[sheet: Closing Checklist]
Item No. | Category | Description | Responsible Party | Document Reference / Notes | Due Date | Date Completed | Status
1 | Pre-Closing | Execution and delivery of Mutual Non-Disclosure Agreement between AHT and PCA | AHT / PCA (Joint) | Reference No. AHT-PCA-NDA-2024-001; executed May 13, 2024; two-year term; Massachusetts governing law; exclusive venue in Suffolk County, MA | 2024-05-13 | 2024-05-13 | Complete
2 | Pre-Closing | Calderwood & Harkness LLP engagement letter executed by AHT | AHT | C&H Matter No. 1010-00006; Responsible Partner: Nathaniel Bower; Billing Partner: Colette Whitman; Lead Associate: Omar Siddiqui; Working Associate: Christy Bauer; Calderwood & Harkness LLP, 100 Federal Street, Suite 3400, Boston, MA 02110 | 2024-05-13 | 2024-05-13 | Complete
3 | Pre-Closing | First draft of Data License Agreement circulated by Calderwood & Harkness LLP to Hargrove, Delacroix & Stein LLP | AHT / C&H | Draft prepared by Omar Siddiqui and Christy Bauer; circulated to Elaine Prescott and Ryan Kobayashi at Hargrove, Delacroix & Stein LLP, 511 Union Street, Suite 2700, Nashville, TN 37219 | 2024-06-04 | 2024-06-04 | Complete
4 | Pre-Closing | PCA markup / redline of Data License Agreement returned by Hargrove, Delacroix & Stein LLP | PCA / HDS | Key changes: narrowing of indemnification basket, revisions to derived-works ownership carve-outs, modifications to audit-rights frequency, adjustments to data-delivery timeline and acceptance-period language | 2024-06-12 | 2024-06-12 | Complete
5 | Pre-Closing | AHT Board of Directors approval of Data License Agreement and authorization of $9,000,000 expenditure | AHT | Resolution No. AHT-BOD-2024-017; adopted June 18, 2024; transaction exceeds the $5,000,000 Cedarpoint Capital Partners Fund IV, L.P. board-level approval threshold; Daniel Fong (Operating Partner, Cedarpoint Capital Management LLC, 301 Tresser Boulevard, Suite 1500, Stamford, CT 06901) participated as board observer; authorized signatories: Dr. Priya Narayanan (CEO) and Helen Tsao (General Counsel) | 2024-06-18 | 2024-06-18 | Complete
6 | Pre-Closing | Formal written lender notice delivered to Lakeshore National Bank as administrative agent under senior secured credit agreement | AHT | Delivered pursuant to Section 7.12 of credit agreement dated March 15, 2022 (as amended June 1, 2023); material IP license expenditure of $9,000,000 exceeds $3,000,000 covenant threshold; $75,000,000 revolving credit facility; notice sent to Lakeshore National Bank, 200 South Wacker Drive, Suite 3000, Chicago, IL 60606; signed by Helen Tsao, General Counsel; 10-business-day objection period; no objection received | 2024-06-21 | 2024-06-21 | Complete
7 | Pre-Closing | Expiration of Lakeshore National Bank lender objection period with no objection | Lakeshore National Bank | 10 business days from receipt of notice (June 21, 2024); no objection received; AHT confirmed in compliance with all applicable covenants | 2024-07-01 | 2024-07-01 | Complete
8 | Closing Deliverables — Joint | Execution and delivery of Data License Agreement (execution version) | AHT / PCA (Joint) | Reference No. AHT-PCA-DLA-2024-001; Effective Date: July 1, 2024; simultaneous sign-and-close; total license fee: $9,000,000; initial term: 5 years (through June 30, 2029); two successive 2-year renewal options (180 days' prior written notice); Massachusetts governing law; exclusive venue in Suffolk County, MA; signed by Dr. Priya Narayanan (CEO, AHT) and Helen Tsao (GC, AHT) for Licensee; Jonathan Kessler (CEO, PCA) for Licensor | 2024-07-01 | 2024-07-01 | Complete
9 | Closing Deliverables — Joint | Exhibit A — Data Description & Specifications attached to Data License Agreement | AHT / PCA (Joint) | Longitudinal de-identified claims data covering Jan. 1, 2016 through Dec. 31, 2023 (8 calendar years); ≥85 million unique de-identified patient tokens; ~3.4 billion individual claim lines; professional (Part B), facility (Part A), pharmacy (Part D), and ancillary claims; commercial, Medicare Advantage, and Medicaid managed-care lines; HIPAA Safe Harbor (45 C.F.R. § 164.514(b)(2)) and Expert Determination (45 C.F.R. § 164.514(b)(1)) by Ridgeline Statistical Sciences LLC, 1750 Tysons Boulevard, Suite 600, McLean, VA 22102; delivery in Apache Parquet format via encrypted SFTP (AES-256) | 2024-07-01 | 2024-07-01 | Complete
10 | Closing Deliverables — Joint | Exhibit B — Data Dictionary attached to Data License Agreement | AHT / PCA (Joint) | Field-level specification of 247 standardized data elements included in the licensed dataset | 2024-07-01 | 2024-07-01 | Complete
11 | Closing Deliverables — Joint | Exhibit C — Data Security Requirements attached to Data License Agreement | AHT / PCA (Joint) | NIST SP 800-171–aligned technical and organizational security measures; AES-256 encryption at rest and in transit; role-based access controls; MFA; logging and audit trails; incident-response (72-hour notification to PCA); data-retention and destruction protocols; annual compliance audit by Crestfield Advisory Group LLP (default), 1345 Avenue of the Americas, 22nd Floor, New York, NY 10105 | 2024-07-01 | 2024-07-01 | Complete
12 | Closing Deliverables — AHT | Officer's Certificate — Arbor Health Technologies Inc. | AHT | Executed by Dr. Priya Narayanan, CEO; certifies: (i) AHT's reps and warranties true and correct as of Effective Date; (ii) all pre-closing obligations performed; (iii) Board Resolution AHT-BOD-2024-017 duly adopted June 18, 2024 and in full force and effect; (iv) incumbency and authority of Dr. Priya Narayanan (CEO) and Helen Tsao (General Counsel) | 2024-07-01 | 2024-07-01 | Complete
13 | Closing Deliverables — PCA | Officer's Certificate — Pinnacle Claims Analytics LLC | PCA | Executed by Jonathan Kessler, CEO; certifies PCA's representations and warranties true and correct as of Effective Date, including: (i) all data de-identified per HIPAA Safe Harbor and Expert Determination; (ii) PCA has necessary rights under downstream data-contribution agreements; (iii) no source has revoked or restricted PCA's sub-license rights; (iv) data contains no PHI; incumbency and authority confirmed | 2024-07-01 | 2024-07-01 | Complete
14 | Closing Deliverables — AHT | Wire transfer of signing payment to PCA | AHT | $3,600,000 (40% × $9,000,000); wired on July 1, 2024; late-payment interest rate if applicable: 1.5% per month (18% per annum) | 2024-07-01 | 2024-07-01 | Complete
15 | Closing Deliverables — PCA | Insurance certificate — Cyber / Technology Errors & Omissions liability | PCA | $10,000,000 per occurrence; carrier: Graystone Specialty Insurance Co. (Connecticut) | 2024-07-01 | 2024-07-01 | Complete
16 | Closing Deliverables — PCA | Insurance certificate — Commercial General Liability | PCA | $5,000,000 per occurrence | 2024-07-01 | 2024-07-01 | Complete
17 | Closing Deliverables — AHT | Insurance certificate — Cyber Liability | AHT | $10,000,000 per occurrence; carrier: Commonwealth Mutual Assurance Corp. (Massachusetts) | 2024-07-01 | 2024-07-01 | Complete
18 | Closing Deliverables — AHT | Certificate of Good Standing — Arbor Health Technologies Inc. (Delaware) | AHT | Corporation; Delaware Secretary of State; EIN: 83-2941076; registered agent: 1209 Orange Street, Wilmington, DE 19801 (c/o Horizon Registered Agents Inc.) | 2024-07-01 | 2024-07-01 | Complete
19 | Closing Deliverables — AHT | Certificate of Good Standing — Arbor Health Technologies Inc. (Massachusetts) | AHT | Foreign qualification; principal office: 400 Seaport Boulevard, Suite 1200, Boston, MA 02210 | 2024-07-01 | 2024-07-01 | Complete
20 | Closing Deliverables — PCA | Certificate of Good Standing — Pinnacle Claims Analytics LLC (Delaware) | PCA | Limited Liability Company; Delaware Secretary of State; EIN: 84-3750219; registered agent: 1209 Orange Street, Wilmington, DE 19801 (c/o Horizon Registered Agents Inc.) | 2024-07-01 | 2024-07-01 | Complete
21 | Closing Deliverables — PCA | Certificate of Good Standing — Pinnacle Claims Analytics LLC (Tennessee) | PCA | Foreign qualification; principal office: 3100 West End Avenue, Suite 800, Nashville, TN 37203 | 2024-07-01 | 2024-07-01 | Complete
22 | Closing Deliverables — AHT | Incumbency Certificate — Arbor Health Technologies Inc. | AHT | Certifying incumbency of Dr. Priya Narayanan (CEO), Helen Tsao (General Counsel), and Marcus Ellison (Chief Data Officer, internal deal lead) | 2024-07-01 | 2024-07-01 | Complete
23 | Closing Deliverables — PCA | Incumbency Certificate — Pinnacle Claims Analytics LLC | PCA | Certifying incumbency of Jonathan Kessler (CEO) and Dr. Anita Mehta (Chief Privacy Officer) | 2024-07-01 | 2024-07-01 | Complete
24 | Closing Deliverables — Joint | Mutual NDA confirmation — acknowledgment that NDA (AHT-PCA-NDA-2024-001) remains in full force and effect and supplements the Data License Agreement confidentiality provisions | AHT / PCA (Joint) | NDA executed May 13, 2024; reference No. AHT-PCA-NDA-2024-001 | 2024-07-01 | 2024-07-01 | Complete
25 | Post-Closing | Initial data delivery — PCA to deliver full licensed dataset to AHT via encrypted SFTP (AES-256) in Apache Parquet format | PCA | Within 30 calendar days of Effective Date (July 1, 2024); deadline: July 31, 2024; ≥85 million unique de-identified patient tokens; ~3.4 billion claim lines; 247 data-dictionary fields | 2024-07-31 | Pending
26 | Post-Closing | Data acceptance period — AHT to review and accept or reject delivered dataset | AHT | 14 calendar days post-delivery; acceptance deadline: August 14, 2024 (assuming delivery on July 31, 2024) | 2024-08-14 | Pending
27 | Post-Closing | Second installment payment — AHT to PCA | AHT | $2,700,000 (30% × $9,000,000); due January 1, 2025; late-payment interest: 1.5%/month (18%/year) | 2025-01-01 | Pending
28 | Post-Closing | Final installment payment — AHT to PCA | AHT | $2,700,000 (30% × $9,000,000); due July 1, 2025; late-payment interest: 1.5%/month (18%/year); total license fee fully paid upon completion: $9,000,000 | 2025-07-01 | Pending
29 | Post-Closing | Quarterly data refreshes — PCA to deliver updated claims data to AHT each quarter for 36 months | PCA | Within 15 business days after each calendar quarter-end; no additional fee for initial 36-month refresh period (included in $9,000,000 license fee); refresh period ends June 30, 2027; post-term renewal refresh fee if exercised: $375,000/quarter ($1,500,000/year annualized) | 2027-06-30 | Pending (ongoing)
30 | Post-Closing | Annual compliance audit right — PCA may audit AHT's compliance with data-use restrictions | PCA / AHT | Once per calendar year; 30 days' prior written notice required; conducted by independent third party mutually agreed upon; default auditor: Crestfield Advisory Group LLP | Ongoing | Pending (recurring)
31 | Post-Closing | Renewal notice — AHT option to exercise first 2-year renewal term | AHT | 180 days' prior written notice before initial term expiration (June 30, 2029); notice due by approximately January 2, 2029; two successive 2-year renewal terms available | 2029-01-02 | Future
[sheet: Payment Schedule]
Payment No. | Description | Amount | Percentage of Total | Due Date | Date Paid | Status | Notes
1 | Signing payment (at execution) | $3,600,000 | 40% | 2024-07-01 | 2024-07-01 | Paid | Wired on Effective Date
2 | Second installment | $2,700,000 | 30% | 2025-01-01 | Pending | 6 months post-signing
3 | Final installment | $2,700,000 | 30% | 2025-07-01 | Pending | 12 months post-signing
4 | TOTAL LICENSE FEE | $9,000,000 | 100% | — | — | — | Sum of Items 1–3
5 | Post-term quarterly refresh fee (if renewal exercised) | $375,000/quarter | N/A | Quarterly after June 30, 2027 | Future | $1,500,000 annualized ($375,000 × 4); applicable only after initial 36-month refresh period
[sheet: Key Contacts]
Role | Entity Full Legal Name | Short Name | Entity Type | Jurisdiction | Key Contact(s) | Title(s) | Address
Licensee (Our Client) | Arbor Health Technologies Inc. | AHT | Corporation | Delaware / Massachusetts | Dr. Priya Narayanan; Marcus Ellison; Helen Tsao | CEO; Chief Data Officer (deal lead); General Counsel | 400 Seaport Boulevard, Suite 1200, Boston, MA 02210
Licensor (Counterparty) | Pinnacle Claims Analytics LLC | PCA | Limited Liability Company | Delaware / Tennessee | Jonathan Kessler; Dr. Anita Mehta | CEO; Chief Privacy Officer | 3100 West End Avenue, Suite 800, Nashville, TN 37203
Licensee's Counsel (Our Firm) | Calderwood & Harkness LLP | C&H | LLP | New York | Nathaniel Bower; Colette Whitman; Omar Siddiqui; Christy Bauer | Responsible Partner; Billing Partner; Lead Associate (IP); Working Associate (IP) | 100 Federal Street, Suite 3400, Boston, MA 02110
Licensor's Counsel | Hargrove, Delacroix & Stein LLP | HDS | LLP | Tennessee | Elaine Prescott; Ryan Kobayashi | Partner (Healthcare & Data Licensing); Senior Associate | 511 Union Street, Suite 2700, Nashville, TN 37219
Licensee's Privacy Counsel (Advisory) | Whitfield & Ames, P.C. | W&A | Professional Corp. | Massachusetts | David Whitfield | Partner (Health Privacy) | 75 Ashbury Asset Advisors, Suite 1400, Boston, MA 02109
PE Sponsor of AHT | Cedarpoint Capital Partners Fund IV, L.P. | Cedarpoint Fund IV | Limited Partnership | Delaware / Connecticut | Daniel Fong | Operating Partner (AHT board observer) | 301 Tresser Boulevard, Suite 1500, Stamford, CT 06901
Venture Investor in PCA | Ridgeview Health Ventures LLC | Ridgeview | LLC | Delaware / California | Gretchen Halverson | Managing Partner | 555 California Street, Suite 2900, San Francisco, CA 94104
Administrative Agent / Senior Lender | Lakeshore National Bank | Lakeshore | National Banking Assoc. | OCC Charter / Illinois | — | — | 200 South Wacker Drive, Suite 3000, Chicago, IL 60606
Expert Determination Statistician (PCA vendor) | Ridgeline Statistical Sciences LLC | Ridgeline | LLC | Virginia | — | — | 1750 Tysons Boulevard, Suite 600, McLean, VA 22102
Default Compliance Auditor | Crestfield Advisory Group LLP | Crestfield | LLP | New York | — | — | 1345 Avenue of the Americas, 22nd Floor, New York, NY 10105
Licensee's Cyber Insurer | Commonwealth Mutual Assurance Corp. | CMA | Insurance Company | Massachusetts | — | — | —
Licensor's Cyber/E&O Insurer | Graystone Specialty Insurance Co. | Graystone | Insurance Company | Connecticut | — | — | —