Benefitfocus, Inc. announced that it has entered into a cooperation agreement with Indaba Capital Management, L.P. Under the terms of the agreement, the company has appointed Alexander Lerner, Investment Partner at Indaba, to the board of directors, effective immediately, and agreed to include Mr. Lerner on its recommended slate of nominees for election at the Company's 2022 Annual Meeting of Stockholders. Mr. Lerner will serve as Co-Chair of each of the Board's Nominating and Governance committee and Strategy and Finance committee. The agreement includes provisions regarding voting, standstill restrictions and other matters.

Separately, Director Francis J. Pelzer V has decided to retire from his position on the Board, effective immediately. The Company previously disclosed Mr. Pelzer's intentions to step down from the Board. Following the addition of Mr. Lerner and the departure of Mr. Pelzer, the size of the Benefitfocus Board will remain at nine directors.

Mr. Lerner is currently an Investment Partner at Indaba. Mr. Lerner joined Indaba in 2010, and following his graduation from business school in 2014, rejoined Indaba and was elected to Partner in 2016.