Opinion ID: 2127293
Heading Depth: 1
Heading Rank: 2

Heading: The Investment Agreement

Text: Medicine Shoppe is a Delaware corporation with its headquarters in St. Louis. All of Medicine Shoppe's offices and officers, and all but a couple of its employees, are located in Missouri. Medicine Shoppe is a franchisor of retail pharmacies throughout the United States and provides a system, and services that support that system, for the franchisees to run their retail pharmacy operations. Medicine Shoppe, in 1995, became a wholly owned subsidiary of Cardinal Health, an Ohio corporation with its headquarters in Dublin, Ohio. After becoming a Cardinal Health subsidiary, Medicine Shoppe entered into an investment agreement with its corporate parent in 1997. Under the agreement, any funds in Medicine Shoppe's bank accounts at the end of each day in excess of those needed for operating expenses are transferred to a Cardinal Health corporate concentration account. [7] Cardinal Health invests the funds in this account for Medicine Shoppe's benefit. The investable funds remain the assets of Medicine Shoppe, but Cardinal Health has control over the funds in the account and the investment decisions. Cardinal Health pays Medicine Shoppe interest on the invested funds at a rate of return of 7.72% per annum that is credited to the investable funds account on a monthly basis.