Document:

EX-10.33

 Exhibit 10.33 
 [***] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. THREE ASTERISKS
DENOTE SUCH OMISSIONS. 
 FIRST AMENDMENT TO THE AMENDED AND RESTATED PRIME VENDOR 

AGREEMENT FOR LONG-TERM CARE PHARMACIES 
 This First Amendment (“First Amendment”) is entered into as of January 1, 2013 (the “Effective Date”), between AmerisourceBergen Drug Corporation
(“ABDC”), on the one hand, and PharMerica Corporation (“PMC”), Pharmacy Corporation of America (“PCA”), and Chem Rx Pharmacy Services, LLC, (“Chem Rx”), on the other. (Collectively,
PMC, PCA and Chem Rx are referred to hereafter as “Customer”) and amends the parties Amended and Restated Prime Vendor Agreement for Long-Term Care Pharmacies (“Agreement”) dated January 1, 2011. 

Capitalized terms that are not defined in this First Amendment have the meanings set forth in the Agreement. For good and valuable consideration, the
receipt of which is hereby acknowledged, and intending to be legally bound hereby, the parties amend the Agreement as follows: 
  

	 	1.	Customer acquired Amerita, Inc., a California corporation, on or about December 13, 2012 (“Amerita”) and located at 20 Fairbanks, Suite 173,
Irvine, California 92618. Amerita and ABDC are parties to a Prime Vendor Agreement dated September 17, 2008, as amended (“Amerita PVA”), and Amerita desires to receive pharmaceutical products and services under the same terms
and conditions of the Agreement. Upon execution of this First Amendment, the Amerita PVA will automatically terminate and Amerita agrees that the term “Customer” in the Agreement shall now refer to Amerita as well. Amerita agrees that by
executing this First Amendment, Amerita hereby adopts the Agreement and agrees to be bound by all the terms, conditions, responsibilities and provisions thereof. 

 

	 	2.	Paragraph 1(B) (RECITALS & DEFINITIONS; PRICING AND PAYMENT TERMS) is amended and restated in its entirety as follows: 

B. ABDC shall be the Primary Vendor of Customer’s Facilities for Products. Customer will pay, within terms, Product costs and Program
fees pursuant to payment terms in Exhibit “1” (“Pricing/Payment Terms”). Customer’s compliance with the Primary Vendor requirements encompassed by the definition of that term in Exhibit 5 as incorporated herein will
be verified *** by ABDC and must be *** as provided in Section 10(A). Notwithstanding the Primary Vendor requirements, Customer may purchase directly from a manufacturer if, due to a product shortage or allocation, the manufacturer requires
that Customer do so. ABDC agrees that, in accordance with the definition of Facility in Exhibit 5, the Primary Vendor requirements will not apply to Customer’s newly acquired pharmacies with existing agreements with other distributors until
such time as such newly acquired pharmacies become Facilities hereunder. By way of example, Table 1 of Exhibit 7 illustrates how the parties will *** Customer’s *** with the Primary Vendor requirements. 

	 	3.	Paragraph 2(B) (PRxO GENERICS PURCHASE PROGRAM) is amended and restated in its entirety as follows: 

B. By agreeing to participate in the PRxO Generics Purchase Program, Customer must purchase from ABDC and through the PRxO Generics
Purchase Program no less than the following percentages of its non-Injectable Generic Rx, as verified *** by ABDC and ***as provided in Section 10(A): 
  

			
	 Minimum generic Rx purchases to be made
through the PRxO Generics Purchase Program

	 ***%
	  	*** through ***
	 ***%
	  	*** through ***
	 ***%
	  	*** through ***
	 ***%
	  	*** through ***

 With respect to each Generic Rx purchased by Customer under the PRxO Generics Purchase Program, ABDC shall
use its *** to provide Customer *** prior to changing suppliers of such Products. Any changes by ABDC in its PRxO Generics Purchase Program will be non-discriminatory to the Customer, generally applicable to ABDC’s customers and consistent with
the terms of this Agreement. Table 1 of Exhibit 7 establishes how the parties will *** Customer’s Generic Rx *** requirements. 
 The pricing for PRxO Generic products when *** will be *** than *** with ABDC through the PRxO Generics Purchase Program. A *** is a third-party *** with ***, taking into consideration ***, including ***.

  

	 	4.	Paragraph 7B (Term of Agreement) is amended and restated in its entirety as follows: 

B. Subject to termination of this Agreement pursuant to Paragraph 5 of the Provisions, the term will be from the Effective Date until
September 30, 2016 (“Term”). Unless either party provides notice of termination at least 90 days prior to the expiration of the Term, this Agreement will automatically renew for additional *** periods, subject to termination
pursuant to Paragraph 5 of Exhibit 3. 
  

	 	5.	Paragraph 1(A)(i) of Exhibit 1 (Price of Goods) is amended to reflect the following Price of Goods matrix as of this Effective Date: 

 

			
	 Purchases of
Products

	 Requirement/Category
	  	 Price of Goods

	 To receive this pricing, Customer must comply with all purchase commitments’ set forth in the Agreement.
	  	***%*
	 DEA Class II Controlled Substances Ordered via CSOS
	  	***%
	 DEA Class II Controlled Substances Not Ordered via CSOS
	  	***% if ***% of the Facilities are *** via ***, measured *** and including those Facilities or pharmacists with ***.

  

	*	For Branded Rx shipped to a Facility in Hawaii, the applicable *** will be *** basis points *** (e.g., ***%). For Brand Rx that is drop shipped to Customer *** from a
*** but ***, the applicable Price of Goods will be ***%. 

  
 2 

	 	6.	Paragraph 1(B) of Exhibit 1 (Purchase Rebate) is amended as follows: After the Purchase Rebate for 2013 is paid on or before January 31, 2013, this entire
Paragraph 1(B) will be deleted and no longer in effect. 

  

	 	7.	The following new Paragraph1(F) (Volume Rebates) is added to the Agreement: 

 

	 	F.	Volume Rebates. 

 (1)
Customer will receive a rebate of $*** representing a ***% *** off of the first $*** of *** purchased between *** and ***. This rebate will be paid in *** no later than *** days after Customer has satisfied the requisite purchase threshold stated
herein. Customer must be compliant with all material terms of the Agreement to be eligible for the rebate under this paragraph. 

(2) Customer will receive a rebate of $*** representing a ***% *** off of the first $*** of *** purchased between *** and ***. This rebate
will be paid in *** no later than *** days after Customer has satisfied the requisite purchase threshold herein. Customer must be compliant with all material terms of the Agreement to be eligible for the rebate under this paragraph. 

(3) Customer will receive a rebate of $*** representing a ***% *** off of the first $*** of *** purchased between *** and ***. This rebate
will be paid in *** no later than *** days after Customer has satisfied the requisite purchase threshold herein. Customer must be compliant with all material terms of the Agreement to be eligible for the rebate under this paragraph. 

 

	8.	Paragraph 2(B) (PRxO Rebates) is amended and restated in its entirety as follows: 

Generic Rx Rebates. ABDC shall pay Customer rebates for certain Generic Rx purchases, which rebates shall be calculated and paid on
a *** basis. Rebates payable and owed to Customer under this Paragraph 2(B) are as follows: 
  

	 	(1)	Partnership Rebates. In exchange for Customer’s participation in the ABDC PRxO Generics Purchase Program, Customer shall receive a Partnership Rebate
(“Partnership Rebate”) equal to ***% of the *** of the *** in a calendar *** from ABDC. ABDC will assess market conditions *** and adjust the Partnership Rebate accordingly; provided, however, that prior to making an adjustment,
ABDC will meet in good faith with Customer to discuss the basis for such adjustment and use its *** to calculate the appropriate adjustment. 

  

	 	(2)	PRxO Rebates. On a calendar *** basis ABDC will *** to Customer its *** of PRxO Rebates as determined by comparing Customer’s *** of *** as a *** of *** by
*** ABDC ***. ABDC’s compliance with its obligations under this Paragraph 2(B) must be certified to Customer by an officer of ABDC as provided in Section 10(b).  

 

	 	(3)	 ABDC acknowledges Customer’s expectancy that the collective *** Generic Rx Rebates will ***, result in rebates of approximately ***% of the
*** of the *** in the applicable calendar ***. The parties agree to track and measure the projected performance within *** days of the 

  
 3 

	 	
completion of each contract ***, along with the performance of the *** generic rebates. If ABDC has reason to believe there may be a material deviation of ***% in either of the next two contract
***, it will notify Customer ***. 

  

	 	(4)	PRxO Generics Competitive Benchmark. 

 To assess the *** of Customer’s calendar ***, such *** will be assessed to the benchmark so described below within *** days after the close of each calendar ***. Within such *** day time period, ABDC
shall provide Customer with a written certification in the Form attached hereto as Exhibit 6, executed by a duly authorized officer, attesting to the calculation of the “*** Rebate” ( as defined below). In addition ABDC shall provide
Customer with sufficient data to support said calculation and a summary explanation showing the calculation. For each period two values will be measured: (1) Customer’s aggregated *** at ***; and (2) the aggregated *** of those same
***. Any Partnership Rebates or PRxO Rebates shall further be *** from the ***. Each calendar ***, to the extent the *** amount paid by Customer for PRxO Generics does not *** a *** of ***% of the *** on their purchase dates in the applicable
calendar ***, ABDC will *** Customer any *** (the “*** Rebate”) to equal the ***% *** within *** days after such ***. Customer and ABDC agree to make *** to *** certain *** (i.e., ***) from the calculation due to reasons of *** such
as, but limited to, (i) ***; (ii) *** and (iii) ***. The calculation is illustrated as follows: 
  

	 	•	 	 $***       ***at *** 

 

	 	•	 	 $***       ***of same *** 

 

	 	•	 	 ($***)    Partnership and PRxO Rebates 

 

	 	•	 	 $***       $***net of ($***) rebates 

 

	 	•	 	 ***%      *** 

 Resulting in no *** Rebate owing under this example since the *** is not less than ***%. 
  

	9.	Paragraph 2(C) of Exhibit 1 (Outsourcing Fee) is amended as follows: 

 Commencing January 1, 2013, the *** is *** from ***% to ***%. Commencing October 1, 2013, the *** will be *** from ***% to ***%. 

 

	10.	Paragraph 2(D)(1) of Exhibit 1 (Price of Goods Adjustment) is restated as follows: 

If Customer does not meet the applicable percentages of Generic Rx purchases through the PRxO Generics Purchase Program set forth in
Section 3 of this First Amendment for the immediately prior ***, then ABDC may increase Customer’s Price of Goods (Branded Rx and other Products) in the current *** by ***% (***) for each ***% that Customer’s total *** for the
immediately prior *** were below the minimum *** requirements of such applicable *** (calculated pursuant to the foregoing formula). By way of example, if Customer’s *** under the above formula were ***% in the ***, the effective Price of Goods
for Branded Rx for the following *** would change by (***%) from ***% to ***%. 
  

	11.	Paragraph 2(E) of Exhibit 1 (Saving’s Expectancy) is deleted in its entirety. 

  
 4 

	12.	Section 1 of Exhibit 3 is amended and restated as follows: 

 RECORDS, AUDITS. 
 ABDC will maintain records of transactions during the
Term and for one year after. Customer’s employees and agents and representatives (“Delegates”) may audit such records only pursuant to ABDC’s audit policies, as modified from time to time. All Delegates engaged by Customer to
conduct the review will be bound by the confidentiality obligations of this Agreement and all Delegates other than PMC employees, shall execute a commercially reasonable confidentiality agreement with ABDC . Such audits may be conducted only during
ordinary business hours and upon reasonable notice and may only cover *** days prior to the request or any shorter period set by the manufacturer for chargeback audits. No audit may cover any period previously audited. All costs of such audit will
be borne by Customer, including costs to produce records. If an audit shows net overcharges or undercharges and ABDC agrees with such findings, (i) ABDC will *** or charge Customer within *** days of receipt of written notice of the net
overcharge (or, if later, within *** days of receiving an applicable supplier’s credit) or undercharge and (ii) ABDC will *** of any audit ***, including ***, not ***. 

 

	13.	The parties reaffirm the confidentiality obligations set forth in Section 4 of Exhibit 3. In addition, either party may disclose the existence of this First
Amendment, but each party will keep its terms, including pricing and payment terms, confidential and agrees to not disclose them to third parties with the prior written approval of the other party, or as may be required by law or order of any court
or governmental agency. With respect to press releases or regulatory disclosure relating to the execution of this First Amendment, each party will have the right to review any press release(s) or regulatory disclosure(s) issued by the other party
prior to its issuance. 

  

	14.	The following definitions are added or amended and restated accordingly: 

 Suggested Wholesale Price (SWP) means a price at which drugs are purchased at the wholesale level as published from time-to-time by First Data Bank (or a comparable industry compendium) provided by
manufacturers. If the manufacturer of a PRxO Generic does not publish SWP, or if the manner or effect of how SWP is published during the Term differs from how SWP is published as of this First Amendment’s Effective Date (whether as a result of
regulation or common practice within the industry), ABDC may, with ***, use an ***to *** the ***. Prior to doing so, the parties will meet in *** and use *** to determine the appropriate industry measurement to effectuate the intent of the ***.

 Partnership Rebate means the *** rebate that Customer will receive as described in Paragraph 8 of this First Amendment.

 Primary Vendor means Customer purchases from ABDC (i) no less than ***% of all Brand Rx that Customer purchases
from any source and (ii) Generic Rx in no less than such amounts as set forth in Paragraph 2B; including, without limitation, Products purchased from ABDC pursuant to Customer’s direct contracts with pharmaceutical manufacturers that are
administered by ABDC pursuant to Paragraph 1(E) of Exhibit 1; provided, however that, in each instance, these Branded Rx are available for purchase from ABDC in sufficient quantities to meet Customer’s routine demand. 

PRxO Contract Cost means the per-unit cost of PRxO Generics under *** with the ***. 

PRxO Generics means Generic Rx available under the PRxO Generics Purchase Program. 

PRxO Rebates include the Partnership Rebate and, ***, mean the *** paid to *** by *** of PRxO Generics, excluding any *** paid to
*** by the suppliers. By way of clarification, *** paid to *** by *** are excluded from PRxO Rebates, including: ***, including ***. 

  
 5 

 Facility means (a) each of Customer’s LTCPs as of the Effective Date of
this First Amendment, (b) any other LTCPs in the United States that, during the Term and subject to ABDC’s credit approval policies (i) Customer acquires (directly or through a commonly controlled, owned or managed affiliate or
subsidiary); (ii) Customer controls, directly or indirectly; or (iii) Customer or any other Facility (as denoted above) operates or manages, provided, however, that any newly acquired pharmacy with an existing agreement with another
distributor will become a Facility under this Agreement upon the earlier of expiration of such existing agreement or the date Customer (or such affiliate or subsidiary) may terminate such agreement according to its terms, with or without cause,
without breaching it or paying a termination penalty, and (c) Amerita. For the avoidance of doubt, a Facility excludes any pharmacy under Customer’s control that serves as a hospital pharmacy. If Customer acquires any non-LTCP or home
infusion pharmacy, whether under agreement with ABDC or another distributor, the parties will meet and discuss when such facility will be eligible to participate under this Agreement and/or the appropriate Price of Goods and other terms that may be
offered with respect to such new non-LTCP or home infusion facility. If an acquired non-LTCP or home infusion pharmacy is not added as a Facility to the Agreement, Customer shall contract for pharmaceutical products and services in any manner it
deems desirable without duty or obligation to ABDC. 
 15. Paragraph 10A (COMPLIANCE CERTIFICATION) of the Agreement is amended and restated in
its entirety as follows: 
  

	 	A.	No later than thirty (30) days after the end of each calendar year during the Term, Customer shall provide ABDC with a written certification, executed by a duly
authorized officer of PMC, attesting to Customer’s compliance during the preceding year or partial year with (i) the Primary Vendor requirements as provided in Section 1(B) of the Agreement, and (ii) the sourcing requirement with
respect to the PRxO Generics Purchase program as provided in Section 2(B). A form of Customer’s Compliance certificate is attached as Exhibit 6. 

 16. Exhibit 6 of the Agreement is amended and restated in its entirety as set forth on Exhibit 6 attached to this Amendment. 
 17. Exhibit 7 of the Agreement is amended and restated in its entirety as set forth on Exhibit 7 attached to this Amendment. 
 18. Paragraph 9.1(c) of Exhibit 3of the Agreement is hereby amended to add the following sentence to the end thereof: 
 “In the event of an early termination of the Agreement as a result of a Change-In-Control, the Assignee shall pay ABDC a termination fee of $*** at the time of termination.” 

This First Amendment to the Amended and Restated Prime Vendor Agreement for Long-Term Care Pharmacies constitutes the sole and complete
understanding of the parties with respect to its subject matter and supersedes all prior or contemporaneous communications between the parties concerning such subject matter. If there is any conflict between the terms of this First Amendment and the
Agreement, this First Amendment shall control. Following the Effective Date, the Agreement (as amended) remains in full force and effect. 
 IN WITNESS WHEREOF and intending to be legally bound hereby, the parties have executed this First Amendment to be effective as of the Effective Date above. 

  
 6 

									
	PharMerica Corporation	 		 	AmerisourceBergen Drug Corporation
					
	By:	 	 /s/ Robert McKay
	 		 	By:	 	 /s/ George Rafferty

	Name:	 	 Robert McKay
	 		 	Name:	 	 George Rafferty

	Title:	 	 Senior Vice President
	 		 	Title:	 	 Senior Vice President

  

			
	Chem Rx Pharmacy Services, LLC
		
	By:	 	 /s/ Michael Culotta

	Name:	 	 Michael Culotta

	Title:	 	 Treasurer

	
	Pharmacy Corporation of America
		
	By:	 	 /s/ Michael Culotta

	Name:	 	 Michael Culotta

	Title:	 	 Treasurer

	
	AGREED AND ACKNOWLEDGED
	(with respect to termination of the Amerita PVA):
	
	Amerita, Inc.
		
	By:	 	 /s/ Michael Culotta

	Name:	 	 Michael Culotta

	Title:	 	 Treasurer

  
 7 

 Exhibit 10.33 
 Exhibit 6 
 Form of Compliance Certificate 

[Date] 
 George Rafferty 

Senior Vice President, Community and Specialty Pharmacy 
 AmerisourceBergen Drug Corporation (“ABDC”) 
 1300 Morris Drive 

Chesterbrook, PA 19087 
 Dear Mr. Rafferty:

 In accordance with Section 1(B) and Section 2(B) of the Amended and Restated Prime Vendor Agreement for Long Term Care Pharmacies
(the “Agreement”) dated January 1, 2011, as amended as of January 1, 2013, between PharMerica Corporation and certain of its affiliates (“PharMerica”) and ABDC, I hereby attest that PharMerica has purchased from ABDC
(i) at least ***% of all Branded Rx and (ii) no less than the applicable percentage in the table below of its non-Injectable Generic Rx during the specified period that ended ***,
            , and that PharMerica complied with the provisions of Section 1 and Section 2 of said year. 

 

			
	 Minimum generic Rx purchases to be made
through the PRxO Generics Purchase Program

	 ***%
	  	*** through ***
	 ***%
	  	*** through ***
	 ***%
	  	*** through ***
	 ***%
	  	*** through ***

  

			
	Sincerely,
	
	PharMerica Corporation
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 [Date] 
 PharMerica Corporation 
 1901 Campus Place 
 Louisville, KY 40299 
 Dear
                    : 
 In accordance with
Paragraph 2(B) of Exhibit 1 of the Amended and Restated Prime Vendor Agreement for Long Term Care Pharmacies (the “Agreement”) dated January 1, 2011, as amended as of January 1, 2013, between PharMerica Corporation and certain of
its affiliates and AmerisourceBergen Drug Corporation (“ABDC”), I hereby attest that (i) ABDC *** to PharMerica its *** of PRxO Rebates and the Partnership Rebate and (ii) either complied with the PRxO Generics Competitive
Benchmark or *** the *** Rebate in accordance with the terms of the Agreement. 
  

			
	Sincerely,
	
	AmerisourceBergen Drug Corporation
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 9 

 EXHIBIT 7 TO 
 AMENDED AND RESTATED PRIME VENDOR AGREEMENT 
 PURCHASING ***
CALCULATIONS 
  

	A.	PRxO Generic Rx Purchasing Threshold. As measured on a *** basis no less than the applicable contract year percentage of Customer’s total generic purchases
as set forth in Paragraph 2(B) of the Agreement, based on *** per Section 2.A. of Exhibit 1, will be PRxO purchases, where the calculation of the *** shall be made according to the parameters so established at Table 1 of this Exhibit 7. With
respect to Injectable Products, ABDC agrees to ***. 

  

	B.	PRxO Generic Rx *** Calculation: Not later than *** days after the close of each ***, ABDC and Customer will each calculate the PRxO Generic Rx purchasing ***
and present to each other their findings in the following format. 

 *** calculation illustration (Figures are
based on ***): 
  

					
	 Total Generic Purchases
	  	$	***	  
		
	 Excluded Purchases from total generic purchases
	  			
	 Products that are ***
	  	$	***	  
	 ***
	  	$	***	  
	 Purchases of ***
	  	$	***	  
	 Purchases of ***
	  	$	***	  
		  	  
	  
	 
	 Adjusted Total Generic Purchases
	  	$	***	  
		
	 Total PRxO Purchases
	  	$	***	  
		
	 Included as PRxO purchases
	  			
	 *** Adjustment (est. ***% of ***)
	  	$	***	  
	 Any Product that is available in the PRxO Generics Purchase Program that *** and Customer *** as a PRxO
Product
	  	$	 	  
		  	$	            	  
		  	  
	  
	 
	 Adjusted Total PRxO (Inclusions) Purchases
	  	$	***	  
		
	 Adjusted Total PRxO Purchases
	  	$	***	  
		
	 PRxO Purchasing *** Rate
	  	 	***	% 
		  			

 For Illustration Purposes 

 TABLE 1 OF EXHIBIT 7 

TREATMENT OF GENERIC Rx PURCHASES 
  

															
	 Types of Purchases
	  	Is GCN
listed in
PRxO
Catalogue	  	Is
Purchased
Through
ABC	  	PMC
Receives
***%
Discount	  	PMC Pays
the
applicable
PRxO
Outsourcing
Fee per 2(C)
of Exhibit 1	  	PMC
Receives
PRxO
Rebates	  	Is Included in applicable %
of Total Generic 
Purchases
Calculation (Paragraph 2B):
Numeratori
and
Denominatorii
	 ***
	  	YES	  	YES	  	NO	  	YES	  	YES	  	Num
 Den
	  	YES
 YES

	 ***
	  	YES	  	YES	  	NO	  	YES	  	YES	  	Num
 Den
	  	NO
 NO

	 ***
	  	YES	  	YES	  	NO	  	YES	  	YES	  	Num
 Den
	  	NO
 NO

	 ***
	  	NO	  	YES	  	YES	  	NO	  	NO	  	Num
 Den
	  	NO
 NO

	 ***
	  	NO	  	YES	  	NO	  	NO	  	NO	  	Num
 Den
	  	NO
 NO

	 ***
	  	YES	  	YES	  	NO	  	YES	  	YES	  	Num
 Den
	  	YES
 YES

	 ***
	  	NO	  	YES	  	YES	  	NO	  	NO	  	Num
 Den
	  	NO
 NO

	 ***
	  	NO	  	YES	  	NO	  	NO	  	NO	  	Num
 Den
	  	NO

NO

 TABLE 1 OF EXHIBIT 7 

TREATMENT OF GENERIC Rx PURCHASES 
  

															
	 Types of Purchases
	  	Is GCN
listed in
PRxO
Catalogue	  	Is
Purchased
Through
ABC	  	PMC
Receives
***%
Discount	  	PMC Pays
the
applicable
PRxO
Outsourcing
Fee per 2(C)
of Exhibit 1	  	PMC
Receives
PRxO
Rebates	  	Is Included in applicable %
of Total Generic 
Purchases
Calculation (Paragraph 2B):
Numeratori
and
Denominatorii
	 ***
	  	YES	  	YES	  	NO	  	YES	  	YES	  	Num
 Den
	  	YES
 YES

	 ***
	  	N/A	  	NO	  	NO	  	NO	  	NO	  	Num
 Den
	  	NO
 NO

	 ***
	  	N/A	  	NO	  	NO	  	NO	  	NO	  	Num
 Den
	  	NO
 NO

	 ***
	  	YES	  	YES	  	YES	  	NO	  	NO	  	Num
 Den
	  	YES
 YES

	 ***
	  	YES	  	YES	  	YES	  	NO	  	NO	  	Num
 Den
	  	YES
 YES

	 ***
	  	N/A	  	NO	  	NO	  	NO	  	NO	  	Num
 Den
	  	NO
 YES

	 ***
	  	N/A	  	NO	  	NO	  	NO	  	NO	  	Num
 Den
	  	NO
 NO

 TABLE 1 OF EXHIBIT 7 

TREATMENT OF GENERIC Rx PURCHASES 
  

 

	i 	 The Numerator establishes the purchases that count as PRxO purchases. YES means the purchase counts as PRxO for the *** calculation. NO means
the purchase does not count as PRxO for the *** calculation. 

	ii 	 The Denominator establishes the purchases that count as Total Generic Purchases. YES means the purchase is included in the calculation of Total Generic
Purchases. NO means the purchases is excluded in the calculation of Total Generic Purchases. 

	ii 	 Bulk Products mean Products purchased by Customer *** Products such as: ***.EX-10.38

 Exhibit 10.38 
 PHARMERICA CORPORATION 
 SUMMARY OF 

2013 SHORT-TERM INCENTIVE PROGRAM – CEO 
 AND 
 2013 SHORT-TERM INCENTIVE PROGRAM 

2013 Short-Term Incentive Program – CEO 
 On March 4, 2013, the Board of Directors of PharMerica Corporation (the “Corporation”), upon recommendation of the Compensation Committee, adopted the 2013 Short-Term Incentive Program (the
“CEO STIP”) under the PharMerica Corporation 2007 Omnibus Incentive Plan, as amended (the “Omnibus Plan”), for the Corporation’s Chief Executive Officer, Mr. Gregory Weishar. The CEO STIP provides for a
performance-based annual cash award to Mr. Weishar. 
 Performance Cycle. The CEO STIP performance cycle is for the
current year, beginning on January 1, 2013 and ending on December 31, 2013. 
 Maximum Award. If the
Corporation’s Adjusted EBITDA (as defined below) is equal to or greater than a target Adjusted EBITDA for the 2013 fiscal year, then Mr. Weishar is eligible to receive a payment under the CEO STIP equal to the lesser of (i) 2% of
Adjusted EBITDA for the 2013 fiscal year; or (ii) $2 million (the “Maximum Award”). The Compensation Committee, in its sole discretion, may decrease the Maximum Award based on its assessment of the Corporation’s performance, the
Chief Executive Officer’s individual performance, or any other factors it considers relevant, however in no event may the Compensation Committee reduce the Maximum Award below the annual bonus amount for the Chief Executive Officer (the
“Bonus Amount”). 
 Bonus Amount. The target Bonus Amount for Mr. Weishar is 125% of 2013 Base Salary. 70%
of the target Bonus Amount is based on the Corporation’s performance and 30% of the target Bonus Amount is based on individual performance goals. The Corporation must at least meet threshold Adjusted EBITDA of 80.0% of the target Adjusted
EBITDA amount in order for any payment to be made under the individual performance-based component. 
 The Corporation’s
performance will be measured by comparing the Corporation’s adjusted annual earnings before interest, taxes, integration, merger and acquisition related costs and other related charges, depreciation and amortization expense, impairment charges
of intangibles, and other accounting principle changes (“Adjusted EBITDA”), to a target Adjusted EBITDA for the entire 2013 fiscal year. Individual performance will be measured by comparing certain individual performance metrics to the
target individual performance metrics determined by the Compensation Committee. 
 The actual Bonus Amount is based on the
percentage of the performance target achieved. Generally, the percentage of the Bonus Amount earned at the end of the performance cycle will be determined according to the following schedule; however the actual Bonus Amount will be interpolated
between the percentages set forth in the chart based on actual results: 
  

			
	 Performance Achievement
	  	 Payout Level

	< 80.0% of Performance Target	  	0.0% of Award Target
		
	80.0% of Performance Target	  	40.0% of Award Target
		
	90.0% of Performance Target	  	70.0% of Award Target
		
	96.0% of Performance Target	  	88.0% of Award Target

			
		
	100.0% of Performance Target	  	100.0% of Award Target
		
	105.0% of Performance Target	  	118.8% of Award Target
		
	110.0% of Performance Target	  	137.5% of Award Target
		
	115.0% of Performance Target	  	156.3% of Award Target
		
	120.0% of Performance Target	  	175.0% of Award Target
		
	> 120.0% of Performance Target	  	175.0% of Award Target

 2013 Short-Term Incentive Program – Other Named Executive Officers 

On March 4, 2013, the Board of Directors of the Corporation, upon recommendation of the Compensation Committee, adopted the 2013
Short-Term Incentive Program (the “STIP”) under the Omnibus Plan. The STIP provides for performance-based annual cash awards to the Corporation’s executive officers, and certain other officers and employees of the Corporation. The
STIP advances the Corporation’s commitment to performance-based compensation practices by providing participants an opportunity to earn annual cash bonuses upon achievement of certain pre-established short-term performance objectives.

 Eligibility. Officers and employees of the Corporation may receive STIP cash awards as determined by the Board of
Directors or the Compensation Committee. 
 Performance Cycle. The STIP performance cycle is for the current year,
beginning on January 1, 2013 and ending on December 31, 2013. 
 Award Targets. The amount of the awards under
the STIP are based on individual participant bonus targets. Individual participant bonus targets are established for each participant by the Compensation Committee, in the case of the senior executive officers reporting to the Chief Executive
Officer, and by the Chief Executive Officer, for other participants, based upon a determination of the appropriate bonus target amounts which will enable the Corporation to remain competitive, to retain and recruit top employees, and to align such
employee’s interests with certain strategic initiatives of the Corporation. Individual non-executive participant bonus targets range from 5% to 100% of base salary on December 31, 2013, with targets for the Corporation’s executive
officers between 25% and 125% of base salary. 
 The Compensation Committee established the bonus targets under the STIP for the
Corporation’s fiscal 2012 Named Executive Officers, other than the principal executive officer, as follows: 
  

					
	 Executive
	  	 Title
	  	 Bonus Target

	Michael J. Culotta	  	Executive Vice President & Chief Financial Officer	  	80% of base salary
			
	Robert McKay	  	Senior Vice President of Purchasing and Trade Relations	  	65% of base salary
			
	Thomas Caneris	  	Senior Vice President, General Counsel, Chief Compliance Officer and Secretary	  	70% of base salary

 Performance Criteria. The performance criteria under the STIP is divided into a company
performance-based component and individual/group performance-based component for different employees. The breakdown for the Named Executive Officers, other than the Chief Executive Officer, is as set forth in the chart below. The Corporation must at
least meet threshold Adjusted EBITDA of 80.0% of target in order for any payment to be made under the individual/group performance-based components of the STIP; provided, however, that employees below Vice President may receive payment under
the individual/group performance-based component of the STIP if the threshold Adjusted EBITDA is not met. 

  
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	 Executive
	  	 Title
	  	Company
Performance	 	 	Individual/Group
Performance	 
	Michael J. Culotta	  	Executive Vice President & Chief Financial Officer	  	 	70	% 	 	 	30	% 
				
	Robert McKay	  	Senior Vice President of Purchasing and Trade Relations	  	 	50	% 	 	 	50	% 
				
	Thomas Caneris	  	Senior Vice President, General Counsel, Chief Compliance Officer and Secretary	  	 	50	% 	 	 	50	% 

 Under the STIP, company performance will be measured by comparing the Corporation’s Adjusted EBITDA,
to a target Adjusted EBITDA for the entire 2013 fiscal year. Individual/group performance will be measured by comparing certain individual/group performance metrics to target individual/group performance metrics established by the Corporation’s
Compensation Committee in consultation with the Chief Executive Officer for the Named Executive Officers other than the Chief Executive Officer. 
 Award Payouts. Award payout levels are based on the percentage of the performance target achieved. Generally, the percentage of the award earned at the end of the performance cycle will be
determined according to the following schedule; however the actual award payout will be interpolated between the percentages set forth in the chart based on actual results: 

 

			
	 Performance Achievement
	  	 Payout Level

	< 80.0% of Performance Target	  	0.0% of Award Target
		
	80.0% of Performance Target	  	40.0% of Award Target
		
	90.0% of Performance Target	  	70.0% of Award Target
		
	96.0% of Performance Target	  	88.0% of Award Target
		
	100.0% of Performance Target	  	100.0% of Award Target
		
	105.0% of Performance Target	  	118.8% of Award Target
		
	110.0% of Performance Target	  	137.5% of Award Target
		
	115.0% of Performance Target	  	156.3% of Award Target
		
	120.0% of Performance Target	  	175.0% of Award Target
		
	> 120.0% of Performance Target	  	175.0% of Award Target

 Payment of Awards. Payment of STIP awards will be made in cash. Awards will be paid on a specific
date by which the Compensation Committee reasonably expects that the Corporation’s Adjusted EBITDA for the year on which the award was based will have been reported. The Corporation will make the payment of the STIP awards to participants as
soon as administratively practicable following the date of the award determination, but no later than March 15, 2014. 

Vesting and Forfeiture. STIP participants must remain continuously employed full-time by the Corporation until the award payment
date in order to be entitled to receive a payout of an STIP award. 
 Other Terms & Provisions. STIP
participants are not permitted to transfer STIP awards, except by will or the laws of descent and distribution. The Corporation is entitled to withhold from any payments of awards under the STIP any and all amounts required to be withheld for
federal, state and local withholding taxes. The Compensation Committee has the discretion to change terms and conditions of STIP awards as it deems necessary to ensure that the STIP awards satisfy all requirements for “performance-based
compensation” within the meaning of Section 162(m)(4)(c) of the Internal Revenue Code. 

  
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