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Docusign Envelope ID: 921 F7A24-D5CE-4BCC-9F3C-5E7844661266 <br />Formulary means the list of FDA -approved Covered Products developed by RIGHTWAY's Pharmacy <br />and Therapeutics Committee, approved and adopted by Client and subject to Client's Plan Documents and <br />coverage decisions. <br />Generic Covered Product or Generic Drug is a Covered Product for which there is an approved <br />application under § 5050) of the Federal Food Drug and Cosmetic Act (21 USC 3550)) and the Pricing <br />Source multi -source indicator for the Covered Product is a "Y" on the date dispensed. Claims submitted <br />with the Pricing Source multi -source indicator of "O" and also submitted with a DAW code of "3", "5", <br />"611, "9" shall also be considered a Generic Covered Product. <br />Government Agency(ies) means government agencies, including but not limited to state Medicaid <br />agencies, Veteran's Administration ("VA") facilities, Indian Health Services and Bureau of Indian Affairs <br />("IHS"), and Department of Defense ("DOD") military treatment facilities (or other similar facilities) <br />("MTF"), or the agencies' or facilities' third -party representatives. <br />HIPAA means the Health Insurance Portability and Accountability Act of 1996, and regulations <br />promulgated thereunder, as amended from time to time. <br />HIPAA Privacy Rule means the federal regulations related to the use and disclosure of patients' Protected <br />Health Information under 45 CFR Parts 160, 162 and 164, as amended from time to time. <br />Initial Term means the initial term of this Agreement as defined in Section 5.01 (Term of Agreement; <br />Automatic Renewal) of this Agreement. <br />Law means any federal, state or local constitution, act, statute, code, rule, regulation, or standard, including <br />any such rule, regulation, or standard issued by the Centers for Medicare and Medicaid Services, the Office <br />of the Inspector General, the Department of Labor, a state department of insurance, or any other government <br />or quasi -governmental entity; any objective criteria contained in any applicable permit or approval; any <br />legislative or administrative action of the United States of America or of any state or agency, department, <br />authority, political subdivision or other instrumentality thereof, and any decree, judgment or order of a <br />court. <br />Mail Service Pharmacy or Mail Service or Mail Order means a pharmacy where prescriptions are filled <br />and delivered to Eligible Persons via the United States Postal Service, United Parcel Service or other <br />delivery service, and which has entered into an agreement with RIGHTWAY to dispense Covered Products. <br />Manufacturer means a pharmaceutical, biotech, medical equipment, or medical device manufacturer, <br />and/or any other entity that performs sales, distribution, and/or marketing functions (including wholesalers <br />and distributors) with respect to any such manufacturer's products. <br />Material Breach means a breach such that a reasonable person in the position of the non -breaching party <br />would wish to terminate this Agreement because of that breach. <br />Maximum Allowable Cost ("MAC") means the maximum allowable cost determined by RIGHTWAY <br />and updated at least quarterly, or more frequently as required by Law, based upon review and analysis of <br />current pricing in the marketplace. Upon request, RIGHTWAY will provide Client or its designee with a <br />current MAC list. <br />24 <br />This document is CONFIDENTIAL AND PROPRIETARY to RIGHTWAY Healthcare, Inc. and may not be reproduced, <br />transmitted, published, or disclosed to others without the prior written authorization of RIGHTWAY Healthcare, Inc. <br />