Document:

exv10w53

Exhibit 10.53

THE MEDICINES COMPANY

Restricted Stock Agreement

Granted Under Amended and Restated 2004 Stock Incentive Plan

     THIS AGREEMENT made as of this 7th day of December, 2010, between The Medicines Company, a
Delaware corporation (the “Company”) and Clive A. Meanwell, the “Participant”).

     In consideration of employment services rendered and to be rendered by the Participant to the
Company and for other valuable consideration, the receipt and sufficiency of which is acknowledged
and confirmed, the parties hereto agree as follows:

     1. Issuance of Shares.

     The Company shall issue to the Participant, subject to the terms and conditions set forth in
this Agreement and in the Company’s Amended and Restated 2004 Stock Incentive Plan (the “Plan”),
29,542 shares (the “Shares”) of common stock, $0.001 par value, of the Company (“Common Stock”).
The Shares are issued effective as of the date set forth above in the name of the Participant and
are initially issued in book entry form only. Following the vesting of any Shares pursuant to
Section 2 below, the Company, if requested by the Participant, shall deliver (or shall instruct its
transfer agent to deliver) to the Participant a certificate representing the vested Shares. The
Participant agrees that the Shares shall be subject to vesting and forfeiture set forth in Section
2 of this Agreement and the restrictions on transfer set forth in Section 3 of this Agreement.

     2. Vesting.

          (a) The Shares shall vest on December 7, 2011 (the “Vesting Date”) as long as the Participant
is employed by the Company on such date.

          (b) In the event that the Participant ceases to be employed by the Company for any reason or
no reason, with or without cause, prior to December 7, 2011, all of the Unvested Shares (as defined
below) as of the time of such employment termination shall be forfeited immediately and
automatically to the Company, without the payment of any consideration to the Participant,
effective as of immediately following such termination of employment.

     “Unvested Shares” means the total number of Shares multiplied by the Applicable Percentage (as
defined below) at the time the Participant ceases to be employed by the Company.

     “Applicable Percentage” shall be 100% prior to the Vesting Date. The Applicable Percentage
shall be zero on or after December 7, 2011.

          (c) After the time at which any Shares are forfeited pursuant to subsection (b) above, the
Company shall not pay any dividend to the Participant on account of such Shares or permit the
Participant to exercise any of the privileges or rights of a stockholder with respect to

 

 

such Shares, but shall, in so far as permitted by law, treat the Company as the owner of such
Shares.

          (d) If the Participant is employed by a parent or subsidiary of the Company, any references in
this Agreement to employment with the Company or termination of employment by or with the Company
shall instead be deemed to refer to such parent or subsidiary.

     3. Restrictions on Transfer. The Participant shall not sell, assign, transfer,
pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively
“transfer”) any Unvested Shares, or any interest therein, except that the Participant may transfer
such Shares (i) to or for the benefit of any spouse, children, parents, uncles, aunts, siblings,
grandchildren and any other relatives approved by the Board of Directors (collectively, “Approved
Relatives”) or to a trust established solely for the benefit of the Participant and/or Approved
Relatives, provided that such Shares shall remain subject to this Agreement (including
without limitation the restrictions on transfer set forth in this Section 3) and such permitted
transferee shall, as a condition to such transfer, deliver to the Company a written instrument
confirming that such transferee shall be bound by all of the terms and conditions of this Agreement
or (ii) as part of the sale of all or substantially all of the shares of capital stock of the
Company (including pursuant to a merger or consolidation), provided that, in accordance
with the Plan, the securities or other property received by the Participant in connection with such
transaction shall remain subject to this Agreement.

     4. Restrictive Legends.

     The book entry account reflecting the issuance of the Shares in the name of the Participant
shall bear a legend or other notation upon substantially the following terms:

“These shares of stock are subject to forfeiture and restrictions on
transfer set forth in a certain Restricted Stock Agreement between
the corporation and the registered owner of these shares (or his
predecessor in interest), and such Agreement is available for
inspection without charge at the office of the Secretary of the
corporation.”

     5. Provisions of the Plan.

          (a) This Agreement is subject to the provisions of the Plan, a copy of which is furnished to
the Participant with this Agreement.

          (b) As provided in the Plan, upon the occurrence of a Reorganization Event (as defined in the
Plan), the rights of the Company hereunder shall inure to the benefit of the Company’s successor
and shall apply to the cash, securities or other property which the Shares were converted into or
exchanged for pursuant to such Reorganization Event in the same manner and to the same extent as
they applied to the Shares under this Agreement. If, in connection with a Reorganization Event, a
portion of the cash, securities and/or other property received upon the conversion or exchange of
the Shares is to be placed into escrow to secure indemnification or other obligations, the mix
between the vested and unvested portion of such cash, securities

 

 

and/or other property that is placed into escrow shall be the same as the mix between the
vested and unvested portion of such cash, securities and/or other property that is not subject to
escrow.

     6. Withholding Taxes; Section 83(b) Election.

          (a) The Participant acknowledges and agrees that the Company has the right to deduct from
payments of any kind otherwise due to the Participant any federal, state or local taxes of any kind
required by law to be withheld with respect to the vesting of the Unvested Shares. The Participant
shall satisfy such tax withholding obligations by transferring to the Company, on each date on
which Unvested Shares vest under this Agreement, such number of Unvested Shares that vest on such
date as have a fair market value (calculated using the last reported sale price of the common stock
of the Company on the NASDAQ Global Market on such vesting date or, if such vesting date is not a
trading day, on the trading date immediately prior to such vesting date equal to the amount of the
Company’s tax withholding obligation in connection with the vesting of such Unvested Shares. Such
delivery of Unvested Shares to the Company shall be deemed to happen automatically, without any
action required on the part of the Participant, and the Company is hereby authorized to take such
actions as are necessary to effect such delivery.

          (b) The Participant has reviewed with the Participant’s own tax advisors the federal, state,
local and foreign tax consequences of this investment and the transactions contemplated by this
Agreement. The Participant is relying solely on such advisors and not on any statements or
representations of the Company or any of its agents. The Participant understands that the
Participant (and not the Company) shall be responsible for the Participant’s own tax liability that
may arise as a result of this investment or the transactions contemplated by this Agreement. The
Participant acknowledges that he or she has been informed of the availability of making an election
under Section 83(b) of the Internal Revenue Code, as amended, with respect to the issuance of the
Shares and that the Participant has agreed not to file a Section 83(b) election.

     7. Miscellaneous.

          (a) No Rights to Employment. The Participant acknowledges and agrees that the vesting
of the Shares pursuant to Section 2 hereof is earned only by continuing service as an employee at
the will of the Company (not through the act of being hired or purchasing Shares hereunder). The
Participant further acknowledges and agrees that the transactions contemplated hereunder and the
Vesting Requirements set forth herein do not constitute an express or implied promise of continued
engagement as an employee for the vesting period, for any period, or at all.

          (b) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

          (c) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company.

 

 

          (d) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and the Participant and their respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 3 of this Agreement.

          (e) Notice. All notices required or permitted hereunder shall be in writing and
deemed effectively given upon personal delivery, facsimile delivery or delivery by overnight
courier, addressed to the other party hereto at the address shown beneath his or its respective
signature to this Agreement, or at such other address or addresses as either party shall designate
to the other in accordance with this Section 7(e).

          (f) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

          (g) Entire Agreement. This Agreement and the Plan constitute the entire agreement
between the parties, and supersedes all prior agreements and understandings, relating to the
subject matter of this Agreement.

          (h) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.

          (i) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the State of Delaware without regard to any applicable
conflicts of laws.

          (j) Participant’s Acknowledgments. The Participant acknowledges that he or she: (i)
has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution
of this Agreement by legal counsel of the Participant’s own choice or has voluntarily declined to
seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully
aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of
Wilmer Cutler Pickering Hale and Dorr, LLP, is acting as counsel to the Company in connection with
the transactions contemplated by the Agreement, and is not acting as counsel for the Participant.

 

 

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

	 	 	 	 	 	 	 

	 	 	THE MEDICINES COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Glenn P. Sblendorio 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Glenn P. Sblendorio	 	 
	 

	 	Title:
	 	Executive Vice President and

Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 	 
	 
	 	 
	 
	 	/s/ Clive A. Meanwell	 	 
	 	 	 	 	 
	 

	 	 	 	Clive A. Meanwellexv10w54

Exhibit 10.54

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions.

 

SECOND AMENDED AND RESTATED DISTRIBUTION AGREEMENT

     This Second Amended and Restated Distribution Agreement (together with its schedules and
exhibits, the “Agreement”) is entered into by The Medicines Company, a Delaware corporation with
offices at 8 Sylvan Way, Parsippany, NJ 07054 (“MDCO”), and Integrated Commercialization Solutions,
Inc., a California corporation with offices at 3101 Gaylord Parkway, Frisco, TX 75034 (the
“Distributor”), effective as of October 1, 2010 (the “Effective Date”).

Recitals

     WHEREAS, MDCO and Distributor are parties to an Amended and Restated Commercial Outsourcing
Services Agreement executed simultaneously with this Agreement (the “3PL Agreement”), under which
Distributor provides distribution and other account management services for MDCO with respect to
certain pharmaceutical Products (as defined in Section 1.8 below); and

     WHEREAS, the Parties are also parties to that certain Amended and Restated Distribution
Agreement dated February 28, 2007, as amended by the First Amendment thereto dated November 7,
2007, the Second Amendment thereto dated October 1, 2008, and the Third Amendment thereto dated
August 12, 2009 (as amended, the “Existing Agreement”), under which Distributor purchases the
Products from MDCO and provides distribution and other related services to MDCO; and

     WHEREAS, the Parties desire to amend and restate the Existing Agreement in its entirety
effective as of the Effective Date.

     NOW, THEREFORE, in consideration of the above recitals, the terms and conditions hereinafter
set forth, and other good and valuable consideration, the receipt and sufficiency of which are
acknowledged, and for their mutual reliance, the Parties agree as follows:

	1.0	 	DEFINITIONS

	 	1.1	 	“Applicable Law” means all applicable ordinances, rules, regulations,
laws, requirements and court orders of any kind whatsoever of any United States or
state government regulatory authority as may be amended from time to time.
	 
	 	1.2	 	“Authorized Distributor of Record” means a licensed pharmaceutical
distributor or wholesaler formally authorized in writing by MDCO to purchase, market,
promote, sell, and distribute Products.
	 
	 	1.3	 	“Bill-To Customer(s)” means (i) under the Drop Ship Channel, the
Wholesalers, and (ii) under the Direct Channel, the End-User.
	 
	 	1.4	 	“Continuing Guaranty” means the Continuing Guaranty and
Indemnification Agreement dated October 8, 2002, executed and delivered by MDCO in
favor of Distributor’s parent corporation, AmerisourceBergen Corporation, a copy of
which is attached hereto as Schedule B.
	 
	 	1.5	 	“Direct Channel” shall be the method of distribution of the Products
under which the End-User orders the Products directly from the Distributor and the
Distributor ships and sells the Products to, and invoices, the End-User directly.
	 
	 	1.6	 	“Distributor Indemnitees” has the meaning set forth in Section 11.1.

 

 

	 	1.7	 	“Drop Ship Channel” shall be the method of distribution of the Products
under which the End-User orders the Products from a Wholesaler and the Distributor
sells the Products to, and invoices, the Wholesaler and ships the Products to the
End-User.
	 
	 	1.8	 	“Parties” means MDCO and Distributor together, and “Party” means either
of them as the context requires.
	 
	 	1.9	 	“Product(s)” means the pharmaceutical products described in the
Commercial Price List attached hereto as Exhibit B, which may be amended from time to
time by MDCO.
	 
	 	1.10	 	“Records” has the meaning set forth in Section 7.
	 
	 	1.11	 	“End-Users” means the hospitals or other acute care facilities which
purchase Product from Distributor and are the end users of the Products.
	 
	 	1.12	 	“Territory” means the United States; the Commonwealth of Puerto Rico;
and the territories of Guam, American Samoa, and the Virgin Islands.
	 
	 	1.13	 	“MDCO Contracts” means those contracts between MDCO and certain
End-Users, group purchasing organizations that contract on behalf of their members to
purchase the Products, and MDCO’s government-managed or regulated pricing arrangements.
	 
	 	1.14	 	“MDCO Indemnitees” has the meaning set forth in Section 10.2.
	 
	 	1.15	 	“Wholesaler” means those customers identified in Section 8 in the
Operating Guidelines attached hereto as Exhibit A, which may be amended by mutual
written agreement signed by the Parties.
	 
	 	1.16	 	“Term” has the meaning set forth in Section 12.2.

	2.0	 	APPOINTMENT AS AUTHORIZED DISTRIBUTOR OF RECORD

	 	2.1	 	Primary Distributor. MDCO hereby appoints Distributor, and Distributor
hereby accepts appointment, as the primary Authorized Distributor of Record for the
Products in the Territory during the Term. During the Term, so long as Distributor is
not in default under this Agreement, MDCO shall not sell Products to any person or
entity in the Territory, other than Distributor.
	 
	 	2.2	 	Other ADRs. Notwithstanding anything to the contrary in Section 2.1,
MDCO may appoint other distributors or wholesalers as Authorized Distributors of Record
for the purpose of acknowledging a business relationship with such named distributors
or wholesalers, purchasing the Products from the Distributor and selling the Products
to End-Users within the Territory.

	3.0	 	DISTRIBUTION SERVICES AND OBLIGATIONS OF DISTRIBUTOR

	 	3.1	 	Product Ordering. Distributor will place orders for Products with MDCO
or its designee by EDI or by faxing (866) 860-3566 or such other number as MDCO may
designate. Distributor will place such orders on Monday of each week or the following
business day if Monday is a holiday. Distributor will place orders for such quantities
of Product as are necessary to maintain an appropriate level of inventory based on End
Users’ historical

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	 	 	 	purchase volumes. Any purchase order not rejected in whole or in part by MDCO
within two (2) business days after receipt will be deemed accepted.
	 
	 	3.2	 	Inspection, Storage, and Handling of Products.

	 	3.2.1	 	Distributor shall examine Product shipments upon delivery and
shall notify MDCO (a) no later than fifteen (15) days following receipt of
Product with defects reasonably discoverable upon visual inspection without
unloading individual shipping units; or (b) for defects not reasonably
discoverable by visual inspection, no later than fifteen (15) days after
Distributor learns or is notified of such defect. Along with notice of any
defects, Distributor shall furnish to MDCO a written description of the nature
of the defect. Upon receipt of notice of any defect in accordance with this
Section 3.2.1, MDCO, at its option, shall issue a return authorization and
replace any defective Product unit or issue Distributor a credit in the full
amount of the purchase price of the Product. Distributor will, at MDCO’s
request and expense, follow MDCO’s instructions to return to MDCO or MDCO’s
third party disposal company any Product unit delivered to Distributor that
contains a defect. Distributor shall reasonably cooperate with MDCO in
investigating the cause of any defect in a Product unit.
	 
	 	3.2.2	 	Distributor agrees to store the Products, at all times, in
accordance with Exhibit A and with the storage requirements set forth in the
current approved product labeling for the Products. Distributor will store the
Products at its distributor centers located at 345 International Boulevard,
Brooks, KY 40109 and/or 5360 Capital Court, Reno, NV 89502. Distributor will
not store Products at any other facility without notifying MDCO and obtaining
MDCO’s prior written approval.

	 	3.3	 	Product Distribution.

	 	3.3.1	 	Distributor will use commercially reasonable efforts to
promote and to distribute the Product in the Territory, in accordance with the
standards and procedures set forth in Exhibit A. Such efforts will include:

	 	(a)	 	maintaining, promoting and distributing current
price list
	 
	 	(b)	 	providing a dedicated customer service team;
	 
	 	(c)	 	setting up accounts for all Bill-To Customers;
	 
	 	(d)	 	approving or denying business applications for
potential customers;
	 
	 	(e)	 	taking and processing orders on a daily basis
(Monday — Friday only);
	 
	 	(f)	 	validating active DEA licenses for End-Users to
whom Products are being shipped; and
	 
	 	(g)	 	picking, packing and arranging for delivery of
Products on the next business day via Next Day Saver for orders placed
prior to Distributor’s normal order cut-off time. MDCO to reimburse
Distributor the cost difference for upgrading from Ground to Next Day
Saver Freight in compliance with Exhibit D, Fee Schedule.

	 	3.3.2	 	Distributor will comply with Exhibit A, Operating Guidelines,
in all

respects in its performance of the distribution services.
	 
	 	3.3.3	 	Distributor will sell Products to Bill-To Customers upon
approval of Distributor’s then-current business application.

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	 	3.3.4	 	Distributor acknowledges that it has current commercial
agreements with the Wholesalers identified in Exhibit A, Section 8.2 and will
not sell or ship Product to pharmaceutical distributors or wholesalers not
designated as ADR by MDCO, or to retail (non-acute care) pharmacies.
	 
	 	3.3.5	 	End-Users may purchase the Products through the Direct Channel
or the Drop Ship Channel. Under the Direct Channel, the End-User will order
and purchase Products directly from Distributor and will be both the Bill-To
Customer and the End-User. Under the Drop Ship Channel, the End-User will
order and purchase Products from a Wholesaler and the Distributor will ship
Products only to the End-User that purchased such Products and will sell
Products to and invoice the Wholesaler Bill-To Customer. Distributor will be
responsible for ensuring that each End-User to whom the Products are shipped by
Distributor will be, at the time of shipment, eligible under Applicable Law to
receive such shipments, and that the Drop-Ship order originated with the
Wholesaler. End-Users shall not be allowed to place Drop-Ship orders except
through their respective Wholesaler mechanism.
	 
	 	3.3.6	 	Distributor will have sole responsibility for determining the
prices at which it sells the Products to its customers; provided, however, that
such prices will not exceed MDCO’s wholesale acquisition cost (WAC), as
determined at the time of sale to Bill-To Customer. Distributor will maintain,
publish and promote current price list.
	 
	 	3.3.7	 	In the event of a shortage of the Products, Distributor will
allocate available supplies of Products among its End-Users in a
commercially-reasonable manner in accordance with such End-Users’ utilization
of the Products during the preceding twelve-month period.

	 	3.4	 	Distributor Personnel. Distributor will provide a dedicated team of
representatives to deal with customers. Distributor will be responsible for ensuring
that all personnel dealing with customers are properly trained to perform their duties
in accordance with Applicable Law. MDCO and Distributor will work together to develop
an orientation program and training materials for Distributor personnel to use upon
request from Distributor.
	 
	 	3.5	 	Maintenance and Transfer of Data. Distributor will maintain current
and accurate records for the sale and distribution of Products. Distributor will make
available to MDCO detailed Products activity (inventory), Product transfer
(sales/returns), order and shipment data (“Data”) as described in Exhibit C. MDCO will
compensate Distributor according to the fee schedule set forth in Exhibit D for
additional Data not described in Exhibit A or Exhibit C. Distributor will not provide
Data to any third party without MDCO’s prior written approval, except that Distributor
may provide Data in accordance with Applicable Law to First DataBank, Wolters Kluwer,
IMS Health, Inc., NDCHealth Corporation or other third party data aggregators without
the approval of MDCO.
	 
	 	3.6	 	MDCO Contracts. Distributor will recognize and administer MDCO
Contracts, under which MDCO and certain End-Users and/or group purchasing organizations
have established prices and may purchase the Product, as well as MDCO’s
government-managed or regulated pricing arrangements, subject to the continued validity
of MDCO Contracts in accordance with Applicable Law, including without limitation the
Federal Anti-kickback Statute, 42 U.S.§ 1320a-7b. Distributor will administer MDCO
Contracts

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	 	 	 	under this Agreement in accordance with the chargeback procedures set forth in
Exhibits A and E.
	 
	 	3.7	 	Disaster Recovery. Distributor will maintain a disaster recovery plan
for its warehouse premises, which will include, at a minimum, a back-up warehouse
facility, and plans for maintaining customer services, Product ordering, Data
maintenance and transfer, and other systems capabilities.
	 
	 	3.8	 	Returns.

3.8.1 Distributor will have the right to return to MDCO and receive credit for (a)
Products dated less than 6 months before, and less than 12 months after stated
expiration date, and (b) damaged or defective products, without incurring a MDCO
restocking fee/charge. MDCO will not accept returns of the following:

	 	a)	 	Product not in the original packaging, product whose
contents have been adulterated, or which shows signs of tampering.
	 
	 	b)	 	Product obtained in violation of applicable
regulations.
	 
	 	c)	 	Product damaged or made unsalable due to improper storage, handling or
shipping by customer and/or distributor.
	 
	 	d)	 	Product involved in a fire sale, sacrifice or
bankruptcy sale, or which has been acquired in other than normal channels
of trade distribution.
	 
	 	e)	 	Product sold on a non-returnable basis.
	 
	 	f)	 	Product damaged by fire or water and/or other insurable hazards.
	 
	 	g)	 	Product more than 12 months beyond expiration.

3.8.2 Distributor will notify MDCO of its intent to return Products in order to
obtain return authorization from MDCO.

3.8.3 In the event that MDCO changes its return policy in a manner limiting returns,
Distributor may return Products in accordance with the terms of MDCO’s return policy
in effect at the time Distributor purchased the Products.

	4.0	 	MDCO RESPONSIBILITIES

	 	4.1	 	Shipments; Title and Risk of Loss. Once Distributor establishes
third-party logistics services in accordance with the 3PL agreement between the Parties
in Reno, NV, there shall be no charge to MDCO for Distributor transferring Products
from its 3PL facility to its distribution centers. Title to and risk of loss to each
order of Product shipped to Distributor under this Agreement shall pass to Distributor
upon receipt of Product at the distribution center.
	 
	 	4.2	 	Invoicing. MDCO will invoice Distributor for Products on the same day
that Product orders are shipped to Distributor and will use its commercially reasonable
efforts to fill Distributor’s Product orders within two (2) business days of order
receipt. Distributor shall be permitted to cancel any order of Product that has not
been delivered within two (2) business days of a purchase order accepted by MDCO.

	5.0	 	PAYMENT

	 	5.1	 	Payment by Distributor for Product Orders. Distributor agrees to pay
for each Product unit based on the purchase price schedule in Exhibit B, which may be
amended from time

5

 

	 	 	 	to time at MDCO’s sole discretion. Distributor’s terms of payment shall be (a)
[**]. Distributor shall be entitled to four (4) float days for all remit payments
by electronic fund transfers to the MDCO lockbox account.

	 	 	 
	Account Name:	 	The Medicines Company
	   
	Bank Name:

	 	JP Morgan Chase Bank

New York, NY 01004
	Account No.:

	 	[**]
	FED ABA No.:

	 	[**]

	 	5.2	 	Penalties. Distributor will be liable for late fees equal to [**]% per
month (or any portion thereof) on all amounts not paid within forty-five (45) days of
the date of billing, except for any portion of any bill that is the subject of any
dispute raised by Distributor in good faith. If any dispute is resolved in favor of
MDCO, Distributor will pay the applicable late fee on such amount from the original due
date.
	 
	 	5.3	 	Payment by MDCO for Distribution Services. Distributor will submit on
a monthly basis an invoice for its distribution services in accordance with the fee
schedule attached as Exhibit D. This amount represents fair market value for the
services performed by Distributor under this Agreement and was negotiated in an
arms-length transaction. Terms of payment are net 45 days. MDCO will be liable for
late fees equal to [**]% per month (or any portion thereof) on all amounts not paid
within forty-five (45) days of the date of billing, except for any portion of any bill
that is the subject of any dispute raised by MDCO in good faith. If any dispute is
resolved in favor of Distributor, MDCO will pay the applicable late fee on such amount
from the original due date.
	 
	 	5.4	 	Chargeback Reconciliation Payment. Distributor will submit chargeback
data in accordance with Exhibits A and C for reconciliation and reimbursement by MDCO.
Distributor will submit invoices for chargebacks on a monthly basis, and MDCO will pay
such invoices in full within 45 days of the date an invoice is received. With respect
to sales of Product under MDCO Contracts, Distributor shall submit invoices to MDCO,
and MDCO shall pay such invoices, equal to the difference between (a) the current WAC
at the time of the sale under the applicable MDCO Contract, and (b) the sale price
under the applicable MDCO Contract. Similarly, MDCO may request Distributor, from time
to time, to issue credits related to certain patient discounts, in which case
Distributor shall submit invoices to MDCO for payment of the discounted amount, and
MDCO shall pay such invoices, in the same manner as invoices are submitted and paid
with respect to MDCO Contracts. Terms of payment for chargeback obligations are net 45
days. MDCO will be liable for late fees equal to [**]% per month (or any portion
thereof) on all amounts not paid within 45 days of the date of billing, except for any
portion of any bill that is the subject of any dispute raised by MDCO in good faith.
If any dispute is resolved in favor of Distributor, MDCO will pay the applicable late
fee on such amount from the original due date.

	6.0	 	REGULATORY MATTERS

	 	6.1	 	Food and Drug Administration Clearance. MDCO represents and warrants
that during the Term (a) the Products have been approved by the United States Food and
Drug Administration (“FDA”) to be marketed in the Territory; (b) all federal and state
approvals and permits for the manufacture, importation, design, testing, inspection,
labeling, and instructions for use, sale and distribution of the Products in the
Territory have been obtained; and (c) the Products will be the subject of a duly
approved NDA or ANDA (New Drug Application or Abbreviated NDA) and may be legally
transported or

6

 

	 	 	 	sold under Applicable Law. MDCO will be solely responsible for, and shall comply
with, all applicable federal and state laws governing the regulation of the
manufacture, importation, design, testing, inspection, labeling, sale, and
instructions for use of the Products in the Territory. Distributor represents that
it has obtained all federal and state approvals and permits to perform its
obligations under this Agreement.
	 
	 	6.2	 	Inspections.

	 	6.2.1	 	Distributor agrees to cooperate with any inspection of Product
shipments conducted by a governmental agency.
	 
	 	6.2.2	 	Distributor shall notify MDCO promptly of any inspection by
any federal, state or local regulatory or governmental representative
concerning the Product and shall provide MDCO with a summary of the results of
such inspection and such actions, if any, taken to remedy conditions cited in
such inspections.

	 	6.3	 	Complaints, Adverse Reactions, Recalls.

	 	6.3.1	 	Distributor will inform MDCO promptly of any information concerning complaints
involving the Products or adverse drug experiences (as defined in 21 CFR § 314.80),
injury, toxicity, sensitivity reaction associated with the clinical use of the
Products by any End-User or other third party . If Distributor receives such
information, Distributor shall immediately transfer the call to the locations and
numbers provided by MDCO; and report the adverse experience to MDCO within 24 hours.
Before making the call, Distributor shall record the name and contact details of
the reporter, the name of the physician and contact information, the patient
identifier, a description of the adverse experience, and the name of the product at
issue.
	 
	 	6.3.2	 	If there is a recall, withdrawal or replacement of the
Products imposed by MDCO or the FDA (“Recall”), Distributor will stop shipping
recalled Product lots after Distributor receives written notification of such
Recall. MDCO will notify Distributor of any proposed Recall as soon as
possible and, in any event, will do so within forty-eight (48) hours of
initiating a Recall. Distributor shall cooperate fully in any such Recall.
	 
	 	6.3.3	 	MDCO will reimburse Distributor for any documented reasonable
costs or expenses that Distributor actually may incur due to a Recall. For all
Products held by Distributor, such Recall costs and expenses include MDCO’s
reimbursement to Distributor of its original acquisition cost. Each Party will
use best efforts to minimize Recall costs and expenses. Distributor shall
prepare a detailed invoice of such costs or expenses, which invoice shall be
paid by MDCO within thirty (30) days of its receipt of such invoice. MDCO will
be liable for late fees equal to [**]% per month (or any portion thereof) on
all amounts not paid within thirty (30) days of the date of billing, except for
any portion of any bill that is the subject of any dispute raised by MDCO in
good faith. If any dispute is resolved in favor of Distributor, MDCO will pay
the applicable late fee on such amount from the original due date.

	 	6.4	 	Compliance with Law. Each Party shall at all times during the term of
this Agreement comply with all Applicable Laws, including, without limitation, the
Federal Anti-kickback Statute, 42 U.S.C. § 1320(a)-7b and the corresponding
regulations, the Federal

7

 

	 	 	 	Self-Referral Law, 42 U.S.C. § 1395nn, and the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003.
	 
	 	6.5	 	Compliance with Fee, Rebate and Discount Laws. Distributor shall
disclose all fees and/or discounts required to be disclosed under any state or federal
program that provides cost or charge based reimbursement to Distributor for the
Products provided under this Agreement as may be required by Applicable Laws.
Distributor further represents and warrants that it, and any of its affiliates who
perform services under this Agreement, are in compliance with, and during the Term
covenants that it and its affiliates shall remain in compliance with, any federal or
state laws applicable to the fees, rebates or discounts paid by MDCO pursuant to this
Agreement, including any laws requiring the proper disclosure and/or reporting of fees,
rebates or discounts.
	 
	 	6.6	 	[**]. The Parties agree that a modification of Exhibit B under this Section
6.6 will be commercially equivalent to Exhibit B as of the Effective Date of this
Agreement. If the Parties are unable to agree to a modification of the terms of
Exhibit B, the Agreement will terminate pursuant to Section 12.2.2(d).

	7.0	 	RECORDS AND ACCOUNTING
	 
	 	 	During the Term of this Agreement and for seven 10 years thereafter,
or such longer period as may be required by Applicable Law,
Distributor shall maintain accurate records as required to meet
Applicable Law, as well as all records, data and documentation
required to verify the accuracy of the information underlying any Data
described in Section 3.5 (“Records”). The Records shall be maintained
in a secure area reasonably protected from fire, theft, alteration,
and destruction. For the same period, except as otherwise required by
any such laws or regulations, Distributor shall provide MDCO, upon
reasonable advance notice and during reasonable business hours, access
to any requested documentation related to the performance of this
Agreement or to verify the accuracy of Data. Any access to Records
shall be conducted at MDCO’s expense and in a manner that does not
unreasonably interfere with Distributor’s normal business operations.
	 
	8.0	 	CONFIDENTIALITY
	 
	 	 	The parties have previously executed a written Confidential Disclosure Agreement
(“Confidentiality Agreement”) dated March 27, 2000, attached as Schedule A. 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.
	 
	9.0	 	GENERAL WARRANTIES

	 	9.1	 	MDCO. In addition to and not in lieu of the Continuing Guaranty, MDCO
warrants that upon delivery to Distributor: (a) the Products will be in compliance with
Applicable Laws and all regulatory requirements of the FDA; (b) no Products will be
adulterated, misbranded or otherwise prohibited within the meaning of Sections 501 and
502 of the Food Drug and Cosmetics Act (“FDCA”), or within the meaning of other
Applicable Law; (c) the Products will not be merchandise which may not be introduced
into interstate commerce pursuant to the requirements of Sections 404, 505, 514, 515,
516 or 520 of the FDCA; (d) the Products will be manufactured in accordance with
current FDA Good Manufacturing Practices as required by 21 C.F.R. §§ 210 and 820; (e)
the Products will be free from material defects in materials and workmanship; and (f)
the Products will not violate or infringe upon the intellectual property rights of any
third parties.

8

 

	 	9.2	 	Distributor. Distributor warrants that (a) it possesses and will
maintain all federal, state and territory licenses and permits necessary to its
performance of this Agreement and agrees to comply, in all material respects, with all
Applicable Laws; and (b) it has not been debarred, nor is it subject to a pending
debarment proceeding, and that it shall not use in any capacity in connection with
performance of this Agreement any person who has been debarred pursuant to section 306
of the FDCA, 21 U.S.C. § 335a, or who is subject to a pending debarment proceeding.
Distributor agrees to inform MDCO promptly if Distributor or any of its employees or
agents engaged in the performance of this Agreement is debarred or is the subject of a
pending debarment proceeding. Notwithstanding anything in this Agreement to the
contrary, if Distributor fails to discover that an employee or agent used in connection
with the performance of this Agreement is the subject of a pending debarment
proceeding, despite its good faith efforts to do so, MDCO’s sole and exclusive remedy
will be to terminate the Agreement.

	10.0	 	INDEMNIFICATION

	 	10.1	 	MDCO. In addition to the indemnification obligations set forth in the
Continuing Guaranty, MDCO will indemnify, defend, and hold harmless Distributor, its
affiliates, parents, subsidiaries, directors, officers, agents and employees
(collectively, “Distributor Indemnitees”) from and against, and reimburse Distributor
Indemnitees for, any and all claims, demands, actions, causes of action, losses,
judgments, damages, costs and expenses (including, but not limited to, reasonable
attorneys’ fees, court costs and costs of settlement) (“Claims”) against Distributor
Indemnitees to the extent arising out of: (a) MDCO’s manufacture of the Products; (b)
the death of, or bodily injury to, any person, or property damage resulting from the
use of the Products or any defect in its design, workmanship or manufacture; (c) any
recall or withdrawal of the Product, other than as a result of Distributor’s negligence
or willful misconduct; (d) MDCO’s violation of any Applicable Law; (e) any breach by
MDCO of any of its representations, warranties, covenants or agreements in this
Agreement; or (f) any negligent act or omission of MDCO. The foregoing indemnification
will not apply to the extent any Claims result from the negligence or willful
misconduct of Distributor.
	 
	 	10.2	 	Distributor. Distributor will indemnify, defend, and hold harmless
MDCO, its affiliates, parents, subsidiaries, directors, officers, agents and employees
(collectively “MDCO Indemnitees”) from and against, and reimburse MDCO Indemnitees for,
any and all Claims against MDCO Indemnitees to the extent arising out of: (a) the death
of, or bodily injury to, any person or property damage resulting from the use of the
Products that is caused by Distributor’s negligence or willful misconduct; (b) any
recall or withdrawal of the Products as a result of Distributor’s negligence or willful
misconduct; (c) Distributor’s violation of any Applicable Law; (d) any breach by
Distributor of any of its representations, warranties, covenants or agreements in this
Agreement or (e) any negligent act or omission of Distributor. The foregoing
indemnification will not apply to the extent any Claims result from the negligence or
willful misconduct of MDCO.
	 
	 	10.3	 	Notice. Each Party agrees to notify the other Party within thirty (30)
days of receipt of any Claims made for which the other Party might be liable under
Section 10.1 or 10.2, as the case may be; provided, however, any failure to do so will
not relieve an indemnifying Party of any liability it may have to an indemnified Party
except to the extent such liability was caused by such failure. The indemnifying Party
shall have the right, but not

9

 

	 	 	 	the obligation to defend, negotiate and settle such Claims; provided; however, that
the indemnified Party shall be entitled to participate in the defense of such matter
and to employ counsel at its expense to assist therein. The Party seeking
indemnification shall provide the indemnifying Party with such information and
assistance as the indemnifying Party may reasonably request at the expense of the
indemnifying Party.
	 
	 	10.4	 	Settlement. Neither Party shall be responsible or bound by any
settlement of any Claim or suit made without its prior written consent;
provided, however, that the indemnified Party may not unreasonably
withhold or delay such consent. An indemnified Party may not reasonably withhold its
consent if a settlement admits no wrongdoing on its behalf and contains an absolute
waiver of liability in its favor and each Party has acted in compliance with the
requirements of Section 10.3.
	 
	 	10.5	 	LIMITATION. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
AGREEMENT, NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY FOR ANY CONSEQUENTIAL,
INCIDENTAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES OF ANY KIND OR NATURE WHATSOEVER,
ARISING OUT OF OR IN CONNECTION WITH A BREACH OF THIS AGREEMENT, HOWEVER CAUSED.

	11.0	 	INSURANCE

	 	11.1	 	Requirements. Distributor will maintain in effect during the Term a
commercial general liability occurrence-based policy covering all obligations under or
related to this Agreement in a minimum annual amount of [**] dollars ($[**]) per
occurrence, except for fire which shall only be [**] dollars ($[**]) per occurrence,
and [**] dollars ($[**]) in the aggregate.MDCO will maintain in effect during the Term
of this Agreement insurance as set forth in the Continuing Guaranty.
	 
	 	11.2	 	Evidence of Insurance. Upon either Party’s request, but no more
frequently than once every twelve (12) months, the other Party shall provide
satisfactory evidence of insurance coverage satisfying the requirements of Section 11.1
above.
	 
	 	11.3	 	Notice of Changes. Each Party will endeavor to provide the other party
with thirty (30) days advance notice of any cancellations or material changes to its
insurance coverage.

	12.0	 	TERM AND TERMINATION

	 	12.1	 	Term. This Agreement shall commence upon the Effective Date and will
continue until September 30, 2013, unless sooner terminated in accordance with the
terms of this Agreement. Thereafter, this Agreement shall automatically renew for
subsequent terms of one additional year, unless either Party provides the other Party
with written notice of its intent not to renew this Agreement at least 90 days before
expiration of the current Term. The initial term and all renewal terms are
collectively referred to as the “Term”.
	 
	 	12.2	 	Termination. Either Party may terminate during the Term the entire
Agreement or on an individual Product basis if more than one Product is being
distributed under this Agreement, only as follows:

	 	12.2.1	 	Without Cause. This Agreement may be terminated by either Party
without cause provided that (i) MDCO provides one hundred eighty (180)days
written notice to Distributor or (ii) the Distributor provides one hundred
eighty (180) days written notice to MDCO terminate.

10

 

	 	12.2.2	 	With Cause. This Agreement may be terminated by either Party upon
thirty (30) days’ prior written notice to the other Party for the following
for-cause events:

	 	(a)	 	If the other Party defaults in the performance
of any of its material obligations under this Agreement and does not
cure that default within the thirty (30) day notice period;
	 
	 	(b)	 	If any existing federal or state law or
regulation is changed, if any new law or regulation is promulgated or
if there is made any new or changed interpretation of any law or
regulation such that the effect thereof in connection with this
Agreement would materially affect either Party’s business, pricing
policies or the manner in which it does business (including among such
effects a requirement that MDCO give to others any benefit given to
Distributor under this Agreement) and the Parties are, after good faith
efforts, unable to negotiate a modification to this Agreement that will
be commercially equivalent to the terms of this Agreement as of the
Effective Date;
	 
	 	(c)	 	If any performance under this Agreement by the
other Party fails, after notice and a reasonable opportunity to cure,
to comply in all material respects with any Applicable Law, including
the laws governing the testing, approval, sale, storage, packaging or
distribution of the Product or the Anti-kickback Law as may be amended,
supplemented or modified; or
	 
	 	(d)	 	If the Parties are unable to negotiate in good
faith a modification of this Agreement resulting from the establishment
of a new “best price” or “Average Sales Price” for a Product, in
accordance with Section 6.6.

	 	12.3	 	Termination upon Certain Events. The Term may be
terminated immediately by a Party, upon written notice to the other Party, if
the other Party (a) makes a general assignment for the benefit of creditors;
(b) files a petition in bankruptcy; (c) has a receiver, custodian or trustee
appointed with respect to a substantial part of its property unless the
proceeding and the person appointed are dismissed within thirty (30) days; (d)
is insolvent within the meaning of Uniform Commercial Code Section 1-201 or
fails generally to pay its debts as they become due within the meaning of
Section 303 of the Bankruptcy Code, as amended; (e) has an order for relief
entered against it in a Bankruptcy Code proceeding; (f) has a proceeding
commenced against it which will substantially impair its ability to perform
hereunder; (g) certifies in writing 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); or (h) except as provided in
Section 15.6, undergoes a change of ownership or control, or is merged with or
into another entity.
	 
	 	12.4	 	Remedies. Each of the Parties to this Agreement shall
be entitled to enforce its rights under this Agreement to recover damages and
costs (including reasonable attorneys’ fees) caused by any breach of any
provision of this Agreement and to exercise all other rights existing in its
favor, regardless of any termination of this Agreement by such breaching Party.

11

 

	13.0	 	JOINT PUBLICITY
	 
	 	 	If either Party wishes to make a public announcement concerning this
Agreement or the relationship established hereunder and such
disclosure mentions the other Party by name or description or
incorporates that Party’s trademarks, service marks, logos or other
similar marks, the Party seeking to make the public announcement will
provide other Party \ with an advance copy of the disclosure and the
other Party shall have five (5) business days within which to approve
or disapprove such use of its name or description (including mention
of the name of a Product). Approval shall not be unreasonably
withheld by either Party. Absent approval, no public disclosure
shall use the name or marks of or otherwise describe such Party
except to the extent required by Applicable Law, or to the extent
that the description of the other Party is limited to public
information about the availability of the Product. The foregoing
shall not prohibit Distributor’s use of MDCO’s names or marks in
connection with the performance of the services in a manner
consistent with this Agreement. All pricing and payment terms in
this Agreement are confidential. Except as set forth in Section 9.0
of this Agreement, a Party will remove such information (or request
confidential treatment) if it discloses this Agreement for any
reason, including in a Securities Exchange Commission filing.
Notwithstanding the foregoing, Distributor may publicly disclose that
it is an authorized distributor of record for the Product, and MDCO
shall comply with all Applicable Laws requiring it to publicly
disclose that Distributor is an authorized distributor of record for
the Product.
	 
	14.0	 	ASSIGNMENT
	 
	 	 	This Agreement may not be assigned or otherwise transferred by either Party without the
prior written consent of the other Party, such consent not to be unreasonably withheld or
delayed, except that Distributor may assign this Agreement or its rights and obligations
under this Agreement to any of its corporate affiliates with notice to MDCO and provided
that the assignee assumes and agrees to be bound by the terms of this Agreement and is
capable of performing its obligations under this Agreement. The foregoing notwithstanding,
MDCO may, without such consent, but upon written notice to Distributor, assign this
Agreement or its rights and obligations hereunder in connection with the transfer or sale of
all or substantially all of its business, or in the event of a merger, consolidation, change
in control or similar transaction, provided that (i) the assignee is financially capable of
performing its obligations under this Agreement, (ii) the assignee is not a competitor of
Distributor or any of its affiliates, (iii) the assignee executes and delivers to
Distributor a Continuing Guaranty and Indemnification Agreement in form and substance
reasonably satisfactory to Distributor, and (iv) MDCO remains subject to the Continuing
Guaranty with respect to Product sold before the assignment. Any permitted assignee shall
assume the rights and obligations of its assignor under this Agreement.
	 
	15.0	 	MISCELLANEOUS

	 	15.1	 	Choice of Law. This Agreement shall be governed by, interpreted and
construed under the laws of the State of New York, without regard to any choice of law
principle that would dictate the application of the law of another jurisdiction.
	 
	 	15.2	 	Waiver. No waiver of any default under this Agreement by either Party
or any failure to enforce any rights under this Agreement shall be deemed to constitute
a waiver of any subsequent default with respect to the same or any other provision of
this Agreement. No waiver shall be effective unless made in writing with specific
reference to the relevant provision(s) of this Agreement and signed by a duly
authorized representative of the Party granting the waiver.

12

 

	 	15.3	 	Notice. Any notice, request or other document to be given under this
Agreement to a Party shall be effective when received and shall be given in writing and
delivered in person or sent by overnight courier or registered or certified mail,
return receipt requested, as follows:

	 	 	 

	If to MDCO:

	 	The Medicines Company
	 

	 	8 Sylvan Way
	 

	 	Parsippany, NJ 07054
	 

	 	ATTN: Sr. Director, Global Distribution & Customer Servoce
	 
	 	 
	With a copy to:

	 	The Medicines Company
	 

	 	8 Sylvan Way
	 

	 	Parsippany, NJ 07054
	 

	 	ATTN: General Counsel
	 
	 	 
	If to Distributor:

	 	Integrated Commercialization Solutions, Inc.
	 

	 	3101 Gaylord Parkway
	 

	 	Frisco, TX 75034
	 

	 	ATTN: General Manager
	 
	 	 
	With a copy to:

	 	AmerisourceBergen Specialty Group, Inc.
	 

	 	3101 Gaylord Parkway
	 

	 	Frisco, TX 75034
	 

	 	ATTN: Group Counsel

	 	15.4	 	Amendment. Neither this Agreement nor any of its terms may be
terminated, amended, supplemented, waived or modified, except by an instrument in
writing signed by each Party.
	 
	 	15.5	 	Survival of Provisions. Sections 7, 8, 9, 10, 11, 13, and any other
provision which, by its terms or context, the Parties intended to survive, shall
survive the expiration or other termination of this Agreement.
	 
	 	15.6	 	Relationship of Parties. Distributor’s relationship with MDCO under
this Agreement shall be that of independent contractor, and neither Party shall be
considered the agent, partner or employee of or a joint venture with the other Party,
in its performance of all duties under this Agreement.
	 
	 	15.7	 	Rights; Cumulative Remedies. Nothing contained in this Agreement shall
be construed as prohibiting either Party from exercising any rights that may be
available to it under law, equity or contract. Except as expressly provided in this
Agreement, and to the extent permitted by law, any remedies described in this Agreement
are cumulative and not alternative to any other remedies available at law or in equity.
	 
	 	15.8	 	Severability. In the event that any one or more of the provisions
contained in this Agreement are for any reason held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not
affect any other provision of this Agreement, and this Agreement shall be construed as
if such invalid, illegal or unenforceable provision or provisions had never been
included. Provided, however, that any such modification is consistent with the
purposes and objectives of this Agreement and does not impose upon either party any
obligation that is greater or less than the obligation that would have been imposed by
the invalidated or modified provision. The Parties shall, in good faith, attempt to
amend this Agreement to provide, to the extent

13

 

	 	 	 	possible, each Party with the benefits provided by such invalid or unenforceable
provision.
	 
	 	15.9	 	Headings; Interpretation. The headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. The Parties 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. Words, regardless of the number and gender specifically used, will be construed
to include any other number, singular or plural, and any gender specifically used, will
be construed to include any other gender, masculine, feminine, or neuter, as the
context requires. “And” includes “or.” “Or” is a disjunctive but not necessarily
exclusive. “Including” means “including, but not limited to.”
	 
	 	15.10	 	Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which, when taken
together, shall constitute one and the same instrument.
	 
	 	15.11	 	Entire Agreement; No Reliance. Each of the Parties agrees and
acknowledges that this Agreement, together with all exhibits attached hereto, including
the Confidentiality Agreement and Continuing Guaranty (i) constitutes the entire
agreement and supersedes all prior and contemporaneous agreements, understandings,
negotiations and discussions, whether oral or written, between the Parties with respect
to the subject matter of this Agreement, and (ii) amends, restates and supersedes the
Existing Agreement in its entirety ab initio, and (iii) is not intended to confer any
rights or remedies, or impose any obligations, on any person other than the Parties.
Each of the Parties expressly agrees and acknowledges that, other than those statements
expressly set forth in this Agreement, it is not relying on any statement, whether oral
or written, of any person or entity with respect to its entry into this Agreement or to
the consummation of the transactions contemplated by this Agreement. Nothing in this
Agreement shall affect the obligations of the Parties under the 3PL Agreement.
	 
	 	15.12	 	Coordination. In the event of any conflict between the terms of this
Agreement and any exhibit attached hereto, invoice, or any purchase order or other form
issued by either Party to the other, the terms of this Agreement shall apply.

          In consideration of the mutual promises and covenants contained in this Agreement and other
good and valuable consideration, the undersigned have agreed to be bound by the terms of this
Agreement.

	 	 	 	 	 	 	 	 	 	 	 

	INTEGRATED COMMERCIALIZATION
SOLUTIONS, INC.	 	 	 	THE MEDICINES COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Doug Cook
 

	 	 	 	By:
	 	/s/ Tanya Quinn
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Doug Cook
	 	 	 	Name:
	 	Tanya Quinn	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	VP, General Manager
	 	 	 	Title:
	 	Sr. Director, Global
Distribution and Customer
Service	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	12-22-10
	 	 	 	Dated:
	 	12/23/10	 	 

14

 

Schedules and Exhibits

	 	 	 

	Schedule A

	 	Copy of Executed Confidentiality Agreement
	Schedule B

	 	Copy of Executed Continuing Guaranty and Indemnification Agreement
	Exhibit A

	 	Operating Guidelines
	Exhibit B

	 	Commercial Price List
	Exhibit C

	 	Data Transfer and Reporting
	Exhibit D

	 	Fee Schedule
	Exhibit E

	 	Chargeback Procedures

15

 

EXHIBIT A

Operating Guidelines

          These Operating Guidelines are incorporated into the Distribution Agreement between The

          Medicines Company (“MDCO”) and Integrated Commercialization Solutions, Inc. (“Distributor”),
effective as of the Effective Date, as amended (the “Agreement”). Capitalized terms not otherwise
defined in these

Operating Guidelines will have the same meaning as set forth in the Agreement.

          In performing its obligations under the Agreement, Distributor will follow these Operating
Guidelines. The Operating Guidelines are in addition to any SOPs that have been approved by MDCO
for use by Distributor in the performance of services.

	1.0	 	WAREHOUSING
	 
	1.1	 	Distributor will maintain its warehouse facilities in accordance with and will comply with
all Applicable Laws.
	 
	1.2	 	Distributor will maintain SOPs in accordance with generally-accepted industry standards for a
pharmaceutical distribution center operating
environment.
	 
	1.3	 	Distributor will comply with all storage, handling and shipping conditions designated by MDCO
for the Product.
	 
	1.4	 	The Product will be stored by Distributor in a temperature-controlled environment in
conjunction
with defined Product label requirements. MDCO will ensure that the storage requirements are
identified on the package label. MDCO will ensure that the storage requirements, lot number
and expiry date will be in human readable format and the Product NDC number will be in an
acceptable barcode format on the unit carton. Distributor will store all Productsin areas
that are continuously monitored and periodically validated for the temperature range
specified for the Product. Distributor will maintain continuous warehouse environmental
monitoring. Distributor will provide such records to MDCO upon written request.
	 
	1.5	 	Product will be stored in an area with secured access, accessible only to authorized Distributor
personnel.
	 
	2.0	 	RECEIVING
	 
	2.1	 	MDCO will arrange transportation services to transfer the Product to Distributor. MDCO will
notify
Distributor of the specific delivery schedule.
	 
	2.2	 	Each individual unit of MDCO’s Product will be labeled with a barcode representing the
Product’s
NDC number, lot number, and expiration date. This information will also be in human readable
format.
	 
	2.3	 	MDCO will ship in increments of one case pack size as described and provided in Exhibit B.
	 
	2.4	 	Shipping terms from MDCO to Distributor will be FOB Destination. Distributor’s signature on
the
carrier’s bill of lading is an acknowledgment only of Distributor’s receipt of Product and
transfer of ownership.
	 
	2.5	 	Distributor will receive each shipment into a secure receiving area and perform all
requirements as detailed in Distributor’s receiving SOP.
	 
	2.6	 	Distributor will count and inspect the exterior packaging of the Product.
	 
	2.7	 	Distributor will move Product from the receiving area to storage following Distributor SOPs.

16

 

	3.0	 	INVENTORY
	 
	3.1	 	Inventory will be received, tracked and controlled on Distributor’s warehouse management
system by item number, lot number, expiration date, and quantity of individual units. An
individual unit consists of a sellable package size of Product as outlined in Exhibit B.
	 
	3.2	 	Distributor will use its commercially reasonable efforts to maintain accurate and timely
inventory
records. Inventory data will be made available to MDCO as described in Exhibit C of the
Agreement.
	 
	3.3	 	MDCO or its designee may conduct a complete physical inventory once per calendar year, upon
reasonable notice.
	 
	3.4	 	Distributor will receive returned Product according to Distributor’s SOP and MDCO’s Returned
Goods Policy.
	 
	4.0	 	PRODUCT DISTRIBUTION
	 
	4.1	 	Orders will only be shipped from the Distributor to Wholesalers and End-Users.
	 
	4.2	 	Orders approved and available for processing (pick & pack) by 6:00 p.m. Central Time Monday
through Friday will be shipped to Wholesalers and End-Users via Next Day Saver delivery
service. Orders processed on Fridays will be shipped on Sunday for delivery on Monday. The
foregoing schedule does not apply to the following holidays: Christmas Day, New Year’s Day,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and the day after Thanksgiving.
Distributor shall make commercially reasonable provisions for emergency and weekend orders.
Additional shipping and handling costs for such orders shall be billed to the Bill-To
Customer.
	 
	4.3	 	Distributor will use commercially reasonable efforts to comply with First-to-Expire,
First-Out (FEFO) inventory allocation.
	 
	4.4	 	Distributor will perform quality verification on all MDCO shipments by an individual other
than the employee who picked the order. Distributor will use best efforts to pick, check, pack
and ship accurately all customer orders.
	 
	4.5	 	Distributor will manage shipping supplies, including supplier selection, stock replenishment,
inventory record keeping and storage.
	 
	5.0	 	TRANSPORTATION
	 
	5.1	 	Distributor will be responsible for selecting a common carrier(s) to deliver product to
Wholesalers and End-Users the next day.
	 
	5.2	 	Distributor will not deliver Product outside the Territory.
	 
	5.3	 	There will be no additional shipping surcharges applied to any shipments delivered within the
Territory.
	 
	5.4	 	Distributor, at the request of the MDCO, will provide proof of delivery for specific End-User
shipments up to six months after time of delivery. Distributor will require signature at time
of Product delivery to End-Users for all shipments.
	 
	6.0	 	MARKETING, SALES and CUSTOMER SERVICE
	 
	6.1	 	Distributor will provide a dedicated inbound phone line (or lines) for Distributor’s
customers, including End Users and Bill-To Customers, to phone in purchase orders, for product
inquiries, and for general product information.
	 
	6.2	 	Distributor will establish and maintain a dedicated webpage for customers to place orders,
submit inquiries and obtain general product information.
	 
	6.3	 	Distributor will maintain, publish and promotea current price list of the Products.
	 
	6.4	 	Distributor will staff the inbound phone line from 8:00 a.m. – 6:00 p.m. Central Time, Monday

17

 

	 	 	through Friday, except for the following holidays: Christmas Day, New Year’s Day, Memorial
Day, Independence Day, Labor Day, Thanksgiving Day and the day after Thanksgiving.
	 
	6.5	 	Distributor will train Distributor’s customer service representative(s) and backup
representative(s), and will document the date and nature of such training. MDCO will provide
company and Product specific information for training of the customer service representatives
assigned to MDCO Products. MDCO will have the right to review all training materials provided
to customer service representatives. All customer services representatives of Distributor
assigned to MDCO Products will possess the requisite competency and skills necessary to
fulfill the responsibilities in accordance with generally-accepted professional standards.
	 
	6.6	 	Distributor will be responsible for initial set up and on-going maintenance of customer
master files, including bill-to files for Bill-To Customers and ship-to files for End-Users.
	 
	6.7	 	Distributor will accept customer orders by phone, electronic data interchange (EDI), mail, fax,
or internet. Distributor will maintain records of all customer orders.
	 
	6.8	 	Distributor will use commercially reasonable efforts to answer inbound phone calls within the
first thirty (30) seconds.
	 
	6.9	 	As a backup to the customer service representatives, a voice mail system will be maintained
to collect messages from customers.
	 
	6.10	 	Distributor’s customer service representatives will re-route all misdirected calls to the
appropriate
MDCO designate.
	 
	7.0	 	ORDER ENTRY for WHOLESALER or END USER SHIPMENTS
	 
	7.1	 	The minimum order quantity will be:
	 
	 	 	Angiomax NDC 65293-001-01 one carton of 10 vials

Angiomax NovaPlus NDC 65293-004-22 one carton of 10 vials

Cleviprex NDC 65293-002-011 50mg vials one carton of 10 vials

Cleviprex NDC 65293-002-055 25mg vials one carton of 10 vials
	 
	7.2	 	Distributor will use commercially reasonable efforts to enter orders accurately.
	 
	8.0	 	CUSTOMER LIST AND APPROVAL
	 
	8.1	 	Distributor will require all customers to complete and submit Distributor’s then-current
Business Application. Distributor will refuse to fill orders of Product until the customer’s
Business Application has been approved by Distributor.
	 
	8.2	 	The initial Bill-To Customer list consists of the following:
	 
	 	 	Wholesalers (ADR’s)

[**]
	 
	8.3	 	As stated in the Section 3.3.1 of the Agreement, Distributor is responsible for accounts
receivable
management for the Bill-To Customers.
	 
	9.0	 	RECOGNITION OF MDCO CONTRACTS
	 
	9.1	 	Any End-User having a MDCO Contract may request purchase of Products from a
Wholesaler or Distributor at the prices established under the applicable MDCO Contract.
	 
	9.2	 	MDCO will provide a list of customers eligible under MDCO Contracts to Distributor, with
periodic updates as required to ensure proper maintenance of Contract pricing; Distributor
will request verification fromWholesalers that MDCO Contracts are loaded.

18

 

	9.3	 	Distributor will require Wholesalers to continue to recognize and administer MDCO Contracts,
provided that they remain valid and enforceable under Applicable Law.
	 
	9.4	 	MDCO will promptly inform Distributor of changes to MDCO Contracts so that Distributor may
inform Wholesalers. Such changes will be retroactive to the date agreed upon by MDCO and the
End-User. Upon 20 days prior written notification by MDCO that a MDCO Contract has been
terminated, Distributor will require Wholesalers to promptly cease selling Product to that
End-User under the terms of that MDCO Contract.
	 
	10.0	 	PRODUCT COMPLAINTS
	 
	 	 	Distributor shall notify MDCO of any Product complaints from Bill-To Customers. MDCO shall
reimburse Distributor for all costs associated with Product complaints.
	 
	11.0	 	CHARGEBACKS
	 
	11.1	 	MDCO may enter into arrangements for select contract or government mandated pricing
arrangements.
	 
	11.2	 	Distributor, on behalf of MDCO, will process chargebacks with reconciliation of chargeback
discrepancies within five (5) working days. Distributor’s chargeback SOPs will define the
parameters available to Distributor to resolve discrepancies between MDCO’s contract terms and
conditions and the chargeback submitted by the customer.
	 
	11.3	 	All chargebacks will be processed according to the chargeback procedure for MDCO as stated in
Exhibit E to the Agreement.
	 
	11.4	 	All validated chargeback submissions will be settled via credit invoice to the appropriate
Bill-To Customer. MDCO will not make advance payments or authorize advance deductions of
chargebacks.
	 
	11.5	 	MDCO will reconcile and make payment to Distributor for chargebacks credited to Bill-To
Customers on a monthly basis.
	 
	11.6	 	Distributor will make best efforts to process chargebacks within three (3) business days for
electronic chargebacks and within five (5) business days for hard copy chargebacks.
	 
	11.7	 	Distributor will provide the necessary reports to ensure MDCO can comply with the reporting
requirements of Medicare, Medicaid (OBRA), Veterans HealthCare Act, PHS Covered Entities, and
state rebate programs.
	 
	11.8	 	MDCO will provide a periodic update of customers eligible under MDCO Contracts to Distributor
as required to maintain accurate contract pricing. All notifications will be provided to
Distributor by MDCO in writing five (5) business days in advance of contract effective date.

19

 

EXHIBIT B

Product List

	 	 	 

	Product Name:

	 	ANGIOMAX® (bivalirudin) for Injection
	NDC#:

	 	65293-001-01
	Drug Type:

	 	RX
	Sellable Package Size:

	 	Carton (10 single use vials)
	Dosage Form:

	 	250mg vial
	Current WAC Price*:

	 	$[**] per Carton, (*which may change from time to time at MDCO’s sole discretion)
	Case Pack Size

	 	Thirty (30) Cartons
	Shipping and Storage Requirements: 20 to 25°C
	 
	 	 
	Product Name:

	 	ANGIOMAX® (bivalirudin) Nova Plus for Injection
	NDC#:

	 	65293-004-22
	Drug Type:

	 	RX
	Sellable Package Size:

	 	Carton (10 single use vials)
	Dosage Form:

	 	250mg vial
	Current WAC Price*:

	 	$[**] per Carton, (*which may change from time to time at MDCO’s sole discretion)
	Case Pack Size

	 	Thirty (30) Cartons
	Shipping and Storage Requirements: 20 to 25°C
	 
	 	 
	Product Name:

	 	CleviprexTM (clevidipine butyrate)
	NDC#:

	 	65293-002-011
	Drug Type:

	 	RX
	Sellable Package Size:

	 	Carton (10 single use vials)
	Dosage Form:

	 	50mg vial
	Current WAC Price*:

	 	$[**] per Carton, (*which may change from time to time at MDCO’s sole discretion)
	Case Pack Size

	 	Six (6) Cartons
	Shipping and Storage Requirements: 2 to 8°C
	 
	 	 
	Product Name:

	 	CleviprexTM (clevidipine butyrate)
	NDC#:

	 	65293-002-055
	Drug Type:

	 	RX
	Sellable Package Size:

	 	Carton (10 single use vials)
	Dosage Form:

	 	25mg vial
	Current WAC Price*:

	 	$[**] per Carton, (*which may change from time to time at MDCO’s sole discretion)
	Case Pack Size

	 	Twelve (12) Cartons
	Shipping and Storage Requirements: 2 to 8°C

20

 

EXHIBIT C

Data Transfer and Reporting

Crystal Reports:

Daily Inventory Report

Daily Inventory Summary Report

Daily Sales Report

Daily Sales Summary Report

867 and 852 Wholesaler Reporting

FTP Reports:

Weekly Chargeback Reports

Daily Sales and Returns Report

Weekly Service Level Report

	 	1.	 	Orders Received
	 
	 	2.	 	Packages Shipped

21

 

EXHIBIT D

Fee Schedule

	 	 	 	 	 	 	 
	Services	 	 	 	 	 	Fee
	A.     Marketing, Sales, Customer Service and Distribution	 	 
	 
	 	 	 	 	 	 
	 	 	Fees include the following	 	Percentage of WAC (see below)
	 
	 	 	 	 	 	 
	 

	 	•
	 	Warehousing Management and Inventory Administration	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Customer Service / Order Entry	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Marketing and Distribution Services	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Invoicing and Accounts Receivable Management	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Direct Account Set Up	 	 
	 
	 	 	 	 	 	 
	 

	 	•
	 	Information Technology	 	 
	 
	 	 	 	 	 	 
	 	 	Wholesaler Restock and Dropshipments	 	 
	 
	 	 	 	 	 	 
	 	 	October 1, 2010 – September 30, 2011	 	Percent of WAC
	 
	 	 	 	 	 	 
	 	 	Angiomax and Angiomax NovaPlus	 	[**]%
	 
	 	 	 	 	 	 
	 	 	Cleviprex	 	[**]%
	 
	 	 	 	 	 	 
	 	 	October 1, 2011 – September 30, 2013	 	Percent of WAC
	 
	 	 	 	 	 	 
	 	 	Angiomax and Angiomax NovaPlus	 	[**]%
	 
	 	 	 	 	 	 
	 	 	Cleviprex	 	[**]%
	 
	 	 	 	 	 	 
	 	 	Shipments to Direct Account End-Users	 	 
	 
	 	 	 	 	 	 
	 	 	October 1, 2010 – September 30, 2013	 	Percent of WAC
	 
	 	 	 	 	 	 
	 	 	Angiomax and Angiomax NovaPlus	 	[**]%
	 
	 	 	 	 	 	 
	 	 	Cleviprex	 	[**]%
	 
	 	 	 	 	 	 
	 	 	**Direct to End-User Fee	 	$[**]/shipment additional fee
	 
	 	 	 	 	 	 
	 	 	***Freight upcharge	 	MDCO to reimburse Distributor for upgrade From Ground to Next Day Saver
	 
	 	 	 	 	 	 
	C.     Contract Pricing (provided in Section 5.4)	 	 

22

 

	 	 	MDCO will reimburse Distributor monthly for any MDCO Contract sales administered as a direct
price (anything less than current WAC of the product) at time of sale. Reimbursement amount to
Distributor is current WAC at time of contract sale minus contract price.
	 
	 	 	Any direct pricing will be provided by MDCO to Distributor.
	 
	D.	 	Pricing Actions
	 
	 	 	Distributor shall realize no benefit or penalty from pricing actions. In the event of a price
increase on the Products, Distributor shall deduct the difference in value of the Products
held in Distributor inventory held on the day prior to the price increase. For example, the
day prior to the price increase the value of the products is $1,000,000 and a 6% price
increase raises the value of the same inventory to $1,060,000 on the same number of units of
Products. Distributor shall deduct the difference, $60,000, from the next Service Fee.
	 
	 	 	In the event of a price decrease on the Products, Distributor shall add the difference in
value of the Products held in Distributor inventory held on the day prior to the price
decrease. For example, the day prior to the price decrease the value of the products is
$1,000,000 and a 6% price decrease lowers the value of the same inventory to $940,000 on the
same number of units of Products. Distributor shall add the difference, $60,000, to the next
Service Fee.

E. Early Renewal Incentive

In recognition of MDCO’s early renewal of agreement, Distributor will reduce all monthly invoices
for the term of this agreement by an amount equal to $[**] or $[**]/36 months.

23

 

EXHIBIT E

CHARGEBACK PROCEDURES

MDCO will notify Bill-To Customers of MDCO Contracts (purchasers under MDCO Contracts are
collectively referred to in this Exhibit E as “Customers”). this Exhibit E sets forth the
procedures by which Distributor, acting on behalf of MDCO, will accept and process chargeback
claims submitted by Bill-To Customers resulting from Customer purchases under MDCO Contracts

	a)	 	Wholesalers submit chargeback claims to Distributor through EDI transactions and/or manually
after sale to the Customer. Bill-To Customers submit proof of sales to Customers with the
chargeback claims, including the ship-to location name and address, number of units, NDC
number, and WAC.
	 
	b)	 	Bill-To Customer’s product purchase price will be deemed to be WAC for purposes of
calculating chargeback claims. The chargeback amount will be the difference between WAC and
the price offered by MDCO to the Customer under the MDCO Contract.
	 
	c)	 	Distributor will deny any Chargeback claims that it determines to be invalid.
	 
	d)	 	If a chargeback claim is denied for insufficient information, Distributor will allow Bill-To
Customers to resubmit the claim with complete information. In addition, if new information
surfaces that requires corrections and adjustments to sales reports, Distributor will allow
claims to be reopened and resubmitted.
	 
	e)	 	The Parties will promptly resolve chargeback reconciliation issues, with each Party
responding to the other within thirty (30) days following receipt of supporting documentation.
If a chargeback dispute arises between Distributor and a Bill-To Customer, Distributor will
notify MDCO promptly upon identifying the problem so that MDCO may intervene. If MDCO is
unable to resolve the dispute within seven (7) business days of notification, Distributor will
have no further obligation to sell to such Bill-To Customer until such time that the Parties
resolve the reconciliation issue.
	 
	f)	 	If a Customer returns a Product that was subject to a chargeback claim, Distributor will
report such return to MDCO and reverse the chargeback claim by adjusting any credit memo(s)
issued to Bill-To Customer.
	 
	g)	 	MDCO will promptly reimburse Distributor for any amounts deducted by Bill-To Customers from
amounts owed by them to Distributor relating to Product such Bill-To Customers purchased from
MDCO; provided, however, nothing in this Section shall affect MDCO’s and the Distributor’s
rights and obligations under the 3PL Agreement.

24

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