s business or an injunctive or other
equitable relief against the Indemnified Party. Notwithstanding an election by the Indemnifying Party to assume the defense of such action or proceeding, the Indemnified Party shall have the right to employ separate counsel and to participate in the
defense of such action or proceeding at its own expense. Notwithstanding anything herein to the contrary, the Indemnifying Party shall not be entitled to assume control of such defense but shall pay for the reasonable fees, costs and expenses of the
Indemnified Party’s legal counsel, which counsel shall be reasonably satisfactory to the Indemnifying Party, if (i) the claim for indemnification relates to or arises in connection with any criminal proceeding, action, indictment,
allegation or investigation, (ii) the Indemnified Party has been advised by counsel that a reasonable likelihood exists of a conflict of interest between the Indemnifying Party, on the one hand, and the Indemnified Party, on the other hand, or
(iii) the Indemnifying Party failed or is failing to prosecute or defend such claim. If the Indemnified Party intends to compromise, settle or defend any Asserted Liability in accordance with the immediately preceding sentence or after the
Indemnifying Party has declined to exercise its option to assume the defense of an Asserted Liability, the Indemnified Party shall promptly notify the Indemnifying Party of its intention to do so, and the Indemnifying Party agrees to cooperate fully
with the Indemnified Party and its counsel in the compromise or settlement of, or defense against, any such Asserted Liability; provided, however, that the Indemnified Party shall 

  

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not settle any such Asserted Liability without the written consent of the Indemnifying Party, which such consent shall not be unreasonably withheld.

 Each party shall cooperate, and cause their respective affiliates to cooperate, in the defense or prosecution of any Claim by a third
party and shall furnish or cause to be furnished such records, information and testimony, and attend such conferences, discovery proceedings, hearings, trials or appeals, as may be reasonably requested in connection therewith. 
 25. Representations and Warranties 
 25.1.
Disclaimer. EXCEPT AS SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND WHATSOEVER WITH RESPECT TO THE SERVICES, OR ANY SOFTWARE PROVIDED HEREUNDER, WHETHER EXPRESS OR IMPLIED, STATUTORY, OR BY
OPERATION OF LAW OR OTHERWISE, AND EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND SUITABILITY OF THE SERVICES.  
 25.2. By Service Provider. Service Provider hereby represents and warrants to Customer as follows: 
 (a) It is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware; 
 (b) It has the requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement; 
 (c) The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement have been duly
authorized by the requisite corporate actions; 
 (d) No approval, authorization or consent of any governmental or regulatory authority is
required to be obtained or made by it in order for it to enter into and perform its obligations under this Agreement; 
 (e) It will perform
its obligations under this Agreement in a manner that complies with all applicable laws, regulations, ordinances and codes and will, in accordance with this Agreement, obtain all applicable consents, permits and licenses required in connection with
its performance under this Agreement; 
 (f) It has not disclosed, and will not disclose, any Confidential Information of Customer;

 (g) It will perform the Services to be performed by Service Provider for Customer in accordance with industry standards and practices
applicable to the performance of the Services in a timely, competent and workmanlike manner; 
  

 -36- 

 (h) It will maintain the Services Equipment and the Services Software in accordance with the Service
Levels in a cost-efficient manner; 
 (i) The Service Provider Software does not, as of the Effective Date, infringe, or constitute an
infringement or misappropriation of, any Intellectual Property of any third party. 
 (j) It will use Commercially Reasonable Efforts to
ensure that the Service Provider Software used to provide the Services does not contain any virus or any other contaminant, including but not limited to codes, commands or instructions that may be used, without authorization, to access, alter,
delete, damage, disable, cause disruption of or otherwise interfere with Customer’s use of Services Software. Service Provide will implement appropriate safeguards to prevent users from using the Service Provider Software to gain access to
Customer IT environment, including, without limitation, the use of industry standard virus checking software; and 
 (k) It will provide the
Services, the Services Equipment, if applicable, and the Service Provider Software in a manner which complies with Service Provider’s documentation. 
 25.3. By Customer. Customer hereby represents and warrants to Service Provider as follows: 
 (a) It is
a corporation duly organized, validly existing and in good standing under the laws of State of Delaware; 
 (b) It has the requisite
corporate power and authority to execute, deliver and perform its obligations under this Agreement; 
 (c) The execution, delivery and
performance of this Agreement and the consummation of the transactions contemplated by this Agreement have been duly authorized by the requisite corporate actions; 
 (d) It has not disclosed, and will not disclose, any Confidential Information of Service Provider; 
 (e) No
approval, authorization or consent of any governmental or regulatory authority is required to be obtained or made by it in order for it to enter into and perform its obligations under this Agreement; and 
 (f) It will perform its obligations under this Agreement in a manner that complies with all applicable laws, regulations, ordinances and codes and will
obtain, in accordance with this Agreement, all applicable consents, permits and licenses required in connection with its performance under this Agreement. 
  

 -37- 

 26. Insurance and Risk of Loss 
 26.1. Insurance. Service Provider shall during the Term have and maintain the following insurance coverages: 
 (a) Worker’s Compensation Insurance, including occupational illness or disease coverage, or other similar social insurance in accordance with the laws of the country, state or territory exercising jurisdiction over the employee and
Employer’s Liability Insurance with a minimum limit of $1,000,000 per occurrence. This will include a waiver of subrogation for Customer and its subsidiaries. 
 (b) Commercial General Liability Insurance, including Contractual Liability and Broad Form Property Damage Liability coverage for damages to any property with a minimum combined single limit of $10,000,000 per
occurrence. This policy shall be endorsed to name Customer, its subsidiaries, partners, directors, officers, affiliates and employees, as additional insurers. 
 (c) Errors and Omissions Liability Insurance covering the liability for financial loss due to error, omission, or negligence of employees in an amount of $20,000,000. 
 The foregoing insurance coverages shall be primary and non-contributing with respect to any other insurance or self insurance which may be maintained by
Customer. These coverage requirements may be addressed by umbrella and/or excess policies. Service Provider shall cause its insurers to issue to Customer within fifteen (15) days following the Effective Date certificates of insurance evidencing
that the coverages and policy endorsements in (b) and (c) above required under this Agreement are maintained in force and provide Customer not less than thirty (30) days’ prior written notice of any material change to, or
cancellation or non-renewal of, the policies. The insurers selected by Service Provider shall be reputable and financially responsible insurance carriers with a Best’s rating of “A- VIII” (or any future equivalent) or higher and shall
be licensed in the state in which the Service Locations are located. 
 26.2. Risk of Loss. Each party shall be responsible for risk
of loss of and damage to, any Equipment, Software or other materials in its respective possession or under its control. 
 26.3. Waiver of
Subrogation. Each party waives and will require all of its insurers to waive all rights of recovery against the other party and its partners, directors, officers, affiliates and employees, whether in contract, tort (including negligence and
strict liability) or otherwise. 
 27. Miscellaneous 
 27.1. Assignment; Change of Control. Neither party may, or shall have the power to, assign this Agreement without the prior written consent of the other; provided, however, that either party may
assign its rights and obligations under this Agreement without the approval of the other party to any subsidiary or Affiliate or successor in connection with a Change of Control Event; provided, that in no event shall such assignment relieve such
party of its obligations under this Agreement. Subject to the foregoing, this Agreement shall be binding on the parties hereto and their respective successors and assigns. 
  

 -38- 

 27.2. Publicity. All media releases, public announcements and disclosures by either party relating
to this Agreement or the subject matter of this Agreement (collectively, “Publicity”), including promotional or marketing material (intended for external use), but not including announcements intended solely for internal
distribution or to meet legal or regulatory requirements, shall be coordinated with and approved by the other party prior to release. In no event shall either party use the other’s name, logo or mark in connection with any such Publicity
without the owner’s prior written consent. 
 27.3. Governing Law; Venue. This Agreement, and all of its provisions, shall be
governed by the laws of the State of New York, without regard to conflict of law principles. The venue for any action or proceeding (whether in connection with arbitration or litigation) to enforce or defend any matter arising from or related to
this Agreement shall be in the state of the executive offices of the party against whom the claim is brought. 
 27.4. Entire
Agreement. This Agreement, including any Schedules referred to herein and attached hereto, each of which is incorporated herein for all purposes, constitutes the entire agreement between the parties with respect to the subject matter hereof and
supersedes all prior agreements, whether written or oral, with respect to the subject matter contained in this Agreement. No change, waiver, or discharge hereof shall be valid unless in writing and signed by an authorized representative of the party
against which such change, waiver, or discharge is sought to be enforced. 
 27.5. Interpretation. When a reference is made in this
Agreement to a Section or Schedule, such reference shall be to a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated. The table of contents and headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement. Whenever the singular is used herein, the same shall include the plural, and whenever the plural is used herein, the same shall include the singular, where appropriate.
Words of one gender shall include the other gender, as the context requires. The terms “hereof,” “herein,” “hereunder,” and “herewith,” and words of similar import shall, unless otherwise stated, be construed
to refer to this Agreement and not to any particular provision of this Agreement. The word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise
specified. No provision of this Agreement will be interpreted in favor of, or against, any party hereto by reason of the extent to which any such party hereto 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. 
 27.6. Third-Party Beneficiaries. This Agreement is
entered into solely between, and may be enforced only by, Customer and Service Provider; and this Agreement shall not be deemed to create any rights in third parties, including suppliers and customers of a party, or to create any obligations of a
party to any such third parties. 
 27.7. Notices. All notices, requests, demands and determinations under this Agreement (other than
routine operational communications), shall be in writing and shall be deemed duly given (i) when delivered by hand, (ii) one (1) day after being given to an express courier with a reliable system for tracking delivery, (iii) when
sent by confirmed facsimile with a copy sent by another means specified in this Section 27.7, (iv) when sent by electronic mail with a copy sent 

  

 -39- 

 
by another means specified in this Section 27.7, or (v) six (6) days after the date of mailing, when mailed by United States mail,
registered or certified, return receipt requested, postage prepaid, and addressed as follows: 
  

			
	If to Service Provider:	  	 Kindred Healthcare Operating, Inc.
 680 South Fourth
Street
 Louisville, Kentucky 40202
 Attn: Richard E.
Chapman
  
 With a copy to: General Counsel

		
	If to Customer:	  	 PharMerica Corporation
 1901 Campus Place
 Louisville, Kentucky 40299
 Attn: Richard Toole
  
 With a copy to: General Counsel

 A party may from time to time change its address or designee for notification purposes by giving
the other prior written notice of the new address or designee and the date upon which it will be come effective. 
 27.8. Relationship of
the Parties. Service Provider, in furnishing services to Customer hereunder, is acting as an independent contractor. Neither party is an agent of the other party and has no authority to represent the other party as to any matters, except as
expressly authorized in this Agreement. This Agreement does not constitute a partnership or joint venture. Nothing contained herein shall render either party an agent of the other party or create any form of fiduciary relationship between the
parties or any form of legal association between the parties that would impose liability upon one for the act or failure to act of another. Neither party shall have the power, authority or right to act on behalf of, bind, or create any duty or
obligation for the other party or negotiate or conclude contracts on behalf of or in the name of the other party or impose any liability or obligation to third parties upon the other party. Neither party shall incur or accept any liability or enter
into any commitments or contracts on behalf of the other party. Neither party’s employees shall be considered employees or agents of the other party, nor shall have privileges given or extended to the other party’s employees. 

27.9. Survival. Upon expiration or termination of this Agreement, all rights and obligations hereunder will terminate except that
Sections 8, 9, 11, 15, 17, 20, 21.4, 21.5, 22, 23, and 24, and Schedules I and N, will continue to survive any expiration or termination of this
Agreement, and Sections 6.1, 6.2, 16.2 and 27, and Schedules B and H, shall survive any expiration or termination of this Agreement to the extent that it contemplates performance or observances
subsequent to termination or expiration of this Agreement. 
 27.10. Counterparts. This Agreement may be executed in any several
counterparts, all of which when taken together shall constitute one single agreement between the parties hereto. 
  

 -40- 

 27.11. Severability. In the event any provision of this Agreement conflicts with the laws under
which this Agreement is to be construed or if any such provision is held invalid, void or unenforceable by a court with competent jurisdiction or other authority, such provision shall be deemed to be restated to reflect as nearly as possible the
original intentions of the parties in accordance with applicable law. The remainder of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such a determination, 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 in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible. 
 27.12. Waiver of Default. A delay or omission by either party hereto to exercise any right or power under this Agreement shall not be construed to be a waiver thereof. A waiver by either of the parties hereto
of any of the covenants to be performed by the other or any breach thereof shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant herein contained. 
 27.13 Regulatory Access. Service Provider agrees that, until the expiration of four (4) years after the furnishing of any service pursuant to
this Agreement, it will make available, upon written request of the Secretary of Health and Human Services or the Comptroller General of the United States or any of their duly authorized representatives, copies of this Agreement and any books,
documents, records and other data of Service Provider directly related to this Agreement that are necessary to certify the nature and extent of charges for which Customer may seek reimbursement from the federal, state, or local government, subject
to reasonable confidentiality treatment (to the extent available). Service Provider further agrees that if Service Provider carries out any of its duties under this Agreement through a subcontract with a related organization involving a value or
cost of $10,000 or more over a twelve-month period, Service Provider will cause such subcontract to contain a clause to the effect that, until the expiration of four (4) years after the furnishing of any service pursuant to said contract, the
related organization will make available upon written request of the Secretary of Health and Human Services or the Comptroller General of the United States or any of their duly authorized representatives, the subcontract, and the books, documents
and records of said related organization that are necessary to certify the nature and extent of costs incurred by Service Provider for such services, subject to reasonable confidentiality treatment (to the extent available). Service Provider shall
give Customer notice promptly upon receipt of any request from the Secretary of Health and Human Services or the Comptroller General of the United States or any of their duly authorized representatives for disclosure of such information. 

 

 -41- 

 IN WITNESS WHEREOF, and intending to be legally bound, Customer and Service Provider have each caused
this Agreement to be signed and delivered by its duly authorized officers, all effective as of the date first set forth above. 
  

									
	SERVICE PROVIDER	 		 	CUSTOMER
					
	By:	 	 /s/ Gregory C. Miller
	 		 	By:	 	 /s/ Gregory S. Weishar

	Name:	 	Gregory C. Miller	 		 	Name:	 	Gregory S. Weishar
	Its:	 	 Senior Vice President Corporate
 Development and Planning

	 		 	Its:	 	CEO

  

 -42-Trademark License Agreement

 Exhibit 10.36 
 EXECUTION VERSION 
 KINDRED TRADEMARK LICENSE AGREEMENT 
 This TRADEMARK LICENSE AGREEMENT (“Agreement”), entered into this 31st day of July, 2007 (the “Effective Date”), is by
and between Kindred Healthcare, Inc., a Delaware corporation located at 680 South 4th Street, Louisville, KY 40202 (“Kindred”), and Kindred Pharmacy Services, Inc., a Delaware corporation located at 1901 Campus Place , Louisville, KY 40299
(“KPS”). 
 BACKGROUND 
 A. Kindred is the owner of the valuable trademarks, service marks, trade names, trade dress, designs, characters, logos, and internet domain names, as more particularly described on Exhibit A, attached hereto as may be modified, amended or
supplemented from time to time through the prior written agreement signed by the parties (collectively, the “Trademarks”); 
 B.
Kindred desires to utilize the substantial goodwill to maintain and develop opportunities through the licensing of the Trademarks together with any and all related advertising and promotional activities associated therewith; 
 C. KPS desires to use the Trademarks described on Exhibit A together with any and all related advertising and promotional activities associated
therewith; and 
 D. Because of the need to protect, promote and enhance the goodwill, image and reputation of the Trademarks, Kindred is
willing to grant KPS such rights only in accordance with the terms and conditions contained in this Agreement. 
 NOW THEREFORE, in
consideration of the promises and mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	1.	Grant of Rights. 

  

	 	1.1	Grant of License. (a) Kindred hereby grants to KPS a non-exclusive, revocable (in accordance with Section 10) license to use the Trademarks within the United
States. KPS shall at all times fulfill each of the obligations set forth in this Agreement. The rights granted in this Agreement are sometimes referred to herein as the “License.” All rights not expressly granted in this Agreement to KPS
are reserved by Kindred. 

  

	 	1.2	Transfer of License. KPS shall have no right to transfer, assign, or sublicense the License granted in Paragraph 1.1 without the express, prior written consent of Kindred,
which shall not be unreasonably withheld. This Agreement shall inure to the benefit of the permitted successors, assigns and sublicensees of KPS and the successors, assigns, and sublicensees of Kindred. For the purposes of this Paragraph 1.2, a
change in control shall not constitute an assignment. 

  

 1 

 EXECUTION VERSION 
  

	 	1.3	Limitations on Grant. Without expanding the foregoing, the License is limited by the following: 

  

	 	1.3.1	The License shall not be deemed to restrict or prohibit in any way Kindred’s right to use its Trademarks for its own marketing, advertising, promotion or other purposes which
may include the use of Kindred’s Trademarks by Kindred, its affiliates, agents, distributors, or customers for operations for services similar or identical. 

  

	 	1.4	Modifications of the Trademarks. KPS acknowledges that, from time to time and without notice to KPS, it may be necessary or desirable for Kindred to modify certain elements
of the Trademarks, to add elements to the Trademarks, or to discontinue use of some or all of the elements. Accordingly, Kindred does not represent or warrant that the Trademarks or any of their elements will be maintained or used in any particular
fashion. At Kindred’s option, any such new elements or modifications to existing elements occurring after the Effective Date may be included in the Trademarks. Upon receipt of notice from Kindred of such modification or discontinuance of any of
the Trademarks, KPS shall cease use of all discontinued and unmodified Trademarks and replace them (as applicable) with the modified versions. Any modification of any Trademark or reduction in the number of licensed Trademarks shall have no effect
on Paragraph 2 below. KPS acknowledges that Kindred is not obligated to provide it with a license for any trademarks that do not appear on Exhibit A currently or as may be modified in accordance with this Agreement. 

  

	2.	Compensation. In consideration of the rights granted herein, KPS shall pay to Kindred a license fee in the amount of one thousand dollars ($1,000), the sufficiency of which
is hereby acknowledged. 

  

	3.	Exploitation by KPS. 

  

	 	3.1	Use of the Trademarks. The License granted hereunder is merely permissive; KPS has the right, but not the duty or obligation, to use any of the Trademarks in commerce.
Provided however, that should KPS use any such Trademarks, in order to protect Kindred’s rights in the Trademarks, KPS shall meet the Quality Standards, as defined below, and shall do so in a manner which is consistent with Kindred’s then
current marketing practices and objectives for the promotion. Except as set forth in Section 9, KPS shall bear all costs in connection with such activities, including but not limited to market research, advertising, product development, and any
costs incurred relating to all advertising and promotional materials. 

  

	 	3.2	Legal Clearance. It shall be the sole obligation of KPS to ensure that the marketing and promotion with respect to the Trademarks comply with all applicable laws, rules and
regulations. 

  

 2 

 EXECUTION VERSION 
  

	4.	Quality Standards. 

  

	 	4.1	Standard of Quality. To protect, promote, and enhance the image, goodwill, and reputation of the Trademarks, KPS shall meet or exceed the following standards (collectively,
the “Quality Standards”): 

  

	 	4.1.1	KPS must conform to the commercially reasonable quality standards approved by Kindred, who reserves the right to modify such quality standards from time to time by giving written
notice to KPS; 

  

	 	4.1.2	KPS must comply fully with all applicable laws and regulations and the intellectual property notice requirements identified in Paragraph 5; and 

  

	 	4.1.3	KPS must produce goods and/or provide services that have such style, appearance, and quality as to be adequate and well suited for exploitation in accordance with the purposes of
this Agreement and in no way reflect adversely upon the image, goodwill, and reputation of Kindred or the Trademarks. 

  

	 	4.2	Determinations. Determinations as to whether any item or activity meets the Quality Standards shall be made solely by Kindred in the exercise of its reasonable discretion.

  

	 	4.3	Right of Approval. Kindred shall have the right to review and approve any advertisements, promotional materials, or other items created under the Trademarks, which approval
shall not be unreasonably withheld. 

  

	 	4.4	Right of Inspection. Kindred has the right to inspect KPS’s premises at any location in which KPS uses the Trademarks to ensure compliance with the Quality Standards
upon 3 business days’ prior written notice. If KPS fails to meet the Quality Standards at any time, then Kindred shall not thereafter be required to provide notice prior to an inspection. 

  

	 	4.5	Failure to Meet Quality Standards. If KPS fails to meet the Quality Standards or fails to maintain the Quality Standards throughout the Term, then, upon receipt of written
notice from Kindred, KPS shall have 60 days in which to cure the deficiency, or to satisfy Kindred that reasonable steps to do so have been and are being taken to cure the deficiency within a period of time acceptable to Kindred (in either case, the
“Notice Period”). If at the end of the Notice Period such deficiency still exists, as reasonably determined by Kindred, then KPS shall immediately discontinue any portion of use which Kindred has specified and in connection with which the
Quality Standards have not been met. 

  

	5.	Product Notices. 

  

	 	5.1	Intellectual Property Notices. All marketing or advertising material on which any of the Trademarks appear shall contain such legends, markings, and/or notices as

  

 3 

 EXECUTION VERSION 
 are reasonably required from time to time by Kindred and as described on Exhibit A. Such legends, markings and/or notices must be clearly visible and unaltered in any way. 
  

	 	5.2	No Other Markings or Legends. Without first obtaining Kindred’s prior written approval, KPS shall use no other markings, legends, and/or notices in connection with the
use of the Trademarks other than as specified above, and such other markings, legends, and/or notices as may from time to time be specified by Kindred. 

  

	6.	Ownership and Control of the Trademarks. 

  

	 	6.1	Exclusive Property of Kindred. With respect to the Trademarks, including all related rights and goodwill, which shall inure solely to Kindred’s benefit, KPS acknowledges
and agrees that: 

  

	 	6.1.1	The Trademarks are Kindred’s exclusive property and are distinctive or have acquired distinctiveness; 

  

	 	6.1.2	KPS shall not acquire rights or any other interest therein without Kindred’s prior written consent; 

  

	 	6.1.3	KPS shall not challenge, attack, or contest the ownership or validity of Kindred’s rights in the Trademarks or its respective applications or registrations;

  

	 	6.1.4	KPS shall not apply for, or be the assignee of, any trademark protection which would affect any of Kindred’s rights in the Trademarks, or file any document with any
governmental authority, or take any other action which could affect Kindred’s ownership of the Trademarks, or aid or abet anyone else in doing so; 

  

	 	6.1.5	KPS shall not commit any act or engage in any conduct which adversely affects the Trademarks or any other trademarks, logos, or copyrighted material of Kindred that relate to the
Trademarks; and 

  

	 	6.1.6	This Agreement shall in no way be construed as an assignment to KPS of any right, title, and/or interest in and to the Trademarks. 

  

	 	6.2	Registration by Kindred. Kindred has the exclusive right, but not the obligation, to obtain at its own cost, appropriate trademark protection for the Trademarks or any
portion thereof whether or not inside the United States. 

  

	 	6.3	Compliance with Trademark Laws. The License granted under this Agreement is conditioned upon KPS’s full and complete compliance with the provisions of the trademark and
other applicable laws, rules and regulations of the United States, 

  

 4 

 EXECUTION VERSION 
 the Commonwealth of Kentucky, and any other federal, state, or local governmental authority within the United States. 
  

	 	6.4	Use of Similar Marks and Works. If KPS has obtained or obtains, in any country, any right, title, or interest (including the filing of any application for registration or the
issuance of any registration) in any of the following: 1) mark which is confusingly similar to, or a translation and/or transliteration of, any of the Trademarks; or 2) print, pattern, design, or “work” as defined under the U.S. Copyright
Act, which is substantially similar to, or a derivative version of, any of the Trademarks (collectively, “Related Marks & Works”), KPS shall so notify Kindred and agrees that it has acted or will act on and for Kindred’s
behalf. KPS further agrees to execute any and all instruments deemed by Kindred, its attorneys, or representatives to be reasonably necessary to transfer all of KPS’s right, title, or interest in the Related Marks & Works to Kindred.
Related Marks & Works shall be considered included in the defined term “Trademarks” for all purposes. 

  

	7.	Infringement 

  

	 	7.1	Control of Action. If a third party asserts that the Trademarks or the License (collectively, the “Rights”) infringe upon such third party’s rights, Kindred
shall take such action as is necessary to protect and validate the Rights including, without limitation, arbitration, mediation, litigation, or settlement. If a third party is infringing or threatens to infringe the Rights, as determined by Kindred,
Kindred may also take such action(s). If Kindred pursues any action, Kindred shall pay all costs and expenses, including attorneys’ fees, incurred in connection therewith and Kindred shall be entitled to receive and retain all amounts awarded
as damages, profits, or otherwise in connection with such suits. 

  

	 	7.2	Notice of Infringement. KPS shall promptly inform Kindred of any known actual or threatened infringement of the Trademarks. 

  

	 	7.3	Cooperation. KPS agrees to assist Kindred, at its own expense, to the extent necessary to allow Kindred to accomplish its objectives under this Paragraph. The parties may,
with the consent of the other party, prosecute such infringement in their own name, in the name of Kindred or KPS, or may join the other party as a party thereto. 

  

	8.	Representations and Warranties 

  

	 	8.1	Kindred’s Representations and Warranties. Kindred represents and warrants to KPS that: 

  

	 	8.1.1	Kindred has the full right, power, and authority to enter into and perform this Agreement. Kindred is not a party to any agreement or understanding which would conflict with this
Agreement. 

  

 5 

 EXECUTION VERSION 
  

	 	8.2	KPS’s Representations and Warranties. KPS represents and warrants to Kindred that: 

  

	 	8.2.1	KPS has the full right, power, and authority to enter into and perform this Agreement. KPS is not a party to any agreement or understanding which would conflict with this Agreement.

  

	 	8.2.2	All agreements entered into by KPS with third parties, and all activities engaged in by KPS regarding use and promotion of the Trademarks, shall in all respects conform to and be
consistent with the terms and conditions of this Agreement and Kindred’s rights under this Agreement. 

  

	 	8.3	Survival of Representations and Warranties. All representations and warranties of the parties made in, pursuant to, or in connection with this Agreement shall survive the
execution and delivery of this Agreement, notwithstanding any investigation by the parties. All statements contained in any certificate, document, instrument or other writing delivered by a party to this Agreement, or in connection with the
transactions contemplated by this Agreement, constitute representations and warranties under this Agreement. 

  

	9.	Indemnification 

  

	 	9.1	By KPS. KPS shall indemnify, protect, defend, and hold Kindred, including its assignees, parent, subsidiaries and affiliated companies, and the officers, directors,
employees, shareholders, agents, and representatives of each of them, free and harmless from and against any loss, damage, injury, demand, cost, expense, or claim of any kind or character, including but not limited to attorneys’ fees
(“Claim”) (collectively, “Indemnify”), arising out of or related directly or indirectly to any of the following: a) KPS’s unauthorized advertising or promotion of the Trademarks; b) KPS’s unauthorized use of the
Trademarks; c) any breach by KPS of its representations and warranties in this Agreement; and d) liability imposed on Kindred for any damage caused to any third party arising out of KPS’s use of Trademarks other than in accordance with this
Agreement. 

  

	 	9.2	By Kindred. Kindred shall indemnify, protect, defend, and hold KPS, including its permitted licensees, assignees, parent, subsidiary and affiliated companies, and the
officers, directors, employees, shareholders, agents, and representatives of each of them, free and harmless from and against any Claim arising out of any breach by Kindred of its representations and warranties in this Agreement.

  

	 	9.3	Limitation on Indemnity and Liability. 

  

	 	9.3.1	Except for Claims related to the Trademarks themselves, in any Claim where a duty to Indemnify may or will arise, the party who would be entitled to indemnity (the
“Non-Indemnifying Party”) shall not settle any such Claim, confess judgment, knowingly allow itself to be defaulted, or 

  

 6 

 EXECUTION VERSION 
  

	 	    	allow any judgment to be taken against the party potentially responsible for indemnification (the “Indemnifying Party”), without first: 

  

	 	A.	giving notice to the Indemnifying Party immediately upon becoming aware of the Claim; 

  

	 	B.	allowing the Indemnifying Party to participate meaningfully in the resolution and/or settlement of the Claim; and 

  

	 	C.	obtaining the Indemnifying Party’s prior written consent to any such settlement or consent judgment, such consent not to be unreasonably withheld or delayed.

 All payments, settlements, judgments, costs, and expenses, including attorneys’ fees, incurred in
connection with any settlement or judgment entered into or allowed without complying with the foregoing obligations shall be borne solely by the Non-Indemnifying Party. 
  

	 	9.3.2	Kindred shall have no liability to, nor any obligation to Indemnify, KPS for any Claim based on KPS’s: 

  

	 	A.	use of the Trademarks in any manner inconsistent with the terms and conditions of this Agreement; 

  

	 	B.	use of the Rights after Kindred’s written notice to KPS directing KPS to cease use of any portion thereof; 

  

	 	C.	unauthorized combination of the Rights with non-Kindred patterns, marks, designs, patents or other intellectual rights if a Claim based on such use could likely have been avoided
had such combination not occurred. (Any alleged authorization must be in writing.); or 

  

	 	D.	use of other than an authorized version of the Trademarks. 

 KPS hereby releases and discharges Kindred from any and all Claims arising under subparagraph 9.3.2, and KPS agrees to Indemnify Kindred from and against all such Claims, provided that such indemnity obligation shall not supersede, replace,
limit, or relieve any other obligations Kindred may have with respect to said Claim. 
  

	 	9.3.3	KPS shall have no liability to, nor any obligation to indemnify, Kindred for any Claim based on KPS’s use of the Trademarks in any manner consistent with the terms and
conditions of this Agreement. 

  

	10.	Term and Termination. Except as otherwise provided herein, this Agreement shall commence as of the Effective Date and shall continue in effect until December 31, 2007,
unless sooner terminated under the sub-provisions below: 

  

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	 	10.1	Immediate Right of Termination. Kindred may, at its option, upon written notice to KPS, immediately terminate this Agreement or any portion thereof if KPS does any of the
following: 

  

	 	10.1.1	Breaches any of the provisions of this Agreement relating to the unauthorized assertion of rights in the Trademarks; 

  

	 	10.1.2	Assigns or transfers this Agreement without Kindred’s consent as required in Paragraph 1.2, or any act by KPS which effects or constitutes an unauthorized sublicense to any
other party. 

  

	 	10.2	Right to Terminate on 60 Days’ Notice. If any of the following events shall occur, the non-breaching party may terminate this Agreement upon 60 days’ prior written
notice and such notice, which shall specify the nature of the breach, shall become effective unless the breaching party shall, within the 60-day notice period, completely remedy the breach, or satisfy the non-breaching party that such breach will be
cured in a period acceptable to the non-breaching party: 

  

	 	10.2.1	if KPS commits a material breach of any provision of this Agreement other than those covered by Paragraph 10.1; 

  

	 	10.2.2	if Kindred commits a material breach of any material provision of this Agreement; or 

  

	 	10.2.3	if KPS files a petition in bankruptcy or is adjudicated bankrupt or insolvent, or makes an assignment for the benefit of creditors, or an arrangement pursuant to any bankruptcy law,
or if KPS discontinues its business or if a receiver is appointed for KPS or for KPS’s business and such receiver is not discharged within 60 days. 

  

	 	10.3	Right to Terminate on Notice for Multiple Breach. Notwithstanding Paragraph 10.2, if KPS materially breaches this Agreement or fails to perform the same material obligation,
term, or condition of this Agreement for the third time within any 12 month period, for any reason, KPS shall forfeit the right to cure such third violation or failure to perform, and Kindred may terminate this Agreement immediately by giving
written notice to KPS. 

  

	 	10.4	Renewal. This Agreement is automatically renewable for consecutive terms of one year each unless either party serves written notice upon the other party within 30 days before
the expiration of the current term of the notifying party’s intention not to renew. 

  

	11.	Procedures and Application of Agreement upon Termination. Upon the expiration or termination of this Agreement for any reason, the following provisions shall govern:

  

	 	11.1	Reversion of Rights. All rights granted to KPS shall immediately revert to Kindred. KPS shall then refrain from further use of the Trademarks or any further

  

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 EXECUTION VERSION 
 reference to the Trademarks, either directly or indirectly, in connection with the marketing of KPS’s products and services. At Kindred’s request, KPS shall execute, acknowledge and deliver to Kindred at its
own expense such waivers, assignments or other documents as Kindred deems necessary or desirable to establish the relinquishment by KPS of any continuing right to use the Trademarks. 
  

	 	11.2	Limitation of Liability. Neither party shall be liable to the other for any loss of present or prospective profits from lost sales, investments, or loss of goodwill, or other
consequential damages resulting from the termination of this Agreement. 

  

	12.	Misuse of Kindred’s Rights. KPS acknowledges that Kindred is entering into this Agreement not only in consideration of the compensation but also for the promotional
value and goodwill to be secured by Kindred as a result of the use, advertising and promotion of the Trademarks. KPS agrees that the Trademarks are valuable and important intangible intellectual property rights of Kindred. Accordingly, KPS
acknowledges its breach of any of the material terms, conditions, warranties, and representations in this Agreement which results in the misuse of any of the Trademarks, or which results in the tarnishment or dilution of any of the Trademarks may
result in immediate and irreparable damage to Kindred and that Kindred would have no adequate remedy at law. Accordingly, KPS agrees that, in the event of any such breach by KPS, Kindred, in addition to all other remedies available to it, shall be
entitled to injunctive relief as well as such other relief as any court of competent jurisdiction may deem just and proper. 

  

	13.	Relationship Created. The parties acknowledge that in performing their obligations, each is acting as an independent contractor and the only relationship between the parties
is that of licensor and licensee of trademark rights. The parties do not intend to create any employment relationship nor a partnership and nothing in this Agreement shall be construed as to create a partnership, joint venture, franchise or other
similar arrangement between the parties. Neither party has the authority to enter into any agreement, make any warranty or representation on behalf of the other party, except where and to the extent specifically authorized to do so in writing.

  

	14.	Notices. Any notice, demand, or communication required or permitted to be given by any provision of this Agreement shall be deemed to have been sufficiently given or served
for all purposes if delivered personally to the party or to any executive officer of the party to whom the same is directed or, if sent by facsimile, cable, registered or certified mail, or by other recognized mail carriers, postage and charges
pre-paid, addressed to the party’s address, as appropriate, which is set forth in this Agreement, or as otherwise directed by notice. Any such notices sent by mail or recognized mail carriers shall be deemed to be given on the date the
transmitting agency received said notice from the sending party as noted by the transmitting agency on the outside of the container used for transmitting, without regard to whether such notice is actually received. 

 Either party may change its address for purposes of this Paragraph by giving the other party written notice of the new address in the manner set forth
above. Any other routine 
  

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 EXECUTION VERSION 
 communication in the regular course of business between the parties may be by any commercially reasonable means. 
  

	15.	Miscellaneous. 

  

	 	15.1	Further Assurances and Cooperation. Each party agrees to execute and deliver to the other party such other instruments, documents, and statements, including without
limitation, instruments and documents of recordation, assignment, transfer, conveyance, and clarification and take such other action as may be reasonably necessary or convenient in the discretion of the requesting party to carry out more effectively
the purposes of this Agreement. Unless otherwise provided above, no consent or approval provided for in this Agreement may be unreasonably withheld or delayed. 

  

	 	15.2	Force Majeure. Neither party to this Agreement shall be held liable for failure to comply with any of the terms of this Agreement when such failure is caused solely by
earthquake, fire, riot, water, labor dispute, strike, war, insurrection, government restrictions, act of God, or other force majeure beyond the control and without fault on the part of the party involved, provided such party uses due diligence to
remedy such default. 

  

	 	15.3	Effect of Headings. The subject headings of the Paragraphs of this Agreement are included for purposes of convenience only, and shall not affect the construction or
interpretation of any of its provisions. 

  

	 	15.4	Incorporation. The background recitals and all exhibits and schedules attached to this Agreement, if any, are incorporated into the Agreement by this reference.

  

	 	15.5	Entire Agreement; Modification; Waiver. This Agreement, including the Recitals and any attached schedules and exhibits, constitutes the entire agreement between the parties
pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements, representations, and understandings of the parties. Each of the parties acknowledges that no other party, nor any agent or any attorney of any
other party, has made any promise, representation, or warranty whatsoever, express or implied, and not contained herein, concerning the subject matter hereof to induce said party to execute or authorize the execution of this Agreement, and
acknowledges that said party has not executed or authorized the execution of this instrument in reliance upon any such promise, representation, or warranty not contained herein. No supplement, modification, or amendment of this Agreement shall be
binding unless executed in writing by both parties. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any future or other provision, whether or not similar, nor shall any waiver constitute a
continuing waiver. No waiver shall be implied, whether by custom or course of dealing, and shall be binding only if executed in writing by the party making the waiver. 

  

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 EXECUTION VERSION 
  

	 	15.6	Election of Remedies. The remedies provided for herein are not exclusive of any other lawful remedies which may be available, and a party’s choice election of a remedy
shall not constitute an exclusive election of remedies. 

  

	 	15.7	Payment of Expenses. Each party hereto shall pay its own expenses incidental to the preparation, negotiation, execution, and consummation of this Agreement, including,
without limitation, its outside consultants, agents, auditors, and attorneys, and shall not make a claim to the other party for reimbursement, whether or not the transaction is consummated. 

  

	 	15.8	Counterparts. This Agreement may be executed contemporaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. 

  

	 	15.9	Parties In Interest. Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any person
other than the parties to it and their respective permitted successors and assigns, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third persons to any party to this Agreement, nor shall any
provision give any third persons any right to subrogation or action against any party to this Agreement. 

  

	 	15.10	Recovery of Costs. If any legal action or any arbitration or other proceeding, including any bankruptcy proceeding, regardless of whether such action is asserted on the basis
of contract, tort (including negligence or strict liability), or otherwise, is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default, or misrepresentation in connection with any of the provisions of this
Agreement, the negotiation of this Agreement, or the conduct of the parties under it, the successful or prevailing party shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition
to any other relief to which it or they may be entitled. “Prevailing party” within the meaning of this Paragraph includes, without limitation, a party who agrees to dismiss an action or proceeding upon the other’s payment of sums
allegedly due or performance of covenants allegedly breached, or who obtains substantially the relief sought by it. 

  

	 	15.11	Governing Law. This Agreement shall be construed in accordance with, and governed by, the laws of the Commonwealth of Kentucky, without reference to or application of its
conflict of laws principles, and except as to patent, trademark, and copyright issues where applicable U.S. federal law shall apply. 

  

	 	15.12	Consent to Jurisdiction. KPS hereby consents to and forever waives any objection to the exclusive jurisdiction and venue of a state or Federal court of competent jurisdiction
in Louisville, Kentucky with respect to any dispute arising under this Agreement. 

  

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 EXECUTION VERSION 
  

	 	15.13	Severability. Should any provision or part of any provision of this Agreement be void or unenforceable, such provision, or part of it, shall be deemed omitted, and this
Agreement, with such provision or part omitted, shall remain in full force and effect, unless such omission shall adversely affect the spirit and intent of this Agreement. 

  

	 	15.14	Construction. No provision of this Agreement shall be construed in favor of or against any party on the ground that such party or its counsel drafted the provision. The
language used herein, unless defined specifically, shall be construed according to its reasonable and customary meaning in the United States. 

  

	 	    	Terms of art used in this Agreement which are not defined herein shall be defined as commonly understood in the United States licensing industry for similar products/services. In
the event of a breach, this Agreement may be specifically enforced. This Agreement shall at all times be construed so as to carry out its stated purposes. 

  

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 EXECUTION VERSION 
 IN WITNESS WHEREOF, the parties to this Agreement have duly executed it. 
  

									
	KINDRED HEALTHCARE, INC.	 		 	KINDRED PHARMACY SERVICES, INC.
					
	By:	 	 /s/ Gregory C. Miller
	 		 	By:	 	 /s/ Gregory S. Weishar

	Title:	 	 Senior Vice President Corporate
 Development and
Financial Planning
	 		 	Title:	 	CEO
					
	Address:	 	680 South Fourth Ave., Louisville, KY 40202	 		 	Address:	 	1901 Campus Place, Louisville, KY 40299
			
	Date: 7/25/07	 		 	Date: 7/26/07

  

 13 

 EXECUTION VERSION 
 EXHIBIT A: TRADEMARKS 
  

					
	 DESCRIPTION OF THE MARK
	  	 STATUS OF THE MARK

	1.	  	 Miscellaneous design (Kindred design):
  
 

	  	U.S. Reg. No. 2,680,685
			
	2.	  	KINDRED PHARMACY SERVICES	  	Unregistered
			
	3.	  	KPS	  	Unregistered
			
	4.	  	www.kps-rx.com	  	Internet Domain Name

 ** Use of any of the Trademarks in No. 1 above shall include the Symbol “®”

 ** Use of any of the Trademarks above shall include the following legend: “The mark(s) [insert applicable Trademarks] is/are owned
and licensed by Kindred Healthcare, Inc.” 
  

 14

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