Exhibit 10.4

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL
“[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

PRIME VENDOR AGREEMENT FOR PHARMACEUTICALS

           THIS AGREEMENT effective as of July 27, 2010 (the “Effective Date”),
is between McKesson Corporation (“McKesson” or “MHS”), a Delaware corporation
with its principal place of business at One Post Street, San Francisco,
California 94104, and Omnicare, Inc. (“Omnicare”), a Delaware corporation with
its principal place of business at 1600 RiverCenter 100 East RiverCenter Blvd.
Covington, Kentucky 41011.

WHEREAS, MHS is engaged in the business of wholesale distribution of
pharmaceuticals and the provision of related goods and services.  Omnicare is a
pharmacy chain which dispenses pharmaceuticals and related goods and services
through its long-term care, retail and specialty pharmacy facilities. Omnicare
desires to avail itself on behalf of its owned and managed facilities of MHS’
distribution and other services upon the terms and conditions set forth in this
Agreement.

NOW, THEREFORE, in consideration of the mutual promises and agreements contained
herein, the parties agree as follows:
 
1.             
DEFINITIONS

Except as otherwise stated herein, capitalized terms used in this Agreement will
have the meanings set forth in Exhibit A hereto.

2.             
APPOINTMENT AND COMMITMENT

2.1             
Appointment of Prime Vendor.  Omnicare agrees (a) to purchase from MHS (i) at
least [***] of the requirements for Pharmaceutical Products (excluding [***] and
subject to clause (v), below) of Omnicare and the Omnicare Facilities, net of
Permitted Purchases, as hereinafter defined (“Volume Net Purchase Percentage
Requirement”); and (ii) an annual minimum of [***] in [***] purchases by [***]
Omnicare Facilities (“[***] Purchase Requirement”), and (b) not to purchase
Pharmaceutical Products from another wholesaler, except for purchases that are
Permitted Purchases and purchases in amounts that would not cause Omnicare not
to satisfy the requirement in (a)(i), above (collectively, “Prime Vendor
Commitment”).

 
2.1.1
The term “Permitted Purchases” shall mean (i) purchases of [***]; (ii) purchases
for [***], but only if such purchase is pursuant to a contractual commitment  of
[***]; (iii) purchases from [***]; (iv) purchases of [***] that, as of the
Effective Date, does not fall within the definition of Pharmaceutical Products
(for example, [***]), but which during the term of this Agreement [***], but
only to the extent [***]; and (v)  purchases of [***].  For the removal of
doubt, nothing in this Agreement shall obligate Omnicare to purchase products or
services now or hereafter offered by divisions of McKesson other than MHS that
are not Pharmaceutical Products (e.g., robotics, medical surgical supplies,
healthcare information systems.)

 
 
1

--------------------------------------------------------------------------------

 
 
 
2.1.2
If Omnicare fails to meet either the Volume Net Purchase Percentage Requirement
(as determined pursuant to Section 2.1.3) or a pro rata portion of the [***]
Purchase Requirement during [***] (“Purchase Commitment Failure”), the
alternative pricing matrices in Exhibit E attached hereto shall be applied to
all Omnicare purchases during [***] in lieu of the pricing matrices set forth in
Section 4.1, below.  At the completion of [***] in which Omnicare failed to meet
either the Volume Net Purchase Percentage Requirement or [***] Purchase
Requirement during [***], if Omnicare has met such requirements for [***], then
McKesson shall pay Omnicare a true-up rebate in the additional amount necessary
as though the applicable matrices set forth in Section 4.1 had been applied in
lieu of the alternative pricing matrices in Exhibit E.  The pricing
adjustment(s) applied pursuant to this Section 2.1.2 shall be the exclusive
remedy for a Purchase Commitment Failure and, if applicable, any corresponding
breach of the representation and warranty in Section 2.1.3, unless (w) during
[***], Omnicare failed to meet both requirements of clause (a) of the definition
of Prime Vendor Commitment, (x) during [***], Omnicare failed to meet clause (b)
of the definition of Prime Vendor Commitment, (y) [***] is [***] in which
Omnicare failed to meet clause (a) of the definition of Prime Vendor Commitment,
or (z) Omnicare intentionally breached one or more requirements of the Prime
Vendor Commitment.  In the case of sub-clause (w), (x), (y) or (z) of the
foregoing sentence, MHS shall be entitled to all rights and remedies available
to it notwithstanding any possibility that Omnicare may earn the true-up rebate
available to it pursuant to this Section 2.1.2.

 
2.1.3
Omnicare represents and warrants that it will meet or exceed the Volume Net
Purchase Percentage Requirement throughout the Term and will promptly notify
McKesson of any failure to comply with the Volume Net Purchase Percentage
Requirement.  If McKesson [***], then, within [***], Omnicare [***].  In the
event [***], [***], which notice shall set forth in reasonable detail
[***].  Upon delivery of such notice the parties [***].

 
2.1.4
Omnicare agrees: (i) to purchase [***] and (ii) to purchase [***].  Purchases
under this Section shall mean purchases from McKesson under this Agreement and
purchase calculations shall be calculated [***].

2.2             
Omnicare Facilities.  The term “Omnicare Facility” shall be defined as a
facility now or hereafter owned or controlled by Omnicare that orders,
dispenses, handles, packages, repackages, stores or otherwise uses
pharmaceutical products, including, but not limited to, a pharmacy, repackaging
operation and/or warehouse location, and Omnicare  Purchasing Company, L.P.;
provided that (i) any such facility that is controlled but not owned by Omnicare
shall not be included as an “Omnicare Facility” under this Agreement unless such
facility meets MHS’s reasonable credit requirements and (ii) any such facility,
whether owned or controlled by Omnicare, shall not be included as an “Omnicare
Facility”  under this Agreement without the prior written consent of McKesson if
the addition of such facility would materially alter the average cost to serve
Omnicare’s then existing Omnicare Facilities.  A list of all current Omnicare
Facilities is attached to this Agreement as Exhibit B and incorporated herein by
this reference.    Upon the addition (subject to any consent required pursuant
to this Section 2.2) or deletion (e.g., sale or closure) of any Omnicare
Facility, Omnicare shall give McKesson written notice of such addition or
deletion, and Exhibit B will be deemed amended by such written notice.  Omnicare
agrees to provide McKesson with such information regarding new facilities as
reasonably required to open a new account therefor.

 
 
2

--------------------------------------------------------------------------------

 
 
3.             
TERM AND TERMINATION

3.1             
This Agreement shall supersede the Prime Vendor Agreement for Pharmaceuticals
(made December 22, 2003 and effective January 1, 2004), as amended.  This
Agreement shall have an initial term from July 27, 2010 through October 31, 2013
(“Initial Term”), and following the Initial Term, this Agreement shall be
renewed automatically for up to two (2) successive one-year period(s) (each such
period a “Renewal Term”) unless McKesson shall have given Omnicare written
notice of non-renewal at least one hundred fifty (150) days prior to the
expiration of the Initial Term or then current Renewal Term.  For purposes of
this Agreement, the period beginning on the Effective Date and continuing
through the earlier of (i) the expiration Initial Term or the last Renewal Term
or (ii) the effective date of any termination of this Agreement pursuant to
Section 3.2, shall be defined as the “Term” of this Agreement.  Each
twelve-month period ending on any June 30 following the Effective Date shall
constitute a “Contract Year,” except that the first Contract Year shall be the
period from July 27, 2010 through June 30, 2011.  McKesson’s offer to enter into
this Agreement shall automatically expire at 5:00p.m. Eastern Time on July 26,
2010, unless this Agreement has been executed and delivered by Omnicare to
McKesson prior to such time.

 
3.2           This Agreement may be terminated prior to expiration only as
follows:

 
3.2.1
Omnicare may terminate this Agreement [***] in accordance with Sections [***],
13.3 and 13.6.  MHS may terminate this Agreement in accordance with Sections
[***], [***], 13.3 and 13.6. Either party may terminate this Agreement upon (i)
the other party’s failure to make any payment due hereunder within fifteen (15)
days following written notice of such failure or (ii) any other material breach
of the Agreement by either party which remains uncured forty-five (45) days
following written notice thereof.

 
3.2.2
Upon the occurrence of any of the following events to a party, the other party
may, without prejudice to its other rights, terminate this Agreement upon
written notice:

 
3.2.2.1
If such party shall wind up, liquidate, or dissolve itself; or

 
3.2.2.2
If such party shall file any petition under any bankruptcy, reorganization,
insolvency or moratorium laws, or any other law or laws for the relief of or in
relation to the relief of debtors; or

 

 
3.2.2.3
If such party shall file any involuntary petition under any bankruptcy statute
or a receiver or trustee shall be appointed to take possession of all or a
substantial part of its assets which has not been dismissed or terminated within
sixty (60) days of the date of such filing or appointment; or

 
3.2.2.4
If such party shall make a general assignment for the benefit of creditors or
shall become unable or admit in writing its inability to meet its obligations as
they mature; or

 
 
3

--------------------------------------------------------------------------------

 
 

 
3.2.2.5
If such party shall institute any proceedings for liquidation or the winding up
of its business other than for purposes of reorganization, consolidation or
merger.

3.2.3             
[***]

3.2.4             
[***]

3.3           Continuing Obligations.  In the event of a termination hereunder:

3.3.1             
Obligations Incurred Prior to Termination.  The liability of each party for
obligations incurred prior to the effective termination or expiration date, and
any associated finance charges, costs of collection, reasonable attorneys’ fees
and late payment fees pursuant to Section 4.6.6, shall survive termination.

3.3.2             
Obligation for Additional Products.  Omnicare shall be obligated to purchase
from MHS all Additional Products that (i) have been purchased by MHS exclusively
for Omnicare as of the date of such termination or notice of termination and
(ii) cannot be returned by MHS to the vendor for a full refund.  Omnicare shall
pay the original invoice price charged to MHS by the vendor of such Additional
Products or the contract price in effect at the time of purchase by Omnicare, if
lower, less any cash discount received by MHS.  Any such Additional Product will
be saleable, undamaged, have at least six months dating (with the exception of
private label items) and will be delivered in one shipment to Omnicare or to a
destination designated by Omnicare.  Omnicare shall also be liable for all
shipping charges that would otherwise be charged pursuant to the terms of this
Agreement.

3.3.3             
The following provisions of this Agreement will survive termination or
expiration of this Agreement in accordance with their terms: Section 3.3
(Continuing Obligations), Section 4.5 (Cost Verification), Section 4.6.3
(Payment Terms)(with respect to Products ordered and shipped during the Term of
this Agreement), Section 4.6.6 (Late Payment Fees), Section 4.6.7 (Right to
Change Payment Terms)(with respect to Products ordered and shipped during the
Term of this Agreement), Section 4.8, Section 4.9, Section 5.4 (Returned Goods)
(with respect to Products ordered and shipped during the Term of this
Agreement), Section 5.5 (Product Warranty; Authorized Distributor/Pedigree)(with
respect to Products ordered and shipped during the Term of this Agreement),
Section 12 (Confidential Information), and Sections 13.3, 13.4, 13.5, 13.7,
13.10, 13.11, 13.12, 13.13, 13.15 (Governing Law), 13.16 (Entire Agreement) and
13.18 (Punitive Damages).

4.             
PRICING AND PAYMENT

 
4.1             
[***].  Subject to Subsection 4.2 below, McKesson agrees to distribute and sell
Products to Omnicare Facilities [***].  Omnicare may elect to change its payment
terms among those set forth in Section 4.6.3, subject to credit approval,
[***]. In the event of such change, the pricing set forth in the applicable
Pricing Matrices will be adjusted in accordance with the following table:

 
 
4

--------------------------------------------------------------------------------

 
 
PAYMENT TERM ADJUSTMENTS FOR ALL FACILITIES
 
Terms
Adjustment
[***]
[***]
   
[***]
[***]
   
[***]
[***]
   
[***]
[***]

PRICING MATRIX FOR NON-RETAIL OMNICARE FACILITIES
 
[***]
[***]
[***]
[***]
[***]
[***]

PRICING MATRIX FOR QUALIFYING RETAIL FACILITIES
 
[***]
[***]
[***]
[***]
[***]
[***]

PRICING MATRIX FOR NON- QUALIFYING RETAIL FACILITIES
 
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
   

Pricing incorporates the elimination of [***].  Omnicare reserves the right to
review [***].

All Retail Omnicare Facilities will receive [***].

4.1.1             
The pricing matrices herein are based on Omnicare [***], and are further
conditioned upon Omnicare [***]:

4.1.1.1                        
[***]

4.1.1.2                        
[***]

 
 
5

--------------------------------------------------------------------------------

 
 
4.1.1.3                        
[***]

Omnicare can elect to have [***] included in [***], subject to delivery to MHS
of reasonably supporting documentation therefor.

If Omnicare fails during [***] to achieve [***] or [***].  Following the giving
of any such notice, the parties [***].  If the parties come to agreement
[***].  If the parties have not come to agreement [***].  The alternative
pricing matrices set forth in Exhibit E attached hereto shall be applied to all
purchases under this Agreement during [***] in lieu of the pricing matrices set
forth in Section 4.1 above.  For purposes of this Section, “[***]” shall mean
[***].  For the avoidance of doubt, the foregoing shall not limit any rights or
remedies available to McKesson for breach of Section 2.

4.1.2             
If Products purchased by [***] meets or exceeds, for [***], [***].  Following
the giving of any such notice, the parties [***]. 

If Products purchased by [***] during [***] meets or exceeds [***], then [***],
and [***] on prior written notice [***].

4.1.3             
Beginning on the Effective Date, but subject to the immediately following
sentence, McKesson shall provide to Retail Omnicare Facilities the pricing [***]
available to Qualifying Retail Facilities based on [***].  For any
Non-Qualifying Period, MHS shall apply the pricing [***] available for
Non-Qualifying Retail Omnicare Facilities to purchases made by Retail Omnicare
Facilities during such Non-Qualifying Period through [***].

4.1.4             
Pricing in this Agreement is based upon [***].  In the event of any [***] from
any manufacturer [***], Omnicare and MHS will [***].  Should Omnicare and MHS
[***], provided that [***] after reasonable written notice thereof, and such
purchase [***], provided that nothing in this Section 4.1.4 shall require [***].

4.1.5             
From time to time, Omnicare and MHS may enter into separate pricing arrangements
for certain [***] Products.  Such [***] Products may be priced in accordance
with such separate pricing arrangements and not the Pricing Matrices herein,
provided however that purchases of such [***] Products [***].  The list of such
[***] Products, current as of the Effective Date, is attached here to as Exhibit
D.  Exhibit D may be updated from time to time upon the agreement of the
parties.

4.2             
Specially Priced Product. The purchase price for selected Products (limited to
generic products sold under MHS proprietary generics programs (e.g., McKesson
OneStop Generics® Program, Network Net), repackaged pharmaceuticals, [***],
private label products, health and beauty care products, medical surgical
supplies, home health care/durable medical equipment, Products acquired by MHS
from vendors not offering customary cash discounts or other terms, and other
Slow Moving and/or non-pharmaceutical, Products) will not be based upon [***]
described in Section 4.1 above, but will instead be billed in accordance with
the terms and conditions established by MHS (including applicable markup) for
such Products.  Products described in this paragraph are sometimes referred to
as "Specially Priced Products."

 
 
6

--------------------------------------------------------------------------------

 
 
4.3             
Taxes.  The foregoing pricing does not include any applicable sales, use,
business and occupation, or other taxes on the sale of Products hereunder (other
than taxes on McKesson’s net income), which will be added to the pricing of
Products sold to Omnicare Facilities.

4.4             
[***]. The foregoing pricing [***].  No [***] will [***] in which [***].

 
4.5
Cost Verification.  Upon Omnicare’s reasonable request and prior written
notification, invoices reflecting MHS’ acquisition cost with respect to Products
purchased by Omnicare from and after the Effective Date but, in any event,
within the prior 12 month period during the Term (excluding purchases of [***]),
shall be made available for audit by a representative of Omnicare during
business hours. During the six-month period following the Term, Omnicare shall
have one opportunity to verify invoices from the last 12-month period of the
Term as set forth in this Section 4.5, to the extent not already audited.

 
4.6             
Credit and Payment

4.6.1             
MHS will invoice direct to Omnicare for all Products ordered and
shipped.  Invoices will not be dated prior to the date of actual
shipment.  Omnicare shall be responsible for payment of goods and services
provided by MHS to Omnicare.

4.6.2             
Invoices shall be in one of MHS’ standard forms selected by Omnicare.

4.6.3             
Payment Terms. The following payment terms options for Products covered by this
Agreement are available to Omnicare, on at least 30 days’ prior notice,
effective beginning in the quarter following such notice; unless, at the time of
any election by Omnicare to change its payment terms, its financial condition is
not, in the reasonable opinion of MHS, adequate to support such new terms.

4.6.3.1                        
[***] Prepayment Terms.  The prepayment is a one-time payment equivalent to
[***] (based on the most recent three-month purchase history) which is held as a
deposit by MHS.  The amount of the required deposit will be adjusted quarterly,
and may be adjusted as often as monthly, to cover increases or decreases in
purchase volume.  Following such one time payment, all purchases are payable as
set forth below under [***] Terms. Payment is required via ACH or other EFT
acceptable to MHS.

4.6.3.2                        
[***] Payment Terms: Invoices dated from [***] are due and payable by [***].
Payment is required once a week via ACH or other EFT acceptable to MHS.

4.6.3.3                        
[***] Payment Terms: Invoices dated from the [***] are due and payable on the
[***].  Invoices dated from the [***] are due and payable on the [***]. Payment
is required via ACH or other EFT acceptable to MHS.

4.6.3.4                        
[***] Payment Terms: Invoices dated from the [***]  are due and payable on the
[***]. Payment is required via ACH or other EFT acceptable to MHS.

4.6.3.5                        
Other Payment Terms: As mutually agreed by the parties.

 
 
7

--------------------------------------------------------------------------------

 
 
 
4.6.4
For purposes of this Agreement, "due and payable" means that Omnicare shall make
any payments due hereunder on such date as shall be required to provide MHS with
good funds in hand on each of the designated due dates specified in the Payment
Term section of this Agreement. Omnicare may defer payment with respect to any
shortage in a shipment, but only to the extent of such shortage and only if
Omnicare has notified MHS of such shortage within three (3) business days of
receipt of the shipment.

 
4.6.5
If Omnicare continues to elect [***] Payment Terms, if the payment due date is a
holiday, payment is due and payable on the following day.  If Omnicare elects
any other Payment Terms, if the due date falls on a weekend day or holiday,
payment is due and payable on the preceding business day.

 
 
 
4.6.6
Late Payment Fees.  Payment by either party other than as stated may result in a
late payment fee equal to [***].  A party imposing a late payment fee shall
provide courtesy notification to the other party of such fee and the specific
payment to which it relates (such notice by McKesson shall be deemed sufficient
if made via fax, email or phone call to the attention of Omnicare’s Vice
President of Purchasing) within ten (10) days of the late payment.  The late
payment fee shall be calculated on the basis [***].  Upon the applicable party’s
request, the late payment fee shall be payable in arrears on the 10th and 25th
of each month.

 
4.6.7
Right to Change Payment Terms.  Without limiting MHS’s rights under this
Agreement or applicable law, which rights are hereby expressly reserved, MHS
reserves the right to change a payment term (including imposing the requirement
of cash payment upon delivery with an adjustment in pricing consistent with the
pricing matrix in Section 4.1 plus associated additional handling charges) or
limit total credit, if Omnicare fails to make any payment in accordance with the
terms of this Agreement, except for Excused Late Payments.  “Excused Late
Payments” shall mean (i) payments made during the [***] and at a time when [***]
and (ii) payments made during the [***] at a time when [***], provided that the
payments described in clauses (i) and (ii) occur during the [***]; provided
further that the payments described in clauses (i) and (ii) are [***].

 
4.6.8
[***].  On at least thirty (30) days’ prior written notice to McKesson, Omnicare
shall have the right, on a quarterly basis, effective for the following quarter,
to elect to have such part of its [***], provided that Omnicare’s election shall
cause [***].  Unless and until such notice is given, Omnicare’s [***] will
reflect [***]. This [***].  This [***] will be reported and disclosed consistent
with Section 13.11.

 
4.6.9
[***].  Every [***] that is not [***] will be entitled to receive [***], payable
[***]. This [***] will be reported and disclosed consistent with Section 13.11.

 
4.6.10
[***]. Omnicare’s pricing will be [***] in accordance with the table below
[***].  [***] pursuant to this Section shall [***].  [***]  This [***] will be
reported and disclosed consistent with Section 13.11.

                                              [***]                       [***]
Ø [***]                 [***]
Ø [***]                 [***]
Ø [***]                 [***]
 
 
8

--------------------------------------------------------------------------------

 
 
4.6.11                        
[***].  If an Omnicare Facility elects to [***], the appropriate pricing
schedule percentage [***].  Omnicare or any Omnicare Facility may elect to
[***].  McKesson reserves the right to disallow a [***].  This [***] will be
reported and disclosed consistent with Section 13.11.

4.6.12                        
[***].  Conditioned upon Omnicare’s [***] exceeding [***] in [***], [***] in
accordance with the table below (“[***]”).  Any [***] pursuant to this Section
[***].  This [***] will be reported and disclosed consistent with Section 13.11.

[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

 
4.6.13                        
OneStop Program.  Omnicare hereby agrees that each Retail Omnicare Facility
(other than [***]) will participate in the OneStop Program (each such Retail
Omnicare Facility, a “OneStop Facility”).  Omnicare shall have the right to opt
out of such participation by providing McKesson at least [***] advance written
notice thereof.  Omnicare acknowledges and agrees that Omnicare Facilities [***]
with respect to the OneStop Program, including but not limited to any [***],
other than as set forth herein.

 
Omnicare has previously executed and delivered the Retail Omnicare Facility
Authorization and agrees to continue to comply with such form.

4.7           [***]

4.7.1             
[***].  Omnicare [***] based on [***] as follows:

 
 
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

4.7.1.1                        
“[***]” shall mean, with respect to any [***], the [***].   

4.7.1.2                        
If Omnicare in good faith disputes the [***] due to the classification of
Pharmaceutical Product as [***] and such classification resulted in [***],
Omnicare and MHS [***] within [***] of written notice thereof by
Omnicare.  Omnicare shall include in such notice the Pharmaceutical Product(s)
which are the basis for such dispute and reasonable supporting documentation for
the classification of the Pharmaceutical Product(s) as [***].

 
 
9

--------------------------------------------------------------------------------

 
 
4.7.1.3                        
The above [***] and [***]. This [***] will be reported and disclosed consistent
with Section 13.11 (Antikickback Compliance).

4.7.1.4                        
In the event that MHS [***], MHS [***] on [***] prior written notice, and the
parties [***].

4.7.2             
Top Tier OneStop Program.

4.7.2.1                        
Each OneStop Facility may purchase OneStop Program products through the Top Tier
OneStop Program.  The current list of Top Tier OneStop Program products
available for purchase under the Top Tier OneStop Program (“Program Products”)
and the negotiated net prices for each (“Negotiated Net Prices”) is attached
hereto as Exhibit C, which may be amended, modified and supplemented from time
to time as set forth below (“Program Products”).

4.7.2.2                        
[***].  [***] shall be [***] followed by [***].

4.7.2.3                        
[***].

The OneStop Facilities [***] on the [***] commencing on [***].  The [***] will
be calculated [***].  For the avoidance of doubt, if [***], Omnicare
[***].  For purposes of this Section, “[***]” shall mean [***].

McKesson may offer updated Negotiated Net Prices by [***], which, unless
reasonably objected to by Omnicare within [***], shall take effect for [***]
until further revised pursuant to this paragraph.  In the event Omnicare objects
pursuant to the prior sentence, the parties [***], and the [***] shall take
effect on a prospective basis at the start of [***].  The parties agree that
such procedures shall be sufficient to amend Exhibit C with out any further
action. Notwithstanding the foregoing, nothing in this Agreement shall prohibit
McKesson from removing a product from Exhibit C at any time; provided, however,
McKesson shall provide Omnicare with prior written notice of such removal (which
notice may be made via e-mail).

McKesson [***] no later than [***].  The [***] will be reported and disclosed
consistent with Section 13.11 (Antikickback Compliance).

4.7.2.4                        
If, during the term of this Agreement, Omnicare [***], then McKesson [***].  If
McKesson [***], OneStop Facilities [***] the applicable products offered to
Omnicare through the Top Tier OneStop Program from McKesson.  If McKesson [***],
Omnicare [***] the applicable Program Product from the Top Tier OneStop Program.

 
 
10

--------------------------------------------------------------------------------

 
 
4.7.2.5                        
In the event that McKesson terminates its McKesson OneStop Generics® Program for
its customers generally, McKesson [***] on [***] prior written notice, and the
parties [***].

4.7.3             
[***].  Each Omnicare Facility [***]; provided that, [***]. McKesson [***] no
later than [***].  For purposes of this Section, “[***]” shall mean [***].

4.8  
Without limiting any other Section of the Agreement, McKesson [***] for [***]
against [***].

 
The [***] pursuant to this Agreement are [***] and will be reported and
disclosed consistent with Section 13.11.
 
4.9  
Notwithstanding anything to the contrary set forth in this Agreement, with
respect to the partial calendar month and the partial calendar quarter at the
beginning of the Term and any partial calendar month or partial calendar quarter
at the end of the Term, all [***] will be adjusted downward proportionally to
take into account the reduced number of days in such first partial calendar
month, first partial calendar quarter, last partial calendar month (if any), and
last partial calendar quarter (if any).

5.             
DISTRIBUTION SERVICES

5.1.1             
Agreement to Distribute.  Subject to the pricing and other terms and conditions
of this Agreement, MHS agrees to sell and distribute all pharmaceutical products
(whether over-the-counter, prescription, or scheduled pharmaceuticals) and
related healthcare products normally stocked by a wholesale pharmaceutical
distributor to eligible Omnicare Facilities. An Omnicare Facility may from time
to time request that additional products (“Additional Products”) be stocked by
MHS to satisfy such Omnicare Facility's reasonable needs.  Such request shall be
in writing, and shall be accompanied by a utilization estimate of the Additional
Products meeting the manufacturer’s minimum order requirements. All
manufacturers of Additional Products must offer industry standard trade terms
and must meet MHS’ standard indemnification, insurance and other requirements to
become an approved vendor. Subject to Section 2.1.4, sales and distribution may
be on a Direct Store Delivery or Dock-to-Dock basis.

5.1.2             
Ordinary course orders for products to be shipped to Omnicare non-warehouse
facilities in normal volumes and regular purchase velocity will be handled as
Direct Store Delivery.  Orders that are in excess of [***], except that the
following categories of sales [***]:

5.1.2.1                        
Sales of [***], orders which are (i) consistent with [***]; (ii) repeated in
[***]; (iii) from vendors that have approved such [***]; and (iv) as to which
Omnicare agrees to purchase [***].

5.1.2.2                        
[***], upon such prior notice as is reasonably required for the parties to
obtain [***], which shall initially be no less than [***], and which shall be
adjusted by good faith agreement of the parties based on their joint experience
in obtaining such [***].

 
 
11

--------------------------------------------------------------------------------

 
  
5.2           Ordering

 
5.2.1
Electronic Transmission.  All Omnicare Facilities purchasing Products hereunder
are required to transmit their orders electronically via MHS’ toll-free order
entry system.

 
5.3
Delivery

5.3.1            
Scheduled Deliveries.  MHS will make one (1) delivery per day, Monday through
Friday (excluding holidays), to each of the Omnicare Facilities.  MHS will make
all Monday – Friday regular deliveries to Omnicare no later than 10:00
am.  Omnicare or the individual Omnicare location may charge MHS [***] for any
delivery that is delivered later than [***].

5.3.2            
Order Transmission Times.  Orders transmitted to MHS by the local distribution
center's order transmission deadline shall be delivered on the next business
day.  Order cut off time for transmissions Sunday through Thursday shall be no
earlier than 7:00pm.

5.3.3            
F.O.B.  All deliveries of Products will be F.O.B. destination to the Omnicare
Facilities within the United States at their respective addresses set forth on
Exhibit B, except in the states of Hawaii and Alaska in which delivery fees may
apply.

5.3.4            
Transportation.  MHS may make deliveries to Omnicare Facilities by MHS’s trucks,
common carriers or other means selected by MHS.

5.3.5            
Emergency Service.  MHS provides emergency service twenty-four (24) hours per
day, seven (7) days per week.  MHS will make available to each Omnicare Facility
emergency telephone and pager numbers for primary and secondary contacts at each
distribution center which services such Omnicare Facility.  Extraordinary
delivery costs (e.g., air freight shipments and after hours delivery services)
will be at the expense of the Omnicare Facility.  Each Omnicare Facility will be
allowed [***].  Each [***] will be subject to the fee table below:

Via:
Fee:
Will Call
[***]
Ground
[***]
Two Day
[***]
Overnight
[***]

*Note: There are restrictions on hazardous items (which are shipped via ground
courier) and controlled substances (which must be filled by the primary
Distribution Center).

5.3.6            
Disaster Plan.  MHS has a plan to provide for delivery in the event of a natural
disaster.  MHS’ local distribution center will assist the Omnicare Facility in
developing and implementing a custom procurement plan to respond to natural
disasters which affect such Omnicare Facility and/or such distribution center.

 
 
12

--------------------------------------------------------------------------------

 
 
5.3.7            
Alternate Sourcing of Product.  In the event a distribution center is out of a
particular product, MHS can ship shorted product(s) from another MHS
distribution center and the product will be delivered within 48 hours.  When
requested by an Omnicare Facility before 1:00pm, MHS will make reasonable
efforts to have the required product alternate sourced and delivered within 24
hours of the request.

5.3.8            
Shipments will be in accordance with all applicable regulations and packaging
requirements. Cytotoxic agents are shipped in special plastic wrapped bags with
special oncology logo attached for identification purposes. All products that
are temperature sensitive will be shipped with the appropriate protective
packaging.

5.3.9            
Order Separation by Department or Cost Center: MHS agrees to deliver Product to
an Omnicare facility sorted by the designated departments if Omnicare transmits
orders separated by department via McKesson’s electronic ordering system.

5.3.10                        
Material Safety Data Sheet: When requested by an Omnicare Facility, MHS will
provide Material Safety Data Sheets.

 
5.4
Returned Goods.  Subject to any applicable federal and/or state law, rule or
regulation (including without limitation laws, rules and regulations of the
State of Florida), MHS will process returned goods for items purchased by
Omnicare from MHS, in accordance with this Returned Goods Policy (which is
subject to change by MHS under the circumstances described in Section 5.4.7,
effective upon thirty (30) days' prior notice to Omnicare), as follows:

5.4.1 Definitions

5.4.1.1                        
Saleable Products shall include the following:

·  
Products are determined saleable by MHS based upon the ability to resell the
item without special handling, refurbishing or other expense; or

·  
Saleable Products must have dating of the then current month plus six (6) months
remaining until expiration. Exceptions to this dating policy are:

i)  
Refrigerated and other temperature-controlled Products; or

 
ii)  
Products deemed permanently short-dated by MHS and manufacturers.

In the above-specified instances as set forth in Subsections 5.4.1.1(i)
and (ii), the Omnicare Facility shall be permitted to return the Products with
the then current month plus three (3) months remaining until expiration.
 
 
13

--------------------------------------------------------------------------------

 
 
5.4.1.2                        
Unsaleable Products shall include the following:

·  
Products with less than the then current month plus six (6) months remaining
until expiration (except as otherwise provided in Section 5.4.1.1);

 
·  
Products with torn or damaged packaging;

 
·  
Products with labels attached (prescription or price sticker);

 
·  
Products that are soiled, stained or worn;

 
·  
Products that fail to have a safety or security seal intact; or

 
·  
Products returned to McKesson that do not include such Omnicare Facility’s
signature on the returns authorization form to assure that the Product has been
stored and protected under proper conditions specified by the manufacturer.

5.4.1.3                        
MHS reserves the right to determine whether a Product is saleable or unsaleable
upon inspection of the returned item.

5.4.2           Products Authorized For Return to MHS

  Omnicare must provide signed verification certifying that proper conditions
for storage, handling and shipping have been maintained for all Products
returned to McKesson.

5.4.2.1                        
Saleable Product and Unsaleable Product purchased from MHS, unless otherwise
blocked for return as required by manufacturer return policies, regulatory
requirements, or where MHS is unable to obtain financial reimbursement from the
manufacturer.   ;

5.4.2.2                        
Unsaleable Products purchased from MHS which can be returned by MHS to the
manufacturer according to their policy;

5.4.2.3                        
McKesson Private Label Products (Valu-Rite®, Health Mart®, and SunmarkTM )

5.4.2.4                        
Products recalled by a manufacturer or in the case of a manufacturer 
withdrawing the Product from market in original manufacturer
containers.  Authorized returns of partials require the Omnicare Facility to
include pill counts, NDC and lot number for any Products not returned in its
original manufacturer container.

 
 
14

--------------------------------------------------------------------------------

 
 
5.4.3  
Products not eligible for return shall include the following:

·  
Products that were not purchased from MHS;

 
·  
Products that are not physically carried by MHS;

 
·  
Expired Products that go beyond a manufacturer’s acceptable return period;

 
·  
Saleable Products that have been improperly stored (unless returnable as an
Unsaleable Product);

 
·  
Unsaleable returns of Customer’s or its group purchasing organization’s private
label Products;

 
·  
Products not in their original container;

 
·  
Products requiring refrigeration except for Products shipped by McKesson in
error or received damaged, or signed and verified by Omnicare that the Product
integrity is intact;

 
·  
Repackaged Products (includes RxPak, overbag or “Robot-ready” products) that
have less than nine (9) months dating or are defined as Unsaleable Product;

 
·  
Products discontinued by manufacturer and no longer stocked by MHS;

 
·  
Controlled Substances containing hazardous materials;

 
·  
Partial bottles, liquids and other containers (except in the instance of recall
of a Product) other than Controlled Substances;

 
·  
Schedule II Controlled Substances (as evaluated on individual return requests);
or

 
·  
Products damaged or defaced at the Omnicare Facility location or on the shelf
(unless returnable as Unsaleable Product).

 

5.4.4  
Product Shortages and Mispicks.  MHS will provide credit for Product shortages
and mispicks, provided that (x) Omnicare or the Omnicare Facility provides
McKesson the applicable invoice number and (y) any claim is submitted within
[***] of the original invoice date.  Claims filed after [***] will not be
considered.

 
5.4.5  
[***]. MHS will provide the following [***] as calculated from the date of
[***]:

[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

Omnicare Facility Eligibility
 
                Any existing or future owned or managed Omnicare Facility shall
be eligible for returns and percentage of credit provided under this Agreement.
 
 
15

--------------------------------------------------------------------------------

 
 
5.4.6  
Pricing Determination on Returned and Recalled Goods

MHS will use the invoice price when an Omnicare Facility provides a valid
invoice number.

If no invoice number is provided, the following pricing rules will apply:

·  
For Products which are Contract Products on the date the return authorization is
created, an Omnicare Facility will be credited the Contract Price.

 
·  
For non-Contract branded Rx/OTC Products, an Omnicare Facility will be credited
a weighted average price based on such Omnicare Facility’s past twelve
(12) month purchase history.

 
·  
For non-Contract Generic Products, an Omnicare Facility will be credited the
lowest price paid by such Omnicare Facility over the past twelve (12) months.

 
·  
For non-Contract Products purchased more than 12 months prior to the date the
return authorization is created, an Omnicare Facility will be credited the
manufacturer's published acquisition cost (exclusive of cash discounts) on the
date of the of the return authorization.

Any handling charges will apply where appropriate to the determined price.
 
Final credit issued is based upon the condition and timing of the returned goods
to MHS.

5.4.7  
Notification of Changes

MHS reserves the right to change the above stated Returned Goods Policy at any
time with thirty (30) days' notification to Omnicare, provided such changes are
necessary in MHS’ reasonable opinion to comply with changes in applicable law or
other governmental requirements or reflect changes in manufacturer return
policies.

 
5.5
Product Warranty; Authorized Distributor/Pedigree. McKesson warrants and
guarantees to Omnicare that as of the date of delivery, the Products will not be
adulterated, misbranded or counterfeit drugs within the meaning of the Federal
Food, Drug and Cosmetic Act, 21 U.S.C. 301 et seq., as amended (the “Act”) and
in effect at the time of such delivery or within the meaning of any applicable
state or municipal law  and such Product is not, at the time of such delivery,
merchandise which may not be introduced into interstate commerce under the
provisions of Sections 404 or 405 of the Act (21 U.S.C. 344 and 355).  Without
limitation of the foregoing, McKesson warrants and guarantees that each Product
will be handled by it in compliance with all applicable legal requirements and
such applicable manufacturer specifications to the extent communicated from
manufacturer to McKesson (including, without limitation, appropriate temperature
control.)  McKesson further warrants and guarantees to Omnicare that McKesson
is, and at all times during the Term of this Agreement will be, an authorized
distributor of record for each of the Products and will, unless otherwise agreed
by the parties, deliver the Products with any legally required pedigree in
compliance with the Prescription Drug Marketing Act ("PDMA"), which added
section 503(e) to the Food, Drug, and Cosmetic Act (21 U.S.C. 353(e)),
applicable regulations set forth at 21 C.F.R Part 203.50 and all applicable
State laws.

6.             
SERVICE LEVEL

[***].  For purposes of this Agreement, the following inventory management
definitions and service level performance commitments are outlined below:
 
 
16

--------------------------------------------------------------------------------

 
 
6.1             
Definitions:

 
6.1.1
[***] shall mean an MHS system that [***].  Items are [***].  The [***] are
determined by [***].  Specifically, the [***] are used to determine an
[***].  The [***].  [***] are set at the account level.   Items that are [***]
are [***].  For example, [***].  Items with variability in actual or anticipated
demand are typically [***].

This program is not designed to restrict the customer’s ability to do business
effectively.  If an Omnicare Facility [***].   MHS requires [***].  If the
[***], MHS will require [***].  A [***] will also require [***].  MHS will
provide Omnicare on [***]. [***] applied to Omnicare orders shall be [***].

 
6.1.2
Manufacturer Unable to Supply (MUS) items are items unable to be supplied due to
the manufacturer’s inability to meet market demand.  These are shortages
typically greater than 3-5 business days.  Orders received partially complete,
orders received after their scheduled delivery day, and orders not shipped to
the distribution center leading to an omit are classified as a MUS. MHS will
validate with the supplier the reason of the shortage and expected
resolution.  The reasons for MUS may include production delays, quality control
issues, raw material shortages, discontinuation of product, and recalls.

 
6.1.3
Temporary outs  shall mean short term outages that are not attributed to a
manufacturer supply issue.  The reasons for temporary outs may include:

· Lead time variability
· Demand variability
· Cycle count discrepancies
· Delays in receiving

6.2             
MHS shall maintain a [***] line adjusted service level on Omnicare’s top 200
dollar volume items, and a [***] line adjusted service level on all of
Omnicare’s items.  MHS shall deliver to Omnicare a quarterly written report
showing its line adjusted service level for each calendar quarter of the Term,
including a detailed calculation of same, not later than thirty (30) business
days after the end of each such quarter.  Service level is defined as the total
number of lines shipped divided by the total number of lines ordered, minus the
following exclusions:

·  
Manufacturer Unable to Supply (MUS)

·  
Products not stocked by MHS

·  
All discontinued items or items recalled by manufacturer

·  
Product reordered within 48 hours of an original shortage

·  
Products whose usage exceed 150% of the most recent average without notice

·  
Products supplied through alternate source or product substitution delivered by
the following day.

Partial lines will be counted as the actual percentage of the line filled (e.g.,
6 of 10 equal 60% of the line

6.3             
In the event MHS fails to maintain the [***], MHS will credit such Omnicare
Facility in an amount equal to [***].  So long as MHS is current in the
crediting of such amounts, such failure shall not in itself constitute a default
hereunder.

 
 
17

--------------------------------------------------------------------------------

 
 
6.4             
MHS will provide Omnicare a monthly summary of all items omitted due to
manufacturer unable to supply (MUS).  This summary shall be in the electronic
media format currently in use between the parties, or such other format as the
parties may mutually agree upon from time to time.

6.5             
Implementation of New or Newly Acquired Omnicare Facilities.    New or newly
acquired Omnicare Facilities [***] of (i) [***] and (ii) such [***].

7.           CONTRACT MANAGEMENT

7.1             
MHS agrees to service all manufacturers’ contracts negotiated by Omnicare,
provided such manufacturers are approved suppliers of MHS that have satisfied
its indemnification, insurance and other corporate requirements. Products will
be supplied at Omnicare’s negotiated contract price plus MHS’ applicable markup
or discount as described in the Cost of Goods section above.

7.2             
MHS is able to [***]. MHS will load [***].  MHS will load the files
electronically or manually depending on the medium in which the bid file data is
furnished to MHS. All [***]. As deemed eligible by manufacturers, for [***],
Omnicare will receive the [***], unless Omnicare notifies MHS otherwise.

7.3             
MHS shall have up to forty-five (45) days to perform the initial loading of a
group purchasing organization contract from receipt of the notification from the
group purchasing organization.  Thereafter, MHS will load vendor contract
updates within five (5) business days after the applicable bid file data is
furnished to MHS by Omnicare’s group purchasing organization and confirmed by
the vendor.

7.4             
An Omnicare Facility's eligibility for participation under a vendor contract
must be authorized by the vendor, Omnicare and/or Omnicare’s group purchasing
organization before the contract is loaded by MHS for such Omnicare
Facility.  Each Omnicare Facility and Omnicare shall be liable for unpaid
chargebacks resulting from eligibility and/or pricing issues. Omnicare is also
responsible for denied chargebacks due to the lack of proper notification of
group membership.

7.5             
In the event a vendor: (i) makes an assignment for the benefit of creditors,
files a petition in bankruptcy, is adjudicated insolvent or bankrupt, or if a
receiver or trustee is appointed with respect to a substantial part of the
vendor's property or a proceeding is commenced against it which will
substantially impair its ability to pay on chargebacks; or (ii) otherwise
defaults in the payment of chargebacks to MHS, Omnicare shall be invoiced and
become liable for the unpaid chargebacks allocable to its purchases from such
vendor.

7.6             
Price Discrepancy Process. The MHS contract pricing specialist assigned to
Omnicare will [***] to address price file accuracy.  Omnicare will submit to MHS
[***].  Omnicare will [***] to submit all claims for such credits and any other
documentation related to the pricing discrepancy [***]. With the data received
from Omnicare, MHS will [***].  All discrepancies between Omnicare’s information
and the MHS file information will be [***].

 
 
18

--------------------------------------------------------------------------------

 
 
7.7             
Should pricing information from Omnicare and the MHS contract pricing file
conflict, the documentation from the manufacturer shall take
precedence.  Omnicare has the right to directly contact the manufacturer for
verification of contract pricing.

7.8             
As a result of MHS research, if credit is required to correct a contract pricing
error, MHS will complete this process within fifteen (15) days of verification
of the correct price.

7.9             
MHS will credit Omnicare for all price errors that are validated during this
fifteen (15) day period; in the event that MHS is unable to complete its
research within the fifteen (15) day period, MHS will reimburse Omnicare for the
reported price discrepancies.  Such credit will be offset by researched and
reconciled add bills from denied chargebacks by manufacturers and approved for
payment according to the then current payment terms if the dollar amount of add
bills exceed credit and re-bills.

7.10             
Omnicare shall be responsible for notifying vendors and MHS of any change in
membership.  Each Omnicare Facility’s membership must be authorized by the
vendor and the group purchasing organization before contracts are loaded to the
account. (Notification should be sent to the National Processing Center,
McKesson Health Systems, 1220 Senlac, Carrollton, TX 75006.)  The membership
notification process can be set up for electronic transmission.

7.11             
When requested by Omnicare, MHS will provide reasonable pricing verification
and/or proof of delivery for shipments pursuant to a bona fide request by
Omnicare.

8.           ORDERING EQUIPMENT AND REPORTS

8.1             
One (1) Telxon hand held electronic order entry unit with a bar code scanning
wand will be supplied to each Omnicare Facility at no charge upon such Omnicare
Facility’s request.  Additional Telxon units are available for Thirty-Five
Dollars ($35.00) per month per Telxon.  To accommodate annual physical
inventories, a reasonable number of additional Telxon units will be loaned to
Omnicare Facilities at no charge for a 3-week period, not to exceed four such
requests per year.

8.2             
As a replacement to the EconoLink system, McKesson Connect is offered to each
Omnicare Facility at no charge and shall be subject to a separate license
agreement between the parties governing use and maintenance.

 
8.3
MHS shall provide Omnicare Corporate Headquarters with access to McKesson
Connect and corporate office management reporting.

 
8.4
MHS shall retain title to all hardware provided hereunder and Omnicare
Facilities shall return same to MHS upon the earlier of termination of this
Agreement or termination of such Omnicare Facility's use of MHS as Prime Vendor.

8.5             
In the event MHS discontinues use of Telxon, EconoLink2000 system, Group
EconoLink2000 system and/or McKesson Connect during the term of this Agreement,
and replaces it with another service offering, MHS will make such replacement
offering available to Omnicare Facilities at no charge.

 
 
19

--------------------------------------------------------------------------------

 
 
8.6             
Shelf Labels & Price Stickers.  MHS will supply each Omnicare Facility with
bar-coded shelf labels and price stickers at no charge via the McKesson Connect
functionality.

 
9.             
ACCOUNT MANAGEMENT

9.1             
Account Manager.  MHS shall furnish to all Omnicare Facilities a professional
account manager knowledgeable in the various aspects of pharmacy purchasing to
assist on an as-necessary basis in inventory control and management, ordering
processes and problem solving.  Routine visits shall be made monthly unless
otherwise determined between MHS and the Omnicare Facility. Business Planning
and Review Meetings will be scheduled quarterly.

9.2             
Quarterly Business Reviews.  Omnicare and MHS shall conduct quarterly business
reviews to include appropriate management and maintain focus on the critical
metrics of performance within the scope of this Agreement, and the key
initiatives for the success of both organizations.

10.             
OMNICARE’S REPRESENTATIONS

Omnicare represents that:

10.1             
Omnicare understands that nothing herein shall restrict or limit MHS in any way
with respect to the prices it may charge to Omnicare Facilities for products not
covered under this program.

10.2             
All Products purchased by non-Retail Omnicare Facilities are purchased for
dispensing to patients of such Omnicare Facilities or for such patients’ own use
and, further, shall not be resold or used for any other purpose.

[EXCEPT FOR SECTION HEADINGS, THE NEXT TWO PAGES OF THE AGREEMENT HAVE BEEN
OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.]

11.             
[***]

11.1             
[***]

 
11.2             
[***]

 
11.3             
[***]

 
11.4             
[***]

 
11.5             
[***]

 
 
20

--------------------------------------------------------------------------------

 
 
12.             
CONFIDENTIAL INFORMATION

12.1             
Confidential Information. Except as specifically set forth in Section 12.2,
neither party shall, without the prior written consent of the other party,
provide, disclose, transfer or otherwise make available any Confidential
Information, or any portion or copy thereof, to any third party.  Each party
shall take the same security precautions to protect against disclosure or
unauthorized use of the Confidential Information that it takes with its own
confidential information of a similar kind, which in no event shall be less than
a reasonable standard of care to prevent any such disclosure or unauthorized
use.  For purposes of this Agreement, “Confidential Information” shall mean all
non-public information relating to the other party’s business, including (i)
technical, marketing, financial, personnel and planning information and medical
records, (ii) other information that is marked confidential or which the
receiving party should reasonably to know to be confidential given the nature of
the information and the circumstance of disclosure, and (iii) this Agreement and
the terms and conditions hereof; provided, however, that Confidential
Information will not include any information:

12.1.1                
lawfully obtained or created by either party independently of, and without use
of, Confidential Information and without breach of any obligation of confidence;

12.1.2                
that is in or enters the public domain without breach of any obligation of
confidence; or

12.1.3                
required to be disclosed by law, to the extent required to comply with that
legal requirement, provided that the party making such disclosure will promptly
notify the other party of such requirement and allow the other party a
reasonable opportunity to request confidential treatment of such information.

12.2             
Use and Disclosure. Notwithstanding the requirements of Section 12.1, each party
may (i) disclose Confidential Information to its employees or contractors solely
to the extent that they need to know such Confidential Information for the
purposes of this Agreement, and who are bound by confidentiality terms with
respect to that Confidential Information no less restrictive than those
contained in Section 12.1;and (ii) use  Confidential Information  only for the
purpose of performing its obligations under this Agreement.

12.3             
Return of Confidential Information.  Each party will return to the other party,
and destroy or erase all of the other party’s Confidential Information in
tangible form, upon the expiration or termination of this Agreement, and each
party will promptly certify in writing to the other party that it has done so.

12.4             
Use of Purchase Information.  Without limiting the generality of the foregoing
provisions of this Section 12, McKesson will not distribute Omnicare purchase
information for reasons other than the submission of chargeback requests to the
manufacturer, without the express written authorization of an officer of
Omnicare.

13.             
MISCELLANEOUS

13.1             
External Event.

 
13.1.1
For purposes of this Section, an “External Event” shall mean an event or series
of events [***] that has or is likely to have [***].    By way of illustration
and not of limitation, an External Event may include [***]. In response to
[***].  The [***] shall identify [***].  As soon as practicable after receipt of
such [***], but in any event [***].  Simultaneously with such receipt, [***],
which notice shall set forth [***].  If, [***], the parties [***].  If there
[***].

 
21

--------------------------------------------------------------------------------

 

 
13.1.2
Each party agrees that prior to filing any lawsuit or other legal action against
the other party regarding any issue or dispute arising out of or otherwise
relating to this Section 13.1, the parties will submit such issue or dispute to
mediation pursuant to Section 11.5 of this Agreement.

 
13.2
Assignment.  Neither party may assign its rights or obligations under this
Agreement without the prior written consent of the other party, which consent
will not be unreasonably withheld; provided, however, that Omnicare may assign
its rights and obligations under this Agreement, without the prior written
consent of McKesson, to a successor to Omnicare’s business by reason of merger,
sale of all or substantially all of Omnicare’s assets or similar transaction;
provided, further, however, that MHS may assign its rights and obligations under
this Agreement, without the prior written consent of Omnicare, to a subsidiary
or parent of MHS (but in such event MHS shall remain liable for any
nonperformance of this Agreement by its assignee unless otherwise agreed to with
Omnicare).

 
13.3
Severability.  If all or part of a provision of this Agreement is found illegal
or unenforceable in a respect not material to either party, it will be enforced
to the maximum extent permissible, and the legality and enforceability of the
remainder of that provision and all other provisions of this Agreement will not
be affected.  If all or part of a provision of this Agreement is found illegal
or unenforceable in a respect material to either party, it will also be enforced
to the maximum extent permissible, and the legality and enforceability of the
remainder of that provision and all other provisions of this Agreement will not
be affected; provided, that the parties shall negotiate in good faith to replace
such illegal or unenforceable provision with a provision which is legal and
enforceable and achieves the same objective to the greatest extent possible;
provided, further, that if the parties are unable to reach agreement upon such a
replacement provision within thirty (30) days after the provision in question is
declared illegal or unenforceable, any party materially and adversely affected
by such determination shall be entitled to terminate this Agreement by giving
the other party not less than sixty (60) days’ written notice of termination.

 
13.4
Notices.  All notices directed to the parties' legal rights and remedies under
this Agreement will be provided in writing and will reference this
Agreement.  Such notices will be deemed given: (i) if sent by facsimile, when
complete transmission to the recipient is confirmed by the sender's facsimile
machine; (ii) if sent by postage prepaid registered or certified U.S. Post mail,
then five (5) working days after sending; or (iii) if sent by commercial
courier, then at the time of receipt confirmed by the recipient to the courier
on delivery.  All notices to a party will be sent to its address set forth
below, or to such other address as may be designated by that party by notice to
the sending party in accordance with this section:

If to MHS:

McKesson Corporation
One Post Street, 22nd Floor
San Francisco, California 94104

Attention:      Director, Deal Development
McKesson Corporation
Fax: (415) 983-8650
 
 
22

--------------------------------------------------------------------------------

 
 
With a copy to:

Law Department
McKesson Corporation
One Post Street, 33rd Floor
San Francisco, California  94104
Attention:     Counsel
McKesson Health Systems
Fax: (415) 983-9369

If to Omnicare, Inc.:
Omnicare, Inc.
1600 RiverCenter  II
                                100 East RiverCenter Blvd.
                                Covington, KY 41011
Attention:   Dan Maloney
                     Vice President - Purchasing
                     Fax: (859) 392-3333 
                     Phone: (859) 392-3356 

With a copy to:

General Counsel
Omnicare, Inc.
1600 RiverCenter  II
100 East RiverCenter Blvd.
Covington, KY 41011
Fax: (859) 392-3333 
Phone: (859) 392-3300 

 
13.5
Waiver.  Any failure of a party to exercise or enforce any of its rights under
this Agreement will not act as a waiver of such rights.

 
13.6
Force Majeure.   A party will not be liable to the other party for any failure
or delay in performance caused by fires, shortage of materials or
transportation, government acts, acts of terrorism, or any other matters beyond
the first party's reasonable control, and such failure or delay will not
constitute a material breach of this Agreement.  A party shall give the other
party prompt written notice of any event excusing its nonperformance pursuant to
this Section, including a detailed description of such event, the exact nature
and extent of such party’s nonperformance caused thereby and the anticipated
duration of same.  A party shall give the other party further written notice of
the end of any force majeure event.  In the event that a party’s non-performance
pursuant to this Section continues for more than sixty (60) days and such
non-performance is material to the other party, the other party may terminate
this Agreement by giving written notice of termination to the other
party.  Notwithstanding anything to the contrary set forth in this Agreement, to
the extent that McKesson’s material failure to supply Products is excused
pursuant to this Section, during the period of non-performance contemplated
herein (a) Omnicare shall be entitled to obtain Products from one or more
alternate suppliers to the extent McKesson is unable to supply such items, and
(b) if such nonperformance results in Omnicare failing to satisfy any commitment
or condition hereunder, Omnicare shall not be deemed to have failed to satisfy
such commitment or condition.  Upon the termination of any force majeure event,
Omnicare’s duties and obligations under this Agreement shall simultaneously and
automatically resume.

 
 
23

--------------------------------------------------------------------------------

 
 
 
13.7
Amendment.  This Agreement may be modified, or any rights under it waived, only
by a written document executed by both parties.

 
13.8
Publicity.  Following the execution of this Agreement, the parties may issue a
joint press release or other public announcement regarding the execution of this
Agreement, in such form as mutually agreed by the parties.  No other public
announcement or press release regarding this Agreement or the activities
performed under this Agreement shall be made by either party except as may be
required, upon the advice of independent counsel to such party, in order to
prevent liability to such party under applicable securities laws or otherwise
with the prior written consent of the other party.

 
13.9
Counterparts.  The parties may execute this Agreement in one or more
counterparts, each of which will be an original, and which together will
constitute one instrument.

 
13.10
Relationship of Parties.  Each party enters into and performs this Agreement as
an independent contractor of the other party.  This Agreement will not be
construed as constituting a relationship of employment agency, partnership,
joint venture or any other form of legal association, except as expressly set
forth in this Agreement.  Each party will have no power, and will not represent
that it has any power, to bind the other party or to assume or to create any
obligation or responsibility on behalf of the other party or in the other
party's name.

 
13.11
Antikickback Compliance.  IT IS THE INTENT OF THE PARTIES TO ESTABLISH A
BUSINESS RELATIONSHIP WHICH COMPLIES WITH THE MEDICARE AND MEDICAID
ANTI-KICKBACK STATUTE AS SET FORTH AT 42 U.S.C. §1320a-7b(b).  IN ACCORDANCE
WITH 42 C.F.R.§ 1001.952(h), MHS (AS SELLER) WILL (A) FULLY AND ACCURATELY
REPORT ANY DISCOUNT ON INVOICES, STATEMENTS, OR REPORTS SUBMITTED TO OMNICARE OR
OMNICARE FACILITIES, OR (B) WHERE THE VALUE OF A DISCOUNT IS NOT KNOWN AT THE
TIME OF A SALE, FULLY AND ACCURATELY REPORT THE EXISTENCE OF A DISCOUNT PROGRAM
ON THE INVOICE, STATEMENT, OR REPORTS SUBMITTED TO OMNICARE OR OMNICARE
FACILITIES AND, WHEN THE VALUE OF THE DISCOUNT BECOMES KNOWN, PROVIDE OMNICARE
AND OMNICARE FACILITIES WITH DOCUMENTATION OF THE CALCULATION IDENTIFYING THE
SPECIFIC GOODS OR SERVICES PURCHASED TO WHICH THE DISCOUNT WILL BE APPLIED TO
OMNICARE AS BUYER.  WHERE A DISCOUNT OR OTHER REDUCTION IN PRICE IS APPLICABLE,
THE PARTIES ALSO INTEND TO COMPLY WITH THE REQUIREMENTS OF 42 U.S.C.
§1320a-7b(b)(3)(A) AND THE “SAFE HARBOR” REGULATIONS REGARDING DISCOUNTS OR
OTHER REDUCTIONS IN PRICE SET FORTH AT 42 C.F.R. §1001.952(h).  IN THIS REGARD,
THE PARTIES ACKNOWLEDGE THAT MHS WILL SATISFY ANY AND ALL REQUIREMENTS IMPOSED
ON SELLERS BY THE SAFE HARBOR AND OMNICARE AND/OR OMNICARE FACILITIES WILL
SATISFY ANY AND ALL REQUIREMENTS IMPOSED ON BUYERS.  THUS, OMNICARE  AND/OR
OMNICARE FACILITIES WILL ACCURATELY REPORT ON THE APPLICABLE COST REPORT, UNDER
ANY STATE OR FEDERAL PROGRAM WHICH PROVIDES COST BASED REIMBURSEMENT TO OMNICARE
FOR THE PRODUCTS AND SERVICES COVERED BY THIS AGREEMENT, THE NET COST ACTUALLY
PAID BY AN OMNICARE FACILITY, AND FOR ANY FEDERAL HEALTH CARE PROGRAM WHICH
PROVIDES CHARGE-BASED REIMBURSEMENT TO OMNICARE FACILITIES OMNICARE AGREES TO
MAKE AVAILABLE, UPON REQUEST BY THE SECRETARY OF THE U.S. DEPARTMENT OF HEALTH
AND HUMAN SERVICES OR A STATE AGENCY, INFORMATION PROVIDED TO OMNICARE BY
MCKESSON CONCERNING DISCOUNTS PROVIDED PURSUANT TO THIS AGREEMENT.  MCKESSON HAS
INFORMED OMNICARE OF OMNICARE'S FEDERAL STATUTORY AND REGULATORY REPORTING
OBLIGATIONS.  IN THE EVENT EITHER PARTY DETERMINES THAT THIS DISCOUNT PROGRAM
MAY NOT COMPLY WITH SUCH STATUTES, THE PARTIES AGREE TO WORK TOGETHER TO
ESTABLISH A DISCOUNT STRUCTURE THAT MEETS THE REQUIREMENTS OF SUCH STATUTES.  TO
THE EXTENT ANY APPLICABLE LAW, REGULATION, OR GOVERNMENTAL OR JUDICIAL ORDER
REQUIRES DISCLOSURE TO ANY GOVERNMENTAL AGENCY OF ANY INFORMATION REGARDING
MHS’S SALE OF PRODUCTS TO OMNICARE UNDER THIS AGREEMENT MHS WILL USE REASONABLE
BEST EFFORTS TO PROVIDE OMNICARE PRIOR NOTICE BEFORE MAKING SUCH DISCLOSURE.

 
 
24

--------------------------------------------------------------------------------

 
 
 
13.12
COMPLIANCE WITH "ANTI-KICKBACK STATUTE".  The Parties hereby certify that they
will not violate the Medicare/Medicaid Anti-Kickback Statute, 42 U.S.C
1320a-7b(b), with respect to the performance of this Agreement.

 
13.13
Construction of Agreement.  This Agreement has been negotiated by the parties
and its provisions will not be presumptively construed for or against either
party.  The headings and section titles in this Agreement are used for
convenience only, and will not affect the construction or interpretation of this
Agreement.

 
13.14
[***].  MHS shall use [***] to provide Omnicare [***].

 
13.15
Governing Law. This Agreement and all rights and liabilities of the parties
shall be subject to and governed by the substantive law (and not the choice of
law rules) of the State of New York.
 

 
13.16             
Entire Agreement.  This Agreement embodies the entire agreement between the
parties with regard to the subject matter hereof and supersedes all prior
agreements, understandings and representations (including without limitation,
that certain Prime Vendor Agreement for Pharmaceuticals between MHS and Omnicare
made December 22, 2003 and effective January 1, 2004, as amended, certain
Letters of Understanding between MHS and Omnicare dated January 28, 2007 and
December 1, 2008) with the exception of any separate pricing arrangements for
certain Generics Products as contemplated under Section 4.1.4, or any promissory
note, security agreement or other credit or financial related document(s)
executed by Omnicare or between Omnicare and McKesson.  This Agreement may not
be modified, supplemented or extended except by a writing signed by both
parties. This Agreement supersedes any and all prior MHS agreements and discount
plans in which any Omnicare Facility may currently be participating.

 
 
25

--------------------------------------------------------------------------------

 
 
13.17             
Nothing in this Agreement shall be construed as requiring McKesson to perform
any obligations hereunder or engage in any action or omission that McKesson
reasonably determines as violating or puts McKesson in jeopardy of violating any
applicable law.  Without limiting the generality of the foregoing, McKesson
shall comply with all applicable laws, rules, regulations, ordinances and
governmental requirements, guidelines and pronouncements relating to controlled
pharmaceutical drugs (“Controlled Substances”), including but not limited to the
Federal Controlled Substances Act and regulations promulgated thereunder by the
Drug Enforcement Administration.  In the event that (i) performance of the terms
of this Agreement would cause McKesson, in its reasonable determination, to be
noncompliant with or in jeopardy of being noncompliant with any federal, state
or local law, rule, regulation or ordinance or any governmental requirement,
guideline or pronouncement involving Controlled Substances or any other
regulated products or activities, including but not limited to the Drug
Enforcement Administration’s regulatory requirements for verifying its customers
and reporting suspicious or excessive orders, or (ii) McKesson receives a
complaint, notice, warning letter or other communication from a governmental
agency alleging noncompliance with any Controlled Substances laws, rules or
regulations in relation to McKesson’s distribution of the Pharmaceutical
Products under this Agreement or to Omnicare’s actions or omissions with respect
to Controlled Substances or any other regulated products or activities, McKesson
shall have the right, within its sole and absolute discretion, to limit or deny
any order for Controlled Substances as warranted by McKesson’s established
diversion monitoring program.

 
13.18             
Punitive Damages.  NEITHER PARTY SHALL HAVE ANY LIABILITY FOR ANY PUNITIVE OR
EXEMPLARY DAMAGES, WHETHER OR NOT SUCH PARTY IS ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.  

 
13.19             
[***].  Omnicare agrees to provide MHS, through its division McKesson Packaging
Services, [***].  Omnicare further agrees to provide MHS [***].  If MHS [***],
Omnicare agrees to [***]; subject to Omnicare reasonably determining that [***].

 
13.20             
This Agreement covers the distribution of Products within the United States,
Puerto Rico and the United States territories.

 
 
 
EXECUTION COPY

 
26

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year written below.

OMNICARE, INC.
 
MCKESSON CORPORATION
 
By: /s/ Dan Maloney
 
 
By: /s/ Paul Julian
Signature
 
Dan Maloney
 
Signature
 
Paul Julian
Printed Name
 
Vice President - Purchasing
 
Printed Name
 
Executive Vice President and Group President
Title
 
July 26, 2010
 
Title
 
July 26, 2010
Date
 
Date

EXECUTION COPY

 
27

--------------------------------------------------------------------------------

 

EXHIBIT A

DEFINITIONS

“ACH” means automated clearing house.

“Additional Products” has the meaning set forth in Section 5.1.1.

“[***]” has the meaning set forth in Section [***].

“[***]” means, for [***].

“[***]” for [***] means [***].

“[***]” for [***] means [***].

“[***]” will be determined by [***].
 
 
“[***]” means [***].

“Confidential Information” has the meaning set forth in Section 12.1.

“Contract Price” means the cost (before distribution fees) for a Contract
Product determined pursuant to the pricing contract (to which MHS has access)
negotiated by Omnicare or the group purchasing organization to which it is a
member and the manufacturer of the Contract Product.

“Contract Product” means a Product for which Omnicare is entitled to a Contract
Price (via a chargeback to be processed through MHS) pursuant to a pricing
contract negotiated by Omnicare or a group purchasing organization of which it
is a member and the manufacturer of such Contract Product.

“Contract Year” has the meaning set forth in Section 3.1.

“[***]”  means: [***].

“Direct Store Delivery” or “DSD” means sales from McKesson’s inventory to
non-warehouse Omnicare Facilities.

”Dock-to-Dock” or “DTD” sales means sales of products pursuant to orders which
are outside of normal direct store delivery to Omnicare Facilities supported by
MHS’ forward distribution centers and which are not received into MHS’ inventory
system, but are either shipped directly to Omnicare Facilities by the
manufacturer or are manually received by McKesson and sent to
Heartland/Vanguard.  Dock-to-Dock sales shall include, without limitation, drop
shipments.

“EFT” means electronic funds transfer.

“Generic” means (a) any Pharmaceutical Product sold pursuant to an abbreviated
new drug application under the Federal Food, Drug and Cosmetics Act, and (b) any
“authorized generic drug” as such term is defined at 42 C.F.R. §447.506(a).
 
 
28

--------------------------------------------------------------------------------

 
 
“[***]” has the meaning set forth in the definition of [***].

“[***]” has the meaning set forth in Section [***].

“[***]” has the meaning set forth in Section [***].

“McKesson OneStop Generics® Program” has the meaning set forth in the definition
of OneStop Program.

“[***]” means [***].

“[***]” has the meaning set forth in [***].

“Non-Qualifying Retail Facilities” shall mean all Retail Omnicare Facilities
[***].

“Omnicare Facilities” has the meaning set forth in Section 2.2.

"[***]" means [***].

“OneStop Program” means the proprietary McKesson OneStop Generics® program
(“McKesson OneStop Generics® Program”), including the auto-substitution feature,
available to Omnicare pursuant to this Agreement.  For purposes of this
Agreement, [***] (as described in Section [***]) are [***].

“Pharmaceutical Products” means [***].

“Prime Vendor” means that MHS shall be the first choice for the purchase of all
Pharmaceutical Products normally purchased through wholesale pharmaceutical
distributors.

“Prime Vendor Commitment” has the meaning set forth in Section 2.1.

“Products” means collectively Pharmaceutical Products, Additional Products and
any and all of the pharmaceutical products and related healthcare products
available for sale from MHS.

“Purchase Commitment Failure” has the meaning set forth in Section 2.1.2.

“Qualifying Retail Facilities” means, with respect to [***], all Retail Omnicare
Facilities (other than [***]), provided that the following requirements are met:
[***]. 

 “Retail” means Omnicare Facilities which principally dispense medications to
patients on a walk-in basis, rather than through medication delivery.  In no
event shall an Omnicare Facility which principally dispenses medications via
medication delivery (e.g., LTC) or the mail (e.g., specialty) be deemed “Retail”
hereunder as a consequence of such Omnicare Facility dispensing a small
proportion of its medications to walk-in customers.

“Service Level” has the meaning set forth in Section 6.

“Slow Moving Product” means Product that is [***] by sales volume of its
therapeutic class (as defined by First DataBank) and which either has a
therapeutic equivalent listed in the FDA Orange Book (i.e., a Generic
equivalent) with the same strength, dosage and presentation (e.g., tablets,
capsules or suspension) available from McKesson or has another package size of
the given strength, dosage and presentation from the same manufacturer available
from McKesson.

“[***]” has the meaning set forth in Section [***].

“[***]” has the meaning set forth in Section [***].

 EXECUTION COPY

 
29

--------------------------------------------------------------------------------

 
PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL
“[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

 
EXHIBIT B

OMNICARE FACILITIES LIST

CUSTOMER NUMBER
CUSTOMER NAME
003995
NEIGHBORCARE INF DME
006733
APS - HICKORY
007568
OMNICARE HLTH NETWORK DME
014837
EVERGREEN PHCY, INC
020906
NCS HLTHCARE OF KANSAS
027621
ROESCHEN'S OMNICARE PHARM
031427
NIHAN & MARTIN RETAIL   M
034699
ZZINDEPENDENT HEALT021610
041985
DANNY'S PHCY DME
044697
NCS HEALTHCARE CORP
044898
CENTRAL PHARMACY CO
048725
BROADWAY DME PHCY
059323
OMNICARE OF FT WORTH
068658
GLOBALREHABLP
070304
SO.DESERT LTC/LCPS AQUISI
077176
OMNI OF PERRYSBURG DSD-CL
080633
ASCO HEALTHCARE INC
085433
HEARTLAND PHY OF IL-DIV V
093934
CAPITOL HOME INFUSION-HIV
098722
OMNICARE PHOENIX
108252
OMNICARE OF ST. CAMILLUS
112009
OMNICARE KING PRUSSIA IV
116499
HEARTLND PHY OF IL-DIV II
116768
EVERGREEN PHARMACY
116824
NEIGHBRCARE CEDR CREST RT
129340
CREEKSIDE MANAGED CARE
136934
PINNACLE PHARM LACROSSE
137746
MAIN STREET PHARMACY RTL
144543
OMNICARE OF CAROLINA
147820
NEIGHBORCARE EAGLES TRACE
149444
MAIN STREET PHCY LLC RTL
156831
ELDERCARE HOME PHARM
166770
NEIGHBORCARE  BROOKSBY RT
169797
STERLING HEALTHCARE SVS
178713
NCS HLTHCARE OF MEMPHIS
182778
BEST CARE PHARMACY
182949
PHCY ASSOC GLENS FALLS
182998
ROYAL CARE HHC       DME
185066
OMNICARE OF WESTERN NY
190407
MAIN STREET PHCY LLC RTL
193277
OMNICARE CL INTERVENTION
203541
NEIGHBORCARE OAK CREST RT
203618
MAIN STREET PHCY LLC RTL

 
30

--------------------------------------------------------------------------------

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL
“[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.
 

207869
BAKERSFIELD HEART HOSP
214868
OMNICARE OF NEW HARTFORD
215652
APS - AUSTIN
216325
HOME PHARMACY SERVICES
225714
WILLIAMSON HARRISONBURG
228500
BROADWAY LTC
228515
OMNI NCT INV 180
232007
OMNICARE OF SOUTH FLORIDA
234460
NEIGHBORCARECHARLESTON RT
243438
ENLOE IV PEORIA DIV 2
243611
OMNI CLINICAL RSRCH DSD
244024
OMNI CLINICAL RSRCH DTD
250680
NEIGHBORCARE LINDEN PONDS
250858
MAIN STREET PHCY LLC RTL
254788
VANGARD LABS, INC - DTD
256471
NEIGHBORCARE SOUTHGATE RT
258422
SUPERIOR CARE PHCY IDAHO
260589
OMNICARE SOUTHERN PINES
267415
OMNICARE ANNAPOLIS JNC MS
272209
OMNICARE OF NACHOGDOCHES
281824
OMNICARE SVCS PHARM PITTS
284302
OMNICARE OF WACO
287958
EVERGREEN PHARM IV
302272
UNITY MEDICAL & SURG HOSP
303424
STAT CARE PHARMACY
305565
PHARMACY CARE ASSOC
312851
NATIONAL EXT CARE PHCY
313652
GLOBAL REHAB SAN ANTONIO
316168
OMNICARE CHICO CA
323898
OMNICARE ANNAPOLIS JCTN
325901
ROESCHEN'S BEHAVE HLTH
326105
EXCELLE RX-INC MEMPHIS
332846
OMNICARE OF HOUSTON
334167
NEIGHBRCARE  BOOTHWYN DME
334809
OMNICARE-MINNESOTA #2
336176
PHARMACY SUPPORT SERVICES
337267
RIVER PARK HOSPITAL PHCY
339323
PUGET PHARMACY
339965
NCS HEALTHCARE OF DOVER
340350
NEIGHBRCAR  BRAINTREE DME
347202
COMM MEDICAL PHCY DME
351905
BRIDGEPORT PH SV LKWD LTC
353895
HYTECH PHARMACY EDI
355468
OMNICARE OF BISHOP GADSDN
356526
OMNICARE OF EDISON
356594
MYERLEE PHARMACY LTC
360866
OMNICARE OF FLORENCE
368951
NIHAN & MARTIN

 
31

--------------------------------------------------------------------------------

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL
“[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.
 

373484
NCS HLTHCARE HERRIN DIVII
373755
NEIGHBORCARE FORT WAYNE
375008
OMNICARE OF GOLDEN
377783
OMNICARE KING PRUSSIA-LTC
383758
HOSPICE OF CINCINNATI EDI
385329
OMNICARE OF TAMPA
389283
OMNICARE OF LODI
390039
BEEBER PHARMACIES INC  SD
390047
EVERGREEN PHARMACEUTICAL
390054
CARE PHARMACEUTICAL  XXXX
390062
CONSULTING & PHARM SERV
390120
D&R PHARMACARE LOUISVL SU
390138
D&R PHARMACARE LEXGTON SX
390153
ENLOE DRUGS, INC DECATUR
390179
ENLOE DRUGS, INC PEORIA
390211
OMNICARE PHCY OF MIDWEST
390229
HEARTLAND HEALTH SERVICES
390245
HEARTLAND HLTH SVC
390344
PHARMED HOLDINGS INC
390435
OMNICARE DIST CTR LLC DSD
390450
HOME CARE PHARMACY     SI
390468
OMNICARE OF NITRO WV
390484
INTERLOCK PHARMACY
390492
INTERLOCK PHCY SYSTEMS
390500
INTERLOCK/OMNICARE PHCY
390526
LOMED PRESC SVCS
390542
MANAGED HLTH CARE PHCY
390567
NO SHORE PHCY SVCS  (DC)
390583
OMNICARE OF QUAD CITIES
390591
HOME CARE PHAR, ASHLAND
390625
PRN PHARMACEUTICAL INC SU
390633
SEQUOIA HEALTH SVC - PHCY
390641
SEQUOIA HEALTH SVC- TULSA
390666
SHORE PHARM PROVIDES, INC
390674
SPECIALIZED PHCY SVCS
390682
SPECIALIZED PHY/NORTH DIV
390690
THREE FORKS LTD PRTSHP SX
390716
UNICARE, INC PRATVILLE
390732
OMNICARE PHCY-PERRYSBURG
390757
OMNICARE INC ELINK LEAD
392175
WILLIAMSONS  PHY RICHMOND
393662
NEIGHBORCARE  MARIS GR RT
393975
EXTENDED CARE ASSOCIATES
394419
OMNICARE OF MORGANTOWN
396173
NCS HLTHCARE OF EASTLAKE
402905
OMNICARE OF NEW MEXICO
403319
PHARMACY CONSULTANTS INC
408591
D&R PHARMCARE WHSE     SU

 
32

--------------------------------------------------------------------------------

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL
“[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.
 

411353
ROESCHEN'S HIV
413763
NBR MT.WASHINGTON PED HSP
420161
OMNICARE REDDING, CA
425704
TRUSTPOINT HOSP PHARMACY
427052
EXCELLERX-INC MEMPHIS EDI
427338
OMNICARE INFUSION DIV 2
428237
MEDICATE LTC PHCY
434969
MED WORLD PHARMACY INC
435688
OMNICARE/DO NOT USE-NDC-W
438275
OMNICARE PHAR SVCS GREEN
442882
RESOURCE PHCY INC
443707
OMNICARE DIST CTR LLC DSD
445041
RX SERVICES WILMINGTON
446330
NEIGHBORCARE OF NH
452775
VILLAGE STHRN DESERT PHCY
453380
NCS HLTHCARE OF VERMONT
455948
OMNICARE OASIS ACCT ELINK
457322
OMNICARE PHCY OF FL, LP
462970
OMNI OF PERRYSBRG DTD-CL
465468
OLD OMNICARE ITEMS
489522
NEIGHBORCARE PORTSMOUTH
491038
NCS HLTHCARE OF APPLETON
496137
HOSPICE OF DAYTON EDI
497665
CSR, INC
502843
RESOURCE PHCY INC
509367
NEIGHBORCARE RICHMOND
512667
OPTION CARE DME
513359
DENMAN PHARMACY IV
518234
RX SVS WILLIAMSON DRUG CO
519522
GRACE MED CTR OP
519819
OMNICARE OF NEBRASKA
520628
PBM PLUS MO
523960
OMNICARE OF LUBBOCK
527698
HYTECH PHARMACY INC
527704
NEIGHBORCARE ROANOKE
533764
MESH PHARMACY RETAIL
534551
NEIGHBRCAR  SALISBURY DME
535169
NEIGHBORCARE SAN ANTONIO
536734
HOSPICE OF CINCINNATI
536873
NEIGHBORCARE SAN BERN IV
538640
NEIGHBORCARE  SAN DIEGO
541365
PALOMBO'S MED RITE PHCY
542768
PLUM CREEK SPECIALTY HOSP
544254
SUN PHARMACY
545418
OMNICARE PHCY MIDWEST DME
551690
OMNICARE OF URBANDALE
552381
OMNICARE OF SCRANTON
554667
DENMAN PHCY SERVICES

 
33

--------------------------------------------------------------------------------

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL
“[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.
 

573391
NEIGHBORCARE GBMC E HPG
582095
NEIGHBORCARE SOUTH BEND
588588
NEIGHBRCAR SPRINGFELD DME
589084
OMNICARE OF PHARR
597046
NEIGHBORCARE ST AGNES HSP
608584
EXCELLE RX - PA
622649
PINNACLE PHARM MADISON
625167
UNITED PHARM ASSOC HENDER
628116
ARLINGTON CLINICAL DME
636203
OMNICARE OF PA EAST
640726
OMNICARE OF CORPUS CHRIST
643362
NCS HLTHCRE-CARE FOR LIFE
644068
OMNICARE OF ROCHESTER
645615
COMM MEDICAL PHCY LTC
645618
COMM MED PHCY RETAIL-EAST
645768
COMM MEDICAL PHCY RETAIL
645901
COMM MED PHCY WEST RETAIL
646744
NEIGHBORCARE  TOWSON DME
652808
OMNICARE OF TYLER
653464
VANGARD LABS INC DSD
655914
SUNSCRIPT PHARMACY
658097
GLOBAL REHAB FT. WORTH
661228
NEIGHBORCARE  WALDORF DME
662094
NEIGHBORCARE WHIPPANY
664001
COMM MED PHCY DME-EAST
664038
COMM MEDICAL PHCY DME
665718
OMNICARE OF MAINE
671000
OMNICARE OF WILLIAMSPORT
672351
PSI ARKANSAS PHARMACY
680648
OMNICARE OF CENTRAL OHIO
681978
NCS HEALTHCARE OF MONTANA
683033
NEIGHBORCARE  CROZER RTL
686310
OMNICARE OF HEBREW HOME
689487
ARLINGTON INFUSION, INC
691156
OMNICARE CORP RETAIL
694154
NEIGHBORCARE INFUS THRPY
710164
NEIGHBORCARE WOODHOLME RT
710190
OMNICARE CENTRAL FLORIDA
713946
OMNICARE OF RHODE ISLAND
715528
NEIGHBORCARE PROF PCY RTL
717360
OMNICARE OF SYRACUSE
718784
OMNICARE OF HUNTSVILLE
725277
LTC PHARMACY SVCS
725288
LTC PHCY SVCS DME
726090
NEW YORK STATE OMRDD
728783
GRACE MEDICAL CENTER
733446
PHARMACY SERV OF INDIANA
736524
NCS HLTHCARE S CAROLINA

 
34

--------------------------------------------------------------------------------

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL
“[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.
 

737010
NEIGHBORCR GBMC EAST RTL
746119
OMNICARE PHCY OF PUEBLO
748076
EXCELLE WHOLESALE EDI
750851
OMNICARE OF SOUTH DAKOTA
754516
PHARM-CORP OF MAIN
759589
OMNICARE OF N ILLINOISXX
768115
NEIGHBORCARE STJOSEPH HPG
777492
OMNICARE-MINNESOTA
783576
KERR HEALTH CARE SVCS
792457
EVERGREEN PHARM SUPPLY
793760
EVERGREEN PHCY INC PTLD
803340
CORPUS CHRISTI SPEC EDI
803966
NEIGHBORACARE  TOWSON RTL
806421
NEIGHBRCAR BON SECOUR HSP
808954
HOSPICE OF DAYTON
829088
ARLINGTON CLINICAL
831125
OMNI OF NY/CITY MKT PHCY
832160
SYNERGY HEALTHCARE SERVIC
834858
OMNICARE PHCY OF TENN
835841
NEIGHBORCARE PERSONALCARE
838323
ARLINGTON CLINICAL INFUS
844425
CORPUS CHRISTI SPEC HOSP
856968
ZELLMED SOLUTIONS INC.
857537
NEIGHBORCARE HWRD CTY GEN
863832
NEIGHBRCARE  EASTPOINT RT
869290
MCCLELLAND HOME HLTH PHCY
871668
NEIGHBRCARE NAYLOR CRT RT
871821
EXCELLE WHOLESALE
874496
EXCELLE RX - PA EDI
879313
NEIGHBRCARE OWING MILL RT
881041
NEIGHBRCAR REISTERSTWN RT
897585
NEIGHBRCAR  ST JOSEPH HSP
903919
NEIGHBORCR CHAMP DAVS RTL
905877
OMNICARE MED SUPPLY CHAIN
906180
SUPERIOR CARE SLC DME
906198
OMNICARE CORP ACCT
906859
CARTERS INSTITUTIONAL
906917
OMNICARE OF CONNECTICUT
906966
CAMPO MEDICAL PHARMACY
906982
OMNICARE OF JACKSON
907063
HYTECH HOMECARE
907097
VITAL CARE INFUSIONS
907113
SPECIALIZED PHAR SERV WST
907139
ENLOE DRUGS, MPD PEORIA
907147
ENLOE DRUGS, MPD DECATUR
907436
EVERGREEN PHARMACY
907980
UNICARE, INC-PRATVILLE
907998
CHERRY HILL PHARMACY LTC

 
35

--------------------------------------------------------------------------------

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL
“[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.
 

908053
OMNICARE DIST CTR LLC DTD
908087
SUPERIOR CARE PHARMACY
908095
SUPERIOR CARE ST GEORGE
908111
OMNICARE OF NASHVILLE
914585
NEIGHBORCARE  LIBERTY RTL
920018
VANGARD LABS PREBUY DTD
920215
EVERGREEN PH EAST SPOKANE
920284
VANGARD LABS PREBUY DSD
920961
TERENCE CARDINAL COOKE HL
926136
NEIGHBORCARE MERCY MC HSP
935342
OMNICARE OF PANAMA CITY
941435
MEDICAL ARTS HEALTH CARE
944632
SEQUOIA HEALTH SVC IV
952222
NEIGHBRCAR ELDERSBURG RTL
959000
OMNICARE DIST CENTER LLC
959001
OMNICARE DIST CTR LLC DTD
965955
NBR HOWARD GEN HOSP HPG
967330
OMNICARE OF SOUTH FL EDI
967532
NEIGHBRCAR PHCY SINAI HSP
967886
OMNI NCT DTD 163
978652
ADVANCED CARE SCRIPTS
981438
PHARMACY SUPPORT SVCS
983038
VANGUARD ADVAN PHCY SVCS
983689
HEARTLAND PHARM OF PA
986737
HMIS INC INSTIT SERV
986885
LEVINDALE HEBREW GERI CT
987067
RAINIER LTC PHARM STORE#2
987279
HOLLAND DRUG EDI
987317
HOLLAND DRUG
990917
CENTRE PHARMACY SERVICES
991472
OMNICARE DIST CTR LLC DTD

EXECUTION COPY

 
36

--------------------------------------------------------------------------------

 
PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL
“[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

EXHIBIT C

NEGOTIATED NET PRICES

NDC
Description
Economost #
Negotiated Net Price
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

 
 
37

--------------------------------------------------------------------------------

 
 
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

 
 
38

--------------------------------------------------------------------------------

 
 
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

 
 
39

--------------------------------------------------------------------------------

 
 
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

 
 
EXECUTION COPY

 
40

--------------------------------------------------------------------------------

 
PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL
“[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

EXHIBIT D

SEPARATELY PRICED [***] PRODUCTS

[***]

EXECUTION COPY

 
41

--------------------------------------------------------------------------------

 
PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.  THE SYMBOL
“[***]” IN THIS EXHIBIT INDICATES THAT INFORMATION HAS BEEN SO OMITTED.

 
EXHIBIT E

ALTERNATIVE PRICING MATRIX

PRICING MATRIX FOR NON-RETAIL OMNICARE FACILITIES
 
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

PRICING MATRIX FOR QUALIFYING RETAIL FACILITIES
 
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

 
PRICING MATRIX FOR NON- QUALIFYING RETAIL FACILITIES
 
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]
[***]

EXECUTION COPY

 
42

--------------------------------------------------------------------------------