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DocuSign Envelope ID: 5332467E-CBEF-4C5D-8BOE-61 E380BDAl 1 B <br />DocuSign Envelope ID: 151 ECOCF-B55C-414F-9455-72004347A310 <br />(1 12023 Version) <br />and the extent of participation in PBM's formulary management programs, as well as <br />PBM/Administrator receiving sufficient information regarding each Claim for submission to <br />pharmaceutical companies for Rebates. Client acknowledges and agrees that PBM may, but shall <br />not be required to, initiate any collection action to collect any Rebates from a pharmaceutical <br />company. In the event PBM does initiate collection action against a pharmaceutical company to <br />collect Rebates, PBM may offset any reasonable costs, including reasonable attorneys' fees and <br />expenses, arising from any such action. Notwithstanding any provision of this Agreement to the <br />contrary, Administrator shall only be responsible for payment of Rebates to Client pursuant to the <br />terms of this Agreement if such Rebates are actually received by Administrator during the Term of <br />this Agreement. In no event shall Administrator be obligated to pay Rebates to Client until <br />Administrator receives payment for the same Rebates from PBM. In the event Client terminates the <br />Agreement outside the terms and conditions in the Agreement, Client forfeits the right to receive <br />any Rebates received by Administrator on Client's behalf after the date of such termination or notice <br />of termination. Client acknowledges that Administrator shall not be obligated to pay Client any <br />Rebates described herein until this Agreement, including any applicable Client Application, and any <br />amendment(s) or addenda to this Agreement or Client Application, is signed by Client. PBM and <br />Administrator reserve the right to apply Client's allocated Rebate amount to unpaid Fees. <br />5. Rebate amounts paid to Client pursuant to this Agreement are intended to be treated as "discounts" pursuant <br />to the federal anti -kickback statute set forth at 42 U.S.C. § 1320a -7b and implementing regulations. Client is <br />obligated if requested by the Secretary of the United States Department of Health and Human Services, or as <br />otherwise required by applicable law, to report the Rebate amounts and to provide a copy of this notice. PBM <br />will refrain from doing anything that would impede Client from meeting any such obligation. <br />6. Notwithstanding anything in the Agreement to the contrary, in the event PBM does not receive a <br />manufacturer payment for a particular Brand Drug claim due to its identification by a pharmaceutical <br />manufacturer as being a 340B eligible claim (even where such claim may not meet the definition of a "340B <br />Claim"), ESI may reduce a subsequent Rebate quarterly payment (or reconciliation payment, if applicable) <br />to account for any previously -paid Rebate amounts attributable to such claim up to one year after the Claims <br />date of service. <br />I . Member Cost Share. Administrator may, but shall not be obligated to, dispense or cause to be dispensed a <br />prescription even if the prescription is not accompanied by the applicable Member Cost Share described <br />above in this Exhibit A. Administrator will refund any amount submitted by a Member in excess of the <br />Member's applicable Member Cost Share. In the event a Member submits an insufficient Member Cost <br />Share and the Member fails to remit the balance of the Member Cost Share amount to Administrator (or its <br />designee) within thirty (30) days of Administrator's (or its designee's) request, then Administrator shall have <br />the right to invoice Client for, and Client shall have an obligation to pay Administrator (or its designee), the <br />amount of the uncollected Member Cost Share(s). Client shall, in turn, have the right to recover uncollected <br />Member Cost Shares from its Members at Client's determination. Shipping of prescriptions submitted <br />without the appropriate Member Cost Share may be delayed. <br />2. Additional Optional Services: Charges for additional optional services not otherwise identified and priced <br />in this Exhibit A (Client Application) shall be quoted upon request and/or as applicable. The Parties <br />acknowledge that the arrangement between Administrator and PBM is a pass-through arrangement. To the <br />extent Client requests or PBM administers services of PBM that are not outlined in this Agreement, <br />Administrator will pass through any such charges from PBM to Client. <br />Translation Services. To the extent Client requests translation services from Administrator or PBM (for <br />translating member materials, brochures, etc.) and there is a charge from Administrator's or PBM's <br />translation services provider, such charge will be passed through to Client. <br />19 <br />NOT FOR DISTRIBUTION. THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL, PROPRIETARY <br />AND CONSTITUTES TRADE SECRETS OF ESI AND RXBENEFITS <br />