Document:

Exhibit 10(b)4

                              AMENDED AND RESTATED
                           CHANGE IN CONTROL AGREEMENT

         THIS AMENDED AND RESTATED CHANGE IN CONTROL AGREEMENT ("Agreement")
made and entered into by and between The Southern Company ("Southern"), Alabama
Power Company (the "Company") and Mr. C. Alan Martin ("Mr. Martin") (hereinafter
collectively referred to as the "Parties") is effective June 1, 2004. This
Agreement amends and restates the Amended and Restated Change in Control
Agreement entered into by the Parties, effective July 10, 2000.

                                   WITNESSETH:

         WHEREAS, Mr. Martin is the Executive Vice President of the Company;

         WHEREAS, the Company wishes to provide to Mr. Martin certain severance
benefits under certain circumstances following a change in control (as defined
herein) of Southern or the Company;

         NOW, THEREFORE, in consideration of the premises, and the agreements of
the Parties set forth in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

         1. Definitions. For purposes of this Agreement, the following terms
shall have the following meanings:

         (a) "Annual Compensation" shall mean Mr. Martin's highest annual base
salary rate for the twelve (12) month period immediately preceding the date of
the Change in Control plus target bonus.

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         (b) "Beneficial Ownership" shall mean beneficial ownership within the
meaning of Rule 13d-3 promulgated under the Exchange Act.

         (c) "Board" shall mean the board of directors of the Company.

         (d) "Business Combination" shall mean a reorganization, merger or
consolidation of Southern or sale or other disposition of all or substantially
all of the assets of Southern.

         (e) "Change in Control" shall mean any of the following:

                  (i) The Consummation of an acquisition by any Person of
         Beneficial Ownership of 20% or more of Southern's Voting Securities;
         provided, however, that for purposes of this Paragraph l.(e)(i), the
         following acquisitions of Southern's Voting Securities shall not
         constitute a Change in Control:

                           (A) any acquisition directly from Southern;

                           (B) any acquisition by Southern;

                           (C) any acquisition by any employee benefit plan (or
                  related trust) sponsored or maintained by Southern or any
                  Southern Subsidiary;

                           (D) any acquisition by a qualified pension plan or
                  publicly held mutual fund;

                           (E) any acquisition by a Group composed exclusively
                  of employees of Southern, or any Southern Subsidiary;

                           (F) any acquisition by Mr. Martin or any Group of
                  which Mr. Martin is a party; or

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                           (G) any Business Combination which would not
                  otherwise constitute a change in control because of the
                  application of clauses (A), (B) and (C) of Paragraph
                  1(e)(iii);

                  (ii) A change in the composition of the Southern Board whereby
         individuals who constitute the Incumbent Board cease for any reason to
         constitute at least a majority of the Southern Board;

                  (iii) Consummation of a Business Combination, provided,
         however, that such a Business Combination shall not constitute a Change
         in Control if all three (3) of the following conditions are met:

                           (A) all or substantially all of the individuals and
                  entities who held Beneficial Ownership, respectively, of
                  Southern's Voting Securities immediately prior to such
                  Business Combination beneficially own, directly or indirectly,
                  65% or more of the combined voting power of the Voting
                  Securities of the corporation surviving or resulting from such
                  Business Combination, (including, without limitation, a
                  corporation which as a result of such transaction holds
                  Beneficial Ownership of all or substantially all of Southern's
                  Voting Securities or all or substantially all of Southern's
                  assets) (such surviving or resulting corporation to be
                  referred to as "Surviving Company"), in substantially the same
                  proportions as their ownership, immediately prior to such
                  Business Combination, of Southern's Voting Securities;

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                           (B) no Person (excluding any corporation resulting
                  from such Business Combination, any employee benefit plan (or
                  related trust) of Southern, any Southern Subsidiary or
                  Surviving Company, Mr. Martin, any Group of which Mr. Martin
                  is a party, any Group composed exclusively of Company
                  employees, any qualified pension plan (or related trust) or
                  any publicly held mutual fund) holds Beneficial Ownership,
                  directly or indirectly, of 20% or more of the combined voting
                  power of the then outstanding Voting Securities of Surviving
                  Company except to the extent that such ownership existed prior
                  to the Business Combination; and

                           (C) at least a majority of the members of the board
                  of directors of Surviving Company were members of the
                  Incumbent Board at the earlier of the date of execution of the
                  initial agreement, or of the action of the Southern Board,
                  providing for such Business Combination.

                  (iv) The Consummation of an acquisition by any Person of
         Beneficial Ownership of 50% or more of the combined voting power of the
         then outstanding Voting Securities of the Company; provided, however,
         that for purposes of this Paragraph l.(e)(iv), any acquisition by Mr.
         Martin, any Group composed exclusively of employees of the Company, any
         Group of which Mr. Martin is a party, any qualified pension plan (or
         related trust), any publicly held mutual fund, any employee benefit
         plan (or related trust) sponsored or maintained by Southern or any
         Southern Subsidiary shall not constitute a Change in Control;

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                  (v) Consummation of a reorganization, merger or consolidation
         of the Company (an "Employing Company Business Combination"), in each
         case, unless, following such Employing Company Business Combination,
         Southern Controls the corporation or other entity surviving or
         resulting from such Employing Company Business Combination; or

                  (vi) Consummation of the sale or other disposition of all or
         substantially all of the assets of the Company to a corporation or
         other entity which Southern does not Control.

         Notwithstanding the foregoing, in no event shall "Change in Control"
mean an initial public offering or a spin-off of the Company.

         (f) "COBRA Coverage" shall mean any continuation coverage to which Mr.
Martin or his dependents may be entitled pursuant to Code Section 4980B.

         (g) "Code" shall mean the Internal Revenue Code of 1986, as amended.

         (h) "Company" shall mean Savannah Electric and Power Company, its
successors and assigns.

         (i) "Consummation" shall mean the completion of the final act necessary
to complete a transaction as a matter of law, including, but not limited to, any
required approvals by the corporation's shareholders and board of directors, the
transfer of legal and beneficial title to securities or assets and the final
approval of the transaction by any applicable domestic or foreign governments or
governmental agencies.

         (j) "Control" shall mean, in the case of a corporation, Beneficial
Ownership of more than 50% of the combined voting power of the corporation's
Voting Securities, or in the case of any other entity, Beneficial Ownership of
more than 50% of such entity's voting equity interests.

         (k) "Effective Date" shall mean the date of execution of this
Agreement.

         (l) "Employee Outplacement Program" shall mean the program established
by the Company from time to time for the purpose of assisting participants
covered by the plan in finding employment outside of the Company which provides
for the following services:

                  (i) self-assessment, career decision and goal setting; (ii)
         job market research and job sources; (iii) networking and interviewing
         skills; (iv) planning and implementation strategy; (v) resume writing,
         job hunting methods and salary negotiation; and (vi) office support and
         job search resources.

         (m) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         (n) "Good Reason" shall mean, without Mr. Martin's express written
consent, after written notice to the Board, and after a thirty (30) day
opportunity for the Board to cure, the continuing occurrence of any of the
following events:

                  (i) Inconsistent Duties. A meaningful and detrimental
         alteration in Mr. Martin's position or in the nature or status of his
         responsibilities from those in effect immediately prior to the Change
         in Control;

                  (ii) Reduced Salary. A reduction of five percent (5%) or more
         by the Company in either of the following: (i) Mr. Martin's annual base
         salary rate as in effect immediately prior to the Change in Control
         (except for a less than ten percent (10%), across-the-board annual base
         salary rate reduction similarly affecting at least ninety-five percent
         (95%) of the Executive Employees of the Company); or (ii) the sum of
         Mr. Martin's annual base salary rate plus target bonus under the PPP
         (except for a less than ten percent (10%), across-the-board reduction
         of annual base salary rate plus target bonus under the PPP similarly
         affecting at least ninety-five percent (95%) of the Executive Employees
         of the Company);

                  (iii) Pension and Compensation Plans. The failure by the
         Company to continue in effect any pension or compensation plan or
         agreement in which Mr. Martin participates or is a party as of the date
         of the Change in Control or the elimination of Mr. Martin's
         participation therein, (except for across-the-board plan changes or
         terminations similarly affecting at least ninety-five percent (95%) of
         the Executive Employees of the Company). For purposes of this Paragraph
         l.(n), a "pension plan or agreement" shall mean any written arrangement
         executed by an authorized officer of the Company which provides for
         payments upon retirement; and a "compensation plan or arrangement"
         shall mean any written arrangement executed by an authorized officer of
         the Company which provides for periodic, non-discretionary compensatory
         payments in the nature of bonuses.

                  (iv) Relocation. A change in Mr. Martin's work location to a
         location more than fifty (50) miles from the office where Mr. Martin is
         located at the time of the Change in Control, unless such new work
         location is within fifty (50) miles

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         from Mr. Martin's principal place of residence at the time of the
         Change in Control. The acceptance, if any, by Mr. Martin of employment
         by the Company at a work location which is outside the fifty mile
         radius set forth in this Paragraph l.(n)(iv) shall not be a waiver of
         Mr. Martin's right to refuse subsequent transfer by the Company to a
         location which is more than fifty (50) miles from Mr. Martin's
         principal place of residence at the time of the Change in Control, and
         such subsequent unconsented transfer shall be "Good Reason" under this
         Agreement; or

                  (v) Benefits and Perquisites. The taking of any action by the
         Company which would directly or indirectly materially reduce the
         benefits enjoyed by Mr. Martin under the Company's retirement, life
         insurance, medical, health and accident, disability, deferred
         compensation or savings plans in which Mr. Martin was participating
         immediately prior to the Change in Control; or the failure by the
         Company to provide Mr. Martin with the number of paid vacation days to
         which Mr. Martin is entitled on the basis of years of service with the
         Company in accordance with the Company's normal vacation policy in
         effect immediately prior to the Change in Control (except for
         across-the-board plan or vacation policy changes or plan terminations
         similarly affecting at least ninety-five percent (95%) of the Executive
         Employees of the Company).

                  (vi) For purposes of this Paragraph l.(n), the term "Executive
         Employee" shall mean those employees of the Company of Grade Level 10
         or above.

         (o) "Group" shall have the meaning set forth in Section 14(d) of the
Exchange Act.

         (p) "Group Health Plan" shall mean the group health plan covering Mr.
Martin, as such plan may be amended from time to time.

         (q) "Group Life Insurance Plan" shall mean the group life insurance
program covering Mr. Martin, as such plan may be amended from time to time.

         (r) "Incumbent Board" shall mean those individuals who constitute the
Southern Board as of October 19, 1998 plus any individual who shall become a
director subsequent to such date whose election or nomination for election by
Southern's shareholders was approved by a vote of at least 75% of the directors
then comprising the Incumbent Board. Notwithstanding the foregoing, no
individual who shall become a director of the Southern Board subsequent to
October 19, 1998 whose initial assumption of office occurs as a result of an
actual or threatened election contest (within the meaning of Rule 14a-11 of the
Regulations promulgated under the Exchange Act) with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Southern Board shall be a
member of the Incumbent Board.

         (s) "Month of Service" shall mean any calendar month during which Mr.
Martin has worked at least one (1) hour or was on approved leave of absence
while in the employ of the Company or any affiliate or subsidiary of Southern.

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         (t) "Omnibus Plan" shall mean the Southern Company Omnibus Incentive
Compensation Plan, and the Design and Administrative Specifications duly adopted
thereunder, as in effect on the day before the date of a Change in Control.

         (u) "Pension Plan" shall mean The Southern Company Pension Plan, as
such plan may be amended from time to time.

         (v) "Performance Dividend Program" shall mean the Performance Dividend
Program under the Omnibus Plan or any replacement thereto, as such plans may be
amended from time to time.

         (w) "Person" shall mean any individual, entity or group within the
meaning of Section 13(d)(3) or 14(d)(2) of Act.

         (x) "Performance Pay Program" or "PPP" shall mean the Performance Pay
Program under the Omnibus Plan or any replacement thereto, as such plans may be
amended from time to time.

         (y) "Southern" shall mean The Southern Company, its successors and
assigns.

         (z) "Southern Board" shall mean the board of directors of Southern.

         (aa) "Southern Subsidiary" shall mean any corporation or other entity
Controlled by Southern.

         (bb) "Termination for Cause" or "Cause" shall mean the termination of
Mr. Martin's employment by the Company upon the occurrence of any of the
following:

                  (i) The willful and continued failure by Mr. Martin
         substantially to perform his duties with the Company (other than any
         such failure resulting from Mr. Martin's Total Disability or from Mr.
         Martin's retirement or any such actual or anticipated failure resulting
         from termination by Mr. Martin for Good Reason) after a written demand
         for substantial performance is delivered to him by the Southern Board,
         which demand specifically identifies the manner in which the Southern
         Board believes that he has not substantially performed his duties; or

                  (ii) The willful engaging by Mr. Martin in conduct that is
         demonstrably and materially injurious to the Company, monetarily or
         otherwise, including, but not limited to any of the following:

                           (A) any willful act involving fraud or dishonesty in
                  the course of Mr. Martin's employment by the Company;

                           (B) the willful carrying out of any activity or the
                  making of any statement which would materially prejudice or
                  impair the good name and standing of the Company, Southern or
                  any Southern Subsidiary or would bring the Company, Southern
                  or any Southern Subsidiary into contempt, ridicule or would
                  reasonably shock or offend any community in which the Company,
                  Southern or such Southern Subsidiary is located;

                           (C) attendance at work in a state of intoxication or
                  otherwise being found in possession at his workplace of any
                  prohibited drug or substance, possession of which would amount
                  to a criminal offense;

                           (D) violation of the Company's policies on drug and
                  alcohol usage, fitness for duty requirements or similar
                  policies as may exist from time to time as adopted by the
                  Company's safety officer;

                           (E) assault or other act of violence against any
                  person during the course of employment; or

                           (F) indictment of any felony or any misdemeanor
                  involving moral turpitude.

                           No act or failure to act by Mr. Martin shall be
                  deemed "willful" unless done, or omitted to be done, by Mr.
                  Martin not in good faith and without reasonable belief that
                  his action or omission was in the best interest of the
                  Company.

                           Notwithstanding the foregoing, Mr. Martin shall not
                  be deemed to have been terminated for Cause unless and until
                  there shall have been delivered to him a copy of a resolution
                  duly adopted by the affirmative vote of not less than three
                  quarters of the entire membership of the Southern Board at a
                  meeting of the Southern Board called and held for such purpose
                  (after reasonable notice to Mr. Martin and an opportunity for
                  him, together with counsel, to be heard before the Southern
                  Board), finding that, in the good faith opinion of the
                  Southern Board, Mr. Martin was guilty of conduct set forth
                  above in clause (i) or (ii) of this Paragraph l.(bb) and
                  specifying the particulars thereof in detail.

         (cc) "Termination Date" shall mean the date on which Mr. Martin's
employment with the Company is terminated; provided, however, that solely for
purposes of Paragraph 2.(c) hereof, the Termination Date shall be the effective
date of his retirement pursuant to the terms of the Pension Plan.

         (dd) "Total Disability" shall mean Mr. Martin's total disability within
the meaning of the Pension Plan.

         (ee) "Voting Securities" shall mean the outstanding voting securities
of a corporation entitling the holder thereof to vote generally in the election
of such corporation's directors.

         (ff) "Waiver and Release" shall mean the Waiver and Release attached
hereto as Exhibit A.

         (gg) "Year of Service" shall mean Mr. Martin's Months of Service
divided by twelve (12) rounded to the nearest whole year, rounding up if the
remaining number of months is seven (7) or greater and rounding down if the
remaining number of months is less than seven (7). If Mr. Martin has a break in
his service with the Company, he will receive credit under this Agreement for
service prior to the break in service only if the break in service is less than
five years.

         2. Severance Benefits.

         (a) Eligibility. Except as otherwise provided in this Paragraph 2.(a),
if Mr. Martin's employment is involuntarily terminated by the Company at any
time during the two year period following a Change in Control for reasons other
than Cause, or if Mr. Martin voluntarily terminates his employment with the
Company for Good Reason at any time during the two year period following a
Change in Control, Mr. Martin shall be entitled to receive the benefits
described in this Agreement upon the Company's receipt of an effective Waiver
and Release. Notwithstanding anything to the contrary herein, Mr. Martin shall
not be eligible to receive benefits under this Agreement if Mr. Martin:

                  (i) voluntarily terminates his employment with the Company for
         other than Good Reason;

                  (ii) has his employment terminated by the Company for Cause;

                  (iii) accepts the transfer of his employment to Southern, any
         Southern Subsidiary or any employer that succeeds to all or
         substantially all of the assets of the Company, Southern or any
         Southern Subsidiary;

                  (iv) refuses an offer of continued employment with the
         Company, any Southern Subsidiary, or any employer that succeeds to all
         or substantially all of the assets of the Company, Southern, or any
         Southern Subsidiary under circumstances where such refusal would not
         amount to Good Reason for voluntary termination of employment; or

                  (v) elects to receive the benefits of any other voluntary or
         involuntary severance or separation program, plan or agreement
         maintained by the Company in lieu of benefits under this Agreement;
         provided however, that the receipt of benefits under the terms of any
         retention plan or agreement shall not be deemed to be the receipt of
         severance or separation benefits for purposes of this Agreement.

         (b) Severance Benefits. If Mr. Martin meets the eligibility
requirements of Paragraph 2.(a) hereof, he shall be entitled to a cash severance
benefit in an amount equal to three times his Annual Compensation (the
"Severance Amount"). If any portion of the Severance Amount constitutes an
"excess parachute payment" (as such term is defined under Code Section 280G
("Excess Parachute Payment")), the Company shall pay to Mr. Martin an additional
amount calculated by determining the amount of tax under Code Section 4999 that
he otherwise would have paid on any Excess Parachute Payment with respect to the
Change in Control and dividing such amount by a decimal determined by adding the
tax rate under Code Section 4999 ("Excise Tax"), the hospital insurance tax
under Code Section the hospital insurance tax under Code Section 31O1(b) ("HI
Tax") and federal and state income tax measured at the highest marginal rates
("Income Tax") and subtracting such result from the number one (1) (the "280G
Gross-up"); provided, however, that no 280G Gross-up shall be paid unless the
Severance Amount plus all other "parachute payments" to Mr. Martin under Code
Section 280G exceeds three (3) times Mr. Martin's "base amount" (as such term is
defined under Code Section 280G ("Base Amount")) by ten percent (10%) or more;
provided further, that if no 280G Gross-up is paid, the Severance Amount shall
be capped at three (3) times Mr. Martin's Base Amount, less all other "parachute
payments" (as such term is defined under Code Section 280G) received by Mr.
Martin, less one dollar (the "Capped Amount"), if the Capped Amount, reduced by
HI Tax and Income Tax, exceeds what otherwise would have been the Severance
Amount, reduced by HI Tax, Income Tax and Excise Tax.

         For purposes of this Paragraph 2.(b), whether any amount would
constitute an Excess Parachute Payment and any other calculations of tax, e.g.,
Excise Tax, HI Tax, Income Tax, etc., or other amounts, e.g., Base Amount,
Capped Amount, etc., shall be determined by the tax department of the
independent public accounting firm then responsible for preparing Southern's
consolidated federal income tax return, and such calculations or determinations
shall be binding upon the parties hereto.

         (c) Welfare Benefits. If Mr. Martin meets the eligibility requirements
of Paragraph 2.(a) hereof and is not otherwise eligible to receive retiree
medical and life insurance benefits provided to certain retirees pursuant to the
terms of the Pension Plan,

<PAGE>

the Group Health Plan and the Group Life Insurance Plan, he shall be entitled to
the benefits set forth in this Paragraph 2.( c).

                  (i) Mr. Martin shall be eligible to participate in the
         Company's Group Health Plan, upon payment of both the Company's and his
         monthly premium under such plan, for a period of six (6) months for
         each of Mr. Martin's Years of Service, not to exceed five (5) years. If
         Mr. Martin elects to receive this extended medical coverage, he shall
         also be entitled to elect coverage under the Group Health Plan for his
         dependents who were participating in the Group Health Plan on Mr.
         Martin's Termination Date (and for such other dependents as may be
         entitled to coverage under the provisions of the Health Insurance
         Portability and Accountability Act of 1996) for the duration of Mr.
         Martin's extended medical coverage under this Paragraph 2.(c)(i) to the
         extent such dependents remain eligible for dependent coverage under the
         terms of the Group Health Plan.

                           (A) The extended medical coverage afforded to Mr.
                  Martin pursuant to Paragraph 2. (c)(i), as well as the
                  premiums to be paid by Mr. Martin in connection with such
                  coverage shall be determined in accordance with the terms of
                  the Group Health Plan and shall be subject to any changes in
                  the terms and conditions of the Group Health Plan as well as
                  any future increases in premiums under the Group Health Plan.
                  The premiums to be paid by Mr. Martin in connection with this
                  extended coverage shall be due on the first day of each month;
                  provided, however,

<PAGE>

                  that if he fails to pay his premium within thirty (30) days of
                  its due date, such extended coverage shall be terminated.

                           (B) Any Group Health Plan coverage provided under
                  Paragraph 2.(c)(i) shall be a part of and not in addition to
                  any COBRA Coverage which Mr. Martin or his dependents may
                  elect. In the event that Mr. Martin or his dependents become
                  eligible to be covered, by virtue of re-employment or
                  otherwise, by any employer-sponsored group health plan or is
                  eligible for coverage under any government-sponsored health
                  plan during the above period, coverage under the Company's
                  Group Health Plan available to Mr. Martin or his dependents by
                  virtue of the provisions of Paragraph 2.(c)(i) shall
                  terminate, except as may otherwise be required by law, and
                  shall not be renewed. (ii) Mr. Martin shall be entitled to
                  receive cash in an amount equal to the Company's and Mr.
                  Martin's cost of premiums for three (3) years of coverage
                  under the Group Health Plan and Group Life Insurance Plan in
                  accordance with the terms of such plans as of the date of the
                  Change in Control.

         (d) Incentive Plans. If Mr. Martin meets the eligibility requirements
of Paragraph 2. (a) hereof he shall be entitled to the following benefits under
the Omnibus Plan:

                  (i) Stock Options.

                           (A) Any of Mr. Martin's Options and Stock
                  Appreciation Rights under the Omnibus Plan (the defined terms
                  of which are incorporated in Paragraph 2.(d)(i) by reference)
                  which are outstanding as of the Termination Date and which are
                  not then exercisable and vested, shall become fully
                  exercisable and vested to the full extent of the original
                  grant; provided, that in the case of a Stock Appreciation
                  Right, if Mr. Martin is subject to Section 16(b) of the
                  Exchange Act, such Stock Appreciation Right shall not become
                  fully vested and exercisable at such time if such actions
                  would result in liability to Mr. Martin under Section 16(b) of
                  the Exchange Act, provided further, that any such actions not
                  taken as a result of the rules under Section 16(b) of the
                  Exchange Act shall be effected as of the first date that such
                  activity would no longer result in liability under Section
                  16(b) of the Exchange Act.

                           (B) The restrictions and deferral limitations
                  applicable to any of Mr. Martin's Restricted Stock and
                  Restricted Stock Units as of the Termination Date shall lapse,
                  and such Restricted Stock and Restricted Stock Units shall
                  become free of all restrictions and limitations and become
                  fully vested and transferable to the full extent of the
                  original grant.

                  (ii) Performance Pay Program. Provided Mr. Martin is not
         entitled to a Cash-Based Award under the PPP, (the defined terms of
         which are incorporated in this Paragraph 2.(d)(ii) by reference), if
         the PPP is in place through Mr. Martin's Termination Date and to the
         extent Mr. Martin is entitled to participate therein, Mr. Martin shall
         be entitled to receive cash in an amount equal to a prorated payout of
         his Cash-Based Awards under the PPP for the performance period in which
         the Termination Date shall have occurred, at target performance under
         the PPP and prorated by the number of months which have passed since
         the beginning of the performance period until the Termination Date.

                  (iii) Performance Dividend Program. Provided Mr. Martin is not
         entitled to a Cash-Based Award under the Performance Dividend Program
         (the defined terms of which are incorporated in this Paragraph
         2.(d)(iii) by reference), if the Performance Dividend Program is in
         place through Mr. Martin's Termination Date and to the extent Mr.
         Martin is entitled to participate therein, Mr. Martin shall be entitled
         to receive cash for each such Cash-Based Award under the Performance
         Dividend Program held by Mr. Martin on his Termination Date, based on
         actual performance under the Performance Dividend Program determined as
         of the most recently completed calendar quarter of the performance
         period in which the Termination Date shall have occurred, and the
         annual dividend declared prior to the Termination Date.

                  (iv) Other Short Term Incentives Under the Omnibus Plan.
         Provided Mr. Martin is not entitled to a Performance Unit/Share award
         under the Omnibus Plan (the defined terms of which are incorporated in
         this Paragraph 2.(d)(iv) by reference), Mr. Martin shall be entitled to
         receive cash in an amount equal to a prorated payout of the value of
         his Performance Units and/or Performance Shares for the performance
         period in which the Termination Date shall have occurred, at target
         performance and prorated by the number of months which have passed
         since the beginning of the performance period until the Termination
         Date.

<PAGE>

                  (v) Other Short Term Incentive Plans. The provisions of this
         Paragraph 2.(d)(v) shall apply if and to the extent that Mr. Martin is
         a participant in any other "short term compensation plan" not otherwise
         previously referred to in this Paragraph 2.(d). Provided Mr. Martin is
         not otherwise entitled to a plan payout under any change of control
         provisions of such plans, if the "short term compensation plan" is in
         place as of the Termination Date and to the extent Mr. Martin is
         entitled to participate therein, Mr. Martin shall receive cash in an
         amount equal to his award under the Company's "short term incentive
         plan" for the annual performance period in which the Termination Date
         shall have occurred, at Mr. Martin's target performance level and
         prorated by the number of months which have passed since the beginning
         of the annual performance period until his Termination Date. For
         purposes of this Paragraph 2.(d)(v) the term "short term incentive
         compensation plan" shall mean any incentive compensation plan or
         arrangement adopted in writing by the Company which provides for
         annual, recurring compensatory bonuses based upon articulated
         performance criteria.

         (e) Payment of Benefits. Any amounts due under this Agreement shall be
paid in one (1) lump sum payment as soon as administratively practicable
following the later of: (i) Mr. Martin's Termination Date, or (ii) upon Mr.
Martin's tender of an effective Waiver and Release to the Company in the form of
Exhibit A attached hereto and the expiration of any applicable revocation period
for such waiver. In the event of a dispute with respect to liability or amount
of any benefit due hereunder, an effective Waiver and Release shall be tendered
at the time of final resolution of any such dispute when payment is tendered by
the Company.

         (f) Benefits in the Event of Death. In the event of Mr. Martin's death
prior to the payment of all amounts due under this Agreement, Mr. Martin's
estate shall be entitled to receive as due any amounts not yet paid under this
Agreement upon the tender by the executor or administrator of the estate of an
effective Waiver and Release.

         (g) Legal Fees. In the event of a dispute between Mr. Martin and the
Company with regard to any amounts due hereunder, if any material issue in such
dispute is finally resolved in Mr. Martin's favor, the Company shall reimburse
Mr. Martin's legal fees incurred with respect to all issues in such dispute in
an amount not to exceed fifty thousand dollars ($50,000).

         (h) Employee Outplacement Services. Mr. Martin shall be eligible to
participate in the Employee Outplacement Program, which program shall not be
less than six (6) months duration measured from Mr. Martin's Termination Date.

         (i) Non-qualified Retirement and Deferred Compensation Plans. The
Parties agree that subsequent to a Change in Control, any claims by Mr. Martin
for benefits under any of the Company's non-qualified retirement or deferred
compensation plans shall be resolved through binding arbitration in accordance
with the provisions and procedures set forth in Paragraph 5 hereof and if any
material issue in such dispute is finally resolved in Mr. Martin's favor, the
Company shall reimburse Mr. Martin's legal fees in the manner provided in
Paragraph 2.(g) hereof.

         3. Transfer of Employment. In the event that Mr. Martin's employment by
the Company is terminated during the two year period following a Change in
Control and Mr. Martin accepts employment by Southern, a Southern Subsidiary, or
any employer that succeeds to all or substantially all of the assets of the
Company, Southern or any Southern Subsidiary, the Company shall assign this
Agreement to Southern, such Southern Subsidiary, or successor employer, Southern
shall accept such assignment or cause such Southern Subsidiary or successor
employer to accept such assignment, and such assignee shall become the "Company"
for all purposes hereunder.

         4. No Mitigation. If Mr. Martin is otherwise eligible to receive
benefits under Paragraph 2 of this Agreement, he shall have no duty or
obligation to seek other employment following his Termination Date and, except
as otherwise provided in Paragraph 2.(a)(iii) hereof, the amounts due Mr. Martin
hereunder shall not be reduced or suspended if Mr. Martin accepts such
subsequent employment.

         5. Arbitration.

         (a) Any dispute, controversy or claim arising out of or relating to the
Company's obligations to pay severance benefits under this Agreement, or the
breach thereof, shall be settled and resolved solely by arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association ("AAA") except as otherwise provided herein. The arbitration shall
be the sole and exclusive forum for resolution of any such claim for severance
benefits and the arbitrators' award shall be final and binding. The provisions
of this Paragraph 5 are not intended to apply to any other disputes, claims or
controversies arising out of or relating to Mr. Martin's employment by the
Company or the termination thereof.

<PAGE>

         (b) Arbitration shall be initiated by serving a written notice of
demand for arbitration to Mr. Martin, in the case of the Company, or to the
Southern Board, in the case of Mr. Martin.

         (c) The arbitration shall be held in Atlanta, Georgia. The arbitrators
shall apply the law of the State of Georgia, to the extent not preempted by
federal law, excluding any law which would require the application of the law of
another state.

         (d) The parties shall appoint arbitrators within fifteen (15) business
days following service of the demand for arbitration. The number of arbitrators
shall be three. One arbitrator shall be appointed by Mr. Martin, one arbitrator
shall be appointed by the Company, and the two arbitrators shall appoint a
third. If the arbitrators cannot agree on a third arbitrator within thirty (30)
business days after the service of demand for arbitration, the third arbitrator
shall be selected by the AAA.

         (e) The arbitration filing fee shall be paid by Mr. Martin. All other
costs of arbitration shall be borne equally by Mr. Martin and the Company,
provided, however, that the Company shall reimburse such fees and costs in the
event any material issue in such dispute is finally resolved in Mr. Martin's
favor and Mr. Martin is reimbursed legal fees under Paragraph 2.(g) hereof.

         (f) The parties agree that they will faithfully observe the rules that
govern any arbitration between them, they will abide by and perform any award
rendered by the arbitrators in any such arbitration, including any award of
injunctive relief, and a judgment of a court having jurisdiction may be entered
upon an award.

         (g) The parties agree that nothing in this Paragraph 5 is intended to
preclude upon application of either party any court having jurisdiction from
issuing and enforcing in any lawful manner such temporary restraining orders,
preliminary injunctions, and other interim measures of relief as may be
necessary to prevent harm to a party's interests or as otherwise may be
appropriate pending the conclusion of arbitration proceedings pursuant to this
Agreement; regardless of whether an arbitration proceeding under this Paragraph
5 has begun. The parties further agree that nothing herein shall prevent any
court from entering and enforcing in any lawful manner such judgments for
permanent equitable relief as may be necessary to prevent harm to a party's
interests or as otherwise may be appropriate following the issuance of arbitral
awards pursuant to this Paragraph 5.

         6. Miscellaneous.

         (a) Funding of Benefits. Unless the Board in its discretion shall
determine otherwise, the benefits payable to Mr. Martin under this Agreement
shall not be funded in any manner and shall be paid by the Company out of its
general assets, which assets are subject to the claims of the Company's
creditors.

         (b) Withholding. There shall be deducted from the payment of any
benefit due under this Agreement the amount of any tax required by any
governmental authority to be withheld and paid over by the Company to such
governmental authority for the account of Mr. Martin.

         (c) Assignment. Mr. Martin shall have no rights to sell, assign,
transfer, encumber, or otherwise convey the right to receive the payment of any
benefit due hereunder, which payment and the rights thereto are expressly
declared to be nonassignable and nontransferable. Any attempt to do so shall be
null and void and of no effect.

         (d) Amendment and Termination. The Agreement may be amended or
terminated only by a writing executed by the parties.

         (e) Construction. This Agreement shall be construed in accordance with
and governed by the laws of the State of Georgia, to the extent not preempted by
federal law, disregarding any provision of law which would require the
application of the law of another state.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement
this 23rd day of June, 2004.

                                              THE SOUTHERN COMPANY

                                              By:      /s/Ellen N. Lindemann

                                              ALABAMA POWER COMPANY

                                              By:      /s/Ellen N. Lindemann

                                              MR. MARTIN

                                              /s/C. Alan Martin
                                              C. Alan Martin

<PAGE>

                                    Exhibit A

                           CHANGE IN CONTROL AGREEMENT
                               Waiver and Release

         The attached Waiver and Release is to be given to Mr. C. Alan Martin
upon the occurrence of an event that triggers eligibility for severance benefits
under the Change in Control Agreement, as described in Paragraph 2(a) of such
agreement.

<PAGE>

                           CHANGE IN CONTROL AGREEMENT
                               Waiver and Release

         I, C. Alan Martin, understand that I am entitled to receive the
severance benefits described in Section 2 of the Change in Control Agreement
(the "Agreement") if I execute this Waiver and Release ("Waiver"). I understand
that the benefits I will receive under the Agreement are in excess of those I
would have received from The Southern Company and Savannah Electric and Power
Company (collectively, the "Company") if I had not elected to sign this Waiver.

         I recognize that I may have a claim against the Company under the Civil
Rights Act of 1964 and 1991, the Age Discrimination in Employment Act, the
Rehabilitation Act of 1973, the Energy Reorganization Act of 1974, as amended,
the Americans with Disabilities Act or other federal, state and local laws.

         In exchange for the benefits I elect to receive, I hereby irrevocably
waive and release all claims, of any kind whatsoever, whether known or unknown
in connection with any claim which I ever had, may have, or now have against The
Southern Company, Alabama Power Company, Georgia Power Company, Gulf Power
Company, Mississippi Power Company, Savannah Electric and Power Company,
Southern Communications Services, Inc., Southern Company Energy Solutions, LLC,
Southern Company Services, Inc., Southern Nuclear Operating Company, Inc. and
other direct or indirect subsidiaries of The Southern Company and their past,
present and future officers, directors, employees, agents and attorneys. Nothing
in this Waiver shall be construed to release claims or causes of action under
the Age Discrimination in Employment Act or the Energy Reorganization Act of
1974, as amended, which arise out of events occurring after the execution date
of this Waiver.

         In further exchange for the benefits I elect to receive, I understand
and agree that I will respect the proprietary and confidential nature of any
information I have obtained in the course of my service with the Company or any
subsidiary or affiliate of The Southern Company. However, nothing in this Waiver
shall prohibit me from engaging in protected activities under applicable law or
from communicating, either voluntary or otherwise, with any governmental agency
concerning any potential violation of the law.

         In signing this Waiver, I am not releasing claims to benefits that I am
already entitled to under any workers' compensation laws or under any retirement
plan or welfare benefit plan within the meaning of the Employee Retirement
Income Security Act of 1974, as amended, which is sponsored by or adopted by the
Company and/or any of its direct or indirect subsidiaries; however, I understand
and acknowledge that nothing herein is intended to or shall be construed to
require the Company to institute or continue in effect any particular plan or
benefit sponsored by the Company and the Company hereby reserves the right to
amend or terminate any of its benefit programs at any time in accordance with
the procedures set forth in such plans.

<PAGE>

         In signing this Waiver, I realize that I am waiving and releasing,
among other things, any claims to benefits under any and all bonus, severance,
workforce reduction, early retirement, outplacement, or any other similar type
plan sponsored by the Company.

         I have been encouraged and advised in writing to seek advice from
anyone of my choosing regarding this Waiver, including my attorney, and my
accountant or tax advisor. Prior to signing this Waiver, I have been given the
opportunity and sufficient time to seek such advice, and I fully understand the
meaning and contents of this Waiver.

         I understand that I may take up to twenty-one (21) calendar days to
consider whether or not I desire to enter this Waiver. I was not coerced,
threatened or otherwise forced to sign this Waiver. I have made my choice to
sign this Waiver voluntarily and of my own free will.

         I understand that I may revoke this Waiver at any time during the seven
(7) calendar day period after I sign and deliver this Waiver to the Company. If
I revoke this Waiver, I must do so in writing delivered to the Company. I
understand that this Waiver is not effective until the expiration of this seven
(7) calendar day revocation period. I understand that upon the expiration of
such seven (7) calendar day revocation period this entire Waiver will be binding
upon me and will be irrevocable.

         I understand that by signing this Waiver I am giving up rights I may
have.

         IN WITNESS WHEREOF, the undersigned hereby executes this Waiver this
____ day of ________, in the year ____.

                                              ---------------------------
                                                     C. Alan Martin

Sworn to and subscribed to me this

___day of _________, ____

--------------------------
Notary Public

My Commission Expires:

---------------------------
(Notary Seal)

         Acknowledged and Accepted by the Company, as defined in the Waiver.

By:
         -----------------------------------
Date:
         -----------------------------------Final supply agreement - for SEC redaction  (00209133.DOC;1)

 

 

 

 

 

 

 

AMENDED AND RESTATED

SUPPLY AGREEMENT

BETWEEN

PLANTEX USA, INC.

AND

PUREPAC PHARMACEUTICAL CO.

DATED:  APRIL 26, 2004

TABLE OF CONTENTS

RECITALS3

1.DEFINITIONS4

2.SUPPLY OF API14

3.DMF REGISTRATION AND ACCESS22

4.FORECASTS AND PURCHASE ORDERS FOR API22

5.PURCHASE PRICE; PAYMENTS AND ADJUSTMENTS24

6.SHIPMENT OF API33

7.QUALITY CONTROL AND PRODUCT ACCEPTANCE33

8.PRODUCT COMPLAINTS AND RECALLS39

9.THE LITIGATION40

10.INTELLECTUAL PROPERTY43

11.WARRANTIES45

12.INDEMNIFICATIONS48

13.CONFIDENTIALITY51

14.AUDITS52

15.RELATIONSHIP OF PLANTEX AND PUREPAC54

16.TERM AND TERMINATION56

17FORCE MAJEURE58

18.TEVA API PATENT RIGHTS AND DAMAGES59

19.NOTICES59

20.EXECUTION OF ALL NECESSARY ADDITIONAL DOCUMENTS61

21.WAIVER61

22.ASSIGNMENT AND AMENDMENT61

23.ENTIRE AGREEMENT62

24.GOVERNING LAW AND JURISDICTION63

25.SEVERABILITY64

26.COUNTERPARTS64

SCHEDULE A66

SCHEDULE B67

SCHEDULE C95

AMENDED AND RESTATED SUPPLY AGREEMENT (this "Agreement") made as of April 26, 2004, between PLANTEX USA, INC., a corporation incorporated and existing under the laws of the State of New Jersey with its principal offices at 2 University Plaza, Suite 305, Hackensack, New Jersey 07601 (hereinafter called "Plantex"), and PUREPAC PHARMACEUTICAL CO., a corporation incorporated and existing under the laws of the State of Delaware with its principal offices at 200 Elmora Avenue, Elizabeth, New Jersey 07207 (hereinafter called "Purepac");

Defined terms used in this Agreement shall have the meanings set forth in Section 1 hereof, except as otherwise expressly provided herein.

RECITALS:

WHEREAS, Plantex and Purepac are parties to a certain Supply Agreement dated August 9, 1999 (the "Supply Agreement"), as previously amended by amendments thereto dated March 29, 2000, November 4, 2000, June 18, 2001, January 24, 2003 and September 5, 2003 (as so amended, the "Original Agreement"); the parties desire to further amend the Original Agreement; and in order to set forth in one document, for the convenience of the parties, the text of the Original Agreement as amended by the amendments to be made hereby, the Original Agreement will, upon execution hereof, be amended and restated to read in full as set forth herein;

WHEREAS, Purepac's Affiliate, Alpharma, Inc. ("ALO") and Plantex's Affiliate, Teva Pharmaceutical Industries Ltd. ("Teva"), are concurrently with the execution of this Agreement entering into a certain Selective Waiver Agreement (the "Waiver Agreement");

WHEREAS, this Agreement shall not become effective until the execution of both this Agreement and the Waiver Agreement by all pertinent signatories;

WHEREAS, Plantex is engaged in the business of manufacturing and selling the Active Pharmaceutical Ingredient (as hereinafter defined);

WHEREAS, Purepac is engaged in the business of manufacturing and selling finished pharmaceutical products; and

WHEREAS, Purepac wishes to purchase the Active Pharmaceutical Ingredient from Plantex for its use in the manufacture of the Finished Products which are to be sold and/or distributed in the Territory, and Plantex is willing to supply such API (as such terms are hereinafter defined) to Purepac on the terms and conditions of this Agreement.

NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.DEFINITIONS:

1.1For the purposes of this Agreement the following terms shall have the following meanings:

"Adverse Drug Event" shall mean any experience with any of the Finished Products which may adversely impact the Marketing Authorization and which shall include any unfavorable, unusual or unwanted signs, symptoms, or laboratory values (whether or not considered drug related) experienced by a patient or customer that may be attributable to the Active Pharmaceutical Ingredient.

"Affiliate" shall mean, with respect to either party, all entities which, directly or indirectly, control, are controlled by, or are under common control with such party.  For the purpose of this definition, "control" of a corporation or other business entity shall mean direct or indirect beneficial ownership of greater than fifty percent (50%) of the voting interest in, or a greater than fifty percent (50%) interest in the equity of, or the right to appoint more than fifty percent (50%) of the directors or management of such corporation or other business entity, or the power to direct or cause the direction of the management and policies of such corporation or other business entity whether by ownership of voting securities, by contract or otherwise.

"ALO" shall have the meaning set forth in the recitals hereto.

"ANDA" shall mean Abbreviated New Drug Applications No. 75-350 and No. 75-694 filed with the FDA by Purepac for Marketing Authorization for the Products.

"API" or "Active Pharmaceutical Ingredient" shall mean the gabapentin developed, manufactured and provided in bulk for the formulation of Products described in Schedule A hereto.

"Authorized Generic Product" shall mean a finished pharmaceutical product for sale in the prescription drug marketplace as a generic to Neurontin® that contains the same active ingredients in the same dosage form and strength as any Product and which is either supplied by, or sold under a license from, Pfizer, Inc. or its successors in interest.  

"Batch" shall mean, with respect to API, a separate and distinct quantity of API processed under continuous and identical conditions and designated by a batch number.

"Capsule Products" shall mean those Finished Products set forth in Section A of Schedule A hereto.

"Certificate of Analysis" shall mean a document, which is dated and signed by a duly authorized representative of the quality control or quality assurance department of Plantex, certifying that a Batch of API meets all Specifications.

"cGMP" shall mean current good manufacturing practices as required by the rules and regulations of the FDA.

"Competing Product" shall mean any finished pharmaceutical product for sale in the prescription drug marketplace that contains the same active ingredients in the same dosage form and strength as any  Product, other than 
(a)Products sold by ALO or Teva, or their respective Affiliates pursuant to this Agreement or the Waiver Agreement, or

(b)finished pharmaceutical products sold under the brand name Neurontin®; or 

(c)an Authorized Generic Product.

For example, this would exclude any 100 mg, 300 mg and 400 mg gabapentin tablets that may be approved for marketing in the Territory.

"Confidential Information" shall mean and include all information which may be disclosed by either party to the other party either pursuant to this Agreement or pursuant to any preceding agreement concerning any of the API or Finished Products, any technology, marketing strategies or business of such party, including that relating directly to any of the API or Finished Products, and any technology generated by either party as a result of the rights granted and obligations arising under this Agreement but shall not include information which the receiving party can show:
(1)either is or becomes available to the public other than as a result of the disclosure by the receiving party; or

(2)at the time of receipt is already in the possession of the receiving party or becomes lawfully available to the receiving party on a non-confidential basis from a third party entitled to make that disclosure.

"DMF" shall mean the drug master file covering the analysis and manufacturing of the API which was filed with the FDA by Plantex on ****, as the same may be updated by Plantex from time to time, subject to the conditions of this Agreement, comprising any and all technical information, including, without limitation, analytical methods, stability and pharmaceutical data and manufacturing processes with respect to the API in the possession of Plantex.

"Exclusivity Period" shall mean, independently for Capsule Products and Tablet Products, the period commencing with the first commercial sale of such Finished Product in the Territory and ending on the earlier of (i) one hundred and eighty (180) days after such date or (ii) the date of a commercial sale of a Competing Product in the Territory.

_______________________

* Indicates that material has been omitted and filed separately with the Securities and Exchange Commission.

 
"FDA" shall mean the U.S. Food and Drug Administration, or any successor body.

"Final API Price" shall have the meaning set forth in Section 5.5 hereof.

"Final Payment" shall have the meaning set forth in Section 5.5 hereof.

"Finished Product" shall mean each of the Products containing the API supplied by or on behalf of Plantex that is A-B Rated to Neurontin® manufactured by or on behalf of Purepac or Purepac Designees.

"First API" shall mean the approximately **** MT of API  referred to in the amendments to the Supply Agreement dated January 24, 2003 and September 5, 2003.

"First API Base Price" shall have the meaning set forth in Section 5.2 hereof.

"Fiscal Year" shall mean the twelve-month period commencing on July 1st of each year and ending on June 30th, or any other twelve (12) month period designated as the fiscal year of Purepac.

"FOB" shall have the meaning set forth in the Incoterms.

"482 Patent" shall mean U.S. Patent No. 6,054,482.

"GAAP" shall mean United States generally accepted accounting principles, consistently applied.

"Incoterms" shall mean the 2000 edition of the International Commercial terms published by the International Chamber of Commerce, as may be amended or modified from time to time.

"Initial Period" shall have the meaning set forth in Section 2.1 hereof.

"Intellectual Property Rights" shall include all rights and interests, vested or arising out of any patent, copyright, design, trade mark, trade secrets or goodwill whether arising from common law or by statute or any right to apply for registration under a statute in respect of those or like rights.

"Launch Date" shall mean the date of the first commercial sale by Purepac or a Purepac Designee of a Finished Product in the Territory to an unaffiliated third party in an arms-length transaction.

"Litigation" shall mean the action entitled Warner-Lambert Company v. Purepac Pharmaceutical Co., and Purepac Inc., Civil Action No. 98-2749 (JCL) [D.N.J.] which was filed by Warner-Lambert Company (now Pfizer, Inc.) against Purepac on June 11, 1998 or any other action involving the 482 Patent arising out of a launch in the Territory by Purepac and/or a Purepac Designee of a  Product.

"Marketing Authorization" shall mean, with respect to any of the Finished Products, the grant of registration approval from the FDA necessary to permit the manufacture, storage, promotion, sale and marketing of such Finished Product in the Territory.

"MT" shall mean metric tons.

"Net Sales" shall mean the gross invoiced sales price for each Finished Product sold on an arms-length basis by Purepac or any Purepac Designees to unaffiliated third parties in the Territory during the payment period, less, 
(1)any statutory or contractual liability for rebates for such Finished Products to be paid to or for the benefit of any government entity including, but not limited to, rebates to be paid pursuant to the Medicaid rebate legislation and state and local government rebate programs;

(2)****;

(3)any liability to customers for rebates or fees (including, but not limited to, administrative and promotional fees) for such Finished Product consistent with the historical experience of the party's business; 

(4)any adjustments granted to customers for repayments, allowances or credits for rejected Finished Product, retroactive price adjustments (e.g., floorstock adjustments), reprocurement fees, damaged Finished Product, promotional allowances, chargebacks, or other customary discounts and deductions directly related to such Finished Products and required to be accrued in accordance with GAAP, consistent with the historical experience of the party's business; and,

(5)****.

The above deductions from gross invoiced sales price shall be accrued in accordance with GAAP, with the exception of subsection (5) above.  All such accruals shall be subject to further "true up" pursuant to Section 5.9 hereof.  Any discount, purchase of services, allowance, adjustment, rebate, management fee, wholesaler charge back or similar credits or accommodations for Finished Product that is given to a customer due to the purchase of a service or product, other than Finished Product (including, without limitation, a loss-leader bundling arrangement), shall not be taken into consideration for the calculation of Net Sales.

"New API" shall have the meaning set forth in Section 2.1 hereof.

"New API Base Price" shall have the meaning set forth in Section 5.1 hereof.

"Objection Notice" shall have the meaning set forth in Sections 7.5 and 7.6 hereof.

"Other API Base Price" shall have the meaning set forth in Section 5.4 hereof.

"Period of Non-Supply" shall have the meaning set forth in Section 2.3 hereof.

"Product" shall mean each of the finished generic pharmaceutical products for the prescription drug marketplace containing the API that is A-B Rated to Neurontin®, as set forth in Schedule A hereto. 

"Purchase Order" shall mean a written purchase order for API submitted to Plantex by Purepac in compliance with all of the requirements of this Agreement, including, without limitation, containing such ordered quantity of API and requested delivery dates as are consistent with the forecasting requirements of Section 4 hereof and other good faith obligations hereunder, and which purchase order shall (subject to the other provisions of  this Agreement) be deemed firm, irrevocable and binding on Purepac and Plantex.

"Purepac Designee" shall mean any Affiliate of Purepac and their respective licensees, distributors and similarly situated entities designated by or on behalf of Purepac.

"Regulatory Authority" shall mean any and all bodies and organizations, including, without limitation, the FDA, regulating the manufacture, storage, promotion, importation, distribution, marketing, use and sale of API and Finished Products in the Territory.

"Second API" shall mean the **** MT  of API originally referred to in Purepac's Purchase Order Number **** dated ****.

"Second API Base Price" shall have the meaning set forth in Section 5.3 hereof.

"Specification" shall mean, with respect to API, the specification contained in Schedule B hereto and the **** specification of **** as tested pursuant to Purepac's **** test in its ANDA, to be identified by Purepac within three business days from the date of this Agreement from one of the two tests annexed hereto as Part Two to Schedule B hereof, (the "Purepac **** Test"), or as otherwise mutually agreed upon by Purepac and Plantex.

"Tablet Products" shall mean those Finished Products set forth in Section B of Schedule A hereto.

"Territory" shall mean the U.S..

"Teva" shall have the meaning set forth in the recitals hereto. 

"Teva USA" shall mean Teva Pharmaceuticals USA, Inc.

"Third Party Price" ****.

"U.S." means the United States of America and its territories, districts and possessions, and the Commonwealth of Puerto Rico.

"Waiver Agreement" means that certain Selective Waiver Agreement of even date herewith between Teva and ALO.

"Wind-down Quantities" shall have the meaning set forth in Section 2.6 hereof.

1.2In this Agreement:
(a)The headings used in this Agreement are intended for guidance only and shall not be considered part of the this written understanding between the parties and

(b)words specifying a gender shall include any gender.

2.SUPPLY OF API

2.1(a) In accordance with the terms and subject to the conditions of this Agreement, Plantex shall supply Purepac and Purepac shall purchase from Plantex, the requirements of Purepac and the Purepac Designees for API for their validation and commercial manufacture of the Finished Products to be sold or distributed in the Territory.  In addition to the **** MT of the Second API that Purepac presently has in its possession, Purepac shall purchase from Plantex during the period commencing April 2004 through **** (the "Initial Period") the quantity of API set forth in the schedule below (collectively, the "New API").  Plantex shall ship the New API to Purepac on the thirtieth (30th) day of each month set forth in such below schedule; provided, however, that at Plantex's option it may ship the New API and Purepac shall purchase same on a commercially reasonable accelerated basis determined by Plantex.

	
****
	 
	
****
	
**** MT

	
****
	
**** MT

	
****
	
**** MT

	
****
	
**** MT

	
****
	
**** MT

	
****
	
**** MT

	
****
	
**** MT

	
****
	
**** MT

	
****
	
**** MT

	 	 

(b) From and after the Initial Period in accordance with the provisions of this Agreement, Plantex shall supply Purepac with its and the Purepac Designees aggregate requirements of additional API pursuant to Purchase Orders.  Purchases of all API hereunder shall be at the respective prices set forth in Section 5 hereof.

2.2Except as otherwise specifically provided for in this Section 2.2, Purepac's purchase of API from Plantex and Plantex's supply to Purepac will be on a non-exclusive basis, provided however, that:
(a)subject to the provisions set forth in Section 2.3 hereof, and subsection (b) below, Purepac shall purchase from Plantex not less than **** percent (****%) of its and the Purepac Designees aggregate commercial requirements of API for each fiscal year during the term of this Agreement; 

	during the Initial Period, except as otherwise expressly provided, Purepac (for itself and all the Purepac Designees) shall purchase API exclusively from Plantex, and Plantex shall supply to Purepac (including the Purepac Designees), the New API according to the schedule set forth in Section 2.1(a) hereof.  ****  As such additional amounts become available, Plantex shall promptly notify Purepac.  Plantex agrees to cooperate in good faith with Purepac to deliver the above additional amounts of API to Purepac as soon as practicable and as part of its regular API production in accordance with the production capacity notified to Purepac; and

	if, however, during any month of the Initial Period, Purepac desires to purchase quantities of API in excess of the amounts set forth above in Section 2.2(b) hereof, Purepac shall provide Plantex with written notice thereof setting forth the additional desired quantities in a proposed purchase order.  Plantex shall have the right, but not the obligation, to supply such additional quantities or portions thereof.  If it decides to supply less than all of such additional quantities, Purepac shall not be restricted from buying such remaining quantities from a third party.

2.3Notwithstanding the foregoing Section 2.2, during any period in which Plantex for any reason, other than a breach of this Agreement by Purepac, fails to timely ship the specific quantities set forth in Section 2.1(a) hereof or as set forth in Purchase Orders hereunder (a "Period of Non-Supply"), Purepac shall be entitled to purchase from a third party such deficiency only and, as a result,  Purepac's obligation to purchase **** percent (****%) or ****percent (****%), as the case may be, of Purepac's and the Purepac Designees requirements of API from Plantex for the fiscal year or years in which the Period of Non-Supply occurs shall be decreased by the amount of such deficiency purchased from such third party.  Nothing in this Section 2.3 shall in any way be deemed to limit or restrict Purepac's right, if any, to terminate this Agreement, to the extent otherwise permitted by the provisions of Section 16, it being understood, however, that Plantex shall not be considered in default if it fails to ship during any month an amount of up to **** percent (****%) of the aggregate amount for any Purchase Orders hereunder (including as set forth in the Schedule in Section 2.1(a) hereof), provided that, ****.

2.4Subject to the following conditions of this Section 2.4, Plantex shall not be restricted or otherwise limited in any way from selling API to any other parties for any purpose:
(a)nothing in this Section 2.4 shall in any way limit or reduce any obligations of Plantex to meet all of its obligations to supply API to Purepac in accordance with the terms of this Agreement; 

(b)in the event that Plantex, at any time and for any reason, shall be unable to fill, on a timely basis, any Purchase Order (including deemed orders pursuant to Section 4.2 hereof) for API of Purepac (issued in accordance with the requirements of this Agreement) and any purchase order for API of third parties issued during the term of this Agreement, ****.

2.5Purepac represents and warrants to Plantex that the quantity of all API delivered or to be delivered to Purepac during the Initial Period is Purepac's good faith estimate of its (and the Purepac Designees) requirements for API to be processed into Finished Product for sale in the Territory during the Exclusivity Period.  If notwithstanding such good-faith estimate Purepac or its Affiliates decide not to, or are otherwise unable to (including as a result of an event of force majeure) process any of such API in a timely manner so that such API can be sold as Finished Product in the Territory during the Exclusivity Period, ****.  Further, Purepac covenants to process only so much of such API into Finished Product that it, in good faith, reasonably estimates it shall sell in the Territory during the Exclusivity Period.

2.6In the event an injunction, restraining order or similar judicial relief, as well as a final non-appealable decision or judgment entered by an appropriate court is entered (the "Entry Date") against Purepac or any of its Affiliates prohibiting Purepac from manufacturing, marketing or selling Products in the Territory, then notwithstanding any other provision of this Agreement to the contrary, Purepac will be required to pay Plantex for all API ordered through the end of the calendar month following the month in which the injunction, order, relief, decision or judgment is entered (the "Wind-down Quantity"), payable ****percent (****%) within **** days of the Entry Date and the remaining **** (****%) percent within **** days of the Entry Date, and thereafter unless the parties otherwise mutually agree all further purchase requirements under this Agreement will be suspended until the vacating of such injunction, order or relief (at which time Plantex shall deliver, within a reasonable time thereafter, the Wind-down Quantities to Purepac). Likewise, in the event of the foregoing or similar judicial action, order, decision, relief or adverse decision or ruling of a court against or effecting Plantex or its Affiliates, Plantex may immediately suspend all further shipments of API to Purepac and the Purepac Designees and all further purchase requirements under this Agreement will be suspended until the vacating of such injunction, order or relief and, notwithstanding any other provision of this Agreement to the contrary, Purepac shall pay Plantex for all unpaid orders within **** days thereafter.  To the extent that any amount of the **** MT of API referred to in Section 5.2(b) hereof has not yet been delivered to Purepac at the time any such Entry Date, all amounts paid for such portion of the **** MT of API yet to be delivered shall be offset against up to **** percent (****%) of the amounts payable for the Wind-down Quantities, with the balance of the payment for the Wind-down Quantities to be paid within the period set forth above in this Section 2.6.  Any such off-set amount shall be paid by ALO to Plantex upon the delivery of such balance of said **** MT of API.
3.DMF REGISTRATION AND ACCESS

Plantex, at its sole cost, has filed and will maintain the DMF covering its API, in accordance with the requirements of the FDA, and will permit Purepac to review the DMF, excluding, where Plantex deems appropriate, proprietary manufacturing process information.  Plantex will provide Purepac with an access letter referencing the DMF in order to allow Purepac to process its ANDA, and shall not withdraw or rescind the access letter during the terms of this Agreement.  Plantex shall obtain Purepac's prior written consent, which consent shall not be unreasonably withheld, if Plantex decides to update the DMF before the earlier of  (i) **** and (ii) the date Purepac receives final approval for the Tablet Product.  Thereafter, Plantex may, from time to time, update the DMF, provided, however, to the extent that any such update has a material adverse effect on the regulatory status or timing of the ANDA, or the Litigation, it will notify Purepac of any such updates in writing not later than thirty (30) days prior to the intended update.

4.FORECASTS AND PURCHASE ORDERS FOR API

4.1Commencing on the earlier of (i) **** and (ii) **** days following the Launch Date, Purepac shall provide Plantex with its good faith forecast of its anticipated monthly requirements for API for the twenty-four (24) calendar months following the Initial Period.  Beginning on or before ****, and every three (3) months thereafter during the term, on or before the fifteenth day of such applicable month, Purepac shall provide Plantex with a good faith forecast of its anticipated requirements for API for the twenty-four (24) month period beginning with the calendar month thereafter and a binding Purchase Order for the three (3) months starting with the first calendar month immediately following the date of the forecast.  The Purchase Orders for each of the first three (3) months of each forecast may not be for an amount less than **** percent (****%) or greater than **** percent (****%) of the immediately preceding forecast for each such three (3) month period; provided, however, that in no event shall Plantex be obligated to supply to Purepac such quantity of API that would result in the shortfalls referred in Section 2.4(b) hereof.

4.2Each Purchase Order  shall specify the quantities of API to be shipped to Purepac on or before the fifteenth (15th) of such month or by air at the end of the month (however, for the quantities set forth in Section 2.1(a) hereof, shipment shall be made by air by the thirtieth (30th) of the month); provided, however, that (a) where the terms or conditions of any such Purchase Order is in conflict with or in addition to the terms and conditions of this Agreement, this Agreement, and not the terms and conditions set forth in the Purchase Orders, shall govern the purchase and sale of API under this Agreement; and (b) even if Purepac fails to timely place Purchase Orders for the New API, or for the first quarter of any forecast, Purchase Orders shall be deemed to have been made for same, for shipment in accordance with the Schedule set forth in Section 2.1(a) hereof and for the applicable month in the first quarter of the pertinent forecast.  

4.3To the extent practicable, Plantex shall fill Purchase Orders for API placed by Purepac from full batches of API, which shall comprise the maximum API batch size (currently about **** kilograms) supplied to Teva, a Teva Affiliate, or unaffiliated third parties.
5.PURCHASE PRICE; PAYMENTS AND ADJUSTMENTS

Plantex and Purepac agree that the following price and payment terms shall supercede all prior agreements regarding API pricing and payment terms whether such API has previously been delivered or will subsequently be delivered, and all purchase orders for API outstanding as of the Effective Date are hereby superceded and replaced by the delivery schedules and payment terms provided for in this Agreement.

5.1Except as set forth below or pursuant to Section 2.6 hereof, the base price for each shipment of the New API and any orders for additional API during the Initial Period shall be $****/kg (the "New API Base Price") payable (i) $****/kg within **** days after receipt of such shipment by Purepac and (ii) $****/kg upon the earlier of (x) **** and (y) ****.  

5.2The base price for the First API is $****/kg (the "First API Base Price").  

	The First API Base Price for **** MT of the First API has been paid in full by Purepac.  Plantex shall accept the return of such **** MT of the First API, and the first **** MT of the New API shall be in replacement of such returned **** MT of the First API.  Except as set forth in Section 5.5 hereof, Purepac shall have no obligation to pay any further sums therefore.  

	With respect to the remaining **** MT of the First API, a balance of $**** of the First API Base Price is outstanding.  Purepac shall pay to Plantex such balance of $**** on ****.  Plantex shall accept the return of such **** MT of the First API (which API shall be shipped by Purepac to Plantex in a manner consistent with industry standards), and **** MT of the New API shipped in each of **** and ****, and **** MT of the New API shipped in **** shall be in replacement of such returned **** MT of the First API.  Except for the above $**** balance payment of the First API Base Price and as set forth in Section 5.5 hereof, Purepac shall have no obligation to pay any further sums therefor.

5.3The base price for the Second API is $****/kg (the "Second API Base Price").  The Second API Base Price shall be payable (i) $****/kg within **** days after receipt of such shipment by Purepac, (ii) $****/kg upon the later of (x) **** days after receipt of such shipment by Purepac or (y) **** and (iii) $****/kg upon the earlier of (x) the date **** and (y) ****.  Plantex has already delivered to Purepac **** MT of the Second API.  The **** through **** MT of the New API shall be considered the remaining **** MT of the Second API.  The Second API shall also be subject to the provisions of Section 5.5 hereof.

5.4The base price for all other amounts of API shipped to Purepac and the Purepac Designees hereunder (the "Other Base Price") shall be $****/kg payable (i) $****/kg within ****days after the date of ****and (ii) $****/kg within **** days ****.

5.5The final price for each shipment of API sold hereunder by Plantex to Purepac, (the "Final API Price"), shall be as follows:
(a)With respect to Finished Product that is the equivalent dosage form for **** MT of API, which Finished Product is sold during the Exclusivity Period, the Final API Price shall be **** percent (****%) of Net Sales of such Finished Product.

(b)With respect to the Finished Product that is the equivalent dosage form for any API in excess of the initial **** MT of API, which Finished Product is sold during the Exclusivity Period, the Final API Price shall be **** percent (**** %) of Net Sales of such Finished Products.

(c)With respect to Finished Products sold after the Exclusivity Period, the Final API Price for the API for such Finished Products for each **** period of the term hereof commencing with the first day of the end of the Exclusivity Period shall be set by the mutual written agreement of the parties provided that should the parties fail to agree upon a price by the commencement of each such **** period, then the Final API Price for API for the given **** period will be set at the price charged by Plantex to Purepac during the immediately preceding **** period (the "Prior Price"). Notwithstanding the immediately preceding sentence Plantex agrees that ****.  Notwithstanding the immediately preceding provision of this Section 5.5(c), and without limiting the provisions of Section 2.6 hereof, if any of the New API or any additional API ordered by and/or shipped to Purepac during the Initial Period or the Exclusivity Period (excluding such API that is ordered for shipment to Purepac during the **** day period prior to the end of the Exclusivity Period for Purepac's good faith intended use in the manufacture of Finished Products for sale or distribution after the Exclusivity Period), shall not have been processed into Finished Products and sold by Purepac or the Purepac Designees during the Exclusivity Period (including as a result of an event of force majeure), and orders for Product remain unfilled by ALO **** for lack of adequate supply of Product, then the Final API Price for such API shall be the greater of:  (i) $****/kg or (ii) **** percent (****%) of Purepac's Net Sales of the Finished Product which are the equivalent dosage form for such API (but in any event not exceeding $****/kg).

(d)The final payment for each shipment of the First API, the Second API, the New API and all other API ordered hereunder for the Exclusivity Period (the "Final Payment") shall be equal to (i) the applicable Final API Price less (ii) the amount of the First API Base Price, the Second API Base Price, the New API Base Price, or Other Base Price, as applicable, paid by Purepac for each such shipment of API.  In no event shall the applicable Final API Price and therefore, any Final Payment, be less than the First API Base Price, the Second API Base Price, the New API Base Price, or the Other Base Price (for API purchased from Plantex for the Exclusivity Period), as applicable.  Except as otherwise provided in Section 5.5(c) hereof, for Finished Product sold following the Exclusivity Period and containing API purchased from Plantex from and after the date that is sixty (60) days prior to the end of the Exclusivity Period, if the Final Payment due is less than the Other Base Price paid to Plantex by Purepac, then Plantex shall credit such difference against outstanding amounts due or to become due Plantex.  If no further amounts are payable by Purepac to Plantex, then any remaining overpayment made by Purepac shall be refunded by Plantex.

(e)The Final Payment shall be payable on the 15th day of the beginning of each calendar quarter, calculated for the Net Sales of Finished Products sold during the preceding calendar quarter; provided that the first time such Final Payment shall be payable shall be on the later of **** (****) days after the Launch Date or the **** day of the calendar quarter following the Launch Date, at which time such Final Payment shall be calculated for cumulative Net Sales through the immediately preceding quarter end. Payment for Product pursuant to Sections 5.5 (a) or (b) hereof shall be made on the 15th day of the beginning of each calendar quarter calculated for the Net Sales of the applicable Products sold during the preceding calendar quarter.

(f)In addition to the foregoing provisions of this Section 5.5, in the event of the sale of Products containing API purchased by or on behalf of Purepac from third parties (as and to the extent permitted by the applicable provisions hereof), which Product is sold during the Exclusivity Period, Purepac shall pay to Plantex an amount equal to **** percent (****%) of net sales of such Products, which net sales shall be calculated in the same manner as Net Sales hereunder provided that the actual documented out of pocket cost of API paid to third parties by Purepac shall be deducted from the gross invoiced sales price for such Product.  Payment of any such amount shall be made on the fifteen (15th) day of each calendar quarter for the net sales of such Products during the preceding calendar quarter.

The parties hereby acknowledge and agree that the foregoing percentages of Net Sales used to calculate Final API Price are subject to increase in accordance with the applicable provisions of the Waiver Agreement, and the parties agree to be bound by such provisions.

5.6Subject to acceptance by Purepac of the API pursuant to Section 7.5 hereof, Purepac will pay Plantex for all other supplied quantities of the API, if any, other than as otherwise expressly set forth herein, within ****.

5.7All payments payable under this Section 5 will be by electronic transfer to an account designated in writing by Plantex.  It is the parties' current understanding that there is no requirement under U.S. law that Purepac withhold any tax from any payment to Plantex.  However, to the extent that such withholding is, or may subsequently be required by applicable law, the parties agree that Purepac may withhold such required tax from any payments to Plantex provided it first gives Plantex not less than fifteen (15) days prior written notice of its intention to so withhold and Plantex does not object to same.  Purepac shall pay to the I.R.S. the amount of the tax so withheld and shall submit to Plantex documents evidencing such tax withholding and payment and shall cooperate reasonably with Plantex in providing such other documents or information as Plantex may reasonably require.  

5.8The parties acknowledge and agree that Purepac shall not be obligated for any payment payable hereunder with respect to any Batches which Purepac has delivered a timely Objection Notice, pursuant to Section 7.5 hereof.  If it is determined in accordance with the provisions of this Agreement that Purepac improperly rejected any API then Purepac shall immediately pay Plantex for same.

5.9Within one hundred and twenty (120) days after the expiration of the Exclusivity Period, the parties agree to allow for a "true-up" calculation of the deductions from gross invoiced sales price for Finished Product set forth in the definition of "Net Sales" in Section 1.1 hereof consistent with this Section.  The "true-up" calculation shall be based on actual cash paid or credits issued for sales-related deductions, plus accruals for contractual obligations arising during the Exclusivity Period not yet paid, as so described in Section 1.1 hereof for the full payment period.  The "true-up" calculations will be calculated on a first-in first-out accounting basis for purposes of calculating all charges incurred during the period.  The difference between actual cash payments or credits issued to customers and accruals recorded for the sales deductions during the Exclusivity Period will be adjusted and settled in cash by the relevant Party within such one hundred and twenty (120) day period.   In performing the true-up calculation (i) only actual chargebacks paid during the first two hundred and seventy (270) day period commencing with the Launch Date shall be included, but in any event such amount shall not exceed the amount of direct unit sale to wholesalers, and (ii) return allowances shall be excluded for purposes of this true-up and only those price protection credits or shelf stock allowances paid within ninety (90) days of the end of the Exclusivity Period shall be used.  Further, to the extent any API is lost by Purepac during the conversion process and such loss is not attributable to its negligence, then an amount equal to the New API Base Price for such lost API up to an amount not to exceed ****of the API subject to the "true-up" shall be deducted from the given Final Payment. 

5.10Plantex hereby explicitly retains all rights and remedies as may be available at law or in equity, including as a secured party under the Uniform Commercial Code, which includes, without limitation, a purchase money security interest in all API sold to Purepac and the Purepac Designees by Plantex hereunder, and a right to all of Purepac's and the Purepac Designees's proceeds therefrom and Finished Products manufactured therefrom, until the applicable base purchase price for such API and any other charges payable to Plantex under this Agreement shall have been paid in full.  Purepac (for itself and the Purepac Designees) authorizes Plantex to file any financing statements, and agrees to execute any documents as Plantex may reasonably request, in order to protect Plantex's security interest.
6.SHIPMENT OF API

Shipments of API by Plantex shall be made (a) C.I.P. Piscataway, New Jersey, or (b) such alternative locations as Purepac shall specify in its Purchase Orders (provided, however, Purepac shall pay to Plantex the difference in shipping and related costs between the site designated under subsection (a) and this subsection (b)).
7.QUALITY CONTROL AND PRODUCT ACCEPTANCE

7.1Plantex shall use its best commercial efforts to ensure that all API supplied to Purepac under the terms of this Agreement will:

	conform in all respects to the Specification;

(b)be manufactured in conformity with cGMP;

(c)be of merchantable quality;

(d)conform with all applicable material requirements of any and all Marketing Authorizations granted for the Finished Products within the Territory; and

(e)meet any other material current pharmacopoeial or regulatory requirements of all relevant Regulatory Authorities in the Territory.

7.2Plantex shall ensure that each Batch of API is labeled and each of the Batch numbers is applied to each such Batch, as required by the applicable Regulatory Authority and that each Batch of API delivered hereunder shall have a remaining shelf-life before retesting of at least **** months from the date of delivery to Purepac (or **** months from the date Plantex is prepared to make shipment, if delivery is delayed by Purepac).  Plantex will ensure that a copy of the Certificate of Analysis with respect to each Batch of API supplied to Purepac (a) is faxed to Purepac prior to shipping such Batch to Purepac (confirmed by hard copies mailed to Purepac) and (b) accompanies each Batch.  Plantex will also ensure that a copy of the HPLC chromatogram for the assay and measurement of impurity levels in the API and all other documentation reasonably required by Purepac shall be made available to Purepac upon request.

7.3Plantex shall use its best commercial efforts to not ship any Batch to Purepac if such Batch does not conform in all respects to the Specification and does not meet all of the other requirements set forth in Section 7.1 hereof.

7.4Plantex shall provide and maintain suitable storage and transport conditions for each Batch of API and shall provide Purepac with complete written instructions with respect to proper conditions for the transport and storage of API.  Upon receipt of any Batch of API by Purepac from Plantex, Purepac shall provide and maintain suitable storage conditions therefor and shall comply with any written instructions provided by Plantex that are required by the DMF in respect of the transport and storage of API.

7.5All shipments of API received by Purepac shall be deemed accepted unless Purepac notifies Plantex within ****days of receipt of the applicable Batch that it is unacceptable due to non-conformity of the applicable API to the Specification (an "Objection Notice").  To the extent practicable, prior to issuing an Objection Notice, Purepac shall discuss the results of its testing with Plantex in an effort to identify and resolve the causes for the out of Specification result.

7.6In the case of latent defect, within **** days from the date that Purepac discovers or should have discovered such defect, Purepac shall notify Plantex, in writing, of any rejection of any such API (also, an "Objection Notice"), on the basis of (A) any non-compliance with the Specification or (B) failure of any such shipment to conform with any warranty set forth in Section 7.1 hereof; provided, however, that to the extent practicable, prior to issuing an Objection Notice, Purepac shall discuss the results of its testing with Plantex in an effort to identify and resolve the causes for the out of Specification result.  

7.7Any Objection Notice shall state in reasonable detail (sufficient to enable Plantex to identify the nature of the problem for tests or studies to be conducted by or on its behalf or to dispute the same) the reason why Purepac believes the API may not be acceptable to Purepac.  Purepac shall, within five (5) business days of its receipt of a request by Plantex for samples of rejected API, provide samples of the API being rejected, if appropriate, and copies of written reports relating to tests, studies or investigations performed to date by or on behalf of Purepac on the API being rejected.  If Purepac and Plantex fail to agree within five (5) business days after Plantex's notice to Purepac as to whether any API identified in the Objection Notice deviates from the Specification to any extent, or breaches a warranty set forth in Section 7.1 hereof, representative samples of the batch of the API in question shall be submitted to a mutually acceptable independent laboratory or consultant (if not a laboratory analysis issue) for analysis or review.  If such laboratory needs to be qualified, then Purepac and Plantex will equally share the cost and expense of the qualification.  The results of such evaluation shall be binding upon the parties.  If Plantex and Purepac determine by agreement or if such evaluation certifies that Purepac properly rejected the API, Purepac may validly reject the API in the manner contemplated by Sections 7.5 or 7.6 hereof.  The party that is determined to have been incorrect in its determination of whether the API should be rejected shall pay the costs of any such evaluation.  Should the fees associated with the work conducted by the independent laboratory or consultant be due up front, Purepac and Plantex shall each pay fifty percent (50%) of such upfront fees; provided, that if it is determined by the independent laboratory or consultant that either party shall have been incorrect in its determination, such party shall reimburse the other party for such fifty percent (50%) of fees.

7.8If Purepac gives an Objection Notice to Plantex under Sections 7.5 or 7.6 hereof, and Plantex agrees with same or the Objection Notice is determined to be valid pursuant to Section 7.7 hereof , then Plantex shall only be obligated to provide Purepac, free of charge, with replacement API within forty-five (45) days after such Objection Notice.  Plantex may, at its sole cost, reclaim the rejected API within sixty (60) days of Purepac's Objection Notice (and Purepac shall cooperate with such reclamation).  If Plantex does not reclaim the rejected API, Purepac shall destroy it upon the request of Plantex.  If Plantex does reclaim the rejected API, it will not re-supply to Purepac that API or any part thereof or a refined or altered form of the API without the prior written consent of Purepac, which consent will not be unreasonably withheld.  For the sake of clarification, Plantex shall have no obligation to Purepac in respect of API failing to meet Specification to the extent such failure arises out of an act or omission of Purepac, a Purepac Designee and/or their respective representatives.

7.9Despite anything else in this Agreement, the following shall apply with regard to **** specification of **** within the Specification (the "**** Specification"):  (A) Purepac shall be entitled to reject any API that contains less than **** as determined by the Purepac **** Test, by issuance of a timely Objection Notice in accordance with the provisions of Section 7.5 hereof; (B) if Purepac so rejects any such API, then the provisions of Sections 7.7 and 7.8 hereof shall apply as the sole and exclusive remedies available to Purepac and its Affiliates with respect to such API, provided, however, that if Plantex is unable to replace such API as soon as practicable, then until such replacement the appropriate provisions of Section 2.4(b) shall apply with regard to the supply of any further API by Plantex to Teva USA or any third party (as the case may be); and (C) Plantex shall have no liability to Purepac or any of its Affiliates for delivering API that fails to meet the Purepac **** Test beyond its obligations under the foregoing subsection (B) unless such API also fails to meet the Plantex **** test as set forth in Schedule C hereto due to the gross negligence or willful misconduct of Plantex, in which case, subject to Section 11.4 hereof, Purepac shall be entitled to the same remedies under this Agreement as it would have had for any other failure by Plantex to meet the Specifications and timely deliver such API to Purepac (subject again, for clarity, to Section 11.4 below).

7.10Upon the (a) reasonable request of Purepac (as consented to by Plantex, which consent shall not be unreasonably withheld) or (b) request of a Regulatory Authority, Plantex shall change the Specification to that specified in such request.  In the event that such change in the Specification shall result in an increase of **** percent (****%) or more of Plantex's (or its Affiliates') direct cost of manufacture of API, the parties shall meet and negotiate in good faith to adjust the price of API.

7.11Subject to the provisions of Section 7.10(b) hereof, before the earlier of (i) **** and (ii) the date Purepac receives final approval from the FDA  for the Tablet Products, Plantex shall not change:
(a)the Specification;

(b)the manufacturing process of the API or the site of the manufacture of the API;

(c)the process of testing the API or the site at which the API is tested; or

(d)the materials from which the API is derived

without Purepac's prior written consent, which consent shall not be unreasonably withheld.  Thereafter, to the extent that any such change has a material adverse effect on the regulatory status or timing of the ANDA, or the Litigation, it will notify Purepac of any such change in writing not later than thirty (30) days prior to the intended change.
8.PRODUCT COMPLAINTS AND RECALLS

8.1During the term of this Agreement, Plantex will assist Purepac with any necessary investigation arising from product complaints or Adverse Drug Events relating to the Finished Products.  Such assistance shall include Plantex's re-testing the API at the reasonable request of Purepac and forwarding the results of such testing to Purepac as soon as reasonably possible.  Plantex may charge Purepac for reasonable costs incurred related to this assistance, including but not limited to travel expenses and re-testing lab time.

8.2Each party shall notify the other party of any regulatory action taken by a Regulatory Authority concerning the safety of the API within two (2) days of the action being taken and will provide the other party with complete information concerning that action.  In addition, each party will notify the other of any action taken anywhere concerning the safety of any Finished Product produced with the API, promptly upon becoming aware of the action being taken.  

8.3In the event of a voluntary or mandatory recall of a quantity of the Finished Product which is materially attributable to the API purchased from Plantex or which results from any negligent act or omission of Plantex, Plantex agrees that it will assume all risk of loss and will indemnify and hold Purepac and its Affiliates harmless from any and all loss (except incidental or consequential loss, such as, for example, loss of business or of profits), liability, damage, claim, cost and expense (including, without limitation, reasonable attorney's fees and liabilities for personal injury suffered by any person) (collectively, "Loss") directly or indirectly arising from or incidental to any such recall of Finished Product, less any insurance recoveries paid to Purepac or its Affiliates.

8.4In the event of a voluntary or mandatory recall of a quantity of the Finished Product which is not materially attributable to the API or which has not resulted from any negligent act or omission of Plantex, Purepac agrees that it will assume all risk of loss and will indemnify and hold Plantex and its Affiliates harmless from any and all Loss directly or indirectly arising from or incidental to any such recall of Finished Product.

8.5In addition to the obligations set forth in Sections 8.2, 8.3 and 8.4 hereof, each party will disclose to the other party all regulatory notices or recalls which relate to the API within seven (7) days of receipt of such notice or knowledge of such recall.
9.THE LITIGATION

9.1Purepac has reviewed with patent legal counsel certain patent issues surrounding the manufacture and marketing of Finished Products in the Territory and, in particular, claims made by Pfizer, Inc. in the Litigation.  Based upon such review and advice from such patent legal counsel, Purepac believes, in good faith, that its current plans to develop and market Finished Products using API will not violate any validly claimed right of any third party, including, without limitation, those claimed by Pfizer, Inc. in the Litigation.

9.2****.
(a)****.

(b)****.

10.INTELLECTUAL PROPERTY

10.1In the event of either party becoming aware of any third party Intellectual Property Right (other than the rights claimed by Pfizer, Inc. in the Litigation), which may be potentially infringed by the storage, use or sale of the API in the Territory, or receiving a notice alleging any such infringement, that party shall immediately notify the other party. The parties shall consult and co-operate with each other on what action should be taken and subject to the provisions of Sections 10.2 and 10.3 hereof, each party will be at liberty to determine in its sole discretion its conduct in relation to the possible or alleged infringement.

10.2Notwithstanding the provisions of Section 10.1 hereof, the parties agree that neither party shall take or omit to take any step in relation to any potential or alleged infringement which may materially affect Plantex's sale of API or Purepac's sales of any of the Finished Products in the Territory or any other rights of either party under this Agreement, without first receiving the written consent of the other party (which consent shall not be unreasonably withheld).

10.3Plantex, upon receiving any written request from Purepac (and at Purepac's reasonable expense) to do so, shall promptly provide Purepac with reasonable access to information about, and personnel knowledgeable of the API, its formulation, use and process of  manufacture to enable Purepac to:
(a)ascertain whether the storage, use, promotion, sale or other distribution of the API or the Finished Products in the Territory will infringe any existing patent or other third party Intellectual Property Rights;

(b)determine its conduct in relation to any proceedings alleging infringement of a patent or other third party Intellectual Property Right in the Territory; and

(c)subject to the provisions of Section 10.4 hereof, provide witnesses or documentation from Plantex in any proceedings alleging infringement of a patent or other third party Intellectual Property Right in the Territory, including the Litigation.

Plantex warrants that, to the best of its knowledge, any information disclosed to Purepac pursuant to this Section 10.3 will be a full and accurate disclosure and that Plantex will not withhold any information in its possession which might materially reduce Purepac's ability to make a determination referred to in this Section 10.3.  The parties acknowledge that the foregoing shall not be deemed to be a license (implied or otherwise) in or to either party's patents or other Intellectual Property Rights.

10.4****.

 
11.WARRANTIES
11.1Purepac hereby represents and warrants to Plantex that:
(a)it has the corporate authority to enter into this Agreement and to perform its obligations hereunder;

(b)it is not aware of any legal, contractual or other restriction, limitation or condition which might affect adversely its ability to perform hereunder;

(c)subject to the provisions of Section 9.1 hereof, to the best of Purepac's knowledge, the manufacture and distribution of any of the Finished Product shall not violate any use or formulation patents of any third party in the Territory, including, without limitation the rights alleged by Pfizer, Inc. in the Litigation; and

(d)it now has, and all times during the term of this Agreement shall maintain, insurance coverage on its inventory of API and Finished Products in such dollar amount and with such insurers as are reasonably satisfactory to Plantex (with Plantex named an additional insured under such policies of insurance).

11.2Plantex hereby represents and warrants to Purepac that:
(a)it has the corporate authority to enter into this Agreement and to perform its obligations hereunder;

(b)it is not aware of any legal, contractual or other restriction, limitation or condition which might affect adversely its ability to perform hereunder;

(c)subject to the provisions of Section 9 hereof, to the best of Plantex's knowledge:
(1)the manufacture, importation, and sale to Purepac of any API provided by Plantex to Purepac hereunder; and

(2)the use by Purepac in the Finished Products, of any such API

shall not violate the process patent of any third party in the Territory; and

(d)all API shipped to Purepac pursuant to this Agreement shall (i) meet the applicable Specification at the time of shipment, (ii) be manufactured in a plant which meets the requirements of the FDA, including, without limitation, conformance with cGMP, (iii) be safe and efficacious raw material intended for use in a product manufactured for human therapeutic use and (iv) be stored and handled by Plantex at all times in the proper manner and suitable conditions for such API.

11.3No representations or warranties whatsoever, other than the express representations and warranties set forth in Section 11.2 hereof, are made by Plantex, and except to the extent to the foregoing, Plantex hereby, DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED, AS TO THE CONDITION, VALUE OR QUALITY OF THE API AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS OR WARRANTY OF MERCHANTABILITY, USAGE OR FITNESS FOR ANY PARTICULAR PURPOSE.

11.4Notwithstanding anything contained in this Agreement to the contrary, in order to clarify Plantex's liabilities associated with the **** Specifications, the Parties hereby understand and agree as follows:

(i) the **** Specification, and any determinations made with regard to the **** Specification shall have no bearing whatsoever on (a) the contribution or indemnification obligations of Teva under this Agreement or the Waiver Agreement, or (b) the contribution or indemnification obligations of Purepac and ALO under this Agreement and the Waiver Agreement, respectively; and

(ii) under no circumstances shall Plantex or its Affiliates have any liability (including any indemnification obligations under this Agreement or the Waiver Agreement) for or arising out of, the infringement of any third party patents based upon any breach of any representation or warranty under this Agreement for any failure of Plantex to deliver API that meets the **** Specification and, Plantex shall have no liability for any API delivered hereunder to meet the **** Specification except pursuant to Section 7.9 above.

12.INDEMNIFICATIONS

12.1Purepac agrees to indemnify Plantex against and hold Plantex and Plantex's Affiliates harmless from, any and all Loss payable to third parties, arising from or in connection with:
(a)any material breach of the warranties by Purepac hereunder;

(b)any other material misrepresentation or material breach of this Agreement by Purepac; 

(c)subject to the application of the applicable indemnity and contribution provisions as provided for under the Waiver Agreement with respect to the **** (as defined thereunder), any suit, claim or proceeding brought against Plantex or its Affiliates based on any claim that Plantex's or its Affiliates' activities with respect to the API or any Finished Product constitute an act of infringement of the use or formulation patents of any third party in the Territory, including without limitation, the rights alleged by Pfizer, Inc. in the Litigation; or

(d)any other willful act or omission of Purepac or Purepac Designees in connection with the sale of Finished Products or of Purepac or its Affiliates in connection with the manufacture, and Purepac or the Purepac Designees in connection with the marketing, of any of the Finished Products.

12.2Plantex hereby agrees to indemnify and hold Purepac and Purepac's Affiliates harmless from any and all Loss payable to third parties, arising from or in connection with:
(a)any material breach of the warranties by Plantex hereunder; 

(b)any other material misrepresentation or material breach of this Agreement by Plantex; 

(c)any express written claim made by Plantex or its Affiliates (except to the extent that such claim has been approved by the Regulatory Authority or authorized by Purepac) as to the efficacy or safety of API or the use to be made by any purchaser of API;

(d)****, any suit, claim or proceeding brought against Purepac in the Terriroty based on any claim that Purepac's activities with respect to the API purchase from Plantex or any Finished Product constitute an infringement of any process patent of any third party in the Territory; or

(e)any other willful act or omission of Plantex or its Affiliates in connection with the manufacture and sale of API to Purepac or its Affiliates, subject however to the limitations otherwise provided for in this Agreement.

12.3If Purepac or any of its Affiliates or Plantex or any of its Affiliates (in each case an "Indemnified Party") receives any written claim that it believes is the subject of indemnity hereunder by Plantex or Purepac, as the case may be, (in each case as "Indemnifying Party"), the Indemnified Party shall, as soon as reasonably practicable after forming such belief, give notice thereof to the Indemnifying Party, including full particulars of such claim to the extent known to the Indemnified Party; provided, that the failure to give timely notice to the Indemnifying Party as contemplated hereby shall not release the Indemnifying Party from any liability to the Indemnified party, absent the demonstrated prejudice to the Indemnifying Party caused by such delay.  The Indemnifying Party shall have the right, by prompt notice to the Indemnified Party, to assume the defense of such claim with counsel reasonably satisfactory to the Indemnified Party, and at the cost of the Indemnifying Party.  If the Indemnifying Party does not so assume the defense of such claim or, having done so, does not diligently pursue such defense, the Indemnified Party may assume such defense, with counsel of its choice, but for the account of the Indemnifying Party.  If the Indemnifying Party so assumes such defense, the Indemnified Party may participate therein through counsel of its choice, but the cost of such counsel shall be for the account of the Indemnified Party.

12.4The party not assuming the defense of any such claim shall render all reasonable assistance to the party assuming such defense, and all out-of-pocket costs of such assistance shall be for the account of the Indemnifying Party.

12.5No such claims shall be settled other than by the party defending the same, and then only with the consent of the other party, which shall not be unreasonably withheld; provided, that the Indemnified Party shall have no obligation to consent to any settlement of any such claim which imposes on the Indemnified Party any liability or obligation which cannot be assumed and performed in full by the Indemnifying party.

13.CONFIDENTIALITY

13.1Each of the parties agrees that (a) it will not disclose any Confidential Information of the other party that it may acquire at any time during the term of this Agreement without the prior written consent of such party; (b) it will not make use of any Confidential Information of the other party for any purpose other than for the purposes set forth in, or in furtherance of the transactions contemplated by, this Agreement and it will use all reasonable efforts to prevent unauthorized publication or disclosure by any person of such Confidential Information including requiring its employees, consultants or agents to enter into similar confidentiality agreements in relation to such Confidential Information.

13.2Subject to the following sentence, all Confidential Information whether in permanent or magnetic/computer disk form or any other form will be returned to the party who disclosed the Confidential Information within thirty (30) days of the termination of the Agreement.  Each party's legal representative may retain one copy of such Confidential Information solely for the purpose of determining the scope of that party's obligations under this Agreement.

14.AUDITS

14.1Purepac or its authorized representative shall have the right, at its own cost, to visit Plantex's facility during regular business hours (not more than once during any calendar year of this Agreement) provided Purepac gives fourteen (14) days prior written notice to Plantex.  During any such visit, Purepac's representatives shall have the right (a) to inspect that portion of the manufacturing facilities related to the manufacture of API, (b) to inspect quality control procedures impacting API, (c) to audit any records and reports pertinent to the development, manufacturing, disposition or transport of API to ensure that Plantex complies with all applicable regulations for the production of API, including, without limitation, compliance with applicable cGMP.

14.2Purepac shall keep complete and accurate records and books of account containing all information required for the computation and verification of any amounts payable to Plantex hereunder.  

14.3Plantex shall have the right, no more than once annually, upon written notice delivered to Purepac within sixty (60) days of its receipt of the Annual Net Profit Statement, and at its own cost, during regular business hours, to have an independent professionally qualified auditor, reasonably approved by Purepac, audit Purepac's records relative to Purepac's cost of goods, Net Sales, net profits, and the calculation and determination of the payments to Plantex set forth in Section 9.2 hereof.

14.4Plantex shall have the right, upon written notice delivered to Purepac within ninety (90) days of its receipt of any share of any net proceeds of any settlement of the Litigation, pursuant to Section 9.2 hereof, at its own cost, during regular business hours, to have an independent professionally qualified auditor, reasonably approved by Purepac, audit Purepac's records relative to Purepac's calculation of net proceeds set forth in Section 9.2 hereof. 

14.5Purepac agrees that at the request of Plantex, Plantex shall have the right to have an independent professionally qualified auditor, reasonably approved by Purepac, have access upon reasonable notice and during ordinary working hours (not more than once during the Exclusivity Period and not more than once following "true-up" under Section 5.9 hereof) to such records as may be necessary to audit any payment to Plantex hereunder.  In the event that any such inspection reveals a deficiency in excess of five percent (5%), Purepac shall promptly pay to Plantex, the deficiency, plus interest thereon at the prime rate (as reported in The Wall Street Journal) per annum, and shall reimburse Plantex for the reasonable and documented fees and expenses paid to such auditor.

14.6In the event of an audit by any Regulatory Authority relating to the subject matter of this Agreement, Plantex and Purepac each shall supply the other with a copy of any report received from such Regulatory Authority and shall use its best efforts to provide such Regulatory Authority with a prompt, accurate and complete response to any deficiencies noted during the audit.  Both parties agree that they shall use their best efforts to promptly address, and if necessary correct, any and all such deficiencies to the satisfaction of such Regulatory Authority.

15.RELATIONSHIP OF PLANTEX AND PUREPAC

15.1The relationship between Plantex and Purepac that is created by this Agreement shall be that of vendor and purchaser, and not that of a partnership, principal and agent, or joint or co-venturers.  In the performance of this Agreement, Purepac shall have no authority to assume or create any obligation or responsibility, either expressed or implied, on behalf of or in the name of Plantex, or to bind Plantex or its Affiliates in any manner whatsoever and Plantex shall have no authority to assume or create any obligation or responsibility, either express or implied, on behalf of or in the name of Purepac or to bind Purepac or its Affiliates in any manner whatsoever.  Each party shall indemnify the other party for any claim asserted by any third party that the acts of such party or any of its Affiliates created any obligation or responsibility of the other party other than as expressly set forth in this Section.

15.2Neither party shall use, or permit anyone under its control to use the other's name in the promotion of its business or the offer for sale of any goods and neither party shall package or label any goods in a manner that the other party  might reasonably consider to be imitative of any goods sold by such party.  

15.3Any and all press releases, publicity or other form of public written disclosures relating to this Agreement or the transactions arising hereunder shall be mutually agreed to by the parties (the consent of a party not to be unreasonable withheld or unduly delayed and in any event a party shall respond within two (2) business days of receiving a request, failing which it shall be deemed to have consented) including, if applicable, the time of release of such public written disclosures as well as the content of such public written disclosures.  For releases or announcements required by applicable law, the party making the release or announcement shall, before making any such release or announcement, afford the other party a reasonable opportunity to review and comment. Any copy of this Agreement to be filed with the Securities and Exchange Commission or any other Governmental Entity shall be redacted to the fullest extent permitted by applicable law and to the reasonable satisfaction of the parties; provided, however, in the event that the Securities and Exchange Commission or other Governmental Entity, as applicable, objects to the redaction of any portion of this Agreement after the initial submission, the filing party shall inform the other party of the objections and shall in good faith respond to the objections in an effort to limit the disclosure required by the Securities and Exchange Commission or Governmental Entity, as applicable.

16.TERM AND TERMINATION

16.1This Agreement shall be for an initial term commencing as of the date of this Agreement and continuing until the 5th anniversary of the Launch Date.  This Agreement will be automatically renewed for further consecutive three (3) year terms unless either party shall provide the other with written notice of its intent not to renew the Agreement, given not less than six (6) months prior to the expiration of the initial term or any renewal term then in effect; provided however, that delivering such notice of intent not to renew shall not affect any of the other substantive rights or obligations of the parties hereunder accrued or arising during the remainder of the initial or renewal term (as the case may be).

16.2This Agreement may be terminated:
(a)pursuant to the provisions of Section 16.1;

(b)by notice in writing by either party if the other party shall default in the performance of any of its other material obligations under this Agreement and such default shall continue for a period of not less than **** days after written notice specifying such default shall have been given; provided, however, that if such default is not capable of being cured within such **** day period but the party in default initiates and diligently continues good faith efforts to cure such default, such () day period shall be extended to **** days;

(c)by either party if the other party makes an arrangement with its creditors or goes into bankruptcy, receivership or liquidation, or if a receiver or a receiver and manager is appointed in respect of the whole or a major part of the property or business of the party in default;

(d)by Purepac in the event that API supplied by Plantex shall fail to meet Specification with sufficient frequency (and following written notice thereof to Plantex after each such failure) that Purepac's ability to maintain or acquire market share for the Finished Product is materially impacted;

(e)by either party if a major part of the assets or all of the assets of the other party are disposed of or acquired by a third party;  or

(f)by a party if it has been notified by the other party of circumstances constituting force majeure, as set forth in Section 17 hereof and that such force majeure continues for a consecutive period of ****.

Any obligation of Plantex to supply API or of Purepac to make payments to Plantex which accrued prior to the expiration or termination of this Agreement shall survive such expiration or termination.

16.3**** days prior to the effective date of termination or expiration of this Agreement, the right of Purepac to place orders for API with Plantex shall cease.

16.4Immediately upon termination or expiration of this Agreement, Purepac shall have the right and obligation to accept any API in transit or subject to an accepted Purchase Order.

16.5The obligations undertaken by each party under Sections 8, 9, 10, 12, 13, 14, 18 and 19 shall continue in force for a period of five (5) years following the termination or expiration of this Agreement.

17.FORCE MAJEURE

Neither party shall be liable or be in breach of any provision of this Agreement for any failure or delay on its part to perform any obligation (other than the payment of money) where such failure or delay has been occasioned by any act of God, war, riot, fire, explosion, flood, sabotage, unavailability of fuel, labor, containers or transportation facilities, accidents of navigation or breakdown or damage of vessels or other conveyances for air land or sea, other impediments or hindrances to transportation, government intervention (other than that of duly-authorized Regulatory Authority), strikes or other labor disturbances or any other cause beyond the control of the parties.  The party subject to force majeure will take all reasonable steps within its power to resolve the circumstances constituting force majeure as soon as possible.  Subject to Section 16.2(f) hereof, the time for performance of that obligation and any consequential obligation will be extended accordingly.

18.TEVA API PATENT RIGHTS AND DAMAGES

18.1  ****.

18.2  Except to the extent provided for in connection with the indemnification obligations under Sections 8.3, 8.4, 12.1 and 12.2 hereof with respect to only those amounts payable by an Indemnified Party to third parties, neither party shall be liable to the other hereunder for special, indirect, incidental, or consequential damages, whether in contract, warranty, negligence, tort, strict liability or otherwise.

19.NOTICES

Notices provided under this Agreement to be given or served by either party on the other shall be given in writing and served personally or by prepaid registered airmail post or by express mail or by means of facsimile to the following respective addresses or to such other addresses as the parties may hereafter advise each other in writing.  It being agreed and understood by the parties that any such notice shall be deemed given and served the day of receipt if served personally, the day of a confirmed facsimile transmission, or a date three (3) days after the date of express mail or mail by courier.

To Plantex:

Plantex U.S.A., Inc.

2 University Plaza, Suite 305

Hackensack, NJ 07601

Attention: President

Fax:  201/343-3833

with a copy to:

General Counsel

1090 Horsham Road

North Wales, PA  19454

Fax:  (215) 591-8813

To Purepac:

Alpharma, Inc.

14 Commerce Drive

Suite 301

Cranford, NJ 07016

Attn: President, Global Human Pharmaceuticals

Telephone: 908-653-8114

Fax: 908-653-8110

With a copy to:

Alpharma, Inc.

One Executive Drive

Fort Lee, NJ 07024

Attention:  Chief Legal Officer

Telephone: 201-228-5022
Fax: 201-592-1481

 

 

20.EXECUTION OF ALL NECESSARY ADDITIONAL DOCUMENTS

Each party agrees that it will forthwith upon the request of the other party execute and deliver all such instruments and agreements and will take all such other actions as the other party may reasonably request from time to time in order to effectuate the provision and purposes of this Agreement.

21.WAIVER

The failure of either of the parties to insist upon a strict performance of any other terms and provisions herein shall not be deemed a waiver of any subsequent breach of default in the terms or provisions of this Agreement.

22.ASSIGNMENT AND AMENDMENT

22.1Other than an assignment by either party to any of its Affiliates, neither this Agreement nor any rights arising hereunder shall be assigned by one party without the prior written consent of the other and then only upon approval of the other party and acceptance of such assignment in written form approved by such party, which approval shall not be unreasonably withheld.  In the event of an assignment by either party to its Affiliate as permitted hereunder, the assigning party shall not be released from its obligations hereunder and shall guarantee the full performance by such Affiliate of such obligations.  This Agreement shall inure to the benefit of, and shall be binding upon, each of the parties hereto and their respective successors and permitted assigns.

22.2No amendment hereof shall be binding unless made in writing and signed by the parties hereto.

23.ENTIRE AGREEMENT

This Agreement hereby amends and restates the Original Agreement between the parties and shall entirely supercede the Original Agreement.  Each party, on behalf of itself and its officers, directors, employees, investors, insurers, shareholders, administrators, predecessor and successor corporations, Affiliates , agents, and assigns, hereby fully and forever releases, acquits and discharges the other party, and its officers, directors, employees, investors, shareholders, administrators, predecessor and successor corporations, Affiliates, agents, and assigns, of and from any claim, damages, demands, or cause of action, known or unknown, that accrued under the Original Agreement prior to the date of this Agreement or that could have been asserted by a party under the Original Agreement on account of the other party's action (or inaction) prior to the date of the execution of this Agreement.  The foregoing release does not extend to any prospective obligations incurred under this Agreement or any liabilities that may accrue for breaches thereof.  This Agreement, and to the extent applicable, the Waiver Agreement, incorporates the entire understanding of the parties with respect to the subject matter hereof and revokes and supersedes any and all agreements, contracts, understandings or arrangements that might have existed heretofore between the parties regarding the subject matter hereof (including, without limitation, the Original Agreement).

24.GOVERNING LAW AND JURISDICTION

This Agreement shall be construed in accordance with and governed by the internal laws of the State of New York, excluding such state's rules relating to conflicts of laws, and its form, execution, validity, construction and effect shall be determined in accordance with such internal laws.  Each of Purepac and Plantex hereby irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the Federal Courts of the Southern District of New York or the state courts of the Supreme Court, New York County, for any litigation arising out of or relating to this Agreement and the transactions contemplated hereby (and agrees not to commence any litigation relating hereto or thereto except in such courts), and further agrees that service of any process, summons, notice or document by U.S. registered mail to its respective address set forth in this Agreement shall be effective service of process for any litigation brought against it in any such court.  Each of the parties  hereby irrevocably and unconditionally waives any objection to the laying of venue of any litigation arising out of this Agreement or the transactions contemplated hereby in the courts of the Southern District of the State of New York or the United States of America, in each case located in the New York County, hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such litigation brought in any such court has been brought in an inconvenient forum..

25.SEVERABILITY

If any term or provision of this Agreement shall be held invalid or unenforceable, the remaining terms hereof shall not be affected, but shall be valid and enforced to the fullest extent permitted by law.

26.COUNTERPARTS

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which, taken together, shall constitute one and the same instrument.  This Agreement may be delivered by facsimile transmission and receipt of facsimile copy of any party's signature shall be considered to be receipt of an original copy thereof; provided that any party executing this Agreement by facsimile shall, as soon as practicable following execution of this Agreement, provide an originally executed counterpart of this Agreement to the other party.

IN WITNESS WHEREOF, this Agreement has been executed by the parties on the date first above written.

 

 

 

 

 

 

PUREPAC PHARMACEUTICAL CO.

By:/s/  Fredrick J. Lynch

Fredrick J. Lynch

President

PLANTEX USA INC.

By:/s/  George Svokos

By:/s/  Richard Egosi

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