Document:

genex-340basicssoftwarelicen.htm - Generated by SEC Publisher for SEC Filing

 

NON-EXCLUSIVE SOFTWARE LICENSE AGREEMENT (InfoPointTM for
340Basics)

This
Nonexclusive Software License Agreement ("Agreement") is entered
into, effective as of January 2, 2014 (the "Effective Date"), by and
between Genex Consulting, LLC, having a place of business at 103 Carnegie
Center, Ste. 300, Princeton, NJ 08540 (hereinafter "GENEX") and
340Basics Inc. having a place of business at 66 Ford Rd #230, Denville, NJ
07834 (hereinafter "340Basics").

WHEREAS,
GENEX has expertise in the area of software development, consultancy and
support, and GENEX has developed and owns certain proprietary software for
pharmacy benefit management and sales, known as InfoPointTM, which
is a proprietary software to support pharmacy benefit management, including
member eligibility, claims recording/reporting, member details, billing,
mail-order pharmacy sales, and has moreover adapted and optimized one version
of this software specifically to support compliance with the 340B Drug Pricing
Program of the Public Health Service Act (the 340B Program), and as well
as developing and maintaining associated functions and websites;

WHEREAS
340Basics is a company providing services to entities covered by the 340B
programs, such as clinics, hospitals and pharmacies, particularly services
relating to 340B Program reporting and compliance issues, whereas 340Basics
uses and desires to continue to use InfoPointTM software in its
business, and further desires to receive software consultancy and support
services from GENEX,

NOW,
THEREFORE, in consideration of the mutual covenants of the parties and for
other good and valuable consideration, the Parties hereby agree as follows:

1.        DEFINITIONS

a) "Licensed Software" refers to the following
software, as currently existing and used by 340Basics and as improved or
modified during the term of this Agreement: (i) InfoPointTM , which
is a suite of related software products for pharmacy benefit management,
including the following components: Member Login, Client Login, Eligibility
System, FileShare, Adminstrator Reporting, and Customer Service System, (ii)
software to support pharmacy operations, including Billing, Pharmacy Sales,
Claims Processing, Reports and Management Dashboard, (iii) software
specifically to support compliance

 1

 

 

 

with
the 340B Program and to optimize the foregoing software for use by entities
subject to the 340B Program, and (iv) websites where the foregoing software is
made accessible to users.

b) "340Basics Products" refers to pharmacy benefit management
services and products provided by 340Basics to its customers, particularly in
connection with pharmaceuticals sold pursuant to the 340B Drug Pricing Program
of the Public Health Service Act, including compliance with the 340B
requirements, processing and paying prescription drug claims, developing and
maintaining formularies, contracting with pharmacies, negotiating discounts and
rebates with drug suppliers, providing and administering prescription benefit
plans, and providing mail-order pharmacy sales and service.

 2.       LICENSE GRANT
AND OWNERSHIP OF LICENSED SOFTWARE

a)      Subject to the terms of this Agreement,
GENEX grants to 340Basics a worldwide, non­exclusive, non-transferable limited
license to use the Licensed Software in connection with 340Basics Products.

b)      The Licensed Software and any improvements
thereon shall remain the property of GENEX, protected by applicable
intellectual property law, including trade secret and copyright law. 340Basics
shall have no right to sublicense, assign or otherwise transfer all or any portion
of the Licensed Software or to use the Licensed Software for any purpose except
as expressly set forth in the Agreement.

c)      340Basics will not, during the term of
this Agreement or any time thereafter, attempt to access or modify,
misappropriate or make any copy of the Licensed Software, nor assist or
encourage others in doing so, nor attack, dispute or contest, directly or
indirectly, GENEX's exclusive right, title and interest in or to the Licensed
Software or the validity of the GENEX's ownership thereof.

 3.       SOFTWARE
HOSTING, SUPPORT AND CONSULTING

a) Subject
to the terms of this Agreement, GENEX grants to 340Basics a worldwide, non­exclusive,
non-transferable limited license to use the Licensed Software in connection
with 340Basics Products.

 2

 

 

 

b)     
The Licensed Software
and any improvements thereon shall remain the property of GENEX, protected by
applicable intellectual property law, including trade secret and copyright law.
340Basics shall have no right to sublicense, assign or otherwise transfer all
or any portion of the Licensed Software or to use the Licensed Software for any
purpose except as expressly set forth in the Agreement.

c)      340Basics will not, during the term of
this Agreement or any time thereafter, attempt to access or modify, misappropriate
or make any copy of the Licensed Software, nor assist or encourage others in
doing so, nor attack, dispute or contest, directly or indirectly, GENEX's
exclusive right, title and interest in or to the Licensed Software or the
validity of the GENEX's ownership thereof.

4.        SOFTWARE
HOSTING, SUPPORT AND CONSULTING

a)      The Licensed Software will be hosted on
dedicated servers set up and maintained by GENEX. Genex will obtain necessary
operating system software, including SQL server license, FileShare access, Secure
FTP server software, SSL certificates, EDI software, and backup and disaster
recovery software and storage, e.g., Microsoft Azure.

b)      GENEX will provide support for the
Licensed Software as follows:

i)       
Set-up, customization
and training.

ii)      Account Managers available by phone during
normal business hours, Monday through Friday.

iii)    340Basics's technical lead will be able to
contact GENEX's Lead Technical Engineer via cell phone for support.

iv)    GENEX will respond to most requests within
24 hours, critical issues will be responded to same day.

v)      Genex will proactively maintain and
monitor the server.

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5. PAYMENT

a) 340Basics will pay
GENEX as follows:

	
  SERVICE

  	
  FEE

  
	
  1)   Initial license and one-time set-up fee

  	
  $ ($35,000 less credit
  of for money already paid)

  
	
  2)     
  Monthly
  server operation and support, including 

  maintenance and backup for current level of service providing up to 8 feeds
  (data push/pull).

  	
  $4250/month

  
	
  3)      Additional monthly server cost for each
  feed in excess of 8 (exclusive of initial customization cost to set up feed)

  	
  $75/month/feed

  
	
  4)      Monthly basic license fee for Genex 

  340BasicsTm suite (Client Login, Member Login, Eligibility,
  Customer Service, FileShare)

  	
  $4500/month

  
	
  5)      User volume license
  fee for Genex 340BasicsTm suite (Client Login, Member Login,
  Eligibility, Customer Service, FileShare)

  	
  ·        
  1 to 99,999 end
  users (including members, patients and employees): Included in basic license
  fee above.

  ·        
  100,000 - 199,000
  m/p/e: Basic fee plus .20 per additional end user.

  ·        
  Over 250,000:
  Additional $.15 per additional end user.

  
	
  6)      Monthly hosting and support for website

  	
  $ Included on PCA
  agreement

  
	
  7)      Monthly hosting and support for Mobile
  CoPay Calculator

  	
  $50/month

  
	
  8)      Server support in excess of four hours
  per month 

  (up to 4 hours of support each month is included in the monthly server
  operation and support fee; these support hours do not carry over from month
  to month), as required by 340Basics

  	
  $150/hr

  
	
  9)      Customization support, as required by
  340Basics

  	
  $125/hr

  
	
  10)      Offsite development, as required by
  340Basics

  	
  $65/hr

  
	
  11)      Onsite development, as required by
  340Basics

  	
  $75/hr

  
	
  12)      Business analysis, testing,
  documentation, as required by 340Basics

  	
  $65/hr

  

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b)     
The regular monthly
payments (items 2-7 above) will be paid on a quarterly basis, payment for the
three months in each quarter to be provided no later than the first day of that
quarter. All other payments will be made against monthly invoice, payable
within 10 days of receipt. Any out-of-pocket charges will be reimbursed at
cost.

c)      Genex may, without terminating this
Agreement, suspend any services during any period in which 340Basics is
delinquent or in dispute in the payment of fees owing to Genex, or otherwise in
breach of this Agreement. Past due amounts owed hereunder shall accrue interest
at a monthly rate of 1.5%, compounded monthly, and Genex shall be entitled to
recover costs and reasonable attorney's fees in connection with any collection
action for monies owed hereunder.

d)      Genex shall have the right to increase the
prices in subsection 4(a) hereof upon the anniversary of this Agreement;
provided however that any such annual increase shall not exceed the greater of
five percent (5%) or the US Department of Labor Consumer Price Index for All
Urban Consumers (CPI-U) for the preceding 12 month period. Notwithstanding the
foregoing, Genex shall have the right to increase the Server Operation and
Support fee (item 2 in subsection 4(a) above) to offset the imposition or
increase of any rates charged by the communications common carriers or Genex's
timesharing or database suppliers, or if any change in the rules, regulations
or operating procedures of any service supplier or any cognizant federal, state
or local governmental agency or regulatory authority results in an increase in
the cost of providing the services requested by 340Basics. Any such increase
shall become effective as to 340Basics on the same day as such increase becomes
effective as to Genex.

6.        WARRANTY
AND INDEMNIFICATION

a) 340Basics
Indemnity: 340Basics will defend, indemnify and hold GENEX harmless from
and against any and all claims, losses, liabilities, damages, costs, and
expenses (including reasonable attorney's fees) arising from or related to any
use or disclosure of the Licensed Software not permitted under this Agreement.
In the event that GENEX is sued in a court of competent jurisdiction, 340Basics
will defend, indemnify and hold GENEX harmless from and against any and all
losses, liabilities, damages, costs and

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expenses (including reasonable attorneys fees) to the
extent the allegation is based on any claim arising out of any use or
modification of the Licensed Software not authorized under this Agreement, or
on any claim arising out of any negligence or misconduct by 340Basics.
340Basics warrants that it will take reasonable precautions to encrypt
transmissions and preserve the confidentiality of users' personal data and
information and of its own data, and GENEX assumes no liability for the
security of data transmitted by 340Basics to third parties outside the normal
scope of operation of websites maintained and operated by GENEX, e.g., custom
reports and the like or transmissions directly from 340Basics to third parties.

b)     
GENEX Indemnity: In the event that 340Basics is sued in a court of
competent jurisdiction for any claim that the Licensed Software, or its use as
authorized hereunder, infringes or misappropriates any intellectual property
right of any third party, GENEX will defend, indemnify and hold 340Basics
harmless from and against any and all claims, losses, liabilities, damages,
costs, and expenses (including reasonable attorney's fees). Genex warrants that
it will take reasonable precautions to encrypt transmissions and preserve the
confidentiality of users' personal data and information.

c)     
EXCEPT AS EXPRESSLY SET FORTH HEREIN, NEITHER PARTY MAKES ANY WARRANTY
TO THE OTHER AND ALL OTHER WARRANTIES ARE EXPRESSLY DISCLAIMED. EXCEPT FOR
PAYMENTS OWED HEREUNDER, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY
DIRECT, INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, LOST
PROFITS OR LOST DATA, COST OF PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGY,
SERVICES, OR ANY CLAIMS BY THIRD PARTIES (INCLUDING BUT NOT LIMITED TO ANY
DEFENSE THEREOF). THE LICENSED SOFTWARE IS PROVIDED "AS IS" WITHOUT
WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION,
ANY WARRANTY OF MERCHANTABILITY, TITLE, NON-INFRINGEMENT AND/OR FITNESS FOR A
PARTICULAR PURPOSE. Liability of Genex for any and all claims arising out of or
relating to this Agreement shall, in the aggregate, not exceed one (1) month's
average billing to 340Basics taken over the twelve (12) months preceding

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the
month in which the damage or injury is alleged to have occurred, but if this
Agreement has not been in effect for twelve (12) months preceding such date,
then over

such fewer number of preceding full months
that this Agreement has been in effect.

 7.                   TERM
AND TERMINATION

a)      Term: This Agreement and the license granted herein shall be
effective from the Effective Date, or first use of the Licensed Software,
whichever event occurs first. The term of this Agreement shall run until
terminated in accordance with this Section 6.

b)      Termination for Cause: This Agreement may be terminated
immediately if either party materially fails to perform or comply with any
provisions of this Agreement.

c)      Termination for Convenience: This Agreement may be terminated by
either party as of the anniversary hereof, upon three months written notice,
provided all payments due hereunder have been made through the effective date
of termination.

d)      Effects of Termination: Upon termination, 340Basics shall
immediately discontinue all further use of the Licensed Software, including but
not limited to use in support of any 340Basics Product, or any sale of
340Basics Product utilizing the Licensed Software, and shall destroy any
tangible media held on which the Licensed Software exists, and remove the
Licensed Software from any and all systems.

 8.         INJUNCTIVE
RELIEF. 340Basics agrees that the provisions in this Agreement

regarding unauthorized use of the Licensed
Software and nondisclosure are necessary to protect the legitimate business
interests of GENEX. 340Basics also agrees that monetary damages alone cannot
adequately compensate GENEX if there is a violation of such provisions by
340Basics and that injunctive relief is essential for the protection of GENEX.
340Basics agrees, therefore, that if GENEX alleges that 340Basics has breached
or violated such provisions then, in addition to any other remedies it may
have, GENEX will have the right to petition a court of competent jurisdiction,
without the requirement for the posting of a bond, for injunctive relief
against 340Basics in addition to all other remedies at law or in equity.

 9.         CONFIDENTIALITY.
340Basics agrees that all source code, source documentation and

underlying
inventions, algorithms, know-how and ideas relating to the Licensed Software
are

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GENEX's proprietary information (hereinafter
"Proprietary Information"). Except as expressly and unambiguously
allowed herein, the 340Basics will hold in confidence and not disclose any
Proprietary Information to any third party nor use same for any purpose not
permitted hereunder. 340Basics and any third party receiving Proprietary
Information as expressly allowed in this Agreement are in the aggregate the
"receiving party." Proprietary Information is not intended to
include, and does not include, information that (i) is in or enters the public
domain without breach of this Agreement through no fault of the receiving party,
(ii) the receiving party was legally in possession of prior to receiving it,
(iii) the receiving party can demonstrate was developed by it independently and
without use of, or reference to, Proprietary Information, or (iv) the receiving
party receives lawfully from a third party not bound by obligations of
confidentiality thereto. If receiving party is required to disclose Proprietary
Information by law, court order, or government agency, such disclosure shall
not be deemed a breach of this Agreement provided that receiving party gives
GENEX prompt notice of such requirement in order to allow GENEX to object or
limit such disclosure, receiving party cooperates with GENEX to protect
Proprietary Information, and receiving party complies with any protective order
in place and discloses only the information required by process of law.
Obligations under this Section 8 survive the expiration or termination of this
Agreement.

10. GENERAL.

a)      Notices: Notices under this Agreement shall be in writing,
addressed to the Chief Executive Officer of the other party, and may be sent by
hand-delivery, courier or telefacsimile.

b)      Governing Law: THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF NEW JERSEY
AND THE UNITED STATES WITHOUT REGARD TO CONFLICTS OF LAWS PROVISIONS THEREOF
AND WITHOUT REGARD TO THE UNIFORM COMMERCIAL CODE, THE UNITED NATIONS
CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS OR OTHER
INTERNATIONAL SALES CONVENTIONS. The sole jurisdiction and venue for actions
related to the subject matter hereof shall be the state and federal courts
located in New Jersey. Both parties consent to the exclusive jurisdiction of
such courts and

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agree
that process may be served in the manner provided herein for giving of notices
or otherwise as allowed by law.

c)      Entire Agreement: This Agreement is the entire agreement
between the parties with respect to the subject matter hereof. It may not be
modified except by a written agreement signed by an authorized representative
of each party hereto.

d)      Force majeure: No liability shall result to any Party
from any delay in performance or from nonperformance caused by circumstances
beyond the reasonable control of the Party affected, including but not limited
to, acts of God, fire, flood, explosion, war, terrorism, action or request of
governmental authority, accident, labor trouble or shortage, unusually severe
weather, electrical power failures, telecommunication outages, or any other
circumstances of a similar or different nature beyond the reasonable control of
the Party affected.

e)      Independent Contractors: Nothing in this Agreement shall operate to
or be construed or interpreted as to render the Parties hereto as other than
independent contractors, nor shall anything in this Agreement operate or be
construed or interpreted as to render any Party, or any of such Party's
employees, agents or contractors, to be employees, agents, associates, joint
ventures or partners of the other Party.

t)    Severability: If any provision of this Agreement is held
by a court of competent jurisdiction 

to be illegal, invalid or unenforceable, that provision shall be limited or
eliminated to the minimum extent necessary so that this Agreement shall
otherwise remain in full force and effect and enforceable.

g)      Waiver: No waiver of any breach of any provision of this Agreement
shall constitute a waiver of any prior, concurrent or subsequent breach of the
same or any other provisions hereof, and no waiver shall be effective unless
made in writing and signed by an authorized representative of the waiving
party.

h)      Assignment: Neither this Agreement, nor any rights,
licenses or obligations hereunder, may be assigned, transferred or sublicensed
by 340Basics without the prior written approval of GENEX.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth at the beginning of this Agreement.  All signed copies of this Agreement shall be deemed to be originals.

 

Genex Consulting, LLC                                 340Basics 

 

 

/S/ Anula Courtis                                               /S/ Natasha Giordano

Signature                                                          Signature

 

 

Anula Courtis                                                    Natasha Giordano                                            

Name                                                               Name

 

President                                                          President and Chief Executive Officer            

Title                                                                 Title

 

March 27, 2014                                                 March 27, 2014                                                           

Date                                                                 Date

 

 

 

10amendment340basicsfinal2014-.htm - Generated by SEC Publisher for SEC Filing

 

AMENDMENT TO 

NON-EXCLUSIVE SOFTWARE LICENSE AGREEMENT (InfoPointTM for
340Basics)

 

            GENEX
Consulting, LLC, having a place of business at 103 Carnegie Center, Ste. 300,
Princeton, NJ 08540 (hereinafter “GENEX”) and 340Basics Inc. having a place of
business at 66 Ford Rd #230, Denville, NJ 07834 (hereinafter “340Basics”),
having entered into a Nonexclusive Software License Agreement (“Agreement”),
said Agreement having been executed March 27, 2014 and made effective as of
January 2, 2014, desire to amend that Agreement to provide for an exclusive
license and to address other issues as set forth below, and Healthcare
Corporation of America (OTCQB: HCCA), 340Basics’ parent company having a place
of business at 66 Ford Rd #230, Denville, NJ 07834 (“HCCA”) desires to be added
as a party and to enter into this Amendment in order to induce GENEX to enter
into the same;

 

NOW, THEREFORE, in consideration of the mutual covenants
of the parties and for other good and valuable consideration, the parties hereto
hereby amend the Agreement as follows, this Amendment to be effective as of
June 1, 2014 (the “Exclusive Effective Date”):

 

1.
Subsection a) of Section 2 of the Agreement, entitled “LICENSE GRANT AND
OWNERSHIP OF LICENSED SOFTWARE” is deleted and replaced with the following:

a) Subject
to the terms of this Agreement, GENEX grants to 340Basics a worldwide,
exclusive, non-transferable limited license to use the Licensed Software in
connection with 340Basics Products. Nothing herein shall be considered to grant
any license to use the Licensed Software for any other purpose or in connection
with any other products, e.g., for Auditing,
Medicaid, Medicare and Revenue Recovery.  

 

Subsections
b) and c) of Section 2 are unchanged.

 

            2. 
Section 3 of the Agreement, the first section entitled “SOFTWARE HOSTING,
SUPPORT AND CONSULTING” which through an error duplicated the provisions of
Section 2, is deleted and replaced with the following language:  “[Section 3 is
intentionally omitted]”.

 

            3.
Section 5 of the Agreement, entitled “PAYMENT” is amended by adding additional
subsections e), f), and g) as follows: 

	
  1

  

 

 

 

 

            e)
Exclusivity Fee:  in addition to the payments in Section 5(a) above, 340Basics
will pay, at the times and in the manner set forth in this Section 5, an
Exclusivity Fee in the amount of:

 

(i)     5% of 340Basic Script Revenue,
plus 

 

(ii)   an additional 2% of 340Basics
Script Revenue from clients referred by GENEX, provided that such referrals are
documented in writing, via email from GENEX to 340Basics, and acknowledged by
340Basics.  

 

For
purposes of this Agreement, “340Basics Script Revenue” for a given period shall
mean the greater of:

 

(iii) total
cash receipts of 340Basics and its affiliates during such period that are
attributable to sales of 340Basics Products which utilize the Licensed Software,
net of reasonable discounts and adjustments actually given;  and

 

            (iv) 70% of the amount specified as “340Basics Script Revenue”,
corresponding to projected sales of 340Basics Products which utilize the Licensed Software,
net of reasonable discounts and adjustments, for such period in 340Basics’s annual budget (the
“Annual Budget”) in effect for such period, as approved by 340Basics’s Board of
Directors.  

 

When the
Exclusivity Fee is calculated based on total cash receipts as specified in the
foregoing clause (i), it shall be referred to as the Sales Exclusivity Fee, and
when the Exclusivity Fee is calculated based on the 70% of budgeted amount as specified
in the foregoing clause (ii), it shall be referred to as the “Minimum
Exclusivity Fee”. 

 

For as
long as this Agreement continues in effect, 340Basics, HCCA & GENEX will
work together to agree on the Annual Budget for each calendar year commencing
with the 2015 calendar year prior to the beginning of the relevant calendar
year (and in any event prior to such Annual Budget’s submission for approval to
HCCA and 340Basic’s Board of Directors).  For purposes of illustration, Table 1
provides a calculation of potential Exclusivity Fee payments for the years 2014
(June – December, based on the budget already approved by the Board) and 2015
(January – December, based on estimates but not approved by the Board):

 

	
  TABLE
  1:  Potential License Fee Payments 

  	 
	 	 	 	 	 
	
  Period

  	 	
   Revenues
  

  	
  Notes

  	 
	
  2014
  Budget

  	 	 	 	 
	
  June
  – December

  	 	
  
  $2,454,200 

  	
  Amount
  of projected 340Basic Script Revenue in budget - already approved by the
  Board

  	 
	
  Minimum
  Commitment

  	
  70%

  	
  
  $1,717,940 

  	 	 
	 	 	 	 	 
	
  Fees

  	 	 	 	 
	
  Minimum
  Exclusivity Fee

  	
  5%*

  	
  
  $85,897 

  	
  Amount
  payable for the period if cash receipts do not exceed 70% of budget

  	 
	 	 	 	 	 
	
  Per
  Budget Exclusivity Fee

  	
  5%*

  	
  
  $122,710 

  	
  Amount
  payable for the period if cash receipts equal 100% of 340Basic Script Revenue
  projected in the budget

  	 
	 	 	 	 	 
	
  2015
  Budget

  	 	
  
  $9,727,200 

  	
  Estimated
  amount of projected 340Basic Script Revenue in budget (NB: not yet approved
  by the Board)

  	 
	
  Minimum
  Commitment

  	
  70%

  	
  
  $6,809,040 

  	 	 
	 	 	 	 	 
	
  Fees

  	 	 	 	 
	
  –Minimum
  Exclusivity Fee

  	
  5%*

  	
  
  $340,452 

  	
  Amount
  payable for the period if cash receipts do not exceed 70% of budget

  	 
	
   

  Per
  Budget Exclusivity Fee

  	
  5%*

  	
  
  $486,360 

  	
  Amount
  payable for the period if cash receipts equal 100% of 340Basics Script
  Revenue projected in the budget

  	 
	 	 	 	
   

  * If GENEX brings in clients, it
  will be paid an additional 2% on receipts from such clients

  	 
	 	 	 	 	 

	
  2

  

 

 

 

            

f) Timing
of Exclusivity Fee payment:  Payments to GENEX of the Exclusivity Fee will be
made on a monthly basis in immediately available funds, according to the schedule
set forth in this subsection.  340Basics will make an Initial Payment to GENEX
of $12,300 (the average monthly Minimum Exclusivity Fee for 2014) upon
execution of this Amendment.  Upon termination of this Agreement or conversion
of the license granted under this Agreement to a nonexclusive license, pursuant
to Section 7(e), GENEX will first apply this Initial Payment of $12,300 to any
outstanding amounts owed by 340Basics or HCCA under this Agreement as of the
time of such termination or conversion, and then pay any balance remaining to
340Basics.  340Basics will pay by the 30th of each month following the end of
the prior month the Sales Exclusivity Fee or the Minimum Exclusivity Fee,
whichever is higher. On or before the 30th day of the month following
a quarter (so on or before October 30 for the quarter ending September, and so
forth), 340Basics and GENEX will true up the payments (either by payment from
340Basics or refund from GENEX) so that GENEX will have received (on a year-to-date basis through the end of such quarter; except that
for 2014, the basis will be the only period from June through December 2014), the
greater of (a) the total of the Minimum Exclusivity Fees due or (b) the total
of the Sales Exclusivity Fees due. An example of this calculation is set forth
on the spreadsheet attached hereto as Appendix A.

	
  3

  

 

 

 

 

            g)
Reporting and Auditing:  

 

(i)
GENEX will grant access to 340Basics to retrieve 340B Invoice Reports from the
information on the GENEX servers, such reports showing activity by customer
using the Licensed Software. 

 

(ii)
340Basics will provide GENEX with monthly reports showing the actual number of
scripts sold, the price per script, any revenues, discounts or adjustments
associated with sale of 340Basics Products, a calculation of the Sales
Exclusivity Fee and a calculation of the fee payment owed to GENEX. GENEX shall
have the right during the term of this Agreement and for three (3) years
thereafter, at its cost and expense to designate an authorized representative,
including without limitation, a firm of Certified Public Accountants to audit the
books and records of 340Basics and to conduct such further investigation as GENEX
shall deem necessary to verify 340Basic's performance of all its obligations
hereunder including, without limitation, payments due to GENEX under this
Agreement.  

 

(iii)
If, as a result of any examination of the books and records of 340Basics or the
340B Invoice Reports, it is determined that payments made under this Agreement
were less than or greater than the amount which should have been paid, 340Basics
and/or HCCA shall promptly pay the amount of any discrepancy or shortage to
GENEX, or GENEX shall refund any overpayment to 340Basics, as the case may be. 
Should the discrepancy or shortage of payment by 340Basics be the result of an
error, omission or other inaccuracy in information or reports provided by
340Basics, the payment of the amount of discrepancy or shortage shall bear
interest at 1.5% per month compounded monthly. 

 

 

 

 

 

 

 

 

 

	
  4

  

 

 

 

 

Section 5
of the Agreement, entitled “PAYMENT” is further amended by replacing item 5 in
subsection a) of such Section 5 with the following:

 

	
  5)
  User volume license fee for GENEX 340BasicsTM suite (Client Login,
  Member Login, Eligibility, Customer Service, FileShare)

  	
  ·        
  1 to
  124,999 end users (including members, patients and employees): Included in
  basic license fee above. 

  ·        
  125,000 -
  199,999:  Basic fee plus $0.20 per additional end user. 

  ·        
  200,000 and
  over:   Basic fee plus $0.15 per additional end user.

  

 

 

 

 

 

 

 

 

 

 

 

The
remainder of subsection a), as well as subsections b), c) and d) of Section 5
shall remain unchanged. 

 

            4. 
Subsection b) of Section 6 of the Agreement entitled “WARRANTY AND
INDEMNIFICATION” shall be deleted and replaced with the following:

b)         GENEX
Indemnity:  In the event that 340Basics is sued in a court of competent
jurisdiction for any claim that the Licensed Software, or its use as authorized
hereunder, infringes or misappropriates any intellectual property right of any
third party, GENEX will defend, indemnify and hold 340Basics harmless from and
against any and all claims, losses, liabilities, damages, costs, and expenses
(including reasonable attorney's fees). Genex warrants that it will take
reasonable precautions to encrypt transmissions and preserve the
confidentiality of users’ personal data and information.  Should any amounts be
payable by GENEX under this Section 6(b) indemnity, such amounts shall be first
offset against any unpaid fees payable by 340Basics and HCCA and then against
the current year’s minimum fees not yet paid.

  

All other
provisions of Section 6 shall remain unchanged.

 

5.
Section 7 of the Agreement, entitled “TERM AND TERMINATION” is amended by correcting
the reference in subsection (a) to “this Section 6” to “this Section 7” and by
deleting subsection c) and replacing it with the following:

 

	
  5

  

 

 

 

c)         Termination
for Convenience:  This Agreement may be terminated by either party at any time
after the fifth anniversary of the Exclusive Effective Date, upon three months
written notice, provided that if the termination is by 340 Basics, all payments
due hereunder must have been made through the effective date of termination.

 

Section
7 of the Agreement is further amended by adding the following subsection:

e)  Conversion
to Nonexclusive:  in addition to any other rights available under this Section
7 or any other provision of this Agreement:

 

(i)     if 340Basics or HCCA is at any
time delinquent for a period of 60 days or more in paying the Exclusivity Fee, any
payments due under Section 11 hereof, or other payments due to GENEX under this
Agreement, or if HCCA fails to comply with GENEX's exercise of its option to
receive 10% Secured Convertible Debentures of HCCA under Section 11
hereof;

 

(ii)   if the amount of the “340Basic Script Revenue” is less
than Five Million Dollars ($5,000,000) for 2015 or any calendar year thereafter;

 

(iii)  at any time after the fifth anniversary of the
Exclusive Effective Date; and 

 

(iv)  if 340Basics or HCCA become insolvent or
declare bankruptcy; or

 

(v)   if 340Basics undergoes a change
of control of the 340Basics business (whether by sale or transfer of
substantially all assets or business of 340Basics or by sale
or transfer of a majority of stock in 340Basics or HCCA) wherein (a)
such change of control is without prior written consent by GENEX, such
consent not to be unreasonably withheld, and (b) such change of
control is a change of control which requires approval of the Board(s) of
Directors of 340Basics and/or of HCCA after the date hereof; 

 

then GENEX
shall have the right to amend the Agreement to convert the license granted
hereunder to a nonexclusive license, effective immediately upon written notice
to 340Basics, by amending Subsections 2(a), 5(e), 5(f), and 7(c), such that Subsections
2(a) and 7(c) of the Agreement will prospectively revert to the original terms
of the Nonexclusive
Software License Agreement as executed March 27, 2014, and new Subsections 5(e) and 5(f) will cease to have
effect prospectively.  

 

All
other provisions of Section 7 shall remain unchanged.

 

            6. 
The Agreement is further amended to add the following Section 11:

 

11. 
DEBT OF 340BASICS AND HCCA TO GENEX.

 

a) Each of 340Basics and HCCA hereby
acknowledges and agrees that the balance of 340Basics’ and HCCA’s payment obligations
to GENEX that are due and payable as of May 31, 2014
(the “Outstanding Balance”), which Outstanding Balance is hereby acknowledged
by each of 340Basics and HCCA to be equal to approximately $380,000, remains
outstanding and due and payable on demand, by 340Basics and HCCA jointly and
severally, and that such Outstanding Balance is not satisfied, discharged or
otherwise affected by this Amendment.  

	
  6

  

 

 

 

 

b) At the
option of GENEX, GENEX may elect to receive, at any time prior to June 7, 2014
and in satisfaction and discharge of a $175,000 portion of the Outstanding
Balance, 10% Secured Convertible Debentures of HCCA in the aggregate principal
amount of $175,000.00, with 100% detachable warrant coverage, to be issued to
GENEX by HCCA on the terms and conditions set forth in debenture and warrant
documentation substantially in the form furnished by HCCA to GENEX on May 31,
2013, with such modifications as GENEX and HCCA may mutually agree in writing
(and for the avoidance of doubt, such option of GENEX will remain in effect at
all times prior to June 7, 2014 notwithstanding any earlier payment of such
balance, or any portion thereof, to GENEX), with the remaining balance of
approximately $205,000 to be paid over 9 months, in equal installments due on
the first day of the month, starting July 1, 2014.

 

c) The May
31st, 2014 outstanding remaining balance will be calculated and
agreed upon by the parties by June 15, 2014.

 

7.  HCCA
and 340Basics, as parties to this Agreement, shall be jointly and severally
liable for all payment obligations under this Agreement, including without
limitation all payments due under Section 5 and under Section 11, and wherever
in the Agreement there is a reference to an obligation by 340Basics to make a
payment, it is understood and agreed that HCCA is jointly and severally liable
for such obligation; provided, however, that no license is granted hereunder to
HCCA with respect to any products other than 340Basics Products.

 

            8.
All provisions of the Agreement shall remain in force except as expressly
modified by this Amendment.

 

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remainder of this page is intentionally left blank]

 

 

 

 

 

	
  7

  

 

 

 

IN
WITNESS WHEREOF, the Parties have executed this Amendment to
the Nonexclusive
Software License Agreement, as
of the Exclusive Effective Date.  All signed copies of this Agreement shall be
deemed to be originals.

 

GENEX Consulting, LLC                           340Basics
Inc

 

 

/S/ Anula Curtis                                              /S/
Natasha Giordano                          

Signature                                                         Signature

 

                                                                                                                                                

Name: Anula Curtis                                        Name:
Natasha Giordano

 

                                                                                                                                                

Title: Managing Director                                 Title:
CEO

 

                                                                                                                                                            

Date:
June 6, 2014                                          Date: June 6, 2014

 

Healthcare Corporation of America                                   

 

 

/S/ Natasha Giordano  

Signature                                                         

 

                                                                        

Name: Natasha Giordano                                                                   

 

                                                                        

Title: CEO                                                                   

 

                                                                        

Date:
June 6, 2014                                                                                                                              

 

 

 

	
  8

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