Document:

Exhibit 10.7

 

LOAN AND SECURITY MODIFICATION AGREEMENT

 

This Loan and Security Modification Agreement is entered into as of July 1, 2016 by and between WESTERN ALLIANCE BANK, as successor in interest to Bridge Bank, National Association (“Bank”), and CAREKINESIS, INC. (“CareKinesis”), TABULA RASA HEALTHCARE, INC., (“Parent”), CAREVENTIONS, INC., (“Careventions”), CAPSTONE PERFORMANCE SYSTEMS, LLC, (“Capstone”), J. A.  ROBERTSON, INC. (“Robertson”) and MEDLIANCE LLC (“Medliance”). Parent, CareKinesis, Careventions, Capstone, Robertson and Medliance are each referred to herein as a “Borrower”, and collectively, as the “Borrowers”.

 

1.                                      DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may be owing by Borrowers to Bank, Borrowers are indebted to Bank pursuant to, among other documents, a Loan and Security Agreement, dated April 29, 2015 by and between Borrowers and Bank, as may be amended from time to time (the “Loan and Security Agreement”).  Capitalized terms used without definition herein shall have the meanings assigned to them in the Loan and Security Agreement.

 

2.                                      DESCRIPTION OF CHANGE IN TERMS.

 

A.                                    Modification(s) to Loan and Security Agreement:

 

(1)                                 Any reference to Bridge Bank, NA or Bridge Bank, National Association is hereby modified to read as Western Alliance Bank, an Arizona corporation, as successor in interest to Bridge Bank, National Association.

 

(2)                                 The following definitions are added to Section 1.1:

 

“Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any business or division of a Person, (b) the acquisition of one hundred percent (100%) of the equity interests of any Person or otherwise causing any Person to become a Subsidiary of a Borrower, or (c) a merger or consolidation or any other combination with another Person.

 

“First Amendment Date” means July 1, 2016.

 

“Liquidity Event” means any one of the following: (i) the sale or other disposition of all or substantially all of Borrowers’ assets (other than to another Borrower), (ii) a Change in Control, (iii) Parent’s underwritten initial public offering of its securities registered under the Securities Act of 1933, as amended, or (iv) the repayment of all Obligations (other than inchoate indemnity obligations) owing to Bank.

 

“Permitted Acquisition” means any Acquisition approved in writing by the Bank in its sole discretion; provided, that (a) no default or Event of Default shall have occurred and be continuing or would result from the consummation of the proposed Acquisition, (b) the Target is in the same, similar or complimentary line of business as the Borrowers, (c) EBITDA of the Target is greater than $0, (d) the proposed Acquisition is consensual, (e) no Indebtedness will be incurred, assumed or would exist with respect to Parent and its Subsidiaries (including the Target) as a result of such Acquisition, other than Summit Lender Debt and Permitted Debt, and no Liens will be incurred, assumed, or would exist with respect to the assets of Parent and its Subsidiaries (including the Target) as a result of such Acquisition other than Permitted Liens, (f) the Parent Borrower will be in compliance with the financial covenants in Section 6.10 on a pro forma basis, (g) the Agent shall have received (i) at least 30 days prior to the consummation of the intended Acquisition, a description of the proposed

 

 

Acquisition, (ii) at least 20 days prior to the consummation of the intended Acquisition Agreement, pro forma consolidated projections with respect to the proposed Acquisition, historical financial information for the Target, due diligence materials prepared for any Borrower, a quality of earnings report (if obtained) and drafts of the acquisition agreement (together with all exhibits and schedules thereto and, to the extent required in the acquisition agreement, all required regulatory and third party approvals) and (iii) on or prior to the date the Acquisition is consummated, a certificate of a Responsible Officer of the Parent Borrower with reasonably detailed calculations of item (f) and attaching the executed acquisition agreement, (h) the Target is not organized or domiciled in any jurisdiction outside of the United States and (i) all actions required of the Target and the Borrowers by Section 6.12 shall be completed substantially concurrently with the consummation of the Acquisition.

 

“Summit Credit Agreement” means the Credit Agreement, dated as of July 1, 2016, as amended, amended and restated, supplemented or otherwise modified from time to time, among the Borrowers, the lenders party thereto from time to time and ABC Funding, LLC, as administrative agent and collateral agent.

 

“Summit Lender Debt” means “Lender Debt” as defined in the Summit Credit Agreement.

 

“Target” means any other Person or business unit or asset group or any other Person acquired or proposed to be acquired in an Acquisition.

 

(3)                                 The following definitions in Section 1.1 are amended and restated in their entirety to read as follows:

 

“Borrowing Base” means as of any date an amount equal to (a) (i) from the First Amendment Date through March 31, 2017, Borrowers’ trailing four (4) months of Monthly Recurring Revenue from Eligible Recurring Revenue Contracts as of the last day of the most recently completed month, or (ii) from April 1, 2017 onward, Borrowers’ trailing three (3) months of Monthly Recurring Revenue from Eligible Recurring Revenue Contracts as of the last day of the most recently completed month; multiplied by (b) the lesser of (i) one hundred percent (100%) or (ii) the MRR Retention Rate, as determined by Bank with reference to the most recent Borrowing Base Certificate delivered by Borrowers; provided however that (x) clause (a) of the Borrowing Base definition may include rebate accrual receivables from Medliance’s Contracts, provided that such receivables are aged less than 180 days and aggregate amount to be included in the Borrowing Base from such Contracts does not exceed $1,500,000; and (y) that the aggregate amount of Monthly Recurring Revenue included in the Borrowing Base from Eligible Recurring Revenue Contracts with customers outside the United States shall not exceed 10% without Bank’s prior written consent; and provided further that the Borrowing Base may be revised from time to time by Bank following each Collateral audit or as Bank deems necessary in Bank’s reasonable judgment and upon notification thereof to Borrowers.

 

“EBITDA” means, for any period, the sum of (a) net income (or net loss) attributable to the Borrowers, but excluding net income (or net loss) attributable to non-controlling interests (calculated before extraordinary items) during such period, plus (b) the result of the following, in each case (unless otherwise indicated) to the extent included in determining such net income (or net loss): (i) interest expense (including that portion attributable to capital leases in accordance with GAAP and capitalized interest) during such period; plus (ii) income taxes accruing, paid or payable during such period; plus

 

 

(iii) depreciation and amortization expense; plus (iv) non-cash stock-compensation based expenses; plus (v) non-cash changes in respect of contingent consideration obligations (including to the extent accounted for as bonus or otherwise); plus (vi) gain or loss on the change in the fair value of warrant liability, plus (vii) cash payments made on the earnout obligations with respect to Borrowers’ acquisition of Medliance, plus (viii) losses on the extinguishment of Indebtedness; in each case in accordance with GAAP

 

“MRR Retention Rate” means as of the last day of each month (the “Measurement Date”), the ratio, expressed as a percentage, of (a)  average Monthly Recurring Revenue for the three (3) month period ending on the Measurement Date, to (b) average Monthly Recurring Revenue for the twelve (12) month period ending on the Measurement Date.

 

“Prime Rate” means the greater of three and one half percent (3.5%) or the Prime Rate published in the Money Rates section of the Western Edition of The Wall Street Journal, or such other rate of interest publicly announced from time to time by Bank as its Prime Rate.

 

“Revolving Line” means a credit extension of up to Twenty-Five Million Dollars ($25,000,000).

 

“Revolving Maturity Date” means the second anniversary of the First Amendment Date.

 

(4)                                 Clause (a) of the defined term “Eligible Recurring Revenue Contracts” is amended and restated in its entirety to read as follows:

 

(a)                                 Contracts with respect to any customer who has failed to pay to Borrowers more than twenty-five percent (25%) of the average monthly amount due to Borrowers under all of its Contracts within ninety (90) days from the invoice date;

 

(5)                                 Clause (g) of the defined term “Permitted Indebtedness” is amended by replacing “One Million Dollars ($1,000,000)” with “Two Million Dollars ($2,000,000)”.

 

(6)                                 The following is added as a new subsection (i) to the end of the defined term “Permitted Indebtedness”:

 

(i)                                     Summit Lender Debt.

 

(7)                                 The following is added as a new subsection (e) to the end of the defined term “Permitted Investments”:

 

(e)                                  Permitted Acquisitions.

 

(8)                                 Clause (c) of the defined term “Permitted Liens” is amended by replacing the phrase “Permitted Liens” with the phrase “Permitted Indebtedness”.

 

(9)                                 The following is added as a new subsection (e) to the end of the defined term “Permitted Liens”:

 

(e)                                  Liens securing the Summit Lender Debt.

 

 

(10)                          Section 2.5(a) is amended and restated in its entirety to read as follows:

 

(a)                                 Facility Fees.  On each of the First Amendment Date and on the first anniversary of the First Amendment Date, a fee with respect to the Revolving Facility equal to $62,500; and

 

(11)                          The following is added as a new subsection (c) to the end of Section 2.5:

 

(c)                                  Success Fee. On the occurrence of any Liquidity Event, a cash fee in the amount of $50,000 (in lieu of the issuance of a warrant to Bank on the First Amendment Date); it being acknowledged and agreed that Borrowers’ payment obligations hereunder shall survive the termination of the Agreement.

 

(12)                          The following is added after the end of the second sentence in Section 6.9:

 

Notwithstanding the foregoing, any payments received at a Borrower’s location shall be promptly deposited to the Cash Collateral Account using Bank’s Smart Deposit Express scanner.

 

(13)                          Section 6.10 is amended and restated in its entirety to read as follows:

 

6.10                        Financial Covenants

 

(a)                                 Minimum Liquidity. The amount of Borrowers’ unrestricted cash balances in its accounts at Bank plus amounts available for draw under the Revolving Facility shall be at least $3,000,000 at all times thereafter.

 

(b)                                 Mimium MRR Retention Rate. Borrowers shall maintain an MRR Retention Rate of at least ninety percent (90%), measured quarterly.

 

(c)                                  Minimum EBITDA. Borrowers’ quarterly EBITDA for quarter ending June 30, 2016 shall be at least $2,000,000; Borrowers’ quarterly EBITDA for quarter ending September 30, 2016 shall be at least $2,250,000; and Borrowers’ quarterly EBITDA for quarter ending December 31, 2016 and for each calendar quarter thereafter shall be at least $2,500,000.

 

(14)                          The following is added as a new clause (iii) to the end of Section 7.6:

 

and (iii) Parent may redeem shares of its preferred stock to the extent it is required to do so under its certificate of incorporation (as in effect on the First Amendment Date) and so long as such redemptions are fully funded with new cash proceeds received by Parent from the sale and issuance of its capital stock and/or Summit Lender Debt.

 

(15)                          Section 7.12 is amended and restated in its entirety to read as follows:

 

7.12                        Capital Expenditures. Make or contract to make, without Bank’s prior written consent, capital expenditures, including leasehold improvements, in any fiscal year in excess of $2,500,000 or incur liability for rentals of property (including both real and personal property) in an amount which, together with capital expenditures, shall in any fiscal year exceeds such sum; provided, however, capital expenditures shall not include expenditures paid prior to the First Amendment Date by Parent’s landlord in an amount not to exceed $1,900,000.

 

 

(16)                          Section 10 with respect to notices to the Borrowers is amended and restated in its entirety to read as follows:

 

Tabula Rasa Healthcare, Inc.

228 Strawbridge Drive

Moorestown, NJ 08057

Attn: Brian Adams, CFO

FAX :(856)273-0254

EMAIL: badams@carekinesis.com

 

Morgan, Lewis & Bockius

1701 Market Street

Philadelphia, PA 19102-2921

Attn: Jeffrey P. Bodle

FAX: (215) 963-5001

EMAIL: jeffrey.bodle@morganlewis.com

 

(17)                          Exhibit C and Exhibit D to the Loan and Security Agreement are replaced in their entirety with the Exhibit C and Exhibit D attached hereto.

 

3.                                      CONSENT. Bank hereby consents to the repayment of approximately $18,000,000 owing to Stephen F. Olds, Fred Smith III, and the Olds Family 2002 Trust, with the proceeds from the Summit Lender Debt; provided such repayment shall occur concurrently with the initial closing of the Summit Lender Debt and Borrowers provide evidence satisfactory to Bank of the same.

 

4.                                      CONSISTENT CHANGES.  The Loan Documents are each hereby amended wherever necessary to reflect the changes described above.

 

5.                                      NO DEFENSES OF BORROWER/GENERAL RELEASE.  Each Borrower agrees that, as of this date, it has no defenses against the obligations to pay any amounts under Loan Documents.  Each Borrower and its affiliates (each, a “Releasing Party”) acknowledges that Bank would not enter into this Loan and Security Modification Agreement without Releasing Party’s assurance that it has no claims against Bank or any of Bank’s officers, directors, employees or agents.  Except for the obligations arising hereafter under this Loan and Security Modification Agreement, each Releasing Party releases Bank and each of Bank’s officers, directors and employees from any known or unknown claims that Releasing Party now has against Bank of any nature, including any claims that Releasing Party, its successors, counsel, and advisors may in the future discover they would have now had if they had known facts not now known to them, whether founded in contract, in tort or pursuant to any other theory of liability, including but not limited to any claims arising out of or related to the Loan and Security Agreement or the transactions contemplated thereby.  Each Releasing Party waives the provisions of California Civil Code section 1542, which states:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

The provisions, waivers and releases set forth in this section are binding upon each Releasing Party and its shareholders, agents, employees, assigns and successors in interest.  The provisions, waivers and releases of this section shall inure to the benefit of Bank and its agents, employees, officers, directors, assigns and successors in interest.  The provisions of this section shall survive payment in full of the Obligations, full performance of all the terms of this Loan and Security Modification Agreement and the other Loan Documents, and/or Bank’s actions to exercise any remedy available under the Loan Documents or otherwise.

 

6.                                      CONTINUING VALIDITY.  Each Borrower understands and agrees that in modifying the existing Loan Documents, Bank is relying upon Borrowers’ representations, warranties, and agreements, as set forth in the Loan

 

 

Documents. Each Borrower represents and warrants that the representations and warranties contained in the Loan and Security Agreement are true and correct as of the date of this Loan and Security Modification Agreement, and that no Event of Default has occurred and is continuing. Except as expressly modified pursuant to this Loan and Security Modification Agreement, the terms of the Loan Documents remain unchanged and in full force and effect.  Bank’s agreement to modifications to the existing Loan Documents pursuant to this Loan and Security Modification Agreement in no way shall obligate Bank to make any future modifications to the Loan Documents.  Nothing in this Loan and Security Modification Agreement shall constitute a satisfaction of the Obligations.  It is the intention of Bank and Borrowers to retain as liable parties all makers and endorsers of Loan Documents, unless the party is expressly released by Bank in writing.  No maker, endorser, or guarantor will be released by virtue of this Loan and Security Modification Agreement.  The terms of this paragraph apply not only to this Loan and Security Modification Agreement, but also to any subsequent loan and security modification agreements.

 

7.                                      CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; REFERENCE PROVISION.  This Loan and Security Modification Agreement constitutes a “Loan Document” as defined and set forth in the Loan and Security Agreement, and is subject to Sections 11 and 12 of the Loan and Security Agreement, which are incorporated by reference herein.

 

8.                                      CONDITIONS PRECEDENT.  As a condition to the effectiveness of this Loan and Security Modification Agreement, Bank shall have received, in form and substance satisfactory to Bank, the following:

 

(a)                                 payment of the facility fees due under Section 2.5(a) of the Loan and Security Agreement, as amended herein, less a pro-rated amount of the last facility fee paid by Borrowers prior to the date hereof, plus an amount equal to all Bank Expenses incurred through the date of this Loan and Security Modification Agreement;

 

(b)                                 corporate resolutions and incumbency certificate for each Borrower;

 

(c)                                  affirmation(s) of subordination agreement(s), original signatures to which shall be delivered within thirty (30) days of the date hereof;

 

(d)                                 subordination agreement with AmerisourceBergen Drug Corporation and evidence of the removal of Bellco Drug Corp as a secured creditor of CareKinesis;

 

(e)                                  payoff letter from Eastward Capital;

 

(f)                                   intercreditor agreement with ABC Funding, LLC; and

 

(g)                                  such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

 

[SIGNATURE PAGE FOLLOWS]

 

 

9.                                      COUNTERSIGNATURE.  This Loan and Security Modification Agreement shall become effective only when executed by Bank and Borrowers.

 

	
 
    	
BORROWERS:
    
	
 
    	
 
    	
 
    
	
 
    	
TABULA RASA   HEALTHCARE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
CAREKINESIS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
CAREVENTIONS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
CAPSTONE PERFORMANCE   SYSTEMS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
J. A.   ROBERTSON, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
MEDLIANCE LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
				

 

 

	
 
    	
BANK:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WESTERN ALLIANCE BANK
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph Holmes Dague
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Joseph Holmes Dague
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Vice President
    
				

 

 

EXHIBIT C

BORROWING BASE CERTIFICATE

 

BORROWERS: TABULA RASA HEALTHCARE, INC., CAREKINESIS, INC., CAREVENTIONS, INC., 
 CAPSTONE PERFORMANCE SYSTEMS, LLC, J. A.  ROBERTSON, INC. and MEDLIANCE LLC

 

	
Monthly   Recurring Revenue Borrowing Base Calculation
    	
 
    	
As of Date:
    
	
1 *
    	
GAAP Monthly Recurring   Revenue recognized during the trailing 3 months (or trailing 4 months through   3/31/17) from Contracts
    	
 
    	
$
    	
 
    	
 
    	
 
    
	
2 *
    	
Average GAAP Monthly   Recurring Revenue for the trailing 3 months (or trailing 4 months through   3/31/17) from Contracts (#1 divided by 3 (or divided by 4, through 3/31/17))
    	
 
    	
$
    	
 
    	
 
    	
 
    
	
3
    	
GAAP Monthly Recurring   Revenue recognized during the trailing twelve months from Contracts
    	
 
    	
$
    	
 
    	
 
    	
 
    
	
4
    	
Average GAAP Monthly   Recurring Revenue for the trailing twelve months from Contracts (#3 divided   by 12)
    	
 
    	
$
    	
 
    	
 
    	
 
    
	
5
    	
MRR Retention Rate   (lesser of 100% or #2 divided by #4)
    	
 
    	
 
    	
 
    	
 
    	
%
    
	
6.
    	
GAAP Revenue from   Contracts during the trailing three month period that are not Eligible   Recurring Revenue Contracts (i.e. customer (i) has elected to cancel or   not renew its license or maintenance contract, or (ii) ceases conducting   business, goes out of business or is insolvent, (iii) has failed to pay   more than twenty-five percent (25%) of the average monthly amount due to   Borrower under all of its Contracts within ninety (90) days from the invoice   date; or (iv) with foreign customers) for such trailing three months
    	
 
    	
$
    	
 
    	
 
    	
 
    
	
7.
    	
Eligible Monthly   Recurring Revenue (#1 minus #6)
    	
 
    	
 
    	
 
    	
$
    	
 
    
	
8.
    	
Borrowing Base Amount   (#5 x #7)
    	
 
    	
 
    	
 
    	
$
    	
 
    
	
9.
    	
Maximum Loan Amount
    	
 
    	
 
    	
 
    	
$
    	
25,000,000
    	
 
    
	
10.
    	
Total Funds Available   (Lesser of #5 or #6)
    	
 
    	
 
    	
 
    	
$
    	
 
    
	
11.
    	
Less: Outstanding   Advances
    	
 
    	
 
    	
 
    	
$
    	
 
    
	
12.
    	
Less: Outstanding Cash   Management Services
    	
 
    	
 
    	
 
    	
$
    	
 
    
	
13.
    	
Less: Outstanding   International Sublimit Amounts 
    	
 
    	
 
    	
 
    	
$
    	
 
    
	
14.
    	
Available for   Drawdown/Need to Pay
    	
 
    	
 
    	
 
    	
$
    	
 
    

 

If line #14 is a negative number, this amount must be remitted to the Bank immediately to bring loan balance into compliance. By signing this form Borrowers authorize the bank to deduct any advance amounts directly from any Borrower’s account(s) at Bridge Bank, National Association in the event there is an overadvance.

 

The undersigned represents and warrants that the foregoing is true, complete and correct, and that the information reflected in this Borrowing Base Certificate complies with the representations and warranties set forth in the Loan and Security Agreement between the undersigned and Bridge Bank, National Association.

 

	
 
    	
 
    	
 
    	
Date:
    	
 
    	
 
    
	
 
    	
Prepared   By:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Date:
    	
 
    	
 
    
	
 
    	
Bank   Reviewed:
    	
 
    	
 
    	
 
    	
 
    

 

 

EXHIBIT D
 COMPLIANCE CERTIFICATE

 

TO:                                                                           WESTERN ALLIANCE BANK

 

FROM:                                                       TABULA RASA HEALTHCARE, INC., CAREKINESIS, INC., CAPSTONE PERFORMANCE SYSTEMS, LLC, J. A.  ROBERTSON, INC. CAREVENTIONS, INC., AND MEDLIANCE LLC

 

The undersigned authorized officer of Tabula Rasa Healthcare, Inc., on behalf of itself and all other Borrowers, hereby certifies that in accordance with the terms and conditions of the Loan and Security Agreement between Borrowers and Bank (the “Agreement”), (i) each Borrower is in complete compliance for the period ending                 with all required covenants except as noted below and (ii) all representations and warranties of Borrowers stated in the Agreement are true and correct as of the date hereof. Attached herewith are the required documents supporting the above certification. The Officer further certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes.

 

Please indicate compliance status by circling Yes/No under “Complies” column.

 

	
Reporting Covenant
    	
 
    	
Required
    	
 
    	
Complies
    
	
A/R & A/P   Agings
    	
 
    	
Monthly within 30 days 
    	
 
    	
Yes
    	
 
    	
No
    
	
Deferred Revenue Report
    	
 
    	
Monthly within 30 days 
    	
 
    	
Yes
    	
 
    	
No
    
	
Borrowing Base   Certificate
    	
 
    	
Monthly within 30 days 
    	
 
    	
Yes
    	
 
    	
No
    
	
Monthly financial   statements 
    	
 
    	
Monthly within 30 days 
    	
 
    	
Yes
    	
 
    	
No
    
	
Compliance Certificate
    	
 
    	
Monthly within 30 days 
    	
 
    	
Yes
    	
 
    	
No
    
	
Annual audited   financial statements 
    	
 
    	
FYE within 180 days
    	
 
    	
Yes
    	
 
    	
No
    
	
Annual operating   budget, sales projections and operating plans approved by board of directors
    	
 
    	
Annually no later than   30 days after  to the beginning of each   fiscal year or Board approval
    	
 
    	
Yes
    	
 
    	
No
    
	
A/R Audit
    	
 
    	
Initial and Annual
    	
 
    	
Yes
    	
 
    	
No
    
	
Deposit balances with   Bank
    	
 
    	
$                    
    	
 
    	
 
    	
 
    	
 
    
	
Deposit balance outside   Bank
    	
 
    	
$                    
    	
 
    	
 
    	
 
    	
 
    

 

	
Financial Covenant
    	
 
    	
Required
    	
 
    	
Actual
    	
 
    	
Complies
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Minimum Unrestricted   Cash at Bank + Availbility on Revolving Facility
    	
 
    	
$
    	
3,000,000
    	
 
    	
$
    	
            
    	
 
    	
Yes
    	
 
    	
No
    
	
Minimum MRR Retention   Rate (Quarterly)
    	
 
    	
90
    	
%
    	
        
    	
%
    	
Yes
    	
 
    	
No
    
	
Minimum Quarterly   EBITDA
    	
 
    	
$
    	
2,000,000
    	
 
    	
$
    	
            
    	
 
    	
Yes
    	
 
    	
No
    

 

	
Comments   Regarding Exceptions: See Attached.
    	
 
    	
BANK   USE ONLY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Received by:
    	
 
    
	
Sincerely,
    	
 
    	
 
    	
AUTHORIZED   SIGNER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Verified:
    	
 
    
	
SIGNATURE
    	
 
    	
 
    	
AUTHORIZED   SIGNER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
TITLE
    	
 
    	
 
    
	
 
    	
 
    	
Compliance Status 
    	
Yes 
    	
No
    
	
 
    	
 
    	
 
    
	
DATEExhibit 10.11

 

FIRST AMENDMENT TO LEASE AGREEMENTS

 

1.                                      PARTIES

 

1.1          THIS FIRST AMENDMENT TO LEASE AGREEMENTS (“Amendment”) is made by and between 228 Strawbridge Associates, LLC, a New Jersey limited liability company (“Landlord”) and Tabula Rasa HealthCare, Inc., a corporation organized under the laws of Delaware (“Tenant”), and is dated as of the last date on which this Amendment has been fully executed by Landlord and Tenant.

 

2.                                      STATEMENT OF FACTS

 

2.1          Landlord and Tenant entered into three (3) Lease Agreements, each dated August 21, 2015 (each individually, a “Lease” and collectively, the “Total Building Leases”) covering all of the rentable area of the existing building located at 228 Strawbridge Drive, Moorestown, NJ (the “Building”). The Total Building Leases include (i) the “Phase I Lease” covering 24,855 rentable square feet on the second (2nd) floor of the Building (the “Phase I Premises”), (ii) the “Phase II Lease” covering 24,855 rentable square feet on the first (1st) floor of the Building (the “Phase II Premises”), and (iii) the “Phase III Lease” covering 24,855 rentable square feet on the third (3rd) floor of the Building (the “Phase III Premises”). For purposes of this Amendment, the “Premises” includes the Phase II Premises, the Phase I Premises and the Phase III Premises.

 

2.2          Substantial Completion of the Work with respect to the Phase I Premises and the Phase II Premises cannot be completed by March 31, 2016.  Accordingly, Landlord and Tenant have agreed that March 31, 2016 will be the Commencement Date of the Phase I Lease and the Phase II Lease.

 

2.3          Landlord and Tenant have agreed that October 1, 2016 will be the Commencement Date of the Phase III Lease.

 

2.4          Tenant desires to accept the third (3rd) floor of the Building from Landlord in “AS IS” condition and apply the full amount of the Allowance available with respect to the Phase III Premises under the Phase III Lease to the Phase I Premises and the Phase II Premises instead.

 

2.5          There are two (2) existing generators and UPS systems located at the Building. Tenant desires to utilize the two (2) existing generators and UPS systems to serve the Premises, on the terms and conditions of this Amendment.

 

2.6          Landlord and Tenant desire to modify the Total Building Leases as set forth in this Amendment.

 

3.             AGREEMENT

 

NOW, THEREFORE, in consideration of the Premises and the covenants hereinafter set forth, Landlord and Tenant agree as follows:

 

3.1.         The above recitals are incorporated herein by reference.

 

3.2.         All capitalized and non-capitalized terms used in this Amendment which are not separately defined herein but are defined in the Total Building Leases shall have the meaning given to any such term in the Total Building Leases.

 

3.3.         Notwithstanding anything to the contrary in the Total Building Leases or any one of them, and notwithstanding Substantial Completion or any delay of Substantial Completion of any Work with respect to any part of the Premises, Landlord and Tenant agree as follows:

 

(a)           The “Commencement Date” of the Phase I Lease shall be March 31, 2016. The “Expiration Date” of the Phase I Lease shall be November 30, 2027. Base Rent for the Phase I Premises shall be as follows:

 

1

 

	
Period of Term
    	
 
    	
Base
    	
 
    	
Annual
    	
 
    	
Monthly
    	
 
    
	
From
    	
 
    	
To
    	
 
    	
Rent/RSF
    	
 
    	
Base Rent
    	
 
    	
Base Rent
    	
 
    
	
March 31,   2016
    	
 
    	
March 31, 2017
    	
 
    	
$
    	
19.20
    	
 
    	
$
    	
477,216.00
    	
 
    	
$
    	
39,768.00
    	
 
    
	
April 1,   2017
    	
 
    	
March 31, 2018
    	
 
    	
$
    	
19.70
    	
 
    	
$
    	
489,643.50
    	
 
    	
$
    	
40,803.63
    	
 
    
	
April 1,   2018
    	
 
    	
March 31, 2019
    	
 
    	
$
    	
20.20
    	
 
    	
$
    	
502,071.00
    	
 
    	
$
    	
41,839.25
    	
 
    
	
April 1,   2019
    	
 
    	
March 31, 2020
    	
 
    	
$
    	
20.70
    	
 
    	
$
    	
514,498.50
    	
 
    	
$
    	
42,874.88
    	
 
    
	
April 1,   2020
    	
 
    	
March 31, 2021
    	
 
    	
$
    	
21.20
    	
 
    	
$
    	
526,926.00
    	
 
    	
$
    	
43,910.50
    	
 
    
	
April 1,   2021
    	
 
    	
March 31, 2022
    	
 
    	
$
    	
21.45
    	
 
    	
$
    	
533,139.75
    	
 
    	
$
    	
44,428.31
    	
 
    
	
April 1,   2022
    	
 
    	
March 31, 2023
    	
 
    	
$
    	
21.70
    	
 
    	
$
    	
539,353.50
    	
 
    	
$
    	
44,946.13
    	
 
    
	
April 1,   2023
    	
 
    	
March 31, 2024
    	
 
    	
$
    	
21.95
    	
 
    	
$
    	
545,567.25
    	
 
    	
$
    	
45,463.94
    	
 
    
	
April 1,   2024
    	
 
    	
March 31, 2025
    	
 
    	
$
    	
22.20
    	
 
    	
$
    	
551,781.00
    	
 
    	
$
    	
45,981.75
    	
 
    
	
April 1,   2025
    	
 
    	
March 31, 2026
    	
 
    	
$
    	
22.45
    	
 
    	
$
    	
557,994.75
    	
 
    	
$
    	
46,499.56
    	
 
    
	
April 1,   2026
    	
 
    	
March 31, 2027
    	
 
    	
$
    	
22.70
    	
 
    	
$
    	
564,208.50
    	
 
    	
$
    	
47,017.38
    	
 
    
	
April 1,   2027
    	
 
    	
November 30, 2027
    	
 
    	
$
    	
22.95
    	
 
    	
$
    	
570,422.25
    	
 
    	
$
    	
47,535.19
    	
 
    

 

Provided there is no Event of Default by Tenant, Tenant’s obligation to pay Base Rent applicable to the Phase I Premises for the 8-month period consisting of October, 2016 through May, 2017 of the Term will be abated under the Phase I Lease only.

 

Notwithstanding the abatement of Base Rent applicable to the Phase I Premises provided for October, 2016 through May, 2017 of the Term as set forth herein above, Tenant’s obligation to pay Additional Rent including, without limitation, costs and charges for electricity and other utilities pursuant to Rider 2 of the Phase I Lease shall not be waived, released or abated and shall commence as of the Commencement Date or any earlier occupancy of the Phase I Premises.

 

(b)           The “Commencement Date” of the Phase II Lease shall be March 31, 2016. The “Expiration Date” of the Phase II Lease shall be November 30, 2027. Base Rent for the Phase II Premises shall be as follows:

 

	
Period of Term
    	
 
    	
Base
    	
 
    	
Annual
    	
 
    	
Monthly
    	
 
    
	
From
    	
 
    	
To
    	
 
    	
Rent/RSF
    	
 
    	
Base Rent
    	
 
    	
Base Rent
    	
 
    
	
March 31,   2016
    	
 
    	
March 31, 2017
    	
 
    	
$
    	
19.20
    	
 
    	
$
    	
477,216.00
    	
 
    	
$
    	
39,768.00
    	
 
    
	
April 1,   2017
    	
 
    	
March 31, 2018
    	
 
    	
$
    	
19.70
    	
 
    	
$
    	
489,643.50
    	
 
    	
$
    	
40,803.63
    	
 
    
	
April 1,   2018
    	
 
    	
March 31, 2019
    	
 
    	
$
    	
20.20
    	
 
    	
$
    	
502,071.00
    	
 
    	
$
    	
41,839.25
    	
 
    
	
April 1,   2019
    	
 
    	
March 31, 2020
    	
 
    	
$
    	
20.70
    	
 
    	
$
    	
514,498.50
    	
 
    	
$
    	
42,874.88
    	
 
    
	
April 1,   2020
    	
 
    	
March 31, 2021
    	
 
    	
$
    	
21.20
    	
 
    	
$
    	
526,926.00
    	
 
    	
$
    	
43,910.50
    	
 
    
	
April 1,   2021
    	
 
    	
March 31, 2022
    	
 
    	
$
    	
21.45
    	
 
    	
$
    	
533,139.75
    	
 
    	
$
    	
44,428.31
    	
 
    
	
April 1,   2022
    	
 
    	
March 31, 2023
    	
 
    	
$
    	
21.70
    	
 
    	
$
    	
539,353.50
    	
 
    	
$
    	
44,946.13
    	
 
    
	
April 1,   2023
    	
 
    	
March 31, 2024
    	
 
    	
$
    	
21.95
    	
 
    	
$
    	
545,567.25
    	
 
    	
$
    	
45,463.94
    	
 
    
	
April 1,   2024
    	
 
    	
March 31, 2025
    	
 
    	
$
    	
22.20
    	
 
    	
$
    	
551,781.00
    	
 
    	
$
    	
45,981.75
    	
 
    
	
April 1,   2025
    	
 
    	
March 31, 2026
    	
 
    	
$
    	
22.45
    	
 
    	
$
    	
557,994.75
    	
 
    	
$
    	
46,499.56
    	
 
    
	
April 1,   2026
    	
 
    	
March 31, 2027
    	
 
    	
$
    	
22.70
    	
 
    	
$
    	
564,208.50
    	
 
    	
$
    	
47,017.38
    	
 
    
	
April 1,   2027
    	
 
    	
November 30, 2027
    	
 
    	
$
    	
22.95
    	
 
    	
$
    	
570,422.25
    	
 
    	
$
    	
47,535.19
    	
 
    

 

Provided there is no Event of Default by Tenant, Tenant’s obligation to pay Base Rent applicable to the Phase II Premises for the first 3 full calendar months of the Term following the Commencement Date of the Phase II Lease, consisting of April, 2016, May, 2016 and June, 2016, will be abated under the Phase II Lease only.

 

Notwithstanding the abatement of Base Rent applicable to the Phase II Premises provided for April, 2016, May, 2016 and June, 2016, as set forth herein above, Tenant’s obligation to pay

 

2

 

Additional Rent including, without limitation, costs and charges for electricity and other utilities pursuant to Rider 2 of the Phase II Lease shall not be waived, released or abated and shall commence as of the Commencement Date or any earlier occupancy of the Phase II Premises.

 

(c)           The “Commencement Date” of the Phase III Lease shall be October 1, 2016. The “Expiration Date” of the Phase III Lease shall be November 30, 2027. Base Rent for the Phase III Premises shall be as follows:

 

	
Period of Term
    	
 
    	
Base
    	
 
    	
Annual
    	
 
    	
Monthly
    	
 
    
	
From
    	
 
    	
To
    	
 
    	
Rent/RSF
    	
 
    	
Base Rent
    	
 
    	
Base Rent
    	
 
    
	
October 1,   2016
    	
 
    	
March 31, 2017
    	
 
    	
$
    	
19.70
    	
 
    	
$
    	
489,643.50
    	
 
    	
$
    	
40,803.63
    	
 
    
	
April 1,   2017
    	
 
    	
March 31, 2018
    	
 
    	
$
    	
19.70
    	
 
    	
$
    	
489,643.50
    	
 
    	
$
    	
40,803.63
    	
 
    
	
April 1,   2018
    	
 
    	
March 31, 2019
    	
 
    	
$
    	
20.20
    	
 
    	
$
    	
502,071.00
    	
 
    	
$
    	
41,839.25
    	
 
    
	
April 1,   2019
    	
 
    	
March 31, 2020
    	
 
    	
$
    	
20.70
    	
 
    	
$
    	
514,498.50
    	
 
    	
$
    	
42,874.88
    	
 
    
	
April 1,   2020
    	
 
    	
March 31, 2021
    	
 
    	
$
    	
21.20
    	
 
    	
$
    	
526,926.00
    	
 
    	
$
    	
43,910.50
    	
 
    
	
April 1,   2021
    	
 
    	
March 31, 2022
    	
 
    	
$
    	
21.45
    	
 
    	
$
    	
533,139.75
    	
 
    	
$
    	
44,428.31
    	
 
    
	
April 1,   2022
    	
 
    	
March 31, 2023
    	
 
    	
$
    	
21.70
    	
 
    	
$
    	
539,353.50
    	
 
    	
$
    	
44,946.13
    	
 
    
	
April 1,   2023
    	
 
    	
March 31, 2024
    	
 
    	
$
    	
21.95
    	
 
    	
$
    	
545,567.25
    	
 
    	
$
    	
45,463.94
    	
 
    
	
April 1,   2024
    	
 
    	
March 31, 2025
    	
 
    	
$
    	
22.20
    	
 
    	
$
    	
551,781.00
    	
 
    	
$
    	
45,981.75
    	
 
    
	
April 1,   2025
    	
 
    	
March 31, 2026
    	
 
    	
$
    	
22.45
    	
 
    	
$
    	
557,994.75
    	
 
    	
$
    	
46,499.56
    	
 
    
	
April 1,   2026
    	
 
    	
March 31, 2027
    	
 
    	
$
    	
22.70
    	
 
    	
$
    	
564,208.50
    	
 
    	
$
    	
47,017.38
    	
 
    
	
April 1,   2027
    	
 
    	
November 30, 2027
    	
 
    	
$
    	
22.95
    	
 
    	
$
    	
570,422.25
    	
 
    	
$
    	
47,535.19
    	
 
    

 

Provided there is no Event of Default by Tenant, Tenant’s obligation to pay Base Rent applicable to the Phase III Premises for the first 2 full calendar months of the Term following the Commencement Date of the Phase III Lease, consisting of October, 2016 and November, 2016, will be abated under the Phase III Lease only.

 

Notwithstanding the abatement of Base Rent applicable to the Phase III Premises provided for October, 2016 and November, 2016 as set forth herein above, Tenant’s obligation to pay Additional Rent including, without limitation, costs and charges for electricity and other utilities pursuant to Rider 2 of the Phase III Lease shall not be waived, released or abated and shall commence as of the Commencement Date or any earlier occupancy of the Phase III Premises.

 

3.4          The Phase I Lease is modified to provide that the rights of Tenant to a rent credit or abatement under the terms and conditions of Section 4 of the Phase I Lease are hereby terminated, waived and released, and Tenant shall have no further rights with respect thereto.

 

3.5          The Phase II Lease is modified as follows:

 

(a)           The maximum amount of the one-time “Allowance” for the cost of the Work, as provided under Paragraph E-8 of the Work Letter in Exhibit “E” of the Phase II Lease, is hereby increased by Six Hundred Twenty-Six Thousand Three Hundred Forty-Six and No/100 ($626,346.00) Dollars to the total sum of One Million Two Hundred Fifty-Two Thousand Six Hundred Ninety-Two and no/100 ($1,252,692.00) Dollars.

 

(b)           Landlord and Tenant agree that any available amount of the Allowance under the Phase I Lease and any available amount of the Allowance under the Phase II Lease, as modified hereby, less sums previously expended, may be applied to the cost of the Work with respect to the Phase II Premises under the Phase II Lease, or may be applied to the cost of the Work with respect to the Phase I Premises under the Phase I Lease, or may be applied to the cost of the Work (as defined in the Phase I Lease and Phase II Lease) with respect to the Phase III Premises under the Phase III Lease, or any of them, as Tenant may elect with written notice to Landlord.

 

3

 

(c)           The rights of Tenant to a rent credit or abatement under the terms and conditions of Section 4 of the Phase II Lease are hereby terminated, waived and released, and Tenant shall have no further rights with respect thereto.

 

3.6          The Phase III Lease is modified as follows:

 

(a)           The Work Letter in Exhibit “E” of the Phase III Lease is deleted in its entirety. Tenant agrees to accept the Phase III Premises in “AS IS” condition, without relying on any representation, covenant or warranty by Landlord other than as expressly set forth in the Phase III Lease. Landlord shall not be obligated to furnish any work, labor, improvements or Alterations to the Phase III Premises or otherwise to prepare the same for Tenant’s use or occupancy, and Landlord shall not be obligated to provide any tenant improvement allowance or other allowance with respect to the Phase III Premises. For clarity of understanding, the “Allowance” provided under Paragraph E-8 of the Work Letter in Exhibit “E” of the Phase III Lease is reduced to ZERO ($0.00). In furtherance of and without limiting the foregoing, Section 2 of the Phase III Lease is modified by deleting the phrase, “Subject to Landlord’s obligation to complete the Work,” in its entirety. All references to Work to be provided by Landlord in the Phase III Lease are hereby deleted.  Notwithstanding anything to the contrary herein, Tenant may apply any available amount of the Allowance under the Phase I Lease and Phase II Lease, less sums previously expended, to the cost of Alterations (as defined in the Phase III Lease) in the Phase III Premises, and such cost shall not count towards the $150,000.00 aggregate value set forth in Article 12 of the Phase III Lease.

 

(b)           The rights of Tenant to a rent credit or abatement under the terms and conditions of Section 4 of the Phase III Lease are hereby terminated, waived and released, and Tenant shall have no further rights with respect thereto.

 

3.7          From and after the date of this Amendment:

 

(a)           The two (2) generators and UPS systems existing at the Building that Tenant will be permitted to use hereunder are collectively hereinafter referred to as the “Existing UPS.”

 

(b)           Commencing on the date of execution of this Amendment and throughout the remainder of the Term (subject to subparagraph (f) below), Tenant shall have the right to connect to the Existing UPS for the Building solely for the purpose of providing emergency electrical capacity to the Premises. Landlord, at Tenant’s cost, will install wiring as necessary to connect the Premises to the Existing UPS, as determined by Landlord, within a reasonable time after the date of this Amendment. Landlord may enter the Premises during normal business hours in connection with such work and the same shall not be construed as an eviction of Tenant nor shall Rent abate due to such work. All such costs shall be deemed Additional Rent under the Total Building Leases and shall be payable upon demand.

 

(c)           Tenant’s access to the Existing UPS shall be limited to such times, and under such rules and regulations as Landlord may reasonably impose. Tenant shall not do any work affecting the Existing UPS or the electrical connections of the Building without Landlord’s prior written consent.

 

(d)           Tenant shall be responsible for the cost of its use of the Existing UPS as reasonably determined by Landlord and the cost of repairing any damage to the Existing UPS caused by Tenant’s use thereof. The costs to Maintain, including repair and if necessary, replacement of the Existing UPS shall be included in Operating Expenses for the Building for which Tenant shall pay Tenant’s Share in accordance with Section 6 of the Total Building Leases. All such costs shall be deemed Additional Rent under the Total Building Leases.

 

(e)           Tenant hereby agrees that its use of the Existing UPS shall be at Tenant’s sole risk, and Tenant hereby agrees that Landlord and its Agents shall not be liable for, and Tenant hereby waives, all claims for loss or damage to Tenant’s business or property, personal injury (including death), and loss or damage to any property sustained by Tenant or any person claiming by, through or under Tenant and Tenant’s Agents resulting from Tenant’s use of the Existing UPS, the failure of the Existing UPS to operate properly, Landlord’s inability to obtain fuel for the Existing UPS or the interruption or cessation of electrical service from the Existing UPS. Landlord does not warrant that any electrical service to be provided from the Existing UPS to the Premises shall be available upon demand or free from any slow-down, interruption or stoppage. Landlord shall not be responsible or

 

4

 

liable for any interruption in such services, nor shall such interruption affect the continuation or validity of this Lease. Notwithstanding any contrary herein, if Tenant is prevented from using for the conduct of its business, and does not use for the conduct of its business, the Premises or any material portion thereof, for the Eligibility Period (as defined in Section 7 of each of the Total Building Leases) as a result of any failure, interruption or cessation of emergency electric power supplied by any of the Existing UPS, provided such failure is not due to any act or omission Tenant or its Agents, and is due to direct physical loss or damage affecting the Building or Property, then from the 11th consecutive Business Day that Tenant is so prevented from using or occupying for the conduct of its business and does not so use or occupy for the conduct of its business, the Premises or any material portion thereof, and continuing for such time that Tenant continues to be so prevented from using or occupying for the conduct of its business, and does not so use or occupy for the conduct of its business, the Premises or a material portion thereof, Tenant’s obligation to pay Base Rent and Additional Rent shall be equitably abated or reduced, as the case may be, in the proportion that the rentable square feet of the portion of the Premises that Tenant is prevented from using and occupying, and does not so use or occupy, bears to the total rentable square feet of the Premises, until the Existing UPS is restored to working condition. The conditional abatement of Base Rent and Additional Rent on the terms and conditions of the preceding sentence shall be Tenant’s sole and exclusive remedy against Landlord and its Agents for any such failure, cessation or interruption of utilities or services with respect to the Existing UPS.

 

(f)            Landlord may revoke Tenant’s right to connect to and use the Existing UPS as granted herein if Landlord determines that (i) Tenant’s emergency use of the Existing UPS exceeds safe operating parameters (estimated to be 200 amps of electricity), or (ii) Tenant fails to pay or perform its obligations with respect to the Existing UPS as described in this Section 3.7, and such failure is not cured within 30 days after written notice from Landlord. Such revocation shall be effective upon written notice of revocation and, upon giving such notice of revocation, Landlord may disconnect and remove any wiring and cabling servicing the Premises from the Existing UPS and charge Tenant for the cost thereof, which sum shall be paid as Additional Rent in accordance with Section 6 under the Total Building Leases. Notwithstanding the foregoing, Landlord shall not disconnect Tenant from the Existing UPS under clause (i) above if Tenant, within five (5) days after receipt of notice from Landlord, modifies its usage so that it will not exceed safe operating parameters (estimated to be 200 amps of emergency electrical capacity). From time to time during the Term, Landlord shall have the right to audit and monitor the level of amperage that Tenant has connected to and uses from the Existing UPS. Tenant agrees to reasonably cooperate with Landlord in connection with any such auditing and monitoring.

 

(g)           Tenant’s connection to and use of the Existing UPS shall be for Tenant’s emergency use (not for any non-emergency use) at the Premises only (not at any other location). Tenant shall have no right to sublet or assign Tenant’s rights with respect to the Existing UPS.

 

(h)           Landlord represents that to Landlord’s knowledge as of the date hereof, the Existing UPS is in working order and the last service visit to the Existing UPS took place in January 2016. Tenant accepts the Existing UPS “AS IS” without representation or warranty from Landlord except as expressly set forth herein above.

 

3.8          Tenant represents and warrants to Landlord that no broker brought about this transaction or was involved in the negotiations concerning this Amendment, and Tenant agrees to indemnify and hold Landlord harmless from any and all claims of any broker engaged by Tenant arising out of or in connection with negotiations of, or entering into, this Amendment.  Landlord represents and warrants to Tenant that no broker brought about this transaction or was involved in the negotiations concerning this Amendment, and Landlord agrees to indemnify and hold Tenant harmless from any and all claims of any broker engaged by Landlord arising out of or in connection with negotiations of, or entering into, this Amendment.

 

3.9          Tenant hereby represents to Landlord that to Tenant’s knowledge (i) there exists no default under the Total Building Leases either by Tenant or Landlord; and (ii) there exists no offset, defense or counterclaim to Tenant’s obligations under the Total Building Leases.  Landlord hereby represents to Tenant that to Landlord’s knowledge (i) there exists no default under the Total Building Leases either by Tenant or Landlord; and (ii) there exists no offset, defense or counterclaim to Landlord’s obligations under the Total Building Leases, except with respect to Tenant’s obligation to pay the Excess Cost to Landlord before commencement of the Work in accordance with the Phase I Lease and the Phase II Lease. Together with Tenant’s execution and delivery of this Amendment, Tenant shall pay to Landlord, as payment to Landlord for Excess Cost items pursuant to paragraph E-8(a) of the Work Letter in Exhibit “E” of the Phase I Lease and the Phase II Lease, the sum of $506,544.12 for the Excess Cost

 

5

 

items described in Landlord’s invoice CareK-01 dated 02/09/16 and last revised 03/11/16. Pursuant to paragraph E-8(a) of the Work Letter in Exhibit “E” of the Phase I Lease and the Phase II Lease, in the event that the cost of Work shall change, any additional costs shall be paid by Tenant to Landlord immediately as an addition to the Excess Cost or at Landlord’s option, Tenant shall make payments for such additional costs out of its own funds.

 

3.10        This Amendment contains the entire agreement between the parties with respect to the modification of the Total Building Leases and supersedes and replaces any prior agreement and understandings between the parties, either oral or written, concerning this Amendment.

 

3.11        Except as expressly amended herein, the Total Building Leases are unmodified and shall remain in full force and effect as if the same had been set forth in full herein, and Landlord and Tenant hereby ratify and confirm all of the terms and conditions thereof.

 

3.12        This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors and permitted assigns.

 

3.13        Each party agrees that it will not raise or assert as a defense to any obligation under the Total Building Leases or this Amendment or make any claim that the Total Building Leases or this Amendment is invalid or unenforceable due to any failure of this document to comply with requirements for corporate seals, attestations, witnesses, notarizations, or other similar requirements, and each party hereby waives the right to assert any such defense or make any claim of invalidity or unenforceability due to any of the foregoing.

 

3.14        This Amendment may be executed in multiple counterparts, each of which, when assembled to include an original signature for each party contemplated to sign this Amendment, will constitute a complete and fully executed original. All such fully executed counterparts will collectively constitute a single agreement.  Tenant expressly agrees that if the signature of Landlord and/or Tenant on this Amendment not an original, but is a digital, mechanical or electronic reproduction (such as, but not limited to, a photocopy, fax, e-mail, PDF, Adobe image, JPEG, telegram, telex or telecopy), then such digital, mechanical or electronic reproduction shall be as enforceable, valid and binding as, and the legal equivalent to, an authentic and traditional ink-on-paper original wet signature penned manually by its signatory.

 

IN WITNESS WHEREOF, Landlord and Tenant have hereunto set their hands the date and year set forth below, and acknowledge one to the other they possess the requisite authority to enter into this transaction and to sign this Amendment.

 

	
LANDLORD:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
228 Strawbridge   Associates, LLC,
    	
 
    	
Tabula Rasa   HealthCare, Inc.,
    
	
a New Jersey limited   liability company
    	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ William H. Glazer
    	
 
    	
By:
    	
/s/ Brian W. Adams
    
	
Name:
    	
William H. Glazer
    	
 
    	
Name:
    	
Brian W. Adams
    
	
Title:
    	
President
    	
 
    	
Title:
    	
CFO
    
	
Date signed:   March 22, 2016
    	
 
    	
Date signed:   March 21, 2016
    

 

6

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