Document:

Third Supplemental Indenture

 EXHIBIT 4.08 
  
 THIRD SUPPLEMENTAL INDENTURE 
  

This Third Supplemental Indenture (this “Third Supplemental Indenture”) dated as of January 14, 2004, by and between PacifiCare
Health Systems, Inc., a Delaware corporation (the “Company”); PacifiCare Health Plan Administrators, Inc., an Indiana corporation, PacifiCare eHoldings, Inc., a California corporation, MEDeMORPHUS Healthcare Solutions, Inc.
(formerly known as RxConnect, Inc.), a California corporation, SeniorCo, Inc., a Delaware corporation, Rx Solutions, Inc., a California corporation, PacifiCare Behavioral Health, Inc., a Delaware corporation, Secure Horizons USA, Inc., a California
corporation, PacifiCare of Arizona, Inc., an Arizona corporation, and PacifiCare Oklahoma, Inc., an Oklahoma corporation (collectively, the “Existing Subsidiary Guarantors”); and PacifiCare Southwest Operations, Inc., a
Delaware corporation (the “Additional Subsidiary Guarantor”); and U.S. Bank National Association, a national banking association, as successor to State Street Bank and Trust Company of California, N.A., as trustee under the
Indenture referred to below (the “Trustee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture referred to below. 
  
 RECITALS 
  
 WHEREAS, the Company and the Subsidiary Guarantors executed and delivered to the Trustee an Indenture,
dated as of May 21, 2002, as supplemented by the First Supplemental Indenture dated as of September 15, 2003 and as supplemented by the Second Supplemental Indenture dated as of November 19, 2003 (the “Indenture”) providing
for the issuance of an aggregate principal amount of $500,000,000 of 10 3/4% Senior Notes due 2009 (the “Notes”); 
  
 WHEREAS, Section 4.07 of the Indenture provides that the Company will cause each Restricted Subsidiary (other than the PHPA
Subsidiary Guarantors) that would be permitted to guarantee payment of the Notes without obtaining the approval of governmental or regulatory agencies or authorities or incurring regulatory restrictions on the operations of such subsidiary to
execute and deliver a supplemental indenture to the Indenture providing for an unsubordinated Guarantee of payment of the Notes by each such Restricted Subsidiary; 
  
 WHEREAS, the Additional Subsidiary Guarantor is a Restricted Subsidiary of the Company under Section
4.07 of the Indenture; 
  
 WHEREAS, pursuant
to Section 9.01 of the Indenture, the Trustee, the Company, the Existing Subsidiary Guarantors and the Additional Subsidiary Guarantor are authorized, without notice to or the consent of any Holder, to execute and deliver this Third Supplemental
Indenture to cause the Additional Subsidiary Guarantor to Guarantee the Notes to comply with Section 4.07 of the Indenture; and 
  
 WHEREAS, the Company, the Trustee, the Existing Subsidiary Guarantors and the Additional Subsidiary Guarantor desire to enter into
this Third Supplemental Indenture to provide for such Note Guarantees as contemplated by Section 4.07 of the Indenture. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the
receipt of which is hereby acknowledged, the Company, the Existing 

 Subsidiary Guarantors, the Additional Subsidiary Guarantor and the Trustee mutually covenant and agree as follows:

  
 1. Creation of Note Guarantee. The Additional
Subsidiary Guarantor hereby agrees, jointly and severally with all other Subsidiary Guarantors, to Guarantee the Notes and the performance of the Company’s obligations under the Notes and the Indenture in accordance with the terms and
provisions of Article Ten of the Indenture. The Additional Subsidiary Guarantor shall be bound by, and entitled to the benefits of, all other applicable terms and provisions of the Indenture as a Subsidiary Guarantor, including the provisions
relating to the release of the Note Guarantees in certain circumstances. 
  
 2. Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions
thereof shall remain in full force and effect. This Third Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of the Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

  
 3. Governing Law. THIS THIRD SUPPLEMENTAL INDENTURE
SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 
  
 4.
Trustee Makes No Representation. The Trustee makes no representation as to the validity or adequacy of this Third Supplemental Indenture. 
  
 5. Counterparts. The parties may sign any number of copies of this Third Supplemental Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. 
  
 6. Effect of
Headings. The Section headings herein are for convenience only and shall not effect the construction thereof. 

 IN WITNESS WHEREOF, the parties hereto
have caused this Third Supplemental Indenture to be duly executed as of the date first written above. 
  

			
	PACIFICARE HEALTH SYSTEMS, INC.
		
	By:	 	/S/    GREGORY W.
SCOTT        
	 Name:
	 	 Gregory W. Scott

	 Title:
	 	Executive Vice President and Chief Financial Officer

  
  
  

			
	PACIFICARE HEALTH PLAN ADMINISTRATORS, INC.
		
	By:	 	/S/    GREGORY W.
SCOTT        
	 Name:
	 	 Gregory W. Scott

	 Title:
	 	 Chief Financial Officer

  
  

			
	PACIFICARE EHOLDINGS, INC.
		
	By:	 	/S/    GREGORY W.
SCOTT        
	 Name:
	 	 Gregory W. Scott

	 Title:
	 	 Chief Financial Officer

  
  

			
	SENIORCO, INC.
		
	By:	 	/S/    GREGORY W.
SCOTT        
	 Name:
	 	 Gregory W. Scott

	 Title:
	 	 Chief Financial Officer

  
  

			
	RX SOLUTIONS, INC.
		
	By:	 	/S/    GREGORY W.
SCOTT        
	 Name:
	 	 Gregory W. Scott

	 Title:
	 	 Chief Financial Officer

  
  

			
	PACIFICARE BEHAVIORAL HEALTH, INC.
		
	By:	 	/S/    GREGORY W.
SCOTT        
	 Name:
	 	 Gregory W. Scott

	 Title:
	 	 Chief Financial Officer

  
  

			
	SECUREHORIZONS USA, INC.
		
	By:	 	/S/    GREGORY W.
SCOTT        
	 Name:
	 	 Gregory W. Scott

	 Title:
	 	 Chief Financial Officer

			
	PACIFICARE OF ARIZONA, INC.
		
	By:	 	/S/    GREGORY W.
SCOTT        
	 Name:
	 	 Gregory W. Scott

	 Title:
	 	 Chief Financial Officer

  
  

			
	PACIFICARE OF OKLAHOMA, INC.
		
	By:	 	/S/    CHRIS
KARKENNY        
	 Name:
	 	 Chris Karkenny

	 Title:
	 	 Treasurer

  
  

			
	PACIFICARE SOUTHWEST OPERATIONS, INC.
		
	By:	 	/S/    GREGORY W.
SCOTT        
	 Name:
	 	 Gregory W. Scott

	 Title:
	 	 Chief Financial Officer

  
  

			
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	/S/    PAULA
OSWALD        
	 Name:
	 	 Paula Oswald

	 Title:
	 	 Vice PresidentNotice of Issuance of Restricted Stock for Nickolas W. Vande Steeg

 Exhibit 10(a) 
  
 

 
  

	TO:	Nickolas Vande Steeg 

  
 October 29, 2004 
  
 NOTICE OF
ISSUANCE OF RESTRICTED STOCK 
  
 On August 11, 2004, pursuant to the 2003
Stock Incentive Plan (the “Plan”), the Compensation and Management Development Committee of the Board of Directors (the “Committee”) granted to the Chief Executive Officer the authority on behalf of the Corporation to issue you
10,000 restricted shares of Parker-Hannifin Corporation Common Stock. Based on such authority, I hereby confirm these restricted shares (the “Shares”) will be issued subject to the following terms and conditions: 
  

	1.	Shares will be issued as of October 29, 2004. 

  

	2.	Ownership of the shares will become vested (i.e., unrestricted) on October 29, 2007. During the vesting period, the shares cannot be sold or otherwise transferred or assigned.

  

	 	a.	Shares vest immediately in the event of your retirement at or after December 31, 2006. 

  

	 	b.	Shares are forfeited in the event of (i) your death or disability; (ii) your voluntary termination of employment (except due to retirement (as specified in (a) above); or (iii) the
involuntary termination of your employment. 

  

	3.	Shares will vest immediately in the event of a “change in control” of the Corporation (as defined in the Plan). 

  

	4.	Certificates representing the Shares will not be issued during the vesting period. Rather, the shares will be issued in an uncertificated book entry format at the transfer agent.

  

	5.	Shares will earn non-refundable dividends during the vesting period, payable directly to you. 

  

	6.	Upon vesting, the value of the Shares will become taxable income to you. You will be obligated to reimburse the Corporation for all withholding taxes payable by the Corporation at
such time. At your election, you may surrender a portion of the shares to satisfy such withholding taxes. Unreimbursed amounts will be subject to payroll withholding. 

	7.	To the extent not otherwise specified above, the issuance of the Shares is subject to the terms and conditions of the Plan. 

  
 Please confirm your receipt of this Notice and indicate your acknowledgment and agreement to
the terms specified herein by signing and returning a copy of this Notice to Tom Piraino. 
  
 Sincerely, 
  
 /s/ D.E. Washkewicz 
 Donald E. Washkewicz 
 Chairman and Chief Executive Officer 
 ACKNOWLEDGED AND AGREED: 
  

					
	 /s/ N.W. Vande Steeg

	 	Date:	 	 October 29, 2004

	Nickolas Vande SteegAsset Purchase Agreement

 Exhibit 10.1 
  
 ASSET PURCHASE AGREEMENT 
  
 This Asset Purchase Agreement (this “Agreement”) made as of October 31, 2004, by and among Drug Depot, Inc., a
Florida corporation (“Buyer”) and T & L Pharmacies, Inc., a Florida corporation, d/b/a Advanced Pharmacy Solutions (“Seller”). 
  
 WHEREAS, subject to the terms and conditions hereof, Seller desires to sell, transfer and assign to Buyer, and Buyer desires to purchase from Seller, all
of the properties, rights and assets used or useful in connection with the pharmacy business of Seller, which includes, without limitation, inventory, customer lists, equipment, fixtures and transferable licenses (the “Business”).

  
 NOW THEREFORE, in consideration of the mutual covenants and
agreements herein contained, the parties hereto agree as follows: 
  
 SECTION
1. PURCHASE AND SALE OF ASSETS. 
  
 1.1 Sale of
Assets. Seller agrees to sell, assign, transfer and deliver to Buyer, and Buyer agrees to purchase from Seller, all of Seller’s right, title and interest in and to all of the properties, assets and business of the Business, of every kind
and description, tangible and intangible, real, personal or mixed, and wherever located, but excluding the Excluded Assets (as hereafter defined), including, without limitation, the following: 
  
 (a) Fixed Assets. All equipment, machines, test equipment, fixed
assets, accessories, stock, inventory, office materials, software, supplies and other tangible personal property of every kind and description owned by Seller and used or held for use in connection with the Business, all as set forth on Schedule
1.1(a); 
  
 (b) Contracts. All of the rights of Seller
under, and interest of Seller in and to, all contracts relating to the Business, a true, correct and complete list of which contracts is attached hereto as Schedule 1.1(b); 
  
 (a) Intellectual Property and Licenses. All of Seller’s Intellectual Property or any licenses capable of being
transferred and relating to the Business, as set forth on Schedule 1.1(c) attached hereto; 
  
 (d) Goodwill. All of the goodwill of Seller in, and the going concern value of, the Business, and all of the business and customer lists and
accounts, proprietary information, marketing materials and trade secrets related to the Business; and 
  
 (e) Records. All of Seller’s customer logs, location files and records, and other business files and records, in each case relating to the
Business. 
  
 The assets, properties and business of Seller being
sold to and purchased by Buyer under this Section 1.1 are referred to herein collectively as the “Assets.” 
  

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 1.2 Excluded Assets. There shall be excluded from the Assets and retained by Seller, the following
assets (the “Excluded Assets”): 
  
 (a) Accounts
Receivable; Other Assets. All accounts receivable generated by the Business prior to the date of this Agreement, all assets identified on Schedule 1.2(a) attached hereto, and all other assets of Seller which are not used or held for use
in connection with the Business or otherwise necessary to the operation of the Business; 
  
 (b) Corporate Records. All of Seller’s corporate and other organizational records; and 
  
 (c) Cash and Credit. Cash or credit receivables on hand, exclusive of reserves associated with undelivered services or products. 
  
 1.3 Assumed Liabilities; Excluded Liabilities; Employees. 

 
 (a) Assumed Liabilities. Buyer shall accept and assume, and shall
become and be fully liable and responsible for, and other than as expressly set forth herein Seller shall have no further liability or responsibility for or with respect to, (i) liabilities and obligations arising out of events occurring on and
after the date hereof related to Buyer’s ownership of the Assets and Buyer’s operation of the Business after the consummation of the transactions contemplated herein; and (ii) all obligations and liabilities of Seller which are to be
performed after the date hereof arising under the Contracts (collectively, the “Assumed Liabilities”). The assumption of the Assumed Liabilities by Buyer hereunder shall not enlarge any rights of third parties under contracts or
arrangements with Buyer or Seller or any of their respective affiliates or subsidiaries. 
  
 (b) Excluded Liabilities. It is expressly understood that, except for the Assumed Liabilities, Buyer shall not assume, pay or be liable for any liability or obligation of Seller of any kind or nature at any
time existing or asserted, whether, known, unknown, fixed, contingent or otherwise, not specifically assumed herein by Buyer, including, without limitation, any liability or obligation relating to, resulting from or arising out of (i) the Excluded
Assets, (ii) the employees of the Business, or (iii) any fact existing or event occurring prior to, or relating to the operation of the Business prior to, the date hereof, including but not limited to taxes, assessments, levies or charges of any
kind or nature relating to the Business prior to the date hereof. 
  
 (c) Employees, Wages and Benefits. 
  
 (i) Seller shall terminate or reassign all of its employees related to the Business effective immediately and Buyer shall not assume or have any obligations or liabilities with respect to such employees or such terminations, including,
without limitation, any severance obligation. 
  
 (ii) Buyer specifically reserves the right, on or after the date hereof, to employ or reject any of Seller’s employees or other applicants in its sole and absolute discretion. Nothing in this Agreement shall be construed as a
commitment or obligation of Buyer to accept for employment, or otherwise continue the employment of, any of Seller’s employees, and no employee shall be a third-party beneficiary of this Agreement. 
  

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 (iii) Seller shall pay all wages, salaries, commissions, and the cost of all fringe
benefits provided to its employees which shall have become due for work performed as of and through the date hereof, and Seller shall collect and pay all Taxes in respect of such wages, salaries, commissions and benefits. 
  
 (iv) Seller acknowledges and agrees that Buyer shall not
acquire any rights or interests of Seller in, or assume or have any obligations or liabilities of Seller under, any benefit plans maintained by Seller, or for the benefit of any employees of Seller, including, without limitation, obligations for
severance or vacation accrued but not taken. 
  
 1.4 Purchase
Price. In consideration of the sale by Seller to Buyer of the Assets, and subject to the assumption by Buyer of the Assumed Liabilities and satisfaction of the conditions contained herein, Buyer shall pay to Seller an amount equal to (i) Two
Hundred Fifteen Thousand ($215,000), to be paid at the Closing by certified check, bank check or wire transfer; (ii) an amount equal to the current value of the fixed assets and inventory set forth on schedule 1.1(a) hereto (book value, less
depreciation as set forth on schedule 1.1(a)), to be paid at the Closing by certified check, bank check or wire transfer, and (iii) Two Hundred Fifteen Thousand ($215,000) shall be paid by delivery of a promissory note in the form of Exhibit 1.4
attached hereto. 
  
 1.5 Records and Contracts. Seller
shall deliver to Buyer all of the Contracts, with such assignments thereof and consents to assignments as are necessary to assure Buyer of the full benefit of the same. Seller shall also deliver to Buyer all of Seller’s files and records
constituting Assets. 
  
 1.6 Further Assurances. Seller
shall, from time to time after the consummation of the transactions contemplated herein, at the request of Buyer and without further consideration, execute and deliver further instruments of transfer and assignment and take such other action as
Buyer may reasonably require to more effectively transfer and assign to, and vest in, Buyer the Assets free and clear of all Liens. 
  
 1.7 Sales and Transfer Taxes. All sales, transfer, use, recordation, documentary, stamp, excise taxes, personal property taxes, fees and duties
(including any real estate transfer taxes) under applicable law incurred in connection with this Agreement or the transactions contemplated hereby will be borne and paid by Buyer. 
  
 1.8 Transfer of Subject Assets. Seller shall deliver or cause to be delivered to Buyer good and sufficient
instruments of transfer transferring to Buyer title to all of the Assets, together with all required consents. Such instruments of transfer (a) shall contain appropriate warranties and covenants which are usual and customary for transferring the
type of property involved under the laws of the jurisdictions applicable to such transfers, (b) shall be in form and substance reasonably satisfactory to Buyer and its counsel, (c) shall effectively vest in Buyer good and marketable title to all of
the Assets free and clear of all Liens, and (d) where applicable, shall be accompanied by evidence of the discharge of all Liens against the Assets. Buyer agrees and acknowledges that the form of instrument of transfer attached hereto as Exhibit 1.8
is acceptable. 
  

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 SECTION 2. REPRESENTATIONS AND WARRANTIES OF SELLER. In order to induce Buyer to enter into this Agreement,
Seller, hereby represents and warrants to Buyer as follows: 
  
 2.1 Organization. Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of Florida, with full corporate power and authority to own or lease its properties and to conduct its
business in the manner and in the places where such properties are owned or leased or such business is currently conducted or proposed to be conducted. 
  
 2.2 Required Action. All actions and proceedings necessary to be taken by or on the part of Seller in connection with the transactions contemplated
by this Agreement have been duly and validly taken, and this Agreement and each other agreement, document and instrument to be executed and delivered by or on behalf of Seller pursuant to, or as contemplated by, this Agreement (collectively, the
“Seller Documents”) has been duly and validly authorized, executed and delivered by Seller and no other action on the part of Seller or its is required in connection therewith. Seller has full right, authority, power and capacity to
execute and deliver this Agreement and each other Seller Document and to carry out the transactions contemplated hereby and thereby. This Agreement and each other Seller Document constitutes, or when executed and delivered will constitute, the
legal, valid and binding obligation of Seller, enforceable in accordance with its respective terms. 
  
 2.3 No Conflicts. The execution, delivery and performance by Seller of this Agreement and each other Seller Document does not and will not (i)
violate any provision of the Articles of Incorporation and by-laws of Seller, in each case as amended to date, (ii) constitute a violation of, or conflict with or result in any breach of, acceleration of any obligation under, right of termination
under, or default under, any agreement or instrument to which Seller is a party or by which Seller or the Assets is bound, (iii) violate any judgment, decree, order, statute, rule or regulation applicable to Seller or the Assets, (iv) require Seller
to obtain any approval, consent or waiver of, or to make any filing with, any person or entity (governmental or otherwise) that has not been obtained or made or (v) result in the creation or imposition of any Lien on any of the Assets. No consent of
any party is necessary in order that the business of the Seller can be conducted by the Buyer in the same manner after the Closing as heretofore conducted by the Seller. 
  
 2.4 Compliance with Laws. Seller’s operation of the Business and the Assets is in compliance in all material
respects with all applicable statutes, ordinances, orders, rules and regulations promulgated by any federal, state, municipal or other governmental authority, and Seller has not received notice of a violation or alleged violation of any such
statute, ordinance, order, rule or regulation. 
  
 2.5
Contracts. The Contracts constitute all leases, contracts and arrangements, whether oral or written, under which Seller is bound or to which Seller is a party which relate to the Business or Assets. Schedule 1.1(b) attached hereto
contains a true, correct and complete list of all Contracts. With respect to each oral agreement or understanding involving the Business, Seller has provided a written summary of the material terms of each such agreement or understanding on
Schedule 1.1(b). Each Contract is valid, in full force and effect and binding upon Seller and the other parties thereto in accordance with its terms. Neither Seller nor, to the knowledge of Seller, any other party is in default under or in
arrears in the performance, payment or satisfaction of any agreement or condition on its 
  

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 part to be performed or satisfied under any Contract, nor does any condition exist that with notice or lapse of time or
both would constitute such a default, and no waiver or indulgence has been granted by any party under any Contract. Seller has not received notice of, and has no knowledge of, any fact which would result in a termination, repudiation or breach of
any Contract. Seller has provided Buyer with true and complete copies of all of such Contracts, other than with respect to the oral agreements or understandings described on Schedule 1.1(b). 
  
 2.6 Title. Seller has good and marketable title to all of the Assets
free and clear of all mortgages, pledges, security interests, charges, liens, restrictions and encumbrances of any kind (collectively, “Liens”) whatsoever. Upon the sale, assignment, transfer and delivery of the Assets to Buyer hereunder
and under the Seller Documents, there will be vested in Buyer good, marketable and indefeasible title to the Assets, free and clear of all Liens. The Assets include all of the assets and properties (i) held for use by Seller to conduct the Business
as presently conducted and (ii) necessary for Buyer to operate the Business in the same manner as such business is currently operated by Seller. All of the tangible Assets are in good repair, have been well maintained and are in good operating
condition, do not require any material modifications or repairs, and comply in all material respects with applicable laws, ordinances and regulations, ordinary wear and tear excepted. 
  
 2.7 No Litigation. Seller is not now involved in nor, to the knowledge of Seller, is Seller threatened to be involved
in any litigation or legal or other proceedings related to or affecting the Business or any Asset or which would prevent or hinder the consummation of the transactions contemplated by this Agreement. Seller has not been operating the Business under,
and the Business is not subject to, any order, injunction or decree of any court of federal, state, municipal or other governmental department, commission, board, agency or instrumentality. 
  
 2.8 Employees; Labor Matters. Upon termination of the employment of
any of Seller’s employees, Buyer will not by reason of the transactions contemplated hereby or anything done prior to the date hereof be liable to any of said employees for so-called “severance pay” or any other payments. Seller is in
compliance in all material respects with all applicable laws and regulations respecting labor, employment, fair employment practices, work place safety and health, terms and conditions of employment, and wages and hours. There are no charges of
employment discrimination or unfair labor practices, nor are there any strikes, slowdowns, stoppages of work, or any other concerted interference with normal operations existing, pending or, to the knowledge of Seller, threatened against or
involving Seller. No question concerning representation exists respecting any group of employees of Seller. 
  
 2.9 Financial Statements. Copies of the balance sheet of Seller as at September 30, 2004 (the “Balance Sheet”) and the statements of
income and expense of Seller for the two years ended December 31, 2003 (collectively the “Financial Statements”), will be provided within 75 days. The Financial Statements will have been prepared in accordance with generally accepted
accounting principles applied consistently during the periods covered thereby (except for the absence of footnotes with respect to unaudited financials), are will be complete and correct and present fairly and accurately the financial condition of
the Business at the dates of said statements and the results of operations of the Business for the periods covered thereby. As of the date of the Balance Sheet (the “Balance Sheet Date”), Seller had no liabilities or obligations of any
kind with respect to the Business, whether accrued, contingent or otherwise, that are not disclosed and adequately reserved against on the Balance 
  

 5 

 Sheet. As of the date hereof, Seller has no liabilities or obligations of any kind with respect to the Business, whether
accrued, contingent or otherwise, that are not disclosed and adequately reserved against on the Balance Sheet. 
  
 2.10 Licenses. Seller is the holder of all licenses, permits and authorizations with respect to the Business, all of which are in full force and
effect and no licenses, permits or authorizations of any governmental department or agency are required for the operation of the Business which have not been duly obtained. 
  
 2.11 Assigned Contracts; Consents. Except as set forth on Schedule 2.11 attached hereto, no approval, consent,
authorization or exemption from or filing with any person or entity not a party to this Agreement is required to be obtained or made by Seller in connection with the execution and delivery of this Agreement and the Seller Documents and the
consummation of the transactions contemplated hereby and thereby. 
  
 2.12 Customers and Suppliers. Seller’s relations with its customers and suppliers, including its Subscribers, are good and there are not pending or, to Seller’s knowledge, threatened claims or controversies with any
customer or suppliers that, independently or collectively, is material to the Assets or the Business. 
  
 2.13 Brokers. Seller has not retained any broker or finder or other person who would have any valid claim against any of the parties to this
Agreement for a commission or brokerage fee in connection with this Agreement or the transactions contemplated hereby. 
  
 2.14 Intellectual Property 
  
 (a) All of the Intellectual Property of Seller related to the Business or Assets is identified on Schedule 1.1(c) attached hereto. For purposes
hereof, the term “Intellectual Property” includes: (i) all patents, patent applications, patent rights, and inventions and discoveries and invention disclosures related to the Business (whether or not patented) (collectively,
“Patents”); (ii) Seller’s rights to the name “Advanced Pharmacy Solutions,” all trade names, trade dress, logos, packaging design, slogans, any and all Internet domain names used or useful in the Business, registered and
unregistered trademarks and service marks and applications related to the Business (collectively, “Marks”); (iii) all copyrights in both published and unpublished works related to the Business, including, without limitation, all
compilations, databases and computer programs, and all copyright registrations and applications, and all derivatives, translations, adaptations and combinations of the above (collectively, “Copyrights”); (iv) all know-how, trade secrets,
confidential or proprietary information, customer lists, IP addresses, research in progress, algorithms, data, designs, processes, formulae, drawings, schematics, blueprints, flow charts, models, prototypes, techniques related to the Business
(collectively, “Trade Secrets”); (v) all goodwill, franchises, licenses, permits, consents, approvals, technical information, telephone numbers related to the Business (the “Rights”); and (vii) all contracts relating to the
Intellectual Property to which Seller is a party or is bound, including, without limitation, all nondisclosure and/or confidentiality agreements entered into by persons in connection with disclosures by Seller (collectively, “Assigned
Contracts”). 
  

 6 

 (b) Seller has exclusive ownership of, and has good, valid and marketable title to, all of the
Intellectual Property, free and clear of any Liens, and has the right to use all of the Intellectual Property without payment to any third party. 
  
 2.15 Undisclosed Liabilities. Seller has no liabilities or obligations of any nature related to the Business (whether known or unknown and whether
absolute, accrued, contingent or otherwise) except for liabilities or obligations reflected on the Base Balance Sheet and current liabilities incurred in the ordinary course of business since the date thereof. 
  
 2.16 Disclosure. The representations, warranties and statements
contained in this Agreement and in the certificates, exhibits and schedules delivered by Seller to Buyer pursuant to this Agreement do not contain any untrue statement of a material fact, and, when taken together, do not omit to state a material
fact required to be stated therein or necessary in order to make such representations, warranties or statements not misleading in light of the circumstances under which they were made. There are no facts known to Seller which presently or may in the
future have a material adverse affect on Seller’s business, properties, assets, prospects, operations or (financial or other) condition related to the Business of Seller which has not been specifically disclosed herein or in a Schedule
furnished herewith, other than general economic conditions affecting the pharmacy industry generally. 
  
 SECTION 3. REPRESENTATIONS AND WARRANTIES OF BUYER. As a material inducement to Seller entering into this Agreement, Buyer hereby represents and warrants to Seller as follows: 
  
 3.1 Organization. Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the State of Florida. Buyer has all requisite power and authority to conduct its business as it is now conducted and to own, lease and operate its properties and assets. 
  
 3.2 Required Action. All actions and proceedings necessary to be taken
by or on the part of Buyer in connection with the transactions contemplated by this Agreement have been duly and validly taken, and this Agreement and each other agreement, document and instrument to be executed and delivered by or on behalf of
Buyer pursuant to, or as contemplated by, this Agreement (collectively, the “Buyer Documents”) has been duly and validly authorized, executed and delivered by Buyer. Buyer has full right, authority, power and capacity to execute and
deliver this Agreement and each other Buyer Document and to carry out the transactions contemplated hereby and thereby. This Agreement and each other Buyer Document constitutes, or when executed and delivered will constitute, the legal, valid and
binding obligations of Buyer enforceable in accordance with its respective terms. 
  
 3.3 No Conflicts. The execution, delivery and performance by Buyer of this Agreement and each other Buyer Document does not and will not (a) violate any provision of the Articles of Organization or Operating
Agreement of Buyer, as amended to date, (b) constitute a violation of, or conflict with or result in any breach of, acceleration of any obligation under, right of termination under, or default under, any agreement or instrument to which Buyer is a
party or by which it is bound, (c) violate any judgment, decree, order, statute, rule or regulation applicable to Buyer, or (d) require Buyer to obtain any approval, consent or waiver of, or to make any filing with, any person or entity
(governmental or otherwise) that has not been obtained or made. The officers who execute this Agreement and the other Buyer Documents contemplated hereby on behalf of Buyer have and shall have all requisite power to do so in the name of and on
behalf of Buyer. 
  

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 3.4 Brokers. Buyer has not retained any broker or finder or other person who would have any valid
claim against any of the parties to this Agreement for a commission or brokerage fee in connection with this Agreement or the transactions contemplated hereby. 
  

SECTION 4. POST-CLOSING COVENANTS; SURVIVAL. 
  
 4.1 Non-Competition. Seller hereby agrees that during the period commencing on the date hereof and ending on the second anniversary of the date
hereof, it will not, without the express written consent of Buyer, directly or indirectly, anywhere in the Restricted Region (which shall include without limitation directing services within the Restricted Region from outside the Restricted Region),
engage in any activity which is, or participate or invest in, or provide or facilitate the provision of financing to, or assist (whether as owner, part-owner, principal, shareholder, member, partner, director, officer, trustee, employee, agent or
consultant, or in any other capacity), any business, organization or Person other than Buyer (including without limitation any business, organization or Person involving, or which is, a family member of any of the principals of Seller) whose
business, activities, products or services are competitive with any of the business, activities, products or services conducted or offered by Buyer with respect to the Business. For purposes of this Agreement, (i) the term “Person” shall
mean an individual, a corporation, an association, a partnership (limited or general), a limited liability company, an estate, a trust, and any other entity or organization, and (ii) the term “Restricted Region” shall mean anywhere within
the States of Florida. After the date hereof, neither Seller, nor any person controlling, controlled by or under common control with Seller will for any reason, directly or indirectly, for itself or any other person, use or disclose any trade
secrets, confidential information, know-how, proprietary information or other intellectual property of Seller transferred pursuant to this Agreement. 
  
 4.2 Post-Closing Transitional Matters. From the date of this Agreement until Buyer has completed the Medicaid licensing process, Seller will grant
Buyer the right to use licenses issued to Seller by Medicaid in the conduct of the Business. For a period of ninety (90) days following the closing of the transactions contemplated herein, Seller shall provide, without additional cost to
Buyer, such assistance as is reasonably requested by Buyer in order to effect an orderly transition in the ownership and operation of the Assets. Notwithstanding the foregoing, Seller and Buyer agree to work together in good faith to provide for
reasonable transition process and transition period so that customer service is not adversely impacted as a result of the transactions contemplated in this Agreement. 
  
 4.3 Payment of Vendors. Seller aggress to pay all amounts due to vendors, within five business days after the
Closing. 
  
 4.4 Access to Records. For a period of
one year following the date hereof, Seller and Buyer shall give the representatives of Buyer and Seller, respectively, at reasonable times and with reasonable prior notice, free access to the books and records of the Business and will furnish to
Buyer or Seller, respectively, and its representatives such information regarding the Business and the Assets as Buyer or Seller, respectively, or its representatives may from time to time reasonably request. 
  

 8 

 4.5 Survival. All representations, warranties, covenants, agreements and indemnities contained in
this Agreement, or in any schedule, exhibit, certificate, agreement, document or statement delivered pursuant hereto, are material, shall be deemed to have been relied upon by the parties and, shall survive the consummation of the transactions
contemplated herein for a period of two (2) years regardless of any investigation conducted by or knowledge of any party hereto. 
  
 4.6 Collection of Accounts Receivable; Mail. In the event that Buyer on the one hand, or Seller on the other, shall collect any of the accounts
receivable belonging to, or receive any mail which was intended for, the other party, the party collecting such accounts receivable, or receiving such mail, shall hold the same in trust and shall promptly pay the same over to the party entitled
thereto in the case of accounts receivable and, in the case of mail, deliver such mail to the party for which it is intended, and shall not be entitled to apply any of such funds against any amounts due from the party entitled to such accounts
receivable. 
  
 4.7 Right to Purchase Assets. In the event
that anytime within one year from the Closing, Buyer seeks to sell substantially all of the Assets acquired pursuant to this Agreement, Buyer shall provide Seller five days’ prior notice of such sale and shall permit Seller to purchase the
Assets on the same terms and conditions as offered to any third party. 
  
 SECTION 5. INDEMNIFICATION. Seller hereby agrees to indemnify and hold harmless Buyer, its affiliates and its and their respective directors, officers, partners, members, managers, employees, and agents, against and in respect of all
losses, liabilities, obligations, damages, deficiencies, actions, suits, proceedings, demands, assessments, orders, judgments, costs and expenses (including the reasonable fees, disbursements and expenses of attorneys and consultants) of any kind or
nature whatsoever, but net of the proceeds from any insurance policies or other third party reimbursement for such loss, to the extent sustained, suffered or incurred by or made against any indemnified party, to the extent based upon, arising out of
or in connection with: (a) any breach of any representation or warranty made by Seller in this Agreement or in any schedule, exhibit, certificate, agreement or other instrument delivered pursuant to this Agreement; (b) any breach of any covenant or
agreement made by Seller in this Agreement or in any schedule, exhibit, certificate, financial statement, agreement or other instrument delivered pursuant to this Agreement; (c) any claim made by any person or entity which relates to the operation
of the Assets or the Business which arises in connection with or on the basis of events, acts, omissions, conditions or any other state of facts occurring on or existing before the date hereof; and (d) any claim which arises in connection with any
liability or obligation of Seller other than the Assumed Liabilities. 
  
 SECTION 6. NOTICES. All notices and other communications required to be given hereunder, or which may be given pursuant or relative to the provisions hereof, shall be in writing and shall be deemed to have been given when delivered
in hand or mailed, postage prepaid, by first class United States mail, certified return receipt requested as follows: 
  

			
	If to Buyer:	  	Vertical Health Pharmacy, Inc.
	 	  	855 Dunbar Avenue
	 	  	Oldsmar, Florida 34677
	 	  	Tel: 727-548-8345
	 	  	Attention: Stephen M. Watters
		
	If to Seller:	  	T & L Pharmacies, Inc.

  
 or to such other address of which any
party may notify the other parties as provided above. Notices shall be effective as of the date of such delivery or mailing. 
  

 9 

 SECTION 7. MISCELLANEOUS. 
  
 7.1 Assignability; Binding Effect. This Agreement shall not be assignable by Seller except with the written consent
of Buyer. This Agreement shall be binding upon and shall inure to the benefit of, the parties hereto and their respective successors and assigns. 
  
 7.2 Headings. The subject headings used in this Agreement are included for purposes of convenience only and shall not affect the construction or
interpretation of any of its provisions. 
  
 7.3 Amendments;
Waivers. This Agreement may not be amended or modified, nor may compliance with any condition or covenant set forth herein be waived, except by a writing duly and validly executed by Buyer and Seller or, in the case of a waiver, the party
waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any such right, power or privilege, or any single or
partial exercise of any such right, power or privilege, preclude any further exercise thereof or the exercise of any other such right, power or privilege. 
  
 7.4 Bulk Sales Law. Buyer hereby waives compliance by Seller of any applicable bulk sales law and Seller agrees, to make full and timely payment
when due of all amounts owed by such Seller to its creditors. Seller agrees to indemnify and hold Buyer harmless from, and reimburse Buyer for, any loss, cost, expense, liability or damage (including reasonable counsel fees and disbursements and
expenses) which Buyer may suffer or incur by virtue of the non-compliance by Seller with such laws. 
  
 7.5 Entire Agreement. This Agreement, together with the schedules and exhibits hereto, constitutes the entire agreement between the parties with
respect to the subject matter hereof and supersedes and cancels any and all prior or contemporaneous arrangements, understandings and agreements between them relating to the subject matter hereof, including without limitation that certain letter
agreement between Buyer and Seller dated December 12, 2001. 
  
 7.6 Severability. In the event that any provision or any portion of any provision of this Agreement shall be held to be void or unenforceable, then the remaining provisions of this Agreement (and the remaining portion of any
provision held to be void or unenforceable in part only) shall continue in full force and effect. 
  
 7.7 Governing Law. This Agreement and the transactions contemplated hereby shall be governed and construed by and enforced in accordance with the
laws of the State of Florida, without regard to conflict of laws principles. 
  

 10 

 7.8 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original and all of which shall constitute the same instrument. 
  
 7.9 Expenses. Each party shall pay its own expenses incident to the negotiation, preparation and performance of this Agreement and the transactions contemplated hereby, including all fees and expenses of its
counsel and accountants for all activities of such counsel and accountants undertaken pursuant to this Agreement, whether or not the transactions contemplated hereby are consummated. 
  
 7.10 Remedies. It is specifically understood and agreed that certain breaches of this Agreement will result in
irreparable injury to the parties hereto, that the remedies available to the parties at law alone will be an inadequate remedy for such breach, and that, in addition to any other legal or equitable remedies which the parties may have, a party may
enforce its rights by an action for specific performance and the parties expressly waive the defense that a remedy in damages will be adequate. 
  
 7.11 Dispute Resolution. Except as provided below, the parties agree to submit disputes between them relating to this Agreement and its
formation, breach, performance, interpretation and application to arbitration as follows. Each party will provide written notice to the other party of any dispute within one year of the date when the dispute first arises or occurs. If a party fails
to provide such notice, recovery on the dispute will be barred. Arbitration will be conducted in Florida pursuant to the Rules of the American Arbitration Association (“AAA”), as modified herein. The arbitration shall be conducted by one
(1) arbitrator chosen in accordance with the rules of the AAA and, to the extent possible, such arbitrator will have knowledge of and experience regarding the pharmacy industry. Unless the arbitrator finds that exceptional circumstances require
otherwise, the arbitrator will grant the prevailing party in arbitration its costs of arbitration and reasonable attorneys’ fees as part of the arbitration award. Neither party will be required to arbitrate any dispute relating to actual or
threatened violation of intellectual property rights. Either party will be entitled to receive in any court of competent jurisdiction injunctive, preliminary or other equitable relief, in addition to damages, including court costs and fees of
attorneys and other professionals, to remedy any actual or threatened violation of its rights with respect to which arbitration is not required hereunder. 
  
 7.12 Third Party Rights. Except as regards the indemnification rights and obligations herein, this Agreement is for the benefit of the parties
hereto and is not entered into for the benefit of, and shall not be construed to confer any benefit upon, any other party or entity. 
  
 [Remainder of page intentionally left blank] 
  

 11 

 IN WITNESS WHEREOF, Seller and Buyer have caused this Asset Purchase Agreement to be executed as of the
date first above written. 
  

			
	SELLER:
	
	T & L PHARMACIES, INC.
		
	 By:
	 	 /s/ BRIAN NUGENT

	 Name:
	 	 Brian Nugent

	 Title:
	 	 President

	
	BUYER:
	
	DRUG DEPOT, INC.
		
	 By:
	 	 /s/ MANDEEP TANEJA

	 Name:
	 	 Mandeep Taneja

	 Title:
	 	 President

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