Document:

ex_10-1.htm

    EXHIBIT
10.1 2009 NON-QUALIFIED ATTORNEYS PLAN

     

     

    2009
NON-QUALIFIED ATTORNEYS STOCK COMPENSATION PLAN

     

     

    1. Purpose of Plan

     

    This
2009 NON-QUALIFIED ATTORNEYS STOCK COMPENSATION PLAN (the “Attorneys Plan”) of
Noble Innovations, Inc. , a Nevada corporation (the “Company”) for attorneys
associated with the Company, is intended to advance the best interests of the
Company by providing those persons who have a substantial responsibility for its
public SEC disclosure filings under the Exchange Act, with additional incentive
and by increasing their proprietary interest in the success of the Company,
thereby encouraging them to maintain their relationships with the
Company.

     

    2. Definitions

     

    For
the Attorneys Plan purposes, except where the context might clearly indicate
otherwise, the following terms shall have the meanings set forth
below:

     

    “Board”
shall mean the Board of Directors of the Company.

     

    “Committee”
shall mean the Compensation Committee, or such other committee appointed by the
Board, which shall be designated by the Board to administer the Attorneys Plan,
or the Board if no committees have been established. The Committee shall be
composed of one or
more persons as from time to time are appointed to serve by the Board.
Each member of the Committee, while serving as such, shall be a disinterested
person with the meaning of Rule 16b-3 promulgated under the Securities Exchange
Act of 1934.

     

    “Common
Shares” shall mean the Company’s Common Shares, $0.001 par value per share, or,
in the event that the outstanding Common Shares are hereafter changed into or
exchanged for different shares of securities of the Company, such other shares
or securities.

     

    “Common
Stock” shall mean shares of common stock which are issued by the Company
pursuant to Section 5, below.

     

    “Common
Stock Agreement” means an agreement executed by a Common Stockholder and the
Company, or alternatively a board resolution setting forth the terms of
issuance, as contemplated by Section 5, below, which imposes on the shares of
Common Stock held by the Common Stockholder such restrictions as the Board or
Committee deem appropriate.

      

    “Common
Stockholder” means any attorney for the Company or other person to whom shares
of Common Stock are issued pursuant to this Attorneys Plan.

     

    “Company”
shall mean Noble Innovations, Inc. , a Nevada corporation, and any subsidiary
corporation of Noble Innovations, Inc. , as such terms are defined in Nevada
Revised Statutes §78.431.

     

    “Fair
Market Value” shall mean, with respect to the date a given stock compensation is
granted, the average of the highest and lowest reported sales prices of the
Common Shares, as reported by such responsible reporting service as the
Committee may select, or if there were not transactions in the Common Shares on
such day, then the last preceding day on which transactions took place. The
above withstanding, the Committee may determine the Fair Market Value in such
other manner as it may deem more equitable for Attorneys Plan purposes or as is
required by applicable laws or regulations. The Fair Market Value for purposes
of the issuance of common stock under this plan has been established to be $0.31
per share on June 29, 2009.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    3. Administration of the Attorneys
Plan

     

    3.1          The
Committee shall administer the Attorneys Plan and accordingly, it shall have
full power to grant Common Stock, construe and interpret the Attorneys Plan,
establish rules and regulations and perform all other acts, including the
delegation of administrative responsibilities, it believes reasonable and
proper.

     

    3.2          The
determination of those eligible to receive Common Stock, and the amount, type
and timing of each issuance and the terms and conditions of the Common Stock
Agreements shall rest in the sole discretion of the Committee, subject to the
provisions of the Attorneys Plan.

     

    3.3         The
Board, or the Committee, may correct any defect, supply any omission or
reconcile any inconsistency in the Attorneys Plan in the manner and to the
extent it shall deem necessary to carry it into effect.

     

    3.4          Any
decision made, or action taken, by the Committee or the Board arising out of or
in connection with the interpretation and administration of the Attorneys Plan
shall be final and conclusive.

     

    3.5          Meetings
of the Committee shall be held at such times and places as shall be determined
by the Committee. A majority of the members of the Committee shall constitute a
quorum for the transaction of business, and the vote of a majority of those
members present at any meeting shall decide any question brought before that
meeting. In addition, the Committee may take any action otherwise proper
under the Attorneys Plan by the affirmative vote, taken without a meeting, of a
majority of its members.

     

    3.6          No
member of the Committee shall be liable for any act or omission of any other
member of the Committee or for any act or omission on his own part, including,
but not limited to, the exercise of any power or discretion given to him under
the Attorneys Plan, except those resulting from his own gross negligence or
willful misconduct.

     

    4. Shares Subject to the Attorneys
Plan

     

    The
total number of shares of the Company available for issuance of Common Stock
under the Attorneys Plan shall be 240,270Common Shares, subject to adjustment in
accordance with Article 7 of the Attorneys Plan, which shares may be either
authorized but unissued or reacquired Common Shares of the Company.

     

    5. Award of Common Stock

     

    5.1          The
Board or Committee from time to time, in its absolute discretion, may award
Common Stock to attorneys for the Company, and such other persons as the Board
or Committee may select.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    5.2          Common
Stock shall be issued only pursuant to a Common Stock, Board Resolution, or
Consulting Agreement, which shall be executed by the Common Stockholder, unless
by Board Resolution, and the Company and which shall contain such terms and
conditions as the Board or Committee shall determine consistent with this
Attorneys Plan, including such restrictions on transfer as are imposed by the
Common Stock or Consulting Agreement.

     

    5.3          Upon
delivery of the shares of Common Stock to the Common Stockholder, below, the
Common Stockholder shall have, unless otherwise provided by the Board or
Committee, all the rights of a stockholder with respect to said shares, subject
to the restrictions in the Common Stock or Consulting Agreement, including the
right to receive all dividends and other distributions paid or made with respect
to the Common Stock.

     

    5.4          All
shares of Common Stock issued under this Attorneys Plan (including any shares of
Common Stock and other securities issued with respect to the shares of Common
Stock as a result of stock dividends, stock splits or similar changes in the
capital structure of the Company) shall be subject to such restrictions as the
Board or Committee shall provide, which restrictions may include, without
limitation, restrictions concerning voting rights, transferability of the Common
Stock and restrictions based on duration of employment with the Company, Company
performance and individual performance; provided that the Board or
Committee may, on such terms and conditions as it may determine to be
appropriate, remove any or all of such restric­tions. Common Stock may not
be sold or encumbered until all applicable restrictions have terminated or
expire. The restrictions, if any, imposed by the Board or Committee or the Board
under this Section 5 need not be identical for all Common Stock and
the imposition of any restrictions with respect to any Common Stock shall
not require the imposition of the same or any other restrictions with respect to
any other Common Stock.

     

    6. Adjustments or Changes in
Capitalization

     

    6.1          In
the event that the outstanding Common Shares of the Company are hereafter
changed into or exchanged for a different number or kind of shares or other
securities of the Company by reason of merger, consolidation, other
reorganization, recapitalization, reclassification, combination of shares, stock
split-up or stock dividend, within 6 months from the date hereof, and
assuming the shares issued pursuant to this plan are still owned or fully
controlled by the issuee under this plan, then in that event there shall be a
like adjustment in the number of shares held by such issuee.

     

    6.2          The
foregoing adjustments and the manner of application of the foregoing provisions
shall be determined solely by the Committee, whose determination as to what
adjustments shall be made and the extent thereof, shall be final, binding and
conclusive. No fractional Shares shall be issued under the Attorneys Plan on
account of any such adjustments.

     

    7. Government and Other
Regulations

     

    The
obligation of the Company to issue, transfer and deliver Common Shares under the
Attorneys Plan shall be subject to all applicable laws, regulations, rules,
orders and approval which shall then be in effect and required by the relevant
stock exchanges on which the Common Shares are traded and by government entities
as set forth below or as the Committee in its sole discretion shall deem
necessary or advisable.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    8. Miscellaneous
Provisions

     

    8.1          Any
expenses of administering this Attorneys Plan shall be borne by the Company,
except the recipients of the common shares shall be responsible for the costs of
preparation of this registration statement and the filing thereof.

     

    8.2          The
place of administration of the Attorneys Plan shall be in the State of Nevada,
or such other place as determined from time to time by the Board, and the
validity, construction, interpretation, administration and effect of the
Attorneys Plan and of its rules and regulations, and rights relating to the
Attorneys Plan, shall be determined solely in accordance with the laws of the
State of Nevada.

     

    8.3          In
addition to such other rights of indemnification as they may have as members of
the Board or the Committee, the members of the Committee shall be indemnified by
the Company against all costs and expenses reasonably incurred by them in
connection with any action, suit or proceeding to which they or any of them may
be party by reason of any action taken or failure to act under or in connection
with the Attorneys

    

    Plan
against all amounts paid by them in settlement thereof (provided such settlement
is approved by independent legal counsel selected by the Company) or paid by
them in satisfaction of a judgment in any such action, suit or proceeding,
except a judgment based upon a finding of bad faith; provided that upon the
institution of any such action, suit or proceeding a Committee member shall, in
writing, give the Company notice thereof and an opportunity, at its own expense,
to handle and defend the same, with counsel acceptable to the recipient, before
such Committee member undertakes to handle and defend it on his own
behalf.

     

    9. Written Agreement

     

    The
Common Shares issued hereunder shall be embodied in a board resolution which
shall constitute a written Stock Compensation Agreement which shall be subject
to the terms and conditions prescribed above and shall be signed by the
recipient and by the President or any Vice President of the Company, for and in
the name and on behalf of the Company.

     

     

    
      
         

      

      
        4Exhibit 10.1

 

COMMERCIAL
OUTSOURCING SERVICES AGREEMENT

 

This Commercial Outsourcing Services Agreement (“Agreement”)
is entered into as of October     , 2008 (the “Effective
Date”) by INTEGRATED COMMERCIALIZATION SOLUTIONS, INC.,
a California corporation (“ICS”) and AMAG PHARMACEUTICALS, INC.,
a Delaware corporation (the “Company”).

 

RECITALS

 

A.            Company is, among other things, in the
business of manufacturing, selling and distributing pharmaceutical products,
including those listed on Schedule A (“Products”);

 

B.            ICS is, among other things, in the business of
providing commercialization services for pharmaceutical products;

 

C.            The Company desires to engage ICS as its
agent to provide certain commercialization services related to Products
pursuant to this Agreement; and

 

D.            ICS desires to provide such commercialization
services to the Company as its agent pursuant to this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, the parties
hereby agree as follows:

 

1.             Appointment
As Exclusive Agent

 

The Company hereby appoints
ICS as the exclusive provider of Services (as defined in Section 2) for
Products sold to the Company’s customers (“Customers”) in the United States,
Guam, Puerto Rico and the U.S. Territories during the Term (as defined in Section 4.1),
as provided in this Agreement.

 

2.             Services
To Be Performed

 

The
Company hereby engages ICS to provide the following services with respect to
Products (“Services”):

 

2.1           Customer Services as
described in Exhibit B.

 

2.2           Warehousing and Inventory
Program Services as described in Exhibit C.

 

2.3           Distribution Services as
described in Exhibit D.

 

2.4           Contract Administration and
Chargeback Processing as described in Exhibit E.

 

2.5           Accounts Receivable
Management and Cash Applications as described in Exhibit F.

 

2.6           Financial Management
Services as described in Exhibit G.

 

2.7           Information Technology
Services as described in Exhibit H.

 

2.8           Government Contracting and
Reporting Services as described in Exhibit I.

 

2.9           Solely for the limited
purpose of compliance with the pedigree requirements of the Prescription Drug
Marketing Act and any similar state laws, ICS shall be considered an 

 

1

 

“Authorized Distributor of Record” for the
Products and a third party logistics provider who does not take title to
Product or have general responsibility to direct the Product’s sale or
disposition.  The foregoing shall not be
construed in a manner that results in ICS being considered a distributor or
wholesaler for any other purpose or under any other law or regulation.

 

2.10         ICS will not be responsible
for collection or payment of any Taxes on behalf of the Company.

 

2.11         Capitalized words used
without definition in this Agreement will each have the meaning in Schedule C.

 

3.             Compensation
- Fees For Services

 

3.1           Compensation.  The Company will compensate ICS for Services
in accordance with Schedule B. 
ICS will provide monthly invoices for fees for Services to the Company,
and will bill the Company for any pass through charges that have been previously
approved (except freight) by the Company on a monthly basis or as ICS is
billed.  The Company will notify ICS of
any disputed charges in writing within 30 days of the date of the invoice
covering such charges.  In the absence of
any such notice of dispute, all invoices will be deemed to be correct and due
in full within 30 days of the invoice date. 
If the Company disputes a portion of an invoice, the Company shall pay
the undisputed portion of the invoice within 30 days of the invoice date.  A late fee of 1.5% per month (or any portion
thereof) will be charged as of the due date on all amounts not paid within
thirty (30) days of the invoice date, except any amount disputed by the Company
in good faith.  If any dispute is
resolved in favor of ICS, the Company will pay the applicable late fee on such
amount from the original due date.

 

3.2           Cost Adjustment.  If ICS can reasonably demonstrate to the
Company that the costs to ICS for providing Services have materially increased
(or are reasonably likely to increase materially during the following twelve
(12) month period of the Term) as a result of any changes in the Requirements
of Law, including the adoption of any new Requirements of Law impacting
Services, then ICS may increase the applicable component of the fees for such
Services provided in Schedule B (“Cost Adjustment”).  ICS will notify the Company of any proposed
Cost Adjustment at least one hundred fifty (150) days prior to its effective
date.  All Cost Adjustments will be
determined under generally accepted accounting principles (GAAP) and cost
allocation methods applied on a consistent basis.  If the Company objects to any Cost Adjustment
and the parties are unable in good faith to resolve such objection to the
reasonable satisfaction of both parties, then either party may terminate this
Agreement upon ninety (90) days’ prior written notice to the other party.

 

3.3           Program Ready Date. If the
Company requests that ICS delay the launch of Services beyond the agreed-upon
date on the signatory page (the “Program Launch Date”), the Company will
pay ICS a program ready fee and any associated expenses as specified in
Schedule B, including reasonable out-of-pocket costs and other expenses.  The Company will give ICS at least [***]  written notice
of changes to the Program Launch Date. 
Program ready fees will continue until the Program Launch Date.  After the Program Launch Date, the Company
will pay applicable monthly program fees. 
For the first month during which Services are provided, ICS will prorate
any difference between program ready fees and applicable monthly program fees.

 

[***] INDICATES MATERIAL THAT HAS BEEN
OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH
OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

 

2

 

4.             Term
And Termination

 

4.1           Initial Term.  This Agreement will be effective as of the
Effective Date and will continue for [***] years (the “Term”) unless sooner
terminated.  The Term may be extended
upon written mutual agreement of the parties, such extension to be negotiated
in good faith six (6) months prior to the expiration of the Term.

 

4.2           Termination For Breach.

 

4.2.1        If a party fails to pay any
amount due to the other party under this Agreement, the other party may provide
notice to the non-paying party specifying the amount due and notifying the
non-paying party that the other party may terminate this Agreement if the
non-paying party fails to pay the amount due within five days of the date the
notice is received.  If the non-paying
party fails to pay the amount due within five days of the date the notice is received,
the other party may terminate this Agreement immediately and, in such event,
shall provide written notice thereof to the non-paying party; provided
that if such breach occurs more than three times during any 12-month period,
the non-breaching party may terminate this Agreement upon five days’ written
notice without any opportunity for cure.

 

4.2.2        If a party fails to perform
any other material obligation under this Agreement, the other party may provide
notice to the breaching party describing the breach in detail and notifying the
breaching party that the other party may terminate this Agreement if the
breaching party’s failure to perform is not cured within 30 days of the date of
the notice.  If the breaching party’s
failure to perform is not cured within 30 days of the date of the notice, then
the other party may terminate this Agreement immediately and, in such event,
shall provide written notice thereof to the non-paying party; provided
that (i) if the breaching party has begun to cure a non-monetary breach
within such 30 days, but such cure is not completed to the non-breaching party’s
reasonable satisfaction within such 30 days, the breaching party will have up
to an additional 30 days to complete such cure (it being understood that if
such cure is not completed to the non-breaching party’s reasonable satisfaction
within such supplemental 30-day period, then the non-breaching party may
terminate this Agreement immediately upon written notice to the breaching
party), and (ii) if such breach occurs more than three times during any
12-month period, the non-breaching party may terminate this Agreement upon 30
days’ written notice without any opportunity for cure.

 

4.3           Termination For Specific
Events.  Either party may immediately
terminate this Agreement upon written notice to the other party upon the other
party’s: (a) filing an application for or consenting to appointment of a
trustee, receiver or custodian of its assets; (b) having an order for
relief entered in Bankruptcy Code proceedings; (c) making a general
assignment for the benefit of creditors; (d) having a trustee, receiver,
or custodian of its assets appointed unless proceedings and the person
appointed are dismissed within 30 days; (e) insolvency within the meaning
of Uniform Commercial Code Section 1-201 or failing generally to pay its
debts as they become due within the meaning of Bankruptcy Code Section 303(h)(1),
as amended; or, (f) certification in writing of its inability to pay its
debts as they become due (and either party may periodically require the other
to certify its ability to pay its debts as they become due) (each, a “Bankruptcy
Event”).  Each party agrees to provide
immediate notice to the other party upon a Bankruptcy Event.

 

[***] INDICATES MATERIAL THAT HAS BEEN
OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH
OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

 

3

 

4.4           [***]

 

4.5           [***]

 

4.6           Expenses. Within five
days of expiration or earlier termination of this Agreement for any reason, the
Company will (a) pay ICS any amount owed up to the effective date of
termination; (b) return to ICS all hardware, software and other equipment
provided to Company by ICS, or pay to ICS the replacement cost of items not
returned; and (c) pay non-recoverable out-of-pocket expenses for
telecommunication, facsimile, postage, shipping and other services incurred by
ICS up to the effective date of termination.

 

4.7           Survival.  Accrued payment, indemnity, intellectual
property and confidentiality obligations, and any provision if its context
shows that the parties intended it to survive, will survive expiration or
termination of this Agreement and, except as expressly provided, expiration or
termination will not affect any obligations arising prior to the expiration or
termination date.

 

5.             Recalls;
Other FDA Issues

 

5.1           Recalls.  If the
Company conducts a recall, market withdrawal or field correction of any
Products (“Recall”), the Company will conduct the Recall or designate a third
party to do so and be responsible for all Recall expenses.  ICS will comply with the Company’s reasonable
requests in the Recall.  To the extent
that the Recall was not due to ICS’s negligence, the Company will pay or
reimburse ICS’s Recall expenses (including reasonable attorneys’ fees).  To that extent that  the Recall was due to ICS’s negligence, ICS
will pay or reimburse the Company’s reasonable documented out-of-pocket Recall
expenses (including reasonable attorneys’ fees).  Each party will use its best efforts to
minimize Recall expenses.  The Company
will notify ICS of any proposed Recall as soon as possible and, in any event,
will do so within forty-eight (48) hours of initiating a Recall.

 

5.2           Government Notices.  Each party will provide the other with a copy
of any correspondence or notices it receives from the FDA, DEA or any
counterpart state agency specifically relating to Services or relating to a
material violation of any kind that is related to the Product, whether such
violation resulted from an act or omission by the Company or by ICS, as soon as
possible but no later than three (3) business days following such
receipt.  In addition, ICS will provide
the Company with any notice relating to Products promptly upon its
receipt.  Each party will also provide
the other with concurrent copies of any responses to any such correspondence or
notices (e.g., such as an FDA 483 notice, warning
letters, untitled regulatory letters and establishment inspection
reports).  Where reasonably possible, ICS
will give prior notice to the Company of any scheduled FDA or DEA inspections
of ICS’s facilities specifically relating to any Products, and, if reasonably
possible, will afford the Company the opportunity to be present at such
inspection and to review and contribute to any written response, to the extent
permitted by law.

 

6.             Legal
Compliance

 

6.1           General.  During the Term, each party will comply with
all Requirements of Law.  ICS will comply
with Requirements of Law related to storage, handling and distribution of 

 

[***] INDICATES MATERIAL THAT HAS BEEN
OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH
OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

 

4

 

Products. 
The Company will comply with Requirements of Law related to importation,
manufacture, distribution, labeling, storage, sale and handling of Products.

 

6.2           Food and Drug Act.  The Company hereby represents and warrants to
ICS that, during the Term (a) no Products delivered by or on behalf of the
Company to or on the order of ICS will be, at the time of shipment or delivery,
adulterated, misbranded or otherwise prohibited within the meaning of the Act
or within the meaning of any applicable state or local law, (b) Products
will be, at the time of shipment and delivery to ICS, merchandise that may be
introduced and delivered into interstate commerce under the provisions of
Sections 404 or 405 of the Act, (c) all Products will be the subject of a
duly approved NDA or ANDA and may be legally transported or sold under
Requirements of Law, (d) the Company owns or holds the duly approved NDA
or ANDA for the Products, or is otherwise considered the “manufacturer” of all
Products under the Act and within the meaning of any other applicable federal,
state or local law, and (e) all Products will have been approved by each
applicable Governmental Authority for commercial sale and shipment within the
United States.

 

7.             Representations
And Warranties

 

7.1           By the Company.  The Company represents and warrants to ICS
that: (a) it has authority to enter into and perform this Agreement
without restriction and this Agreement is a valid and binding obligation of the
Company, (b) execution, delivery and performance of this Agreement by the
Company has been duly authorized by all necessary corporate actions, (c) the
Company will obtain and will maintain, in full force and effect, all licenses
and permits required under applicable law for the Company to sell and
distribute Products under this Agreement prior to the initiation of such sale
and distribution, (d) as of the Effective Date, there is no proceeding or
investigation pending or threatened that questions validity of this Agreement,
marketing authorizations related to Products or actions pursuant to this
Agreement, and (e) as of the date that the first Product is distributed by
ICS to a customer under this Agreement, no approvals, consents, orders or
authorizations of or designation, registration, declaration or filing with any
Governmental authority (within the United State) are required for Company’s performance
of its obligations under this Agreement, other than any approval already
obtained.

 

7.2           By ICS.  ICS
represents and warrants to the Company that: (a) it has authority to enter
into and perform this Agreement without restriction and this Agreement is a
valid and binding obligation of ICS, (b) execution, delivery and
performance of this Agreement by ICS has been duly authorized by all necessary
corporate actions, (c) ICS has and will maintain in full force and effect,
all licenses and permits required under applicable law for ICS to perform the
Services under this Agreement, (d) as of the Effective Date, there is no
proceeding or investigation pending or threatened that questions validity of
this Agreement, ICS’s licenses to warehouse and distribute pharmaceuticals, or
any actions pursuant to this Agreement, and (e) as of the date that the
first Product is distributed by ICS to a customer under this Agreement, no
approval of or filing with any Governmental Authority (within the United
States) is required for ICS to perform Services, other than any approvals
already obtained.

 

7.3           Notice of Changes. 
The Company and ICS will give prompt written notice to the other if it
becomes aware during the Term of any action or development that would cause any
warranty in this Section 7 to become untrue.

 

5

 

8.             Trademarks/Data

 

Neither party may use the
other party’s name, trademarks, service marks, logos, other similar marks,
other intellectual property, or other data or information in any manner without
its prior written approval, except to satisfy its obligations under this
Agreement.  Data and information that
belong to the Company will be any data and information related to Products
(including sales information), except ICS Data. 
“ICS Data” means data and information that (i) relates to ICS’s
processes, reports and services provided to the Company under this Agreement or
to its business relationships and transactions with other suppliers, but is not
specific to Products or the Company, and (ii) was independently developed
by ICS or its Affiliates without use of Company’s Confidential
Information.  ICS Data, including
information and data relating to any of ICS’s customers and their profiles, and
any derivative works or aggregations of ICS Data belongs to ICS.

 

9.             Confidentiality

 

9.1           Existing Agreement.  The parties have previously executed a
written Confidentiality Agreement (“Confidentiality Agreement”), attached as Schedule
D.  The parties will abide by its
provisions during the Term and for at least five (5) years thereafter,
regardless of any shorter term in the Confidentiality Agreement.

 

9.2           Termination.  Upon expiration or termination of this
Agreement for any reason each party will promptly return to the other party all
documents and other material containing Confidential Information (as defined in
the Confidentiality Agreement), including copies, other than those which a
party is reasonably required to maintain for legal, tax or valid business
purposes, or if authorized in writing by Company, certify to the other party
that it has destroyed all such documentation and other materials.

 

10.           Remedies

 

10.1         Generally.  Rights and remedies under this Agreement are
cumulative and in addition to any other available rights or remedies under any
agreement, at law or in equity.

 

10.2         Equitable Relief.  If either party violates or threatens to
violate Recall, Legal Compliance, Trademark/Data infringement, Confidentiality
or other provisions of this Agreement, the other party may suffer irreparable
harm and its remedies at law may be inadequate. 
Accordingly, the other party may seek equitable relief.

 

10.3         Breach by the Company.  Either company acknowledges the difficulty
(if not the impossibility) of ascertaining the amount of damages that would be
suffered by either on account of the loss of monthly fees or revenues that it
would have earned during the remaining months of the Term (the “Lost Profits”),
if either party terminates this Agreement following a breach by either company.  Accordingly, either company agrees that if
either party terminates this Agreement during the Term following a breach by
either company, then, as liquidated damages and not as a penalty, the measure
of damages payable to either company for the Lost Profits shall be equal to [***]
of the aggregate amount of all fees or revenues and other sums that, in absence
of such breach, would have been paid by the Company to ICS under this Agreement
for the remaining months of the Term[***] with such fees and other sums to be
based on the average monthly amount paid or owed by the Company to ICS during
the six months preceding such breach (or such shorter time as the Agreement has
been in effect) or

 

[***] INDICATES MATERIAL THAT HAS
BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH
OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

 

6

 

for company the average monthly amount of
revenues booked into sales.  The
liquidated damages are intended to compensate either company for Lost Profits
only.  Either company does not waive and
expressly reserves its rights with respect to all other claims or amounts due
under this Agreement and the Continuing Guaranty (as defined in Section 13
below).  Accordingly, the Lost Profits
shall not constitute damages or compensation for any other breach of this
Agreement or any other obligation of either company, including but not limited
to any claim for indemnification under Section 11 of this Agreement or the
Continuing Guaranty.

 

10.4        LIMITATIONS.  EXCEPT FOR EACH PARTY’S OBLIGATIONS OF
CONFIDENTIALITY UNDER SECTION 9, INDEMNIFICATION UNDER SECTIONS 11.1 AND
11.2, AND INTELLECTUAL PROPERTY UNDER SECTION 12:

 

(A)          SUBJECT
TO SECTION 10.3 ABOVE, NO PARTY WILL BE LIABLE TO ANY OTHER PARTY FOR ANY
CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL OR OTHER SIMILAR DAMAGES ARISING
OUT OF OR IN CONNECTION WITH A BREACH OF THIS AGREEMENT, PROVIDED THAT ANY LOSS
DUE TO DAMAGE OR LOSS OF PRODUCTS WILL BE BASED UPON THE COMPANY’S COST OF
MANUFACTURING OR ACQUIRING PRODUCTS, NOT ITS SELLING COST;

 

(B)          Subject
to Section 10.4(A) above, the Company shall bear all risk of
loss or damage with respect to the Product warehoused by ICS except to the
extent loss or damage results from the [***].  As used in this Section 10.4(B), the “net
amount earned by ICS” shall be calculated in the same manner as lost profits
are calculated under Section 10.3.  This Section 10.4(B) shall  not apply to any claim subject to
indemnification under Section 11 that is brought by a third party.

 

(C)          [***]

 

11.           Indemnification

 

11.1         By the Company.  The Company will defend, indemnify and hold
harmless ICS and its Related Parties from and against all claims, liabilities,
losses, damages, costs and expenses, including reasonable attorneys’ fees
(collectively, “Claims”) brought by third parties or the Company’s employees
caused by or arising from any (a) act or omission of the Company or its
Related Parties, (b) failure of the Company to perform its obligations or
to comply with Requirements of Law, (c) breach of any warranty made by the
Company in this Agreement (d) claims of patent, trademark, copyright or
other infringement related to Products, (e) storage, handling, use,
non-use, demonstration, consumption, ingestion, digestion, manufacture,
production and assembly of Products and their transportation to ICS, or (f) Taxes
imposed against ICS or its Related Parties; provided, however, the
Company will have no obligations under this Section 11.1 for any Claims to
the extent caused by any negligent act or omission of ICS or its Related
Parties.

 

11.2         By ICS.  ICS will defend, indemnify and hold harmless
the Company and its Related Parties from and against all Claims brought by
third parties or ICS’s employees against 

 

[***]
INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

7

 

the Company or its Related Parties caused by
or arising from any (a) negligent act or omission of ICS or its Related
Parties, (b) failure of ICS to perform its obligations or to comply with
Requirements of Law, (c) breach of any warranty made by ICS in this
Agreement, or (d) making by ICS of representations or warranties with
respect to Products to the extent not authorized by the Company; provided,
however, that ICS will have no obligations under this Section 11.2 for any
Claims to the extent caused by any negligent act or omission of the Company or
its Related Parties.

 

11.3         Procedures.  The
obligations and liabilities of the parties with respect to Claims subject to
indemnification under this Section 11, (“Indemnified Claims”), will be
subject to the following terms and conditions:

 

11.3.1      The party claiming a right
to indemnification hereunder (“Indemnified Person”) will give prompt written
notice to the indemnifying party (“Indemnifying Person”) of any Indemnified
Claim, stating its nature, basis and amount, to the extent known.  Each such notice will be accompanied by
copies of all relevant documentation, including any summons, complaint or other
pleading that may have been served or any written demand or other document.

 

11.3.2      With respect to any Indemnified Claim: (a) the
Indemnifying Person will defend or settle the Indemnified Claim, subject to
provisions of this subsection, (b) the Indemnified Person will, at the
Indemnifying Person’s sole cost and expense, cooperate in the defense by
providing access to witnesses and evidence available to it, (c) the Indemnified
Person will have the right to participate in any defense at its own cost and
expense to the extent that, in its judgment, the Indemnified Person may
otherwise be prejudiced thereby, (d) the Indemnified Person will not
settle, offer to settle or admit liability in any Indemnified Claim without the
written consent of an officer of the Indemnifying Person, and (e) the
Indemnifying Person will not settle, offer to settle or admit liability as to
any Indemnified Claim in which it controls the defense if such settlement,
offer or admission contains any admission of fault or guilt on the part of the
Indemnified Person, or would impose any liability or other restriction or
encumbrance on the Indemnified Person, without the written consent of an
officer of the Indemnified Person.

 

11.3.3      Each party will cooperate
with, and comply with all reasonable requests of, each other party and act in a
reasonable and good faith manner to minimize the scope of any Indemnified
Claim.

 

12.           Intellectual
Property

 

All concepts, inventions,
ideas, patent rights, data, trademarks, and copyrights that are developed by
ICS in its performance of this Agreement and are related to Products will
remain exclusive property of the Company, except those that are related solely
to ICS Data (as defined in Section 8 above).  Any concepts, inventions, ideas, patent
rights, data, trademarks, and copyrights that are developed by ICS (including
its Affiliates) and that relate solely to ICS Data or ICS’s generally
applicable methods for providing reports, processes and services will remain
the exclusive property of ICS.

 

13.           Insurance

 

13.1         By the Company.  During the Term, the Company will maintain: (a) casualty
and theft or loss insurance in amounts sufficient to protect all Products and
other materials consigned to ICS, and (b) products liability and
commercial general liability insurance having a limit of not less than five
million dollars ($5,000,000.00) per occurrence, Combined Single Limit (Bodily
Injury and Property Damage), pursuant to one or more insurance policies with
reputable 

 

8

 

insurance carriers having a Best’s Rating of
A VII or otherwise as reasonably approved by ICS.  The Company will designate ICS and its
Related Parties as “additional insureds” under each such insurance policy.  The Company will obtain a broad form vendor’s
endorsement for products liability for ICS and its Related Parties.  Within thirty (30) days after the Effective
Date, the Company will provide to ICS a certificate of insurance indicating
that such obligations have been satisfied. 
As a condition precedent to the effectiveness of this Agreement, the
Company will execute the Continuing Guaranty and Indemnification Agreement
attached as Exhibit A (the “Continuing Guaranty”)

 

13.2         By ICS.  During the Term, ICS will maintain the
following insurance:

 

13.2.1      Workers’ Compensation.  Workers’ compensation statutory coverage as
required by law in states where Services are performed;

 

13.2.2      Employer’s Liability.  Employer’s liability insurance with a limit
of $500,000 for bodily injury by accident per person, $500,000 for bodily
injury by accident, all persons and $500,000 bodily injury by disease policy
limit;

 

13.2.3      General Liability.  Commercial general liability insurance,
including personal injury blanket contractual liability and broad form property
damage, with a $1,000,000 combined single limit;

 

13.2.4      Umbrella Liability.  Umbrella liability insurance in the amount of
$5,000,000 per occurrence and aggregate;

 

13.2.5      Property Insurance.  Property insurance covering the business
property of ICS and others while at any unnamed location in the amount of
$1,000,000; and

 

13.2.6  Other. 
ICS will not be obligated to insure Products against any loss or damage
to Products arising from the shipment or storage of Products at the ICS
Facility.

 

13.2.7      The insurance required by Section 13
may be made up through a combination of a commercially reasonable self-insured
retention program and traditional insurance.

 

13.3         Notice and Proof of
Insurance.  Throughout
the Term, ICS will (a) provide prompt written notice to the Company in the
event ICS becomes aware or is notified that the insurance described in Section 13.2
will be materially adversely modified or cancelled and (b) provide the
Company with proof of such insurance.

 

14.           Notices

 

Notices will be in writing
and will be delivered personally (which will include delivery by courier or
reputable overnight delivery service) or sent by certified mail, postage and
fee prepaid, return receipt requested, to the address on the signature
page.  Items delivered personally will be
deemed delivered on the date of actual delivery.  Items sent by certified mail will be deemed
delivered on the date the return receipt is signed.  A party may change its contact information by
a written notice delivered in accordance with this Section 14.

 

15.           Governing
Law

 

This
Agreement and the rights and obligations of the parties under this Agreement
will be construed and interpreted under the internal laws of the State of
Delaware, excluding its conflict and choice of law principles.  The successful party in any legal action
arising out of this 

 

9

 

Agreement,
including enforcing its rights in a bankruptcy proceeding, may recover all
costs, including reasonable attorneys’ fees.

 

16.           Severability

 

If any court determines a
provision of this Agreement is invalid, such holding will not affect the
validity of other provisions and they will remain in effect.

 

17.           Complete
Agreement; Amendments; Counterparts; Waivers; Signatures.

 

This Agreement and its
schedules and exhibits, including the Confidentiality Agreement and Continuing
Guaranty, contain the entire agreement between the parties and supersede any
prior oral and written representations by the parties that relate to the
subject matter of this Agreement.  This
Agreement may not be amended, supplemented or waived in any respect without
written agreement of both parties, signed by their respective authorized representatives.  This Agreement may be executed in one or more
counterparts, which will together constitute but one agreement and each of
which will be an original.  A party’s
failure to insist, in one or more instances, upon performance of any provision
of this Agreement will not be construed as a waiver of its right and the other
party’s obligations will continue in full force.  Either party’s consent to any act by the
other party on any occasion will not be deemed consent on any other
occasion.  Facsimile transmissions
bearing a party’s signature will for all purposes be deemed an original.  In the event of a conflict between the terms
and conditions of the body of this Agreement and those set forth in any
schedules or exhibits attached hereto or incorporated herein by reference, the
terms set forth in the body of this Agreement will take precedence and control,
except with respect to the Continuing Guaranty, which shall supersede any
conflicting terms herein.

 

18.           Force
Majeure

 

If
the performance of any part of this Agreement by any party will be affected for
any length of time by fire or other casualty, government restrictions, war,
terrorism, riots, strikes or labor disputes, lock out, transportation delays,
electronic disruptions, internet, telecommunication or electrical system
failures or interruptions, and acts of God, or any other cause which is beyond
control of a party (financial inability excepted), such party will not be
responsible for delay or failure of performance of this Agreement for such length
of time, provided, however, (a) the affected party will cooperate
with and comply with all reasonable requests of the non-affected party to
facilitate Services to the extent possible, and (b) the obligation of one
party to pay amounts due to any other party will not be subject to the
provisions of this Section.

 

19.           Interpretation

 

The parties have jointly
negotiated this Agreement and, thus, neither this Agreement nor any provision
will be interpreted for or against any party on the basis that it or its attorney
drafted the Agreement or the provision at issue.  Headings of the various Sections are not part
of the context of this Agreement, and are only labels to assist in locating
those Sections, and will be ignored in construing this Agreement.  When this Agreement requires approval of one
or more parties, such approval may not be unreasonably withheld or
delayed.  Words, regardless of the number
and gender specifically used, will be construed to include any other number,
singular or plural, and any gender, masculine, feminine, or neuter, as the
context requires.  “And” includes “or.”  “Or” is disjunctive but not necessarily
exclusive.  “Including” means “including
but not limited to.”

 

10

 

20.                               Successors/Assignment

 

The
parties shall not assign this Agreement without the express written consent of
the other party, except that Company may assign or transfer this Agreement
(whether by operation of law or otherwise) without such prior consent in
connection with a sale, merger, acquisition, or other change in control
transaction (including by way of stock sale, merger, reorganization or
otherwise), or sale of all or substantially all of Company’s assets (the “Change
In Control Transaction”), provided that (i) the Change In Control
Transaction includes the assumption of the liabilities under this Agreement and
the Continuing Guaranty by the assignee, (ii) the assignee has the
financial ability to perform this Agreement and accept all obligations and
liabilities hereunder, and (iii) the assignee is not a Competitor (as
defined below). In connection with any such permitted assignment or transfer,
the assignee shall be obligated under this Agreement with respect to all
obligations hereto and agrees to compensate ICS for any additional reasonable
and documented services or management fees required to transition the business
from Company.  In addition, Company will
use commercially reasonable efforts to 
ensure that any prospective assignee execute the standard form
Continuing Guaranty and Indemnification Agreement in favor of AmerisourceBergen
Corporation and its subsidiaries no later than thirty (30) days following an
assignment of this Agreement, provided that if the assignee does not execute
the standard form Continuing Guaranty and Indemnification Agreement in favor of
AmerisourceBergen Corporation within the thirty (30) day period, Company shall
continue to remain liable under the Continuing Guaranty executed by it and
attached hereto as Exhibit A until such time as the assignee executes
AmerisourceBergen Corporation’s standard form Continuing Guaranty and
Indemnification Agreement.

 

If
the assignee fails to execute such agreement within the thirty (30) day period,
then ICS shall have the right to terminate this Agreement upon ten (10) days’
notice notwithstanding any provision in this Agreement to the contrary and the
assignee shall promptly pay ICS all amounts due under the contract up to and
including the effective date of termination. 
For the purposes of this paragraph, a Competitor includes [***].

 

21.                               Relationship
Of The Parties

 

Neither party has any
ownership interest in the other and their relationship, as established by this
Agreement, is that of agent and master within the confines of the terms of this
Agreement.  Other than such limited
agency, this Agreement does not create any partnership, joint venture or
similar business relationship between the parties.  Notwithstanding the limited agency created
hereunder, each party will remain fully responsible for its actions and the
actions of its Related Parties not specifically related to this Agreement.

 

22.                               Letter
of Intent

 

Pursuant to Section 17
of this Agreement, the parties’ Letter of Intent dated May 28, 2008, is
superseded by this Agreement, provided that, within 30 days after the
Effective Date, the Company shall pay ICS [***] in respect of
all amounts due under the Letter of Intent.

 

[***] INDICATES MATERIAL THAT HAS BEEN
OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH
OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

 

11

 

IN WITNESS WHEREOF, the parties
have had a duly authorized officer, partner or principal execute this
Commercial Outsourcing Services Agreement as of the Effective Date.

 

 

	
  AMAG
  PHARMACEUTICALS, INC:

  	
   

  	
  INTEGRATED
  COMMERCIALIZATION SOLUTIONS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Brian J. G. Pereira

  	
   

  	
  By:

  	
  /s/
  David Cheetham

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Brian
  J. G. Pereira

  	
   

  	
  Name:

  	
  David
  Cheetham

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  CEO

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Address:

  	
  Attn:
  Executive Vice President and General Manager

  3101
  Gaylord Parkway

  Frisco,
  TX 75034

   

  with
  a copy to:

   

  AmerisourceBergen
  Specialty Group

  Attn:
  Group Counsel, 1N-E186

  3101
  Gaylord Parkway

  Frisco,
  TX 75034

  

 

Program Launch Date:  January 15, 2009, unless changed by
Company as set forth in Section 3.3

 

12

 

LIST OF SCHEDULES AND
EXHIBITS

 

	
  Schedules:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule A

  	
   

  	
  Description of Products

  
	
  Schedule B

  	
   

  	
  Summary of Fees

  
	
  Schedule C

  	
   

  	
  Additional Definitions

  
	
  Schedule D

  	
   

  	
  Copy of Executed
  Confidentiality Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibits:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Continuing Guaranty and
  Indemnification Agreement

  
	
  Exhibit B

  	
   

  	
  Customer Services

  
	
  Exhibit C

  	
   

  	
  Warehousing and Inventory
  Program Services

  
	
  Exhibit D

  	
   

  	
  Distribution Services

  
	
  Exhibit E

  	
   

  	
  Contract Administration
  and Chargeback Processing

  
	
  Exhibit F

  	
   

  	
  Accounts Receivable
  Management and Cash Applications

  
	
  Exhibit G

  	
   

  	
  Financial Management
  Services

  
	
  Exhibit H

  	
   

  	
  IT Services

  
	
  Exhibit I

  	
   

  	
  Government
  Contracting and Reporting Services

  

 

13

 

SCHEDULE A

 

DESCRIPTION
OF PRODUCTS

 

Description                                Ferumoxytol

 

	
  NDC

  	
   

  	
  Volume Per Vial

  	
   

  	
  Milligrams

  	
   

  	
  Vials Per Carton

  	
   

  	
  Carton Dimension

  
	
  NDC
  59338-0771-01

  	
   

  	
  4.25
  mL

  	
   

  	
  127.5

  	
   

  	
  1

  	
   

  	
  1
  x 1 x 1 15/16H

  
	
  NDC
  59338-0771-10

  	
   

  	
  4.25
  mL

  	
   

  	
  127.5

  	
   

  	
  10

  	
   

  	
  4
  11/16 x 1 7/8 x 1 15/16H

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NDC
  59338-0772-01

  	
   

  	
  8.5
  mL

  	
   

  	
  255

  	
   

  	
  1

  	
   

  	
  1
  1/16 x 1 1/16 x 2 5/16H

  
	
  NDC
  59338-0772-10

  	
   

  	
  8.5
  mL

  	
   

  	
  255

  	
   

  	
  10

  	
   

  	
  4
  7/8 x 2 x 2 3/8H

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NDC
  59338-0775-01

  	
   

  	
  17
  mL

  	
   

  	
  510

  	
   

  	
  1

  	
   

  	
  1
  5/16 x 1 5/16 x 2 5/8H

  
	
  NDC
  59338-0775-10

  	
   

  	
  17
  mL

  	
   

  	
  510

  	
   

  	
  10

  	
   

  	
  6
  1/4 x 2 1/2 x 2 5/8H

  

 

14

 

SCHEDULE
B

 

SUMMARY OF FEES

 

Assumptions:

 

·                  AMAG will ship
to wholesalers, specialty distributors, large clinics and hospitals and
specialty pharmacies

 

·                  852/867
Reporting included in Monthly Management Fee for ABC, McKesson and
Cardinal.  Any additional reporting may
require additional management and development fees

 

·                  Standard
operation procedures will be followed for all processes.  If any custom work instructions are required,
the fees listed may be impacted

 

·                  AMAG or AMAG
vendor will provide initial pedigree in addition to serialized product to ICS;
ICS will receive pedigree and transmit as appropriate

 

	
  Fee

  	
   

  	
  Amount

  	
   

  	
  Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3PL Services

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Development and Implementation

  	
   

  	
  $[***]/one-time

  	
   

  	
  Hiring
  and training of staff

  ERP
  system set up

  Project
  management time for implementation

  Data
  interface design and testing

  AMAG-specific
  telecommunications set up

  Creation
  of a AMAG-specific DataMart and RealTime Web Portal

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stand-Ready Fee

  	
   

  	
  $[***]/month

  	
   

  	
  Monthly
  fee assessed if Program Launch Date is delayed.  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Monthly Management Fee

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Customer Service

  Warehouse & Distribution

  Returns Management

  Finance

  Contract & Chargeback Management

   

  Lynne Marton Government Contract Consulting and Reporting Services

  Information Technology & Reporting

  852/867 Reporting — ABC, MCK, CAH

  	
   

  	
  $[***]/month

  	
   

  	
  Address customer inquiries as AMAG

  Manage Customer Relationship

  Account Set Up

  License Verification

  Order Processing

  Returns

  Product Inquiries

  Inventory pick, pack and ship from ICS distribution center

  AMAG-Branded Packing Slips

  Daily Cycle Counts

  One Physical Inventory Count per annum

  Inventory Management

  Invoicing as AMAG

  Establish Credit Limits

  Process Returns

  Call Triage

  Accounts Receivable Management

  

 

[***]
INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

15

 

	
  Fee

  	
   

  	
  Amount

  	
   

  	
  Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Collections

  Maintenance of government and non-government reports

  Process chargeback requests from wholesalers

  Debit memo processing

  Reconciliation reporting

  AMP and FAMP Reports to AMAG

  Rebate calculations and reporting to AMAG

  Admin Fee Calculations

  Maintenance of AMAG specific DataMart and web reporting tool

  Maintenance of Crystal Enterprise for web reporting

  Future upgrades to ICS’ software

  Includes two licenses to Crystal Enterprise reporting tool

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Customer Service Fees

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Order Processing Fee

  	
   

  	
  $[***]/order

  MANUAL

   

   

  $[***]/order

  EDI

  	
   

  	
  Order
  is defined as a shipment to a unique address that leaves the distribution
  center, regardless of the number of cartons or packages that constitute that
  shipment and/or the number of inbound requests for said Order.

  Electronic
  orders are those that are imported into the system automatically without
  manual intervention from customer service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Customer Setup Fee

  	
   

  	
  $[***]/account

  	
   

  	
  Assessed
  for every new account setup completed for an authorized AMAG customer.  This includes license receipt and
  verification after initial launch setup.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Drop Shipment Surcharge

  	
   

  	
  $[***]/order

  	
   

  	
  Assessed
  in addition to Per Order fees outlined above, when drop shipments are
  requested.  Drop Shipments are defined
  as shipments that are shipped directly to an end customer of the wholesaler,
  and invoiced directly to the wholesaler. 
  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Allocation Fee

  	
   

  	
  $[***]/week

  	
   

  	
  Order
  allocations encompass any inbound orders to ICS that needs to have original
  conditions revised and/or altered (i.e. manual intervention) as opposed to
  allowing the order to automatically flow through the order process system.  An example of an allocation would be a
  backorder situation.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rush Order

  	
   

  	
  $[***]/order

  	
   

  	
  Orders
  that are received and processed between 3pm and 5pm Eastern Time, at the
  request of the AMAG.  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Emergency Order

  	
   

  	
  $[***]/order

  	
   

  	
  Emergency
  shipments are defined as any order received outside of scheduled working
  hours (currently M-F 8am to 5pm Eastern Time) requiring ICS staff to return
  to the ICS facility to process the order within the same day.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  International Order

  	
   

  	
  $[***]/order

  	
   

  	
  Fee
  applied in addition to any order processing fees. 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Warehouse & Distribution Fees

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Product Storage 

  	
   

  	
  $[***]/pallet (ambient/marketing materials)

  	
   

  	
  Monthly
  fee for controlled room temperature pallet storage.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Order Processing Fees

  	
   

  	
  $[***]/order

  	
   

  	
  Order
  is defined as a shipment to a unique address that leaves the distribution
  center, regardless of the number of cartons or 

  

 

[***]
INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

16

 

	
  Fee

  	
   

  	
  Amount

  	
   

  	
  Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  packages
  that constitute that shipment and/or the number of inbound requests for said
  Order.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $[***]/unit

  	
   

  	
  This
  fee is in addition to the per order fee for each additional unit that is
  shipped in the order.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hazardous Material Fee

  	
   

  	
  $[***]/order

  	
   

  	
  Fee
  in addition to the per order fee for each order that requires hazardous
  shipping documentation.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Case Break Fee

  Bulk Shipment Fee

  	
   

  	
  $[***]/order

  $[***]/case

  	
   

  	
  Fee
  in addition to the per order fee for each order shipped at the vial/bottle
  level.  Bulk shipments incur an additional
  surcharge per case.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Packing Supplies

  	
   

  	
  [***]

  	
   

  	
  Any
  packing materials that ICS must provide for the AMAG to ship Commercial and
  Non-Commercial Products.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Freight

  	
   

  	
  [***]

  	
   

  	
   [***]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Finance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invoice Processing

  	
   

  	
  $[***]/invoice

  	
   

  	
  Fee
  for sending invoice (electronic or paper) to customer, collection efforts and
  cash posting.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit/Rebill Transactions

  	
   

  	
  $[***]/each

  	
   

  	
  Any
  AMAG requested credit or rebill transactions keyed in the system.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Verification Reports — Dun & Bradstreet

  	
   

  	
  $[***]/report

  	
   

  	
  Any
  AMAG requested credit report. Dun & Bradstreet (D&B) typically
  tracks information for corporate customers.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Verification Reports — Experian

  	
   

  	
  $[***]/report

  	
   

  	
  Any
  AMAG requested credit report. Experian typically tracks information for
  individual customers such as physicians.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Returns Management

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RGA Initiation

  	
   

  	
  $[***]/RGA

  	
   

  	
  RGA:
  Returned Goods Authorization.

  

  Fee for processing return request from customer and sending the
  customer an RGA.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Return Processing

  	
   

  	
  $[***]/unit

  	
   

  	
  Receipt
  of physical return at the distribution center. Fee includes itemizing
  contents of the return

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Return Processing

  	
   

  	
  $[***]/line

  	
   

  	
  Fee
  applied in addition to Return Processing fee for handling and counting
  additional lines.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Returns Storage

  	
   

  	
  $[***]/pallet

  	
   

  	
  Monthly
  fee for controlled room temperature pallet storage.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contract and Chargeback Management

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chargeback Processing — Manual

  	
   

  	
  $[***]/line

  	
   

  	
  Each
  SKU is considered a line.  If customers
  cannot send information electronically, they will mail information for manual
  processing.  ICS and Customer must have
  copies of contracts in order to process chargebacks without manual
  intervention.  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chargeback Processing — Electronic

  	
   

  	
  $[***]/line

  	
   

  	
  Each
  SKU is considered a line.  Customers
  will typically send chargebacks electronically according to HDMA
  standards.  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Information Technology and Reporting

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Custom Reports

  	
   

  	
  $[***]/hour

  	
   

  	
  Fee
  for reports created that are not part of the standard reports provided by
  ICS.  Hourly report creation fees
  assessed for initial report creation but not thereafter for running the same
  report.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Custom Development Services

  	
   

  	
  $[***]/hour

  	
   

  	
  Fee
  for customized processes developed at the request of AMAG. Hourly fees will
  be assessed and approved by AMAG before development work is to begin.

  

 

[***]
INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

17

 

	
  Fee

  	
   

  	
  Amount

  	
   

  	
  Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional Fees

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Product Destruction

  	
   

  	
  [***]

  	
   

  	
  Destruction
  of product per AMAG’s request and instruction.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FedEx/UPS/Postage Expenses

  	
   

  	
  [***]

  	
   

  	
  Freight
  expenses for shipments of documents or any other shipments related to daily
  operations on behalf of AMAG. 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pre-Approved Assessorial Labor Charge - Warehouse

  	
   

  	
  $[***]/hour

  $[***] /hour overtime

  	
   

  	
  This
  fee will be assessed for work that is completed outside the scope of the
  agreed upon services outlined in the Services Agreement.  AMAG must provide prior approval before
  assessorial labor takes place.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pre-Approved Assessorial Labor Charge — Office Staff

  	
   

  	
  $[***]/hour

  	
   

  	
  This
  fee will be assessed for work that is completed outside the scope of the
  agreed upon services outlined in the Services Agreement.  AMAG must provide prior approval before
  assessorial labor takes place.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pre-Approved Assessorial Labor Charge — QC, Management

  	
   

  	
  $[***]/hour

  	
   

  	
  This
  fee will be assessed for work that is completed outside the scope of the
  agreed upon services outlined in the Services Agreement.  AMAG must provide prior approval before
  assessorial labor takes place.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ICS Travel

  	
   

  	
  Expenses plus employee time

  	
   

  	
  This
  is for AMAG requested travel.  AMAG
  must provide prior approval before travel takes place.

  

 

[***]
INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

18

 

SCHEDULE
C

ADDITIONAL DEFINITIONS

 

“Act” means the Federal Food, Drug and Cosmetic Act, Title 21,
United States Code, as amended, and the regulations promulgated thereunder.

 

“Affiliate” means all entities controlling, controlled by or
under common control with Company or ICS, as the case may be. The term “control”
shall mean the ability to vote fifty percent (50%) or more of the voting
securities of any entity or otherwise having the ability to influence and
direct the policies and direction of an entity.

 

“ANDA” means an Abbreviated New Drug Application as defined in
and contemplated by the Act.

 

“Customer” is defined in Agreement Section 1.

 

“DEA” means the United States Drug Enforcement
Administration.

 

“FDA” means the United States Food and Drug Administration.

 

“Governmental Authority” means any nation, government, state or
other political subdivision, or any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to
government.

 

“ICS Facility” means the facility located at 345 International
Blvd., Brooks, KY 40109 or 5360 Capital Court #102, Reno, NV 89502.

 

“NDA”
means a New Drug Application as defined in and contemplated by the Act.

 

“Person” means any corporation, natural person, the Company,
entity, firm, joint venture, partnership, trust, unincorporated organization,
or Government Authority.

 

“Products” is defined in Agreement Recital A.

 

“Related Parties” means the subsidiaries, parents, Affiliates,
officers, directors, employees, independent contractors, representatives,
shareholders, trustees and agents of any Person.

 

“Requirements of Law” means any law (including consumer law),
treaty, rule or regulation or a final and binding determination of a court
or other Governmental Authority, in each case applicable to or binding upon
such Person or any of its property or to which such Person or any of its
property is subject.

 

“Services” is defined in Agreement Section 2.

 

“Taxes” means any and all liabilities, losses, expenses, and
costs of any kind whatsoever that are, or are in the nature of taxes, fees,
assessments, or other governmental charges, including interest, penalties,
fines and additions to tax imposed by any federal, state or local government or
taxing authority in the United States on or with respect to: (a) the
Agreement or any related agreements or any future amendment, supplement,
waiver, or consent requested by the Company or any required by the Agreement
with respect to the execution, delivery or performance of any thereof, or the
issuance, acquisition or subsequent transfer thereof, (b) the return,
acquisition, transfer of title, storage, removal, replacement, substitution,
purchase, acceptance, possession, rejection, ownership, delivery, non-delivery,
use, operation, sale, abandonment, redelivery or other disposition of any
interest in Products or any part thereof, (c) the receipts or earnings
arising from any interest in Products or any part thereof, (d) any payment
made pursuant to this Agreement or to any Products, or (e) otherwise as a
result of or by reason of the transactions contemplated by this Agreement,
excluding, however, taxes imposed upon ICS that are 

 

19

 

based upon or measured by gross or net income and any franchise Taxes of
ICS or any personal property taxes for Products or equipment owned by ICS.

 

“Term” is defined in Agreement Section 4.1.

 

20

 

SCHEDULE
D

COPY OF EXECUTED CONFIDENTIAL AGREEMENT

 

 

CONFIDENTIALITY AGREEMENT

 

This Confidentiality Agreement (the “Agreement”) is made as of the 15th day of October 2007 (the “Effective Date”),
by and between AMAG Pharmaceuticals, Inc., a corporation having an office
at 125 Cambridge Park Drive, Cambridge, Massachusetts 02140 (“AMAG”) and ICS,
Integrated Commercialization Solutions, Inc., a corporation having an
office at 3101 Gaylord Parkway, Frisco, Texas 75034 (“ICS”), with AMAG and ICS
each referred to herein as a “Party” or together as the “Parties.”

 

Whereas, ICS desires to receive from AMAG certain confidential information
relating to AMAG’s business for the purpose of engaging in discussions
regarding a potential business relationship between the Parties (the “Purpose”);
and

 

Whereas, AMAG desires to receive from ICS certain confidential
information relating to its business for the Purpose; and 

 

Whereas, the Party disclosing information under this Agreement (the “DISCLOSING
PARTY”) or any of their respective officers, employees, Affiliates or
consultants (collectively “Representatives”) shall allow the Party receiving
such information under this Agreement (the “RECEIVING PARTY”), or its
Representatives, to review or obtain the DISCLOSING PARTY’s confidential
business and technical information (such information being hereinafter referred
to as “CONFIDENTIAL INFORMATION”) only for the Purpose, and otherwise to hold
such Confidential Information strictly in confidence pursuant to the terms of
this Agreement.

 

Now, therefore, the Parties hereto agree as follows:

 

1.             For purposes of this
Agreement, the term “CONFIDENTIAL INFORMATION” shall include, but not be
limited to, written, verbal, visual, electronic or in any other media or
manner, and shall include that acquired by observation or otherwise during any
site visit at a party’s facility. CONFIDENTIAL INFORMATION includes all
technical data, trade secrets, know-how, ideas, research, study results,
prototypes, samples, formulas, compounds, methods, plans, specifications,
characteristics, raw material data, software, inventions, discoveries,
processes, designs, drawings, schematics whether or not patentable, product
plans, clinical trials, services, distribution systems, suppliers, markets,
business, technology, marketing plans, sales, manufacturing, purchasing and
accounting methods, strategy, budgets, contracts, grants, costs, profits, plans
for future development, and other information of a similar nature, regardless
of whether furnished before, on or after the Effective Date and furnished in
any form. CONFIDENTIAL INFORMATION also includes the existence of this
Agreement and its terms and the fact that each party is evaluating the other
party’s CONFIDENTIAL INFORMATION.

 

2.             In consideration of
the Parties’ discussions and any access the RECEIVING PARTY may have to the DISCLOSING
PARTY’s CONFIDENTIAL INFORMATION, the RECEIVING PARTY shall:

 

125 CambridgePark Drive,
Cambridge MA 02140 Tel: [617] 498-3300 Fax: [617] 433-3362

 

21

 

AMAG
Pharmaceuticals, Inc.

 

(a)                                  not use such
CONFIDENTIAL INFORMATION except for the Purpose; 

(b)                                 hold the
CONFIDENTIAL INFORMATION in strict confidence and shall protect such
CONFIDENTIAL INFORMATION from disclosure and shall use the same degree of care
to avoid disclosure of such CONFIDENTIAL INFORMATION as the RECEIVING PARTY
employs with respect to its own confidential information of like importance; 

(c)                                  not, without
the express written permission of the DISCLOSING PARTY, divulge any such
CONFIDENTIAL INFORMATION to others, except to persons regularly employed by the
RECEIVING PARTY or its
Representatives who have a bona fide need to know in connection with pursuing
the Purpose provided that the RECEIVING PARTY informs its Representatives of
its obligations under this Agreement and uses its best efforts to restrain its
Representatives from taking any action that would constitute a breach of this
Agreement; 

(d)                                 not use for its
own benefit or the benefit of its Representatives or any other person or
entity, other than the DISCLOSING PARTY any such CONFIDENTIAL INFORMATION; and 

(e)                                  not copy,
create derivative works of or reverse engineer any such CONFIDENTIAL
INFORMATION, except such duplication as is necessary for the Purpose. 

 

3.           CONFIDENTIAL
INFORMATION shall not include information that the RECEIVING PARTY can, as
evidenced by its written records prepared or received prior to the disclosure,
show: 

 

(a)                                  is already in
the possession of the RECEIVING PARTY, without obligation to keep it
confidential, as evidenced by the RECEIVING PARTY’S written records; 

(b)                                 is lawfully
disclosed to the RECEIVING PARTY by a party other than the DISCLOSING PARTY,
provided such information was not, to the knowledge of the RECEIVING PARTY,
obtained by such third party directly or indirectly from the DISCLOSING PARTY
on a confidential basis; 

(c)                                  is
independently developed by or for the RECEIVING PARTY without access to or use
of the CONFIDENTIAL INFORMATION, as evidenced by the RECEIVING PARTY’S written
records; or 

(d)                                 is generally
known to the public without violation hereof. 

 

4.           The
RECEIVING PARTY may make disclosures required by an order of a governmental
agency, legislative body or court of competent jurisdiction, provided that the
RECEIVING PARTY: (i) provides the DISCLOSING PARTY with immediate written
notice of such requirement, (ii) cooperates with the DISCLOSING PARTY at
the DISCLOSING PARTY’s expense in connection with the DISCLOSING PARTY’s
reasonable and lawful actions to obtain confidential treatment for such
CONFIDENTIAL INFORMATION, and (iii) limits such disclosure of CONFIDENTIAL
INFORMATION to the fullest extent permitted under applicable law. 

 

5.           For
purposes of this Agreement, “Affiliate” means any corporation, firm,
partnership or other entity which controls, is controlled by or is under common
control with a party. For purposes of this definition, “control” shall mean the
ownership of at least fifty percent (50%) of the voting share capital of such
entity or any other comparable equity or ownership interest. Only an Affiliate to
which 

 

22

 

AMAG Pharmaceuticals, Inc.

 

such CONFIDENTIAL INFORMATION is actually disclosed and
received will be bound by the terms of this Agreement.

 

6.             This
Agreement will terminate as to the further exchange of CONFIDENTIAL INFORMATION
immediately upon the earlier of (a) written notice from one party to the
other party of such termination, or (b) one (1) year following the
Effective Date. Notwithstanding the foregoing, each party’s obligations of
confidentiality and non-use shall continue for a period of seven (7) years
from the termination of this Agreement. The RECEIVING PARTY shall treat all
CONFIDENTIAL INFORMATION it receives from or concerning the DISCLOSING PARTY
prior to the execution of this Agreement as CONFIDENTIAL INFORMATION in
accordance with the terms of this Agreement.

 

7.             The
RECEIVING PARTY shall be responsible for any disclosure or use of CONFIDENTIAL
INFORMATION, or other prohibited activity set forth in Paragraph 2, by any
Representative or other person or entity to whom it discloses CONFIDENTIAL
INFORMATION. The RECEIVING PARTY shall notify the DISCLOSING PARTY in writing
immediately upon becoming aware of the occurrence of any unauthorized release
of CONFIDENTIAL INFORMATION or other breach of this Agreement. The RECEIVING
PARTY acknowledges and agrees that due to the unique nature of the CONFIDENTIAL
INFORMATION there is no adequate remedy at law for any breach of the RECEIVING
PARTY’s or its Representatives’ obligations hereunder and that any breach shall
result in irreparable harm to the DISCLOSING PARTY. Therefore, upon any such
breach, the DISCLOSING PARTY shall be entitled to seek appropriate equitable
relief in addition to its remedies at law.

 

8.             The
RECEIVING PARTY shall promptly return to the DISCLOSING PARTY, at the
DISCLOSING PARTY’s request, all CONFIDENTIAL INFORMATION or other written data
and any copies thereof which the RECEIVING PARTY may have made, may have access
to, or may possess under the terms of this Agreement. Upon termination of discussions
between the Parties or this Agreement, the RECEIVING PARTY shall promptly
deliver to the DISCLOSING PARTY all originals, copies, and summaries of
documents, materials, and other tangible manifestations of CONFIDENTIAL INFORMATION
and any other property of the DISCLOSING PARTY which the RECEIVING PARTY shall
have in its possession or under its control, in whatever media, except that a
RECEIVING PARTY may retain one (1) copy of CONFIDENTIAL INFORMATION to
ensure compliance with its obligations under this Agreement.

 

9.             Nothing
contained in this Agreement shall be construed as granting or conveying to the
RECEIVING PARTY or its Representatives, by implication, license, estoppel or
otherwise, any right, title or interest in or to the CONFIDENTIAL INFORMATION
or any inventions, discoveries, improvements or any other intellectual property
rights made, conceived or acquired by the DISCLOSING PARTY or any of its
affiliates prior to, during or after termination of this Agreement. None of the
CONFIDENTIAL INFORMATION which may be disclosed to the RECEIVING PARTY by the
DISCLOSING PARTY hereunder shall constitute any representation, warranty,
assurance, guarantee, or inducement by the DISCLOSING PARTY as to the
non-infringement of patents, trademarks, copyrights or any intellectual
property rights or other rights of third parties. Further, disclosure by the DISCLOSING
PARTY of CONFIDENTIAL INFORMATION shall not constitute a representation or
warranty that the CONFIDENTIAL INFORMATION is accurate, complete, or

 

23

 

adequate for the Purpose contemplated by the RECEIVING
PARTY. All CONFIDENTIAL INFORMATION and other written data provided to the
RECEIVING PARTY or its Representatives hereunder shall be and remain the
property of the DISCLOSING PARTY.

 

10.           No
agency or partnership relationship is created by this Agreement. Nothing herein
shall obligate the DISCLOSING PARTY to enter into any other business or
technical relationship with the RECEIVING PARTY or its Representatives.

 

11.           This
Agreement shall be governed by the substantive laws of the State of Delaware,
without regard to its conflict of laws principles.

 

12.           In
the event that any of the provisions of this Agreement shall be held by a court
or other tribunal of competent jurisdiction to be illegal, invalid, or
unenforceable, such provisions shall be limited or eliminated only to the
minimum extent necessary to preserve the validity of this Agreement. This
Agreement shall otherwise remain in full force and effect.

 

13.           In
the event any suit or other action is commenced to construe or enforce any
provision of this Agreement, the prevailing Party, in addition to all other
amounts such Party shall be entitled to receive from the other Party, shall be
paid by the other Party a reasonable sum for attorney’s and witness’ fees and
costs.

 

14.           This
Agreement constitutes the entire agreement between the Parties with respect to
the subject matter addressed herein. This Agreement shall not amend, diminish,
supplement or otherwise affect any previous agreements, if any, between the
Parties with respect to the disclosure or use of information covered by such
prior agreements. Any changes to this Agreement must be in writing and signed
by the Parties hereto. If the Parties pursue a business venture, they
anticipate entering into a definitive agreement that will set forth their
respective obligations. Such agreement may incorporate this Agreement by
reference, may supplement or modify it or may supersede it.

 

15.           No
waiver shall be effective unless it is set forth in a written instrument
executed by the Party waiving a breach or default hereunder. No consent to or
waiver of any breach or default in the performance of any obligation hereunder
shall be deemed or construed to be a consent to or waiver of any other breach
or default in the performance of the same or any other obligation hereunder.
Failure on the part of any Party to complain of any act or failure to act of
any other Party or to declare any other Party in default of any obligation
hereunder, irrespective of how long such failure continues shall not constitute
a waiver of rights hereunder.

 

16.           The
Agreement shall be binding upon, and shall inure to the benefit of, the Parties
hereto and their successors and assigns. Each party agrees to be responsible
for any breach of this Agreement by its Representatives.

 

17.           The
undersigned represent and warrant that they are each authorized to enter into
this Agreement and to be bound by the terms hereof.

 

24

 

18.           The
DISCLOSING PARTY shall not have any liability whatsoever arising from or
relating to the RECEIVING PARTY’s or its Representatives’ use of the
CONFIDENTIAL INFORMATION or other information disclosed by the DISCLOSING PARTY
hereunder.

 

19.           The
RECEIVING PARTY shall not disclose to any other person, unless required by law,
the fact that CONFIDENTIAL INFORMATION has been made available to the RECEIVING
PARTY hereunder, that negotiations are or may be taking place between the
Parties or any of the terms, conditions or other facts with respect thereto.

 

20.           The
RECEIVING PARTY shall not export, reexport or divert any CONFIDENTIAL
INFORMATION for which the government of any country or any governmental agency
thereof requires an export license or other governmental approval without
first: (i) informing the DISCLOSING PARTY of its desire to export, reexport
or divert CONFIDENTIAL INFORMATION; and (ii) obtaining such license or
approval.

 

21.           All
notices and other communications which are required or permitted under the
terms or conditions of this Agreement, shall be in writing and sent by
facsimile, overnight courier or registered or certified mail, postage prepaid,
to the receiving Party at the address herein or at any other address that the
receiving Party may have provided to the sending Party in writing as provided
herein. Any notice or other communication delivered by facsimile shall be
deemed to have been received the day it is sent, if a business day, and on the
next succeeding business day, if not. Any notice or other communication sent by
overnight courier shall be deemed to have been received on the day after it is
sent, if a business day, and on the next succeeding business day, if not. Any
notice or other communication sent by registered or certified mail shall be
deemed to have been received on the date received. AMAG’s fax number is (617)
499-3362 and facsimiles to AMAG should be addressed to the attention of General
Counsel. ICS’s fax number is 469-365-7580. A copy of any notice provided to ICS
shall also be sent to: AmerisourceBergen Specialty Group, Attn: Group Counsel,
3101 Gaylord Parkway, 1N-E186, Frisco, TX 75034.

 

 

	
  AMAG
  Pharmaceuticals, Inc.

  	
   

  	
  ICS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:
  

  	
  /s/ Scott Mayberry

  	
   

  	
  By:

  	
  /s/ Steve Mckinnon

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
  SR. Director, Trade
  & Pricing

  	
   

  	
  Title:

  	
  VP Finance

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:
  

  	
  October 26, 2007

  	
   

  	
  Date:

  	
  10/25/07

  

 

25

 

 

EXHIBIT
A

 

CONTINUING
GUARANTY AND INDEMNIFICATION AGREEMENT

 

The undersigned does hereby
guarantee to AmerisourceBergen Corporation and each of its subsidiary companies
and their successors (the “Indemnitees”) that any food, drugs, devices,
cosmetics, or other merchandise (“Products”) now or hereafter shipped or
delivered by or on behalf of the undersigned, its subsidiaries, divisions,
affiliated companies and representatives (“Guarantors”) to or on the order of
any Indemnitee will not be, at the time of such shipment or delivery,
adulterated, misbranded, or otherwise prohibited under applicable federal,
state and local laws, including applicable provisions of the Federal Food, Drug
and Cosmetic Act, 21 U.S.C.A. §301 et seq., (“FDCA”), and Sections 351 and 361
of the Federal Public Health Service Act, 42 U.S.C.A. §§ 262 and 264, and their
implementing regulations (“Applicable Laws”), each as amended and in effect at
the time of shipment or delivery of such Products; and such Products are not,
at the time of such shipment or delivery, merchandise that may not otherwise be
introduced or delivered for introduction into interstate commerce under
Applicable Laws, including FDCA section 301 (21 U.S.C.A. §331); and such
Products are merchandise which may be legally transported or sold under the
provisions of any other applicable federal, state or local law; and the
undersigned guarantees further that, in the case of food shipments, only those
chemicals or sprays approved by federal, state or local authorities have been
used, and any residue in excess of the amount allowed by any such authorities
has been removed from such Products.

 

The undersigned hereby agrees
to defend, indemnify and hold the Indemnitees harmless against any and all
third party claims, losses, damages, and liabilities whatsoever (and expenses
connected therewith, including counsel fees) (collectively, “Claims”), to the
extent arising as a result of (a) any actual or asserted violation of
Applicable Laws by virtue of which Products made, sold, supplied, or delivered
by or on behalf of Guarantors may be alleged or determined to be adulterated,
misbranded or otherwise not in full compliance with or in contravention of
Applicable Laws, (b) possession, distribution, sale and/or use of, or by
reason of the seizure of, any Products of Guarantors, including any prosecution
or action whatsoever by any governmental body or agency or by any private
party, including claims of bodily injury, death or property damage, (c) any
actual or asserted claim that Guarantors’ Products infringe any proprietary or
intellectual property rights of any person, including infringement of any
trademarks or service names, trade names, trade secrets, inventions, patents or
violation of any copyright laws or any other applicable federal, state or local
laws, and (d) any actual or asserted claim of negligence or willful misconduct
by the Guarantors.  [***].  The undersigned’s agreement to defend,
indemnify and hold harmless is conditioned on the relevant Indemnitee (i) providing
written notice to the undersigned of any Claim for which is it seeking
indemnification hereunder in a reasonably prompt manner after becoming aware of
such Claim, provided that such requirement is a condition precedent only if
failure to provide prompt notice results in actual prejudice to the undersigned
in its ability to defend the Claim; (ii) permitting the undersigned to
assume full responsibility to investigate, prepare for and defend against any
such Claim, except that the Indemnitee may cooperate in the defense at its
expense using its own counsel; and (iii); not compromising or settling such Claim
without the undersigned’s written consent. 
The relevant Indemnitee agrees to reasonably cooperate with the
undersigned, at the undersigned’s reasonable expense, in the investigation of,
preparing for and defense of any such Claim. The undersigned further agrees to
maintain Products Liability Insurance of not less than U.S. $ 5,000,000 per
occurrence, Combined Single Limit (Bodily Injury and Property Damage)including
AmerisourceBergen Corporation and its subsidiary companies and their successors
as Additional Insureds, including a Broad Form Vendors Endorsement, with
provision for at least 30 days’ prior written notice to the Additional Insureds
in the event of cancellation or material reduction of coverage, and upon
request promptly submit satisfactory evidence of such insurance to
AmerisourceBergen Corporation.  All
insurance coverage must be with a nationally-recognized, reputable insurance
carrier.  In combination with significant
excess liability insurance, any retained risk must be commercially reasonable
and actuarially sound.  The undersigned
warrants that its assets are sufficient to cover any self-insurance liability
it assumes under this Agreement. 
Provisions in this Continuing Guaranty and Indemnification Agreement are
in addition to, and not in lieu of, any terms set forth in any purchase orders
accepted by Guarantors or any separate agreement entered into between the
Indemnitees and Guarantors.  In the event
of any conflict between the language of such other documents and the language
set forth herein, the language herein shall be controlling.

 

[***] INDICATES MATERIAL THAT HAS BEEN
OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH
OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

 

26

 

	
   

  	
  AMAG PHARMACEUTICALS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian J.G. Pereira

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Brian J.G. Pereira

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  10/30/08

  

Revised

6/2/05

 

27

 

EXHIBIT B

CUSTOMER SERVICES

 

ICS shall perform the following
Services on and after the Program Launch Date during the Term of the Agreement:

 

1.             ICS, as agent of the Company, will develop, operate
and maintain an Integrated Access Center (“Access Center”) to manage the
comprehensive distribution Services related to Products described herein (“Customer
Services”) for the Company.  ICS agrees
to develop the Access Center and provide the Customer Services for the fees
listed in Schedule B.

 

2.             The Access Center includes the following:

 

2.1           A fully-integrated telecommunications and information
system that will capture and manage key data from each Customer requesting
information or specific services relating to Products;

 

2.2           A toll-free Company-dedicated telephone and fax number
solely for the Access Center, with all costs being the Company’s
responsibility;

 

2.3           The capability to handle queries about Products
related to order processing and account management; and

 

2.4           The capability to triage queries.

 

3.             ICS, as agent of the Company, will
retain, train and manage appropriate staff personnel to operate the Access
Center.  Responsibilities of Access
Center personnel will be to:

 

3.1           Receive orders via Electronic Data Interchange (“EDI”),
facsimile, email, mail or telephone, and (b) be available from 8:00 a.m.
to 5:00 p.m. (Central) to receive orders or triage calls to the Company as
necessary;

 

3.2           Receive EDI orders from the Company or its
Customers.  Upon receipt, ICS will:

 

3.2.1        Verify that product order file
processed from customer and into ICS’ ERP system;

 

3.2.2        Review EDI order processing
error logs and communicate any non-processed orders and reasons to the Company
or its Customers; and

 

3.2.3        Take appropriate action based
on direction from the Company to resolve any issues and re-enter orders or
order files into the ERP for processing;

 

3.3           Generate and
issue packing slips for the sale of Products sold under this Agreement;

 

3.4           Manage the process of issuing Product return
authorizations and Product destruction authorizations in accordance with the
Company’s policies that have been provided to ICS, and coordinate shipment of
Product for destruction;

 

28

 

3.5           Set up customer accounts for Customers eligible to
purchase from the Company according to parameters provided by the Company, and
the Company will periodically supply ICS with its written criteria, as amended
from time to time, for all Customer eligibility; and

 

3.6           At the Company’s prior
written request, verify that such Customers meet the Company’s eligibility
criteria by:

 

3.6.1        Credit verification using approved agencies and
establishment of credit limits based on the Company’s guidance;

 

3.6.2        Verification of licenses
(including verification of DEA and state controlled substances, regulatory
licenses and registrations when filling orders of controlled substances); and

 

3.6.3        License verification using
the NTIS database augmented by a copy of the Customer license if necessary; and

 

3.7           Obtain Proofs of Deliveries (PODs) for the Company.

 

4.             Order allocations encompass any inbound
orders to ICS that need to have original conditions reviewed and/or manipulated
as opposed to allowing the order to flow freely through the order process
system.  All allocated orders shall be
filled in accordance with the Company’s written instructions.

 

5.             An order is defined as a shipment to a
unique address that leaves the distribution center, regardless of the number of
cartons or packages that constitute that shipment and/or the number of inbound
requests for such order.

 

6.             The following services are not a part of Customer
Services normally provided in the Access Center:

 

6.1           Product substitution relating
to backorder management:

 

6.2           Stock allocation of Product
to the Company’s Customer base:

 

6.3           Arranging for the
re-distribution of Product within the Company’s Customer base; or

 

6.4           Any services not identified
in paragraphs 1 through 3 of this Exhibit B.

 

29

 

EXHIBIT C

WAREHOUSING
AND INVENTORY MANAGEMENT SERVICES

 

ICS
shall perform the following Services on and after the Program Launch Date
during the Term of the Agreement:

 

1.             ICS will warehouse and
inventory Products at the ICS Facility.

 

2.             ICS will visually
inspect each shipment of Product for external container or package damage or
loss in transit (based upon records provided to ICS by the Company)

 

3.             ICS will
promptly notify the Company upon ICS’s discovery of any damage or loss to
Product.

 

4.             ICS will
quarantine Product upon receipt and will release Product to salable inventory
status within twenty-four (24) hours of written authorization from the Company.

 

5.             ICS will store
all Product in compliance with current good manufacturing practice regulations
and guidelines and other requirements of the FDA, the U.S. Drug Enforcement
Administration (including maintaining required registrations, licenses and
other authorizations, observing all DEA security standards and timely filing
any necessary ARCOS reports and other DEA forms, including DEA form 222), all
other applicable Requirements of Law and in accordance with the Company’s
written instructions, if any.

 

The Company will pay all costs, charges, expenses and import and export
duties for delivery and transportation of Product to and from an ICS Facility; provided
that ICS shall be responsible for the costs of any transfers of Product from
one ICS Facility to another ICS Facility that are initiated by ICS and not
requested by the Company.

 

30

 

EXHIBIT D

DISTRIBUTION SERVICES

 

ICS shall perform the following Services on and after the Program Launch
Date during the Term of the Agreement:

 

1.             Distribution.  ICS shall provide the following distribution
tasks:

 

1.1           ICS shall use its best efforts to ensure
that Products will be distributed by trained personnel either in corrugated
boxes obtained by ICS or in the corrugated boxes in which Products are packaged
by the manufacturer.

 

1.2           ICS shall use it best efforts to ship
Products within one (1) business day of receipt of orders by ICS unless
otherwise specified under the terms of this Agreement.  ICS will not be required to ship within 24
hours if the aggregate of the orders transmitted to ICS on a single day exceed
the number of average daily orders received by ICS for the previous 21 business
days by 15% of the total of such orders. 
ICS will ship Product to the destination specified by Customers.

 

1.3           ICS shall ship Veterans Administration and
other government orders direct or to the designated PPV (Preferred
Pharmaceutical Vendor).

 

1.4           ICS shall distribute bulk shipments by a
designated carrier using carrier bulk shipment terms.

 

1.5           ICS shall use its best efforts to ensure
that Products are distributed on a FEFO (first expired/first out) basis unless
otherwise directed by the Company in writing.

 

1.6           At the prior written request of the
Company, ICS shall deliver Products as a drop ship to Customers and billed to
the designated wholesaler.

 

1.7           ICS shall use its best efforts to ensure
that non-EDI orders received by ICS during standard warehouse hours of shipping
(currently M-F 8:00 a.m. to 3:00 p.m. Eastern, except holidays) will
be filled the same day.  ICS shall also
use its best efforts to ensure that orders received after this agreed upon
cut-off time will be processed no later than the next business day.  ICS shall use its best efforts to ensure that
EDI orders will be processed within 24 hours of transmission to ICS. ICS will
not be obligated to fulfill order within such time periods if orders received
by ICS on a single day exceed the number of average daily orders received by
ICS for the previous 21 business days by 15% of the total of such orders.

 

1.8           At the Company’s request, ICS shall
provide a “Rush Order” service for specific order or orders to be processed and
shipped the same day; provided however, that such services are dependent
on ICS’s ability to perform based upon order receipt time, ICS personnel, and
transportation carrier availability. 
Such orders shall be subject to the Company’s payment of the additional
fees pursuant to Schedule B.

 

31

 

1.9           At the Company’s request, ICS shall
provide “Emergency Order” services, defined as any order received outside of
scheduled working hours (currently M-F 8:00 a.m. to 5:00 p.m. Eastern
Time) requiring ICS staff to return to the ICS Facility to process the order
within the same day.  Such Emergency
Order services will be subject to additional fees pursuant to Schedule B.  ICS shall clearly identify any such orders to
the Company at the time of the Company’s request.

 

2.             Inventory.  ICS will be responsible for the following
inventory tasks:

 

2.1           ICS shall receive Products from the
Company or a Company designee.

 

2.2           ICS shall ensure that any end of lot
discrepancies evidenced by a difference in physical to book inventory as noted
during Product distribution will trigger inventory counts and reconciliation by
ICS to verify and determine, where possible, the cause for the discrepancy.

 

2.3           ICS shall provide the Company, at ICS’s
expense, one (1) physical product inventory per calendar year and routine
cycle counts.  ICS shall perform
additional physical product inventories upon the Company’ s request and for an
additional labor charge.  Any such
additional physical inventory requested by the Company will be scheduled based
upon a written request from the Company and a mutually agreed upon inventory
date.

 

2.4           ICS shall obtain any required packaging
materials for distribution the cost of which shall be passed through to the
Company pursuant to Schedule B.

 

2.5           ICS shall pay all labor costs for
warehouse personnel providing the Services.

 

2.6           ICS shall provide tracking for all
shipments as required by the Company;

 

2.7           ICS shall pay for all security costs for
the ICS Facility and any other warehouse locations where Products may be stored
in accordance with the terms of this Agreement.

 

2.8           ICS shall process returns within three
business days of receipt at the ICS Facility.

 

2.9           ICS shall ship outdated/damaged Products
to a site reasonably designated by the Company for disposal.  All transportation and destruction costs will
be borne by the Company pursuant to Schedule B.

 

2.10         ICS shall not responsible for maintaining
inventory levels for Product fulfillment.

 

3.             Product Title.  The Company will at all times retain title to
all of Products under this Agreement.

 

4.             Exclusions.  The following services will not be provided
by ICS or included as Distribution Services under the terms of this Agreement:

 

4.1           Processing of Department of Transportation
hazardous materials.

 

32

 

4.2           Re-stacking of inbound Products required
at the ICS Facility.

 

4.3           Any other special labeling or packaging
required for Products on or for shipments leaving the ICS Facility.

 

33

 

EXHIBIT E

CONTRACT ADMINISTRATION AND
CHARGEBACKS PROCESSING

 

ICS is licensed to utilize CARS/IS
software developed by I-many, Inc. to provide contract administration and
chargeback processing services.  ICS
shall perform the following Services on and after the Program Launch Date
during the Term of the Agreement:

 

1.             Contract
Administration.  ICS shall
enter into the CARS/IS application key demographic information, membership, and
pricing arrangements, as provided by the Company, as negotiated between the
Company and its key government and non-government contract accounts, including
DOD and VA.  ICS shall assist the Company
in managing information for such accounts, but shall have no liability for the
timeliness, accuracy or reliability of the information provided by the Company
under this Section.

 

2.             Chargeback Processing.  ICS will process debit memo submissions from
wholesalers for wholesaler contract sales pricing reconciliation.

 

2.1            Reconciliation
is based upon verification of the submitted wholesaler data against contract
administration data.  Results of this
verification are:

 

2.1.1            Reconciliation reporting; and

 

2.1.2            Credit Memo generation.

 

2.2            Submissions by
wholesalers will be either paper or electronic (EDI).

 

2.2.1            Paper - Processing time for
paper submissions will be five (5) business days.

 

2.2.2            EDI - Processing time for EDI
submissions will be three (3) business days.

 

2.2.3            These times do not apply to
new or newly acquired Products for a period of ninety (90) days.

 

3.             Rebates.  ICS will provide documentation for rebates to
be paid by the Company on a quarterly basis. 
ICS will also provide the Company with reports, in a format agreed upon
by the parties, including pricing information for AMP and FAMP reports, and
which otherwise allow the Company to monitor purchasing activity by its key
accounts.

 

34

 

EXHIBIT F

ACCOUNTS RECEIVABLE MANAGEMENT
AND CASH APPLICATIONS

 

ICS shall perform the following
Services on and after the Program Launch Date during the Term of the Agreement:

 

1.             ICS will manage all accounts receivable
transactions related to the Company managed distribution programs for
Product.  The Company will establish a
lock box at a financial institution of its choosing (the “Financial Institution”).  Payments from Customers will be directed to
the address of the lock box.  The
Financial Institution will sweep the lock box daily and deposit payments into
the Company’s operating account.  The
Financial Institution will forward copies of all payment transactions to ICS
for cash application purposes.  ICS and
the Company will jointly determine the following:

 

1.1           Credit policy

1.2           Class of trade designations

1.3           Terms and conditions

1.4           License requirements

1.5           Dunning process for past due accounts

1.6           Reporting requirements

 

2.             ICS will provide comprehensive accounts
receivable management services in conformance with ICS’s standard operating
procedures and the Company’s collection policies as they apply to:

 

2.1           Invoicing (prepare and mail Customer
invoices)

2.2           Cash application

2.3           Reconciliation of daily lock box deposits

2.4           Credit hold/release processing

2.5           Change to Customer credit limits per the
Company’s approval

Credit
reports:

2.5.1.         Experian

2.5.2          D & B

2.6           Return authorization credits

2.7           Credit and re-bills

2.8           Reconciliation of accounts receivable to
chargebacks

 

3.             ICS will adhere to state and federally
mandated good credit and collection practices established jointly by ICS and
the Company such as:

 

3.1           On-line details of calls

3.2           Call list of past due invoices

3.3           Past due reminder letters

3.4           Research and collection of unauthorized
deductions

3.5           The Company approved write-offs

 

35

 

EXHIBIT G

FINANCIAL MANAGEMENT SERVICES

 

ICS shall perform the following
Services on and after the Program Launch Date during the Term of the Agreement:

 

1.             ICS will provide monthly reconciliation of all
financial transactions related to the Company managed distribution program for
Product as follows:

 

1.1           Month end close

1.2           Reconciliation of cash, cash discounts and
accounts receivable

1.3           Inventory roll over

1.4           Reconciliation of inventory adjustments

1.5           Reconciliation of goods received

1.6           Reconciliation of sales and cost of goods
sold

1.7           Reconciliation of returns and cost of
goods returns

 

2.             ICS will provide on a monthly basis (or
other agreed upon period), the following financial reports:

 

2.1           Trial Balance

2.2           Cash Application Summary

2.3           Accounts Receivable Reports

2.4           Inventory Reports

2.5           Sales Reports

2.6           Cash Discounts Report

 

36

 

EXHIBIT H

IT
SERVICES

 

ICS shall perform the following
Services on and after the Program Launch Date during the Term of the Agreement:

 

1.             Application Software.  ICS shall maintain a license to utilize ERP
software developed by International Business Systems to provide Distribution
and Financial Services to the Company.

 

2.             Access. ICS shall
ensure that access to the DataMart will be available to the Company Monday
through Friday from 7:00 a.m. – 7:00 p.m. (Central) except for those
holidays recognized by ICS (“Holidays”), a listing of which will be mutually
agreed to by the Company and ICS.  ICS
will contact the Company with reasonable notice of any non-availability of the
DataMart due to routine or non-routine system maintenance undertaken by
ICS.  “DataMart” shall be defined as the
repository of information available to ICS regarding Products and related
standard reports, including but not limited to daily inventory reports and
inventory adjustments.

 

3.             On-Call Support.  ICS shall maintain an on-call support line
for answering Company questions, receiving requests for correction of errors
and providing consulting services relative to the functionality and usage of
the DataMart.  The support line will be
available from 8:30 a.m. – 5:00 p.m. (Central) except for Holidays.

 

4.             Training.   ICS
shall provide user documentation and training for DataMart through data
dictionaries of DataMart; provided, however, that ICS shall have no
obligation to provide Crystal Training and licenses to utilize crystal reports
to the Company.

 

5.             Back-Ups.  ICS
shall perform back-up of all the Company transactions at the end of each
working day.  Such back-up will be
performed at a scheduled time each day and will use an IBM utility product to
copy all ICS’s the Company data on a media selected by ICS.

 

6.             Electronic Data Interchange.  ICS utilizes software developed for EDI X.12
transaction set translation.  ICS has
implemented for use on behalf of the Company transaction sets that are utilized
commonly in the healthcare industry.

 

7.             Data Management and Reporting.  ICS shall provide the Company with standard
reports as may be reasonably requested by the Company from time to time.  ICS has also developed a set of standard data
file extracts that cover distribution and financial activity.  Frequency for report or data file creation is
in part based on functional requirement but may be daily, weekly, monthly or on
demand.  If customization is needed, the
Company and ICS will jointly and reasonably determine the data elements and
formats to be included in custom reports, as well as their frequency and data
files.  Mutually agreed-upon standard
reports and files are included in the pricing provided under this
Agreement.  Additional charges will apply
to special reports and data files created based upon hourly programming charges
as listed in Schedule B for creation of specialized reports.  The Company will be responsible for hardware
or software costs directly and for fees listed in Schedule B.

 

8.             Transfer Protocol.  ICS will make available to the Company data
in the form of electronic files on a detail or summary basis that reflects the
operational activity in the Company’s DataMart or CARS/IS environment.  The frequency of the data file availability
may be event based, daily, weekly or monthly. 
Certain timing restrictions apply based on type of data.  Conversely ICS will receive files from the
Company for the purpose of file building, file 

 

37

 

maintenance
or order processing.  The data may be
delivered in one of four methods: 1) Cyclone Encrypted or PGP encrypted, 2)
Secure Website, 3) E-mail (emergency only) or 4) Electronic Data Interchange:

 

9.             System Disaster Recovery.  ICS shall maintain in place disaster-relief
plans consisting of disaster recovery procedures, telecommunications switch
over during disaster or emergency period, and AS/400 System switch over during
disaster or emergency period (collectively, “Disaster Plans”).  ICS will maintain the Disaster Plans during
the Term.

 

38

 

EXHIBIT I

GOVERNMENT CONTRACTING AND
REPORTING SERVICES

 

ICS shall perform the following Services from the
Effective Date of the Commercial Outsourcing Services Agreement between ICS and
AMAG throughout the Term of the Agreement:

 

1.     Government Contracting Education Process

 

1.1.     [***]

 

1.2.    [***]

 

2.     Contracting Process

 

2.1.     [***]

 

2.2.     [***]

 

2.3.     [***]

 

2.3.1.  [***]

 

2.3.2.  [***]

 

2.3.3.  [***]

 

2.3.4.  [***]

 

2.3.5.  [***]

 

2.3.6.  [***]

 

2.4.     [***]

 

3.     Calculate and Report Required
Pricing

 

3.1.     [***]

 

3.1.1.  [***]

 

3.2.     [***]

 

[***] INDICATES MATERIAL THAT HAS BEEN
OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH
OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

 

39

 

3.2.1.  [***]

 

3.2.2.  [***]

 

3.2.3.  [***]

 

3.3.     Annual Reporting

 

3.3.1.  [***]

 

3.3.2.  [***]

 

3.3.3.  [***]

 

4.  Process Medicaid Rebates [***]

 

[***] INDICATES MATERIAL THAT HAS BEEN
OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH
OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

 

40

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