Case: 4:18-cv-01005 Doc.

#: 1-8 Filed: 06/20/18 Page: 1 of 3 PageID #: 61

Exhibit H
Case: 4:18-cv-01005 Doc. #: 1-8 Filed: 06/20/18 Page: 2 of 3 PageID #: 62

BSFI
BOIFS
· SC HI LLER
~ FL. EX NER

October 5, 20 17

Shon Riley
Senior Legal Counsel II
Express Scripts, Inc.
One Express Way
St. Louis, MO 63121

Re: Response to September 20, 2017 Letter on Behalf of CZ Services, Inc.

d/b/a CarcZone Pharmacy, NCPDP 5654137

Dear Ms. Riley :

I am writing in response to your letter dated September 20, 2017. We hope that
this letter provides you a fuller understanding of CZ Services Inc., CareZone Inc., and
Parliament Delivery's relationship and model, because we believe that, under the
circumstances, termination of CZ Services from ESl's provider network would be both
unwarranted and wrongful.

As we have represented to you in both of my previous letters, CZ Services does

not mail anything. Instead, CZ Services is a retail pharmacy located in Richmond, CA.
All of the prescriptions it fills are either delivered directly to the patient or to the patient' s
agent in Richmond (or are delivered directly to a PACE program long term care facility).
As we have said before, there is nothing unusual or wrongful in having an agent pick up a
prescription on a patient's behalf; indeed, the normalcy of the practice is reflected in
numerous federal regulations.

In your letter, you make a number of conclusions regarding CareZone Inc.

("CareZone") and Parliament Delivery ("Parliament"). CareZone is a technology
company that offers health management services to millions of chronically ill and highly
medicated users across the United States. Its audience spans parents caring for children
on transplant medications, adults caring for spouses on an oncology regimen, and a
variety of high-profile individuals and families who rely on it to care for themselves, their
children and their parents.

CareZone has offices in Seattle and San Francisco and is a venture-capital backed
company whose owners include several venture capital firms, McKesson, Marc Benioff
and a sovereign wealth fund. CareZone has a number of business lines, including an
insurance brokerage (CareZone Financial Services) and a delivery company (Parliament

BOIES SC HIL LER FL EX N ER LLP

140 1 New York Avenu e NW. Wash ington. OC 20005 I ( t ) 2 02 2'37 2 72 7 I (f) 202 2'3 7 6 13 1 I www .b s fllp.com
 Case: 4:18-cv-01005 Doc. #: 1-8 Filed: 06/20/18 Page: 3 of 3 PageID #: 63

BSF
Shon Riley
October 5, 2017
Page Two

Delivery). As their corporate filings show, each of these entities is a wholly-owned

subsidiary of the parent corporation, CareZone. (As I am sure you are aware, that is a
common business practice.) Specifically, in your letter you reference the California
Statement of Use for Parliament Delivery. The statement accurately reflects the structure
set forth above- -showing CareZone as the parent company of Parliament.

None of the above shows that CZ Services, an entirely separate entity that is not a
subsidiary of CareZone Inc., is engaging in any mail-order activity. Your letter is
mistaken in suggesting that CZ Services is under "common ownership" with Parliament
or CareZone Inc. CZ Services is a retail pharmacy owned by Jonathan Schwartz. While
CareZone and CZ Services have a business partnership, they are separate and unrelated
companies with different ownership, locations, employees and offerings. CZ Services,
not CareZone and not Parliament, is the entity that is a party to a contract with ESL

You claim that this division of corporations is an attempt to "circumvent"

compliance with CZ Services' contractual obligations. I can assure you that that is not the
case. Among other issues, we are currently unaware of any provision of CZ Services'
contract with ESI that prevents CZ Services from engaging in the business model
described above, or that applies to entities that are not parties to the Provider Agreement.
If you believe that the ESI Provider Agreement prohibits CZ Services to deliver
prescriptions to patients' agents, or attempt to control the disposition of those
prescriptions by those agents, we would appreciate it if you would please identify which
specific provision of the Express Scripts Inc. Pharmacy Provider Agreement does so.

In our correspondence, we have endeavored to be completely transparent with you.

We have answered every question you have asked and provided every document you
have requested, all of which confirm that CZ Services is not engaging in mailing. At this
juncture, I propose that we come together to discuss this for a meeting, rather than engage
in another round of letter-writing. CZ Services has had similar conversations with other
PBMs with positive outcomes. Without such a discussion, terminating CZ Services
contract would be in bad faith and without cause.

Very truly yours,

Isl William A. Isaacson

William A. Isaacson