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Docusign Envelope ID: 921 F7A24-D5CE-4BCC-9F3C-5E7844661266 VIRGINIA PBM ADDENDUM With respect to the following provisions required by the State of Virginia, "PBM" shall mean RIGHTWAY, and "Carrier" shall mean Client. Notwithstanding anything in the Agreement to the contrary, PBM and Carrier agree as follows: 1. Applicability. This Addendum is required by Virginia Code Ann. §§ 38.2-3407.15:1 and 38.2- 3465 in order to include the requirements thereof to the extent such requirements are applicable to the services provided by PBM under the Agreement, such requirements are applicable to the services provided by PBM under the Agreement, and such requirements are not already addressed in the Agreement. This Addendum applies to the extent Eligible Person(s) reside in the State of Virginia and Carrier is a "carrier" as defined in Virginia Code Ann. §§ 38.2-3407.15:1(A) or 38.2-3465. 2. General. In the event of a direct conflict between this Addendum and the Agreement, the applica- ble provisions of this Addendum shall control if required. Absent such direct conflict, the terms and con- ditions of the Agreement shall remain in full force and effect. Capitalized terms not defined in this Ad- dendum shall have the same meaning as set forth in the Agreement. This Addendum may be modified from time to time pursuant to the Agreement. 3. Pharmacy Audits. To the extent the Agreement requires PBM to perform audits of pharmacies on Carrier's behalf, the following terms and provisions apply in the absence of fraud on the part of the pharmacy: 3.1 Legal Compliance. Audits shall be conducted in Virginia in compliance with federal and state laws, rules and regulations, including the provisions of Virginia Code Ann. § 38.2-3407.15:1 and regulations adopted by the Board of Pharmacy. Virginia Code Ann. § 38.2-3407.15:1(C). 3.2 Premature Recoupment; Withholding. PBM shall not make charge backs or seek recoup- ment from a pharmacy, or assess or collect penalties from a pharmacy, until the time period for filing an appeal to an initial audit report has passed or until the appeals process has been exhausted, whichever is later. If the identified discrepancy for a single audit exceeds $25,000, future payments in excess of that amount may be withheld pending adjudication of an appeal. Virginia Code Ann. § 38.2-3407.15:1(C). 3.3 Recoupment Forbidden. PBM shall not recover from a pharmacy payment of claims that are identified through the audit process to be the responsibility of another payer. No recoupment of amounts paid to a pharmacy for any claim shall be made solely on the basis of a prescriber's or patient's lack of response to a request made by PBM. Virginia Code Ann. § 38.2-3407.15:1(C). PBM may not recoup from the pharmacy as a result of the audit any amounts calculated from or arising out of any other acts, omissions, or reasons identified by Virginia law as excusing recoupment. Virginia Code Ann. § 38.2- 3407.15:1(B). 3.4 Retroactive Denial Deadline. PBM shall not retroactively deny a claim (i) more than one year after the date of payment of the claim if the reason for denial would be patient ineligibility or (ii) at any time if PBM verified the patient's eligibility at the time of dispensing and provided an authentication number to the pharmacy. Virginia Code Ann. § 38.2-3407.15:1(C). This document is CONFIDENTIAL AND PROPRIETARY to RIGHTWAY Healthcare, Inc. and may not be reproduced, transmitted, published, or disclosed to others without the prior written authorization of RIGHTWAY Healthcare, Inc.