Document:

Transition Services Agreement - AmerisourceBergen Corp.

 Exhibit 10.2 
 EXECUTION VERSION 
 CONFIDENTIAL 
 TRANSITION SERVICES AGREEMENT 
 dated as of July 31, 2007 
 by and between 
 AMERISOURCEBERGEN CORPORATION

 and 
 PHARMERICA CORPORATION

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I        DEFINITIONS
	  	1
			
	 Section 1.01.
	  	Defined Terms	  	1
			
	 Section 1.02.
	  	General Interpretive Principles	  	2
		
	 ARTICLE II        SERVICES
	  	2
			
	 Section 2.01.
	  	Provision of Services; Reimbursement of Expenses	  	2
			
	 Section 2.02.
	  	Confidential Information	  	4
			
	 Section 2.03.
	  	Access	  	5
			
	 Section 2.04.
	  	Force Majeure	  	6
			
	 Section 2.05.
	  	Limitation on Liability	  	6
			
	 Section 2.06.
	  	Event of Default	  	6
			
	 Section 2.07.
	  	Termination Assistance	  	7
			
	 Section 2.08.
	  	Licenses	  	7
			
	 Section 2.09.
	  	Non-Exclusivity	  	8
		
	 ARTICLE III        ADDITIONAL AGREEMENTS
	  	8
			
	 Section 3.01.
	  	Effectiveness	  	8
			
	 Section 3.02.
	  	Indemnity	  	8
			
	 Section 3.03.
	  	Insurance	  	9
			
	 Section 3.04.
	  	Taxes	  	10
			
	 Section 3.05.
	  	Independent Contractor	  	10
			
	 Section 3.06.
	  	Cooperation with Regulatory Requests	  	10
			
	 Section 3.07.
	  	Project Executive	  	10
			
	 Section 3.08.
	  	Dispute Resolution	  	10
			
	 Section 3.09.
	  	HIPAA	  	11
		
	 ARTICLE IV        GENERAL PROVISIONS
	  	11
			
	 Section 4.01.
	  	Waiver	  	11
			
	 Section 4.02.
	  	Expenses	  	11
			
	 Section 4.03.
	  	Notices	  	11
			
	 Section 4.04.
	  	Headings	  	12
			
	 Section 4.05.
	  	Severability	  	12
			
	 Section 4.06.
	  	Entire Agreement	  	13
			
	 Section 4.07.
	  	Assignment	  	13

  

 i 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 Section 4.08.
	  	No Third Party Beneficiaries	  	13
			
	 Section 4.09.
	  	Amendment	  	13
			
	 Section 4.10.
	  	Governing Law; Submission to Jurisdiction	  	13
			
	 Section 4.11.
	  	WAIVER OF JURY TRIAL	  	13
			
	 Section 4.12.
	  	Counterparts	  	13
			
	 Section 4.13.
	  	No Presumption	  	14
		
	  
 Schedule A –
Pre-Change of Control Line Item Services
 Schedule B – Post-Change of Control Line Item Services
 Exhibit A – HIPAA Agreement
	  	

  

 ii 

 THIS TRANSITION SERVICES AGREEMENT is dated as of July 31, 2007 (this “Agreement”),
between AmerisourceBergen Corporation, a Delaware corporation (“Hippo”), and PharMerica Corporation, a Delaware corporation formerly known as Safari Holding Corporation (the “Company”). 
 WHEREAS, Hippo, Kindred Healthcare, Inc., a Delaware corporation (“Rhino”), Kindred Pharmacy Services Inc., a Delaware corporation
(“RhinoRx”), PharMerica Long-Term Care, Inc., a Delaware corporation formerly known as PharMerica Inc. (“HippoRx”), the Company and certain other parties have entered into a Master Transaction Agreement dated as of
October 25, 2006 (the “Master Transaction Agreement”); 
 WHEREAS, the Company desires to purchase from Hippo, and
Hippo desires to provide to the Company, certain transition services for specified periods following the closing under the Master Transaction Agreement (the “Closing”); and 
 WHEREAS, execution of this Agreement is a condition to consummation of the transactions contemplated by the Master Transaction Agreement. 
 NOW, THEREFORE, in consideration of the premises and the representations, warranties, covenants and agreements herein contained, and intending to be
legally bound hereby, the parties hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.01. Defined Terms. Capitalized terms used but not
defined herein shall have the meanings set forth in the Master Transaction Agreement, as it may be amended from time to time by the parties thereto. As used in this Agreement, the following terms shall have the following meanings: 
 “Agreement” has the meaning set forth in the preamble. 
 “Business” means the business of the Company and its Subsidiaries, as conducted from time to time. 
 “Change of Control” means any person (or a “group” (within the meaning of Section 13(d) of the Exchange Act)) becoming the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of
securities of the Company representing a majority of the combined voting power of the Company’s then outstanding securities. 
 “Closing” has the meaning set forth in the recitals. 
 “Company” has the meaning set forth in the
preamble. 
 “Confidential Information” has the meaning set forth in Section 2.02. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  

 1 

 “Hippo” has the meaning set forth in the preamble. 
 “HippoRx” has the meaning set forth in the recitals. 
 “Line Item of Service” has the meaning set forth in Section 2.01(a). 
 “Notice
of Election” has the meaning set forth in Section 3.02(c)(i). 
 “Master Transaction Agreement” has the
meaning set forth in the recitals. 
 “Project Executives” has the meaning set forth in Section 3.07. 
 “Rhino” has the meaning set forth in the recitals. 
 “RhinoRx” has the meaning set forth in the recitals. 
 “Term” has the
meaning set forth in Section 2.01(a). 
 “Termination Assistance” has the meaning set forth in Section 2.07(a).

 “Third Party Provider” has the meaning set forth in Section 2.01(e). 
 “Transition Services” has the meaning set forth in Section 2.01(a). 
 SECTION 1.02. General Interpretive Principles. (a) Words in the singular shall include the plural and vice versa, and words of one gender
shall include the other gender, in each case, as the context requires, (b) the term “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this
Agreement and not to any particular provision of this Agreement and Article, Section, Exhibit, paragraph and Schedule references are to the Articles, Sections, Exhibits, paragraphs and Schedules to this Agreement unless otherwise specified and
(c) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified. 
 ARTICLE II 
 SERVICES 
 SECTION 2.01. Provision of Services; Reimbursement of Expenses. (a) Hippo agrees to provide, or cause to be provided, solely to the Company
and its Subsidiaries each line item of service (each such item, a “Line Item of Service”) set forth on Schedule A attached hereto and made a part hereof (all such Line Items of Service and the services provided under
Section 2.01(c) hereof being, collectively, the “Transition Services”) for a period of 12 months following the Closing, subject to earlier termination or extension in accordance with the terms of this Agreement (the
“Term”). 
 (b) If it becomes necessary for Hippo to increase staffing or acquire equipment or make any investments or
capital expenditures to accommodate an increase in the use of any Transition Service beyond the level of use of such Transition Service immediately following the 

  

 2 

 
Closing as a result of a material increase in volume of the Business or a material change in the manner in which the Business is being conducted, Hippo shall
inform the Company in writing of such necessity before any such increase, acquisition, investment or capital expenditure is made. Upon mutual agreement of Hippo and the Company acting in good faith as to the necessity of any such increase,
acquisition, investment or capital expenditure, the Company shall reimburse Hippo an amount equal to the actual costs and expenses incurred in connection therewith. If such mutual agreement is not reached, Hippo’s obligation to provide or cause
to be provided such Transition Service shall be limited to the level of such Transition Service then in effect. 
 (c) Prior to a Change of
Control, the Company shall pay to Hippo for each Line Item of Service the applicable fees set forth on Schedule A. Following a Change of Control, the Company shall pay to Hippo for each Line Item of Service the applicable fees set forth on
Schedule B. Compensation for Transition Services shall be computed solely as set forth in Schedule A or Schedule B, as applicable, and shall not take into account the value of any referral for the provision of health care
services that Hippo or the Company may otherwise generate between each other. Hippo shall deliver a statement to the Company each month for Transition Services provided to the Company during the preceding month, and such statement shall set forth a
brief description of such Transition Services and the amounts charged therefor. Any payments by the Company payable pursuant to this Agreement shall be made in U.S. Dollars by wire transfer of immediately available funds to an account designated by
Hippo no later than 30 days following the Company’s receipt of the applicable statement, without set-off, defense or counterclaim. Hippo reserves the right to suspend performance under this Agreement upon failure of the Company to make any
payment pursuant to this Agreement in the time period required by the immediately preceding sentence. 
 (d) Hippo shall cause the Transition
Services to be provided with the same level of care used by Hippo or its Affiliates in the conduct of Hippo’s or its Affiliates’ businesses. EXCEPT AS PROVIDED IN THIS AGREEMENT, HIPPO MAKES NO WARRANTIES OR REPRESENTATIONS OF ANY KIND
WHATSOEVER WITH RESPECT TO THE TRANSITION SERVICES PERFORMED OR PROVIDED TO THE COMPANY HEREUNDER, WHETHER EXPRESS OR IMPLIED, STATUTORY, BY OPERATION OF LAW OR OTHERWISE, AND HIPPO EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND SUITABILITY OF THE TRANSITION SERVICES. The Company acknowledges that certain Line Item(s) of Service may be provided by third-party providers with whom Hippo or an Affiliate of Hippo has contracted for such Line
Item(s) of Service (each, a “Third Party Provider”); provided that Hippo shall not contract a Third Party Provider for the provision of any material portion of any Line Item of Service without the Company’s prior written
consent, such consent not to be unreasonably withheld or delayed (for the avoidance of doubt, the parties agree that it would not be unreasonable for the Company to withhold its consent to Hippo’s contracting a Third Party Provider if such
Third Party Provider does not agree to provide the Company with the same level of service, representations and warranties or indemnification as provided by Hippo to the Company hereunder). Hippo makes no representation or warranty of any kind with
respect to any Line Item of Service provided by a Third Party Provider. 
 (e) Subject to the Company’s continuing obligation to make
payments then owing pursuant to this Agreement, the Company may terminate the Term as to any or all Transition 

  

 3 

 
Services upon 60 days’ prior written notice to Hippo. If Hippo shall cease to provide a particular Line Item of Service for itself or the particular
Line Item of Service is provided by a Third Party Provider and Hippo’s contract with such Third Party Provider has expired or terminated, Hippo may cease to provide such Line Item of Service to the Company, effective as of the later of
(x) the time that Hippo ceases to provide such Line Item of Service for itself or the date on which Hippo’s contract with such Third Party Provider expires or terminates and (y) following 60 days’ notice to the Company. This
Agreement may be immediately terminated by Hippo in its sole discretion with respect to a Subsidiary of the Company to which Transition Services are provided pursuant to this Agreement upon the sale by the Company of all or substantially all of the
capital stock of the Subsidiary or a merger with a third party of such Subsidiary. 
 (f) The Company acknowledges that the demand for
Transition Services may exceed Hippo’s available capacity to provide such Transition Services to the Company, making it necessary for Hippo to prioritize among the requests for Transition Services made by the Company to Hippo or take other
steps to manage efficiently the provision of such Transition Services to the Company. 
 (g) The Transition Services will be provided by
Hippo in accordance with Hippo’s policies and procedures in effect as of the date of the Master Transaction Agreement. The Company shall conform to the requirements of such policies or procedures. 
 (h) Hippo shall be reimbursed by the Company for all reasonable out-of-pocket expenses incurred in connection with the provision of Transition Services
under this Agreement. 
 SECTION 2.02. Confidential Information. (a) Any information of either party to this Agreement provided
to or accessible by the other party in connection herewith, regardless of form, including all data, processes, technical drawings, designs and concepts; software programs, routines, formulae and concepts, production plans, designs, layouts and
schedules; marketing analyses, plans, customer data and surveys; and all matters relating to either party’s finances and personnel and any other information (“Confidential Information”) shall be received and held in strict
confidence, used only for purposes related to this Agreement or as provided in the other Transaction Agreements and shall not otherwise be disclosed by the other party, its agents, employees, contractors or subcontractors, without the prior written
consent of the disclosing party. “Confidential Information” as defined herein does not include any information (i) lawfully received by the receiving party on a non-confidential basis from another source which is not known by the
receiving party to be bound by an obligation of confidentiality or otherwise restricted from transmitting the information by a contractual, legal or fiduciary obligation, (ii) that is or becomes generally available to the public other than as a
result of a breach of this Section 2.02(a), (iii) known to the receiving party at the time of disclosure free from any confidentiality obligations, provided that the source of such information is not known by the receiving party to be
bound by an obligation of confidentiality or otherwise restricted from transmitting the information by a contractual, legal or fiduciary obligation or (iv) independently developed by the receiving party without the use of or reference to
Confidential Information. Each party shall be fully responsible for breaches of its obligations under this Section 2.02 by its agents, employees, contractors or subcontractors. Upon expiration or any termination of this Agreement, Hippo and the
Company shall return, or at the receiving party’s option destroy, all documentation in any medium that contains or refers to the disclosing party’s 

  

 4 

 
Confidential Information, and retain no copies, other than one archival copy for evidentiary purposes. Any destruction of Confidential Information in
accordance with the preceding sentence shall be certified in writing by an authorized officer of the receiving party at the request of the disclosing party. 
 (b) The Confidential Information of the disclosing party is, and shall remain, the property of the disclosing party. 
 SECTION 2.03. Access. (a) The Company agrees that it shall, without charge, provide Hippo (or any Affiliate of Hippo or Third Party Provider) with such access to the Company’s premises and/or
personnel, and such assistance, as may reasonably be required for Hippo (or such Affiliate of Hippo or such Third Party Provider) to perform its obligations under this Agreement. If either party has access (either on-site or remotely) to any of the
other party’s computer systems in relation to the Transition Services, such party shall limit such access solely to the use of such systems for purposes of the Transition Services and shall not access or attempt to access any of such other
party’s computer systems, files, software or services other than those required for the Transition Services, or those that are publicly available. Each party shall limit such access to those of its employees, agents or contractors with a bona
fide need to have such access in connection with the Transition Services, and shall follow all the other party’s security rules and procedures for restricting access to its computer systems in effect as of the date of the Master Transaction
Agreement. All user identification numbers and passwords disclosed to a party and any information obtained by such party as a result of such party’s access to and use of the other party’s computer systems shall be deemed to be, and treated
as, Confidential Information hereunder. Hippo and the Company shall cooperate in the investigation of any apparent unauthorized access to either party’s computer system and/or information stores. 
 (b) Hippo shall provide to the Company, its auditors (including outside and internal audit staff), inspectors and regulators reasonably prompt access at
all reasonable times and after reasonable notice, to the parts of a facility of Hippo or its Affiliates at which Hippo is providing the Transition Services, to the Hippo personnel (including Third Party Providers) providing the Transition Services,
and to the data and records relating to the Transition Services for the purpose of performing audits and inspections of the Company, its Subsidiaries and their businesses, to verify the integrity of data owned by the Company and its Subsidiaries, to
examine the systems that process, store, support and transmit such data, and to examine Hippo and its Affiliates’ performance of the Transition Services hereunder to facilitate the Company, among other things, in meeting its Sarbanes-Oxley Act
certification requirements. The foregoing audit rights shall include, to the extent applicable to the Transition Services performed by Hippo and its Affiliates and to the charges therefore, audits (i) of practices and procedures, (ii) of
systems and all supporting documentation, (iii) of all application and general controls and security practices and procedures, (iv) of disaster recovery and backup procedures, (v) of costs (including direct third party costs) serving
as a basis for charges of Hippo in performing the Transition Services (but only to the extent affecting cost-based charges for the Transition Services), and (vi) necessary to enable the Company and its Subsidiaries to meet applicable regulatory
requirements. Hippo and its Affiliates shall provide to such auditors, inspectors and regulators such assistance as they reasonably require, including in testing the Company and its Subsidiaries’ data file and programs, and installing and
operating audit software and tools, as reasonably requested by the Company. Hippo shall cooperate fully with the Company or their designees in 

  

 5 

 
connection with audit functions and with regard to examinations by Governmental Authorities. The Company shall be responsible for and pay all costs incurred
in connection with the provisions of this Section 2.03(b), including the costs of any assistance provided by Hippo and its Affiliates to such auditors, inspectors and regulators. 
 SECTION 2.04. Force Majeure. The obligations of Hippo to provide Transition Services shall be suspended during the period and to the extent that
Hippo and its Affiliates are prevented or hindered from providing such Transition Services by any Applicable Law or other cause beyond the control of Hippo, including acts of God, strikes, lock outs, other labor and industrial disputes and
disturbances, civil disturbances, accidents, acts of war or terrorism or conditions arising out of or attributable to war (whether declared or undeclared), shortage of necessary equipment, materials or labor, or restrictions thereon or limitations
upon the use thereof and delays in transportation. In such event, Hippo shall give notice of suspension to the Company, as soon as reasonably practicable, stating the date and extent of such suspension and the cause thereof. Upon notice to the
Company, Hippo shall resume the provision of such Transition Services as soon as reasonably practicable after the removal of such cause. The Company shall not be charged for Transition Services that are not provided by Hippo or its Affiliates in
accordance with this Section 2.04. 
 SECTION 2.05. Limitation on Liability. Hippo shall not have any duties or responsibilities
hereunder other than those specifically set forth herein and no implied obligations shall be read into this Agreement. The Company waives and shall not assert, and shall cause its Affiliates to waive and not assert, claims against Hippo, its
Affiliates and their respective employees arising in connection with any Transition Services, except for (i) claims arising out of a breach of this Agreement by Hippo or (ii) gross negligence or willful misconduct by Hippo, its Affiliates
or any of their respective employees or any Third Party Provider in the provision of the Transition Services. EXCEPT FOR A BREACH OF SECTION 2.02 HEREOF AND EXCEPT FOR DAMAGES CAUSED BY GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, NEITHER PARTY SHALL BE
LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL LOSSES OR DAMAGES, INCLUDING LOSS OF DATA, LOSS OF REVENUE, LOSS OF CUSTOMERS OR CLIENTS, LOSS OF GOODWILL OR LOSS OF PROFITS, DAMAGE TO OR LOSS OF USE OF ANY
PROPERTY, ANY INTERRUPTION OR LOSS OF SERVICE, OR ANY LOSS OF BUSINESS, HOWSOEVER CAUSED, OR ARISING IN ANY MANNER FROM THIS AGREEMENT AND THE PERFORMANCE OR NONPERFORMANCE OF OBLIGATIONS HEREUNDER. 
 SECTION 2.06. Event of Default. (a) A party will be in default hereunder if (i) such party commits a material breach of any term or
condition of this Agreement and such failure (other than a failure to make any payment hereunder, which failure may only be cured in accordance with Section 2.06(b) hereof) continues uncured for 30 days following receipt of written notice
thereof from the other party; (ii) there is a filing of an involuntary case for the entry of relief against such party under any bankruptcy, insolvency or similar law for the relief of debtors and such case remains undismissed for 30 days or
more; (iii) a trustee or receiver is appointed for such party or its assets or any substantial part thereof; or (iv) such party files a voluntary petition under any bankruptcy, insolvency or similar law of the relief of debtors. Upon an
event of default, the party claiming the default may terminate this Agreement immediately by 

  

 6 

 
written notice and pursue any and all remedies available to it under Applicable Law based on such default. 
 (b) It shall be a default (a “Payment Default”) hereunder if the Company shall fail to make any payment required to be made hereunder
when payable and such failure continues uncured for 10 days following the Company’s receipt of a written notice thereof from Hippo. Hippo may terminate this Agreement in the event of a Payment Default by the Company. In such case of termination
of this Agreement by Hippo, any obligations owed to Hippo by the Company in accordance with this Agreement shall immediately become due and payable. 
 SECTION 2.07. Termination Assistance. (a) (i) Commencing 90 days prior to the expiration of the full Term, or on such other date as the Company and Hippo shall mutually agree, or (ii) in the case
of an early termination of the Term as to any or all Transition Services by the Company pursuant to Section 2.01(e), upon delivery of a notice of termination to Hippo (which notice, pursuant to Section 2.01(e), shall be delivered at least
60 days prior to such termination), at the Company’s request, Hippo and its Affiliates shall provide to the Company and its Subsidiaries or to the Company’s designees for a period not to exceed 90 days, reasonable assistance
(“Termination Assistance”) as requested by the Company to allow the applicable Transition Services to continue without interruption or adverse effect to the Company and to facilitate the orderly transfer of the provision of the
applicable Transition Services from Hippo to the Company and its Subsidiaries or its designees following the expiration of the Term. At the Company’s request, in the case of a termination of this Agreement by Hippo pursuant to
Section 2.06(a)(i) or 2.06(b), Hippo and its Affiliates shall provide to the Company and its Subsidiaries or to the Company’s designees Termination Assistance for a period of up to 30 days following such termination. In the case of any
termination of this Agreement pursuant to any other provision of Section 2.06 or by Hippo pursuant to Section 2.01(e) as to any or all of the Transition Services, at the Company’s request Hippo and its Affiliates shall provide to the
Company and its Subsidiaries or to the Company’s designees Termination Assistance with respect to the applicable Transition Services for a period of up to 90 days following such termination. Termination Assistance shall include the assistance
described in Schedule A hereto. As compensation for the Termination Assistance, if any, to be provided by Hippo hereunder, the Company shall pay to Hippo the hourly fees for such Termination Assistance as set forth on Schedule B.

 (b) Except in the case of a termination of this Agreement pursuant to Section 2.01(e) or 2.06, the Company may extend the Term one or
more times as it elects, at its sole discretion, provided that the total of all such extensions shall not exceed 90 days following the original effective date of expiration. Such requests to extend the then effective date of expiration must
be in the form of a written notice received by Hippo not less than 60 days prior to the effective date of expiration of the Agreement. 
 SECTION 2.08. Licenses. Hippo and the Company agree to cooperate and use commercially reasonable efforts to obtain all licenses and consents for any third party software required for the provision of the Transition Services. Hippo
shall not (i) obtain any such license without prior consultation with the Company and (ii) without the Company’s prior consent, obtain any such license or consent if the terms of such license or consent would be inconsistent with the
terms of this Agreement. The Company agrees that it shall hold such 

  

 7 

 
licenses and be solely responsible for the payment of any license fees under such licenses and any costs incurred in connection with obtaining such consents
and that Hippo shall have no liability whatsoever with respect to any such license fees or such other costs. The Company shall reimburse Hippo for all actual and documented out-of-pocket costs incurred by Hippo in obtaining such licenses and
consents on behalf of the Company. In the event that any such required license or consent is not obtained then, unless and until such license or consent is obtained, Hippo and the Company shall cooperate with one another to implement a reasonable
and lawful alternative arrangement to enable Hippo to continue to perform the Transition Services. Nothing in this Agreement shall require Hippo or any of its Affiliates to violate any agreement with another Person, including any software license
agreement. 
 SECTION 2.09. Non-Exclusivity. Notwithstanding anything to the contrary herein, subject to the Company’s compliance
with the other terms and conditions of this Agreement, the Company retains the right to obtain any or all of the Transition Services from a third party or parties other than Hippo or to provide such services internally. 
 ARTICLE III 
 ADDITIONAL AGREEMENTS 

SECTION 3.01. Effectiveness. (a) This Agreement shall become effective at the Effective Time. 
 (b) This Agreement shall terminate and be of no further force or effect upon the later of the expiration of the Term or the end of the period during
which Termination Assistance is provided pursuant to Section 2.07; provided that upon such termination (a) neither party hereto shall be relieved of any liability for any breach or nonfulfillment of any provision of this Agreement,
(b) the terms of Sections 2.02, 2.05 and 2.07 and Articles III and IV shall survive any such termination and (c) any outstanding payment obligations of either party hereunder, and all provisions of this Agreement relating to payment of
amounts due and taxes, shall survive any such termination, until all such sums are paid in full. 
 SECTION 3.02. Indemnity.
(a) The Company shall indemnify and hold harmless Hippo, its Affiliates and its and their respective officers, directors, employees, managers, partners or agents against and from any Damages arising out of or in connection with any Action
against Hippo, its Affiliates or any of their respective officers, directors, employees, managers, partners or agents in connection with the provision of Transition Services under this Agreement, except for such Damages caused by the gross
negligence or willful misconduct of Hippo or its Affiliates or its or their respective officers, directors, employees, managers, partners or agents. 
 (b) Hippo shall indemnify and hold harmless the Company, its Affiliates and its and their respective officers, directors, employees, managers, partners or agents against and from any Damages arising out of or in
connection with any Action against the Company, its Affiliates or any of their respective officers, directors, employees, managers, partners or agents arising out of a breach by Hippo of this Agreement or the gross negligence or willful misconduct
by Hippo 

  

 8 

 
or its Affiliates or its or their respective officers, directors, employees, managers, partners or agents. 
 (c) With respect to Damages payable to third parties, the following procedures shall apply: 
 (i) Promptly after receipt by any Person entitled to indemnification under this Section 3.02 of notice of the commencement or threatened commencement
of any civil, criminal, administrative, or investigative action or proceeding involving a claim in respect of which the indemnitee will seek indemnification pursuant to this Section, the indemnitee shall promptly notify the indemnitor of such claim
in writing and shall provide to the indemnitor reasonably available information requested to assess such claim and the applicability of such indemnity. The indemnitor shall notify the indemnitee in writing within 30 days after receipt of such notice
if the indemnitor elects to assume control of the defense and settlement of that claim (a “Notice of Election”). The indemnitee shall use commercially reasonable efforts to extend the date on which a response is due to afford the
indemnitor a reasonable period in which to consider, issue, and act upon its Notice of Election. 
 (ii) If the indemnitor delivers a Notice
of Election relating to any claim within the required notice period, the indemnitor shall be entitled to have sole control over the defense and settlement of such claim; provided, however, that (A) the indemnitee shall be entitled to
participate in the defense of such claim and to employ counsel at its own expense to assist in the handling of such claim, except that the indemnitor shall be required to reimburse the indemnitee for its reasonable fees and disbursements of separate
counsel if the actual or potential defendants in, or targets of, such claim include both the indemnitor and the indemnitee, and the indemnitee shall have reasonably concluded, after consultation with counsel, that there may be legal defenses
available to it that are different from or additional to those available to the indemnitor, and (B) the indemnitor shall obtain the prior written consent of the indemnitee before entering into any settlement of such claim, other than
settlements that involve solely the payment of monetary damages by the indemnitor. If the indemnitor controls the defense and settlement of a claim, the indemnitor shall have no liability with respect to any compromise, settlement or discharge of a
third party claim effected without its written consent (which consent may not unreasonably be withheld, delayed or conditioned). 
 (iii) If
the indemnitor does not deliver a Notice of Election relating to any claim within the required notice period or if the indemnitor fails to defend such claim with reasonable diligence, the indemnitee shall have the right to defend and settle the
claim in such manner as it may deem appropriate, at the cost and expense of the indemnitor. 
 (iv) The indemnification rights of each
indemnified party pursuant to this Section 3.02 shall be the exclusive remedy of such indemnified party with respect to the claims to which such indemnification relates. 
 SECTION 3.03. Insurance. Hippo shall maintain throughout the Term employer’s liability, worker’s compensation, property damage, general
liability and such other insurance, containing provisions and in such amounts as are reasonable and customary in connection with the provision of Transition Services to the Company pursuant to this Agreement. 
  

 9 

 SECTION 3.04. Taxes. The Company shall pay to any provider of Transition Services hereunder the
amount of any applicable sales, use or service tax, value-added taxes, goods and services taxes or any other similar taxes that such service provider may be required to collect from the Company in connection with such provider’s performance
pursuant to this Agreement, except for any franchise tax, withholding tax (as described above) or any tax imposed on such service provider’s net income. Hippo shall identify any such tax as a separate line item on each invoice, unless taxes are
required under the law of the relevant jurisdiction to be included in the price. 
 SECTION 3.05. Independent Contractor. In
performing the Transition Services hereunder, Hippo and its Affiliates shall operate as and have the status of independent contractors. No party’s employees shall be considered employees or agents of the other party, nor shall the employees of
any party be eligible or entitled to any benefits, perquisites or privileges given or extended to any of the other party’s employees. Nothing contained in this Agreement shall be deemed or construed to create a joint venture or partnership
between the parties. No party shall have any power or authority to bind or commit any other party. 
 SECTION 3.06. Cooperation with
Regulatory Requests. Hippo agrees that, until the expiration of four years after the furnishing of any Service provided pursuant to this Agreement, it will make available, upon written request of the Secretary of Health and Human Services or the
Comptroller General of the United States or any of their duly authorized representatives, copies of this Agreement and any books, documents, records and other data of Hippo and its Affiliates directly related to this Agreement that are necessary to
certify the nature and extent of charges for which the Company may seek reimbursement from the federal, state, or local government, subject to reasonable confidentiality treatment (to the extent available). Hippo further agrees that if Hippo carries
out any of its duties under this Agreement through a subcontract with a related organization involving a value or cost of $10,000 or more over a 12-month period, Hippo will cause such subcontract to contain a clause to the effect that, until the
expiration of four years after the furnishing of any Service provided pursuant to said contract, the related organization will make available upon written request of the Secretary of Health and Human Services or the Comptroller General of the United
States or any of their duly authorized representatives, the subcontract, and the books, documents and records of said related organization that are necessary to certify the nature and extent of costs incurred by Hippo for such services, subject to
reasonable confidentiality treatment (to the extent available). Hippo shall give the Company notice promptly upon receipt of any request from the Secretary of Health and Human Services or the Comptroller General of the United States or any of their
duly authorized representatives for disclosure of such information. 
 SECTION 3.07. Project Executive. As promptly as possible after
the Closing Date, Hippo and the Company shall each appoint a project executive (together, the “Project Executives”) who shall have primary responsibility for administration of this Agreement and who shall serve as the primary
contacts with respect to the Transition Services provided pursuant to this Agreement. 
 SECTION 3.08. Dispute Resolution.
(a) Prior to the initiation of any action or proceeding under this Agreement to resolve disputes between the parties hereto, Hippo and 

  

 10 

 
the Company shall make a good faith effort to resolve any such disputes informally through negotiation between their representatives with decision-making
power as outlined below. 
 (b) If a dispute arises, then within 10 Business Days of a written request by either party, the Project
Executives shall meet and attempt to resolve the dispute amicably and expeditiously. If the Project Executives cannot resolve the dispute within 10 Business Days of the meeting, then the dispute shall be submitted to each party’s President. If
the Presidents cannot resolve the dispute within 10 Business Days of the submission of the dispute to them, Hippo and the Company shall have all rights and remedies available to them at law or in equity in accordance with this Agreement with respect
to such dispute. 
 (d) The Parties agree that no written or oral statements of position or offers of settlement made in the course of the
dispute resolution process described in this Section 3.08 will be offered into evidence for any purpose in any litigation between Hippo and the Company, nor will any such written or oral statements or offers of settlement be used in any other
manner against either Hippo or the Company in any such litigation. 
 (e) Hippo and the Company each agree to continue performing their
obligations under this Agreement while any dispute is being resolved unless and until such obligations are terminated by the termination or expiration of this Agreement. 
 SECTION 3.09. HIPAA. Hippo and the Company each agree to execute and deliver to the other party prior to the Closing Date the form of HIPAA Agreement attached as Exhibit A hereto. 
 ARTICLE IV 
 GENERAL PROVISIONS 
 SECTION 4.01. Waiver. Either party may (a) extend the time for the performance of any of the obligations or other acts of the other party,
(b) waive any inaccuracies in the representations and warranties of the other party contained herein or in any document delivered pursuant to this Agreement or (c) waive compliance of the other party with any of the agreements or
conditions contained herein. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the party to be bound thereby. Any failure to assert, or delay in the assertion of, rights under this Agreement shall
not constitute a waiver of those rights. 
 SECTION 4.02. Expenses. Except as otherwise provided in this Agreement, the parties shall
bear their respective direct and indirect costs and expenses incurred in connection with the negotiation, preparation, execution and performance of this Agreement and the transactions contemplated hereby. 
 SECTION 4.03. Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made
(and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by facsimile, or by registered or certified mail (postage prepaid, return receipt requested) to the respective Persons at the
following addresses: 
  

 11 

	 	(a)	if to Hippo: 

 AmerisourceBergen Corporation 

1300 Morris Drive 
 Chesterbrook, PA
19087 
 Facsimile: (610) 727-3612 
 Attention: General Counsel 
 with a copy, which does not constitute notice, to: 
 Davis Polk & Wardwell 
 450
Lexington Avenue 
 New York, NY 10017 
 Facsimile: (212) 450-3800 
 Attention: William H. Aaronson 
  

	 	(b)	if to the Company: 

 PharMerica Corporation 
 1901 Campus Place 
 Louisville, Kentucky
40299 
 Facsimile: (502) 261-2375 
 Attention: Chief Financial Officer 
 CC: General Counsel 
 with a copy, which does not constitute notice, to: 
 Holland & Knight LLP 
 10 St. James Avenue 
 Boston, Massachusetts 02116 
 Facsimile:
(617) 878-1527 
 Attention: Jeff Mittleman 
 SECTION 4.04. Headings. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
 SECTION 4.05. Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any Applicable
Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not fundamentally changed. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a
mutually acceptable manner in order for the transactions contemplated hereby to be consummated as originally contemplated to the greatest extent possible. 
  

 12 

 SECTION 4.06. Entire Agreement. This Agreement (including each Schedule hereto), the Master
Transaction Agreement, the other Transaction Agreements and the Confidentiality Agreements constitute the entire agreement of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and undertakings, both
written and oral, between Hippo and the Company with respect to the subject matter hereof and thereof. 
 SECTION 4.07. Assignment.
Except as expressly set forth in this Agreement, neither party may transfer any of its rights or obligations hereunder, without the prior written consent of the other party. 
 SECTION 4.08. No Third Party Beneficiaries. This Agreement is for the sole benefit of the parties and their successors and assigns and nothing
herein, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 
 SECTION 4.09. Amendment. This Agreement may not be amended or modified except by an instrument in writing signed by the parties. 
 SECTION 4.10. Governing Law; Submission to Jurisdiction. (a) This Agreement shall be governed by, and construed in accordance with, the laws
of the State of New York. 
 (b) To the fullest extent permitted by Applicable Law, each party hereto (i) agrees that any claim, action
or proceeding by such party seeking any relief whatsoever arising out of, or in connection with, this Agreement or the transactions contemplated hereby shall be brought only in the United States District Court for the Southern District of New York
or any New York State court, in each case, located in the Borough of Manhattan in New York City and not in any other State or Federal court in the United States of America or any court in any other country, (ii) agrees to submit to the
exclusive jurisdiction of such courts located in the Borough of Manhattan in New York City for purposes of all legal proceedings arising out of, or in connection with, this Agreement or the transactions contemplated hereby, (iii) waives and
agrees not to assert any objection that it may now or hereafter have to the laying of the venue of any such Action brought in such a court or any claim that any such Action brought in such a court has been brought in an inconvenient forum,
(iv) agrees that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 4.03 or any other manner as may be permitted by Applicable Law shall be valid and sufficient service
thereof and (v) agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Applicable Law. 
 SECTION 4.11. WAIVER OF JURY TRIAL. HIPPO AND THE COMPANY HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 SECTION 4.12. Counterparts. This Agreement may
be executed in one or more counterparts, and by the different parties in separate counterparts, each of which when 

  

 13 

 
executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart
of a signature page to this Agreement by telecopier shall be as effective as delivery of a manually executed counterpart of this Agreement. 
 SECTION 4.13. No Presumption. The parties to this Agreement agree that this Agreement was negotiated fairly between them at arms’ length and that the final terms of this Agreement are the product of the parties’
negotiations. Each party represents and warrants that it has sought and received legal counsel of its own choosing with regard to the contents of this Agreement and the rights and obligations affected hereby. The parties agree that this Agreement
shall be deemed to have been jointly and equally drafted by them, and that the provisions of this Agreement therefore should not be construed against a party on the grounds that the party drafted or was more responsible for drafting the provisions
than the other party. 
  

 14 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its
officers thereunto duly authorized, all as of the day and year first above written. 
  

			
	AMERISOURCEBERGEN CORPORATION
		
	By:	 	 /s/ John G. Chou

	Name:	 	John G. Chou
	Title:	 	Sr. Vice President
	
	PHARMERICA CORPORATION
		
	By:	 	 /s/ Gregory S. Weishar

	Name:	 	Gregory S. Weishar
	Title:	 	CEOPrime Vendor Agreement

 Exhibit 10.4 
 [*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 PRIME VENDOR AGREEMENT 
 FOR LONG-TERM CARE PHARMACIES 
 This Prime Vendor Agreement for Long-Term Care Pharmacies (“Agreement”) is made as of August 1, 2007 (“Effective Date”) by
AmerisourceBergen Drug Corporation, a Delaware corporation (“ABDC”), and PharMerica Corporation, a Delaware corporation, on behalf of itself and its wholly owned subsidiaries (“Customer”). 
 A. ABDC is a national distributor of pharmaceutical and other products, including prescription (“Rx”) and over-the-counter (“OTC”)
pharmaceuticals, nutritional, health and beauty care (“HBC”) and home health care (“DME”) products (“Products”), and related services (“Services”). 
 B. Customer, Kindred Healthcare, Inc. (“Kindred”), a Delaware corporation, AmerisourceBergen Corporation, a Delaware corporation, PharMerica,
Inc., a Delaware corporation (“PharMerica”), and certain other parties have entered into a Master Transaction Agreement dated as of October 25, 2006 (“Master Transaction Agreement”), pursuant to which, as of the Effective
Time (as defined in the Master Transaction Agreement), PharMerica and certain of its subsidiaries (“PharMerica LTC”) and Kindred Pharmacy Services, Inc., a Delaware corporation, and certain of its subsidiaries (“KPS”) will be
wholly owned subsidiaries of Customer, all as provided in the Master Transaction Agreement. 
 C. Pursuant to the Master Transaction
Agreement, execution of this Agreement is a condition to the consummation of the transactions contemplated thereby. 
 D. Customer, through
its wholly owned subsidiaries PharMerica LTC and KPS and their respective direct and indirect subsidiaries, owns, operates and manages approximately 130 long term care pharmacies as of the Effective Time (as defined in the Master Transaction
Agreement) (collectively, the “Facilities”). 
 E. In addition to Facilities, Customer also manages certain acute care pharmacies
for hospitals and other parties. Acute care pharmacies are not subject to this Agreement and will have their own, separately negotiated agreements for the purchase of Products and Services. 
 F. ABDC and PharMerica, on behalf of PharMerica LTC are parties to that certain Prime Vendor Agreement, dated January 19, 1998, as amended; ABDC and
Broadlane, Inc. are parties to that certain Agreement for Distribution Services, dated December 1, 2002, as amended (the term of which expired on December 31, 2006), to which Kindred and its subsidiaries, including KPS, are third party
beneficiaries; and ABDC and Kindred and its subsidiaries, including KPS, are parties to that certain interim Prime Vendor Agreement, dated December 15, 2006, and effective January 1, 2007 (collectively, “Prior Agreements”).

 G. The parties intend by this Agreement to terminate the Prior Agreements with respect to PharMerica LTC and KPS and to set forth their
obligations to each other for an arrangement under which ABDC will provide Products and Services to Customer following the Effective Time (as defined in the Master Transaction Agreement) (“Program”). 
 NOW THEREFORE, the parties agree as follows: 
 1.
PRICING AND PAYMENT TERMS 
 ABDC will be the Primary Vendor of all requirements of Customer’s Facilities for Products. Customer will
pay, within terms, Product costs and Program fees pursuant to payment terms in Exhibit “1” (“Pricing/Payment Terms”). “Primary Vendor” means Customer purchases from ABDC (including Products purchased from ABDC *
that are administered by *) no less than * of all prescription pharmaceutical Products it purchases, as verified *, and meets * in Paragraph 5(A) of the Pricing/Payment Terms. Notwithstanding the foregoing, Customer may 

  

 1 

 
purchase directly from a manufacturer if, due to a product shortage or allocation, the manufacturer requires that Customer do so. In accordance with
Section 4 of this Agreement, the foregoing * will not apply to * with existing agreements with other distributors. Orders for Products will be electronically transmitted (including Schedule II controlled substances when allowed) and will
describe Products that ABDC will provide to Customer, the quantity and designated delivery location. Other than supplier back-ordered Products, ABDC will make reasonable efforts to deliver orders placed by ABDC’s normal order cut-off time by
the next delivery day. All payment plans must be by electronic funds transfer (EFT). The * in the Pricing/Payment Terms, terms, and conditions under this Agreement * must be * contracting with ABDC as of the date hereof. A * is a third-party
pharmacy customer with * purchase volume and *, taking into consideration *. 
 2. PRxO GENERICS PURCHASE PROGRAM 
 Customer must participate in the generic formulary purchase program (“PRxO Generics Purchase Program”) as provided in this Agreement and
pursuant to standard PRxO Generics program requirements as amended from time to time by ABDC. The PRxO Generics Purchase Program is a * which provides Customer *. Customer is able to benefit by having ABDC administer the PRxO Generics Purchase
Program for a *, as specified in Paragraph 2 of the Pricing/Payment Terms. Accordingly, Customer will purchase from ABDC * of its generic pharmaceutical purchases, including the “Top 100” generic pharmaceutical Products; provided, however,
that Customer may purchase any generic pharmaceuticals (including, without limitation, injectables or Products in unit-dose packages that are not available under the PRxO Generics Purchase Program) from a source other than ABDC, without impact to
the requirements under this Agreement if such Products are not available under the PRxO Generics Purchase Program. The Top 100 is a list determined from time to time by ABDC of more than one hundred commonly used generic pharmaceutical Products.
Customer authorizes ABDC as its sole agent to develop and implement a generic pharmaceutical Product list for the Term. With respect to each Product purchased by Customer under the PRxO Generics Purchase Program, ABDC shall use its * to provide
Customer * prior to changing suppliers of such Products. Customer will purchase from ABDC each * no less than the * of generic pharmaceutical Products as set forth in paragraph 5(A) of the Pricing/Payment Terms. Any changes by ABDC in its PRxO
Generics Program or in the Top 100 list as applicable to Customer will be non-discriminatory, generally applicable to ABDC’s customers and consistent with the terms of this Agreement. 
 3. SPECIALTY DISTRIBUTIONS AND * 
 ABDC will provide
to Customer * that are in * due to, for example, manufacturer shortages or unanticipated demand, including any specialty Products or other Products with limited distribution or supply. ABDC makes such allocations based upon *. Upon request, ABDC
will attempt to acquire short-supply Products and, upon their purchase by Customer, such inventory would be * and would not *. Additionally, upon request, ABDC can order short-supply Products, which Products can be “shipped upon arrival”
to Customer’s Facilities. 
 4. CUSTOMER LOCATIONS & DELIVERIES 
 ABDC will deliver Products to each Facility five days a week (Monday – Friday), once a day except holidays and warehouse physical inventory days.
ABDC will provide * at its distribution centers * hours a day, * days a week, for which ABDC will provide Customer with emergency contact information for after-hours access. Additionally, Customer will be entitled to *. 
  
 [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
  

 2 

 
* delivery per * at *. Customer will be charged * for each additional emergency order delivered to the Facility. Customer may receive * emergency will-call
order per Facility * (as long as it is picked up by Customer from ABDC’s distribution center during hours such distribution center is staffed) *. ABDC will use * to meet a requested delivery time for emergency orders. If ABDC cannot do so,
Customer may fill emergency orders outside the Program on such occasions using another provider notwithstanding * in this Agreement. A newly acquired Facility shall become a Facility under this Agreement upon acquisition of such facility by
Customer, provided that any newly acquired facility with an existing agreement with another distributor will become a Facility under this Agreement upon the earlier of expiration of such existing agreement or the date Customer may terminate such
agreement according to its terms, with or without cause, without breaching it or *. Service to Facilities in Alaska, Hawaii and U.S. territories may be subject to a delivery surcharge. 
 5. RETURNED GOODS POLICY 
 Customer will only return Products to ABDC in accordance with ABDC’s
enhanced policy for return Products, a copy of which is attached as Exhibit 4 (“Returns Policy”). If Customer returns more than * of its OTC Net Purchases, or * of its pharmaceutical Net Purchases in any month, Customer may be
assessed an additional restocking fee over any standard stocking fee in the Returns Policy. Customer will return only Product purchased from ABDC for which Customer has submitted the invoice number and date of purchase. ABDC may reject returns not
accompanied by the invoice number and date of purchase or that exceed in amount either the * return limit or the amount on the referenced invoice number. ABDC reserves the right to refuse all future returns from Customer in the event that Customer
submits any counterfeit Product for return. The calculation of Customer returns, Customer OTC Net Purchases, and all other calculations under this Agreement related to the volume of Customer’s purchases of Products will be based on *.

 6. ADDITIONAL SERVICES & PROVISIONS 
 A. Services are listed in Exhibit “2”. Terms, conditions and other provisions are set forth in Exhibit “3” (“Provisions”). 
 B. ABDC may, from time to time, develop policies and procedures relative to new or existing Services offered to customers, on an interim or as-needed
basis. If ABDC develops such policies or procedures or changes current ones, ABDC will notify Customer in writing at least thirty (30) days before such changes are effective. Any changes by ABDC that apply to Customer from time to time under
this Agreement, including its exhibits, must be non-discriminatory, generally applicable to ABDC’s customers, and consistent with the terms of this Agreement. 
 7. TERM OF AGREEMENT 
 A. The parties intend by this Agreement to replace and terminate the Prior Agreements as of the
Effective Date. Except as otherwise agreed, rights and obligations of the parties under each Prior Agreement that accrued with respect to PharMerica or KPS prior to the Effective Date will survive and be satisfied by Customer according to terms of
each Prior Agreement. 
 B. Subject to termination of this Agreement pursuant to Paragraph 5 of the Provisions, the Term will be from the
Effective Date until July 31, 2012. Unless either party provides notice of termination at least 90 days prior to the expiration of the Term, this Agreement will continue on a month-to-month basis upon expiration of the Term (“Extended
Term”), subject to termination pursuant to Paragraph 5 of the Provisions. 
 8. RECORDS 
 To the extent required by 42 U.S.C. §1395x(v)(1), until four (4) years after termination of this Agreement, ABDC will make available upon
written request to the Secretary of the U.S. Department of Health & Human Services, the Comptroller General, or their authorized representatives, a copy of this Agreement and 
  
 [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS. 
  

 3 

 
all records required to certify the nature and extent of costs of Products and Services provided by ABDC under this Agreement. ABDC will ensure, to the
extent it carries out its duties through a subcontract with a value or cost of $10,000 or more in a twelve (12) month period with a related organization, such subcontract will contain similar provisions. Notwithstanding the foregoing, ABDC will
have no obligation to make public documents subject to attorney-client privilege. 
 9. NOTICES 
 Notices must be in writing and sent certified mail, prepaid, return receipt requested, or sent by facsimile to the address or facsimile number below.
Parties may change this information by written notice to the other party. Pursuant to the Telephone Consumer Protection Act of 1991, 47 U.S.C. §227, Customer consents to receiving notices, including product updates, recalls, new product
launches and programs, advertisements and other marketing materials by telephone facsimile (“fax”) machine from ABDC, its affiliates and their related companies, to the fax number set forth below. 
  

			
	To Customer:	  	 PharMerica Corporation
 1901 Campus Place

Louisville, KY 40299
 Attn: Chief Financial Officer
 CC: General Counsel
 Fax: (502) 261-2375

		
	with a copy to:	  	 Holland & Knight LLP
 10 St. James Avenue, 11th Floor

 Boston, MA 02116
 Attn: Jeffrey W. Mittleman, Esq.

Fax: (617) 523-6850

		
	To ABDC:	  	 AmerisourceBergen Drug Corporation
 1300 Morris Drive

 Chesterbrook, PA 19087-5594
 Attn: Senior Vice President,
Health Systems
 Fax: 610-727-3601

		
	with a copy to:	  	 AmerisourceBergen Corporation
 1300 Morris
Drive
 Chesterbrook, Pennsylvania 19087-5594
 Attn: General
Counsel
 Fax: (610) 727-3612

 10. EXHIBITS 
 The following exhibits to this Agreement are incorporated by this reference. 
  

	 	1	Pricing/Payment Terms 

  

	 	2	* 

  

	 	3	Provisions 

  

	 	4	Returns Policy 

  
 [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
  

 4 

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

									
	 CUSTOMER:
 PharMerica
Corporation
	 		 	 ABDC:
 AmerisourceBergen Drug
Corporation

					
	By:	 	 /s/ Gregory S. Weishar
	 		 	By:	 	 /s/ Terrance P. Haas

	Name:	 	Gregory S. Weishar	 		 	Name:	 	Terrance P. Haas
	Title:	 	CEO	 		 	Title:	 	President

  
 [*] CERTAIN INFORMATION ON THIS PAGE
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

 EXHIBIT 1 TO 
 PRIME VENDOR AGREEMENT 
 PRICING / PAYMENT TERMS 
 In addition to payment for Products, Customer will pay ABDC the following Program and other fees for ABDC’s Product distribution and Services for Customer and its
Facilities. Except as otherwise provided, payments are due within * days from ABDC’s invoice date. Pricing does not reflect any administrative or other fee to a group purchasing organization or buying group (“GPO”). If Customer
contracts with a GPO, Customer will pay any such fees to the applicable GPO (or any increase in such fees) during the Term. In any event, ABDC will not pay a GPO fee unless and until a group designation form signed by Customer is filed with ABDC.

 1. PROGRAM FEES 
 A. Price of
Goods. Customer will pay the following Price of Goods based upon the definition of “Cost” below for Products other than Products and Services designated as ABDC Special Price Products. ABDC will add to the billed amount any applicable
sales, use, business and occupation, gross receipts or other tax. Price of Goods shall be fixed * for the * quarters of the Term. Thereafter, Price of Goods may be adjusted in accordance with the following matrix at the beginning of the sixth
calendar quarter of the Term and each quarter thereafter based upon Customer’s actual total net purchase volume over the immediately prior quarter. 
  

							
	 	  	 Total Quarterly Rx Product Volume
	  	Branded Rx Price of Goods*
	 Tier
	  	 	  	Weekly
Payment	  	 
	 1
	  	 * up to * 
	  	*	  	
	 2
	  	 * up to * 
	  	*	  	
	 3
	  	 * up to * 
	  	*	  	
	 4
	  	 * & * 
	  	*	  	

	 *	“Cost “ means *. 

	**	*. 

 Selected Products *. 
  
 [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
  

 6 

 B. Additional * Services. The additional * Services in Exhibit “2” will be
provided to Customer’s Facilities, at the election of Customer’s Facilities, by ABDC * if Customer maintains ABDC as its Primary Vendor. In the event Customer does not maintain ABDC as its Primary Vendor, such Services will be provided *.

 C. Contract Administration. In administering Customer’s supplier contracts, including those established by Customer on its own
or those established by a GPO under which Customer participates, Customer must (i) provide a copy of new contracts, (ii) comply with supplier’s terms, (iii) use all products for its “own use” (as defined in judicial and
legislative interpretations), (iv) notify ABDC at least * days before it changes suppliers, and (v) upon changing suppliers, assist ABDC in disposing of any excess inventory acquired for Customer. Additionally, Customer will notify ABDC
before discontinuing purchases of any special inventory that it has requested that ABDC stock (whether or not pursuant to a contract) and assist ABDC in disposing of any excess of such inventory. Promptly after receiving notice of the denial of, or
failure to pay, GPO or manufacturer/supplier chargebacks, ABDC shall provide Customer written notice of any unpaid chargebacks, and when invoiced, Customer will promptly reimburse ABDC for any unpaid chargebacks that are (x) denied by a GPO or
manufacturer/supplier or (y) not paid within * days and, in either case, Customer will look solely to such GPO or manufacturer/supplier for redress; provided that the unpaid chargeback is processed through ABDC’s standard credit and rebill
procedures. 
 2. PRxO GENERICS PURCHASE PROGRAM 
 A. Administration Services. ABDC will have full responsibility for administering the PRxO Generics Purchase Program, including supplier selection, Product selection, Product price negotiation, contract administration, purchasing,
automated compliance assurance, contract management and reporting. Under the PRxO Generics Purchase Program, ABDC will invoice Customer at * under *, * to Customer, * to ABDC’s * . 
 B. * . ABDC will provide such PRxO Generics Purchase Program services for * of the Contract Cost of aggregate Net Purchases of PRxO Generics
Product by Customer. “ * ” shall mean * under *. ABDC will issue to Customer a credit for the difference between the amount invoiced to Customer when Product is delivered (i.e., including * ABDC’s *) and the * and provide reasonable
supporting documentation for such credit, with credit issued within * of the end of *. 
 3. PAYMENT TERMS 
 A. Customer agrees to the following payment terms: 
 Weekly Payment. Payment for invoices for purchases made Saturday through Friday must be received the following Friday by EFT. 
 B. Terms. All payments must be received for deposit to ABDC’s account by the due date by EFT. 
 4. SERVICE LEVELS 
 For pharmaceutical Products, ABDC will meet an adjusted fill rate service level of * each calendar
month. The fill rate is the ratio between lines shipped and lines ordered (total lines not filled (adjusted as follows), divided by total lines ordered). The fill rate will be adjusted to reflect unavailable Product (manufacturer’s backorders
or other unavailability without fault by ABDC, including common carrier delays), partial ships (*), repeat orders within *, Products not ordered by Customer during the prior * days or Customer’s per-week usage exceeds its per-week estimates by
more than * , and Force Majeure events (as defined in Provisions Paragraph 9.1). ABDC’s computerized reports will be used to determine the actual level achieved. Customer will provide its best usage estimates on Products at least * days prior
to its first order of a Product (both new Products and Products that have not been ordered during the prior *) so that ABDC can maintain its service level commitment. Products must be purchased once per month to remain on the list of Products for
which the service level commitment applies. Any Product not ordered in a given month can be reinstated on such list when Customer notifies ABDC it is resuming the ordering of such Product on a monthly basis. ABDC may offer a substitute for any
Product that is not available for delivery, and if the substitute Product is accepted by the Customer, in the Customer’s reasonable discretion, the order will be deemed filled. If ABDC’s adjusted service level for all Facilities does not
meet such threshold, ABDC will pay to each Facility for which the service level was not met a service level penalty as follows, which amount will be paid as a credit by the 30th of the next month and which payment will be Customer’s sole remedy for any failure to meet the fill rate. 
  
 [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 
  

 7 

			
	 *
	  	*.
		
	 *
	  	* of all Rx Products purchased by such Facility during such month.
		
	 *
	  	* of all Rx Products purchased by such Facility during such month.

 5. MINIMUM ORDER VOLUME 
 A. Annual Purchases. Customer’s minimum annual Net Purchase (total purchases less returns, credits, rebates, late payment fees and similar items) volume during Year 1 is *. Year 1 is the period from the
Effective Date until July 31, 2008 and, with respect to the subsequent years, a Year is the following twelve (12) month periods. Customer’s Net Purchases are projected to increase at a rate of * per Year during each Year of the Term.
*. 
 B. Small Order Charge. If Customer purchases less than * per month per Facility, a delivery charge of * per delivery will be
assessed for each order that is less than *. ABDC may adjust the per-delivery charge from time to time to reflect ABDC’s actual shipping and handling costs. 
 C. Price of Goods Adjustment. (1) Price of Goods and Program fees available under this Agreement are based upon Customer’s meeting the Primary Vendor requirements under this Agreement and the
periodic Net Purchases in Paragraph 5(A).  
 (2) If total PRxO Generics Net Purchases by Customer for the immediately prior quarter
is less than * of Customer’s total Rx purchases for such quarter then, notwithstanding the initial * under Paragraph 1(A) of this Exhibit 1, ABDC may increase Customer’s Price of Goods (Branded Rx and other Products) in the current quarter
by * for each * that Customer’s total PRxO Generics Net Purchases for the immediately prior quarter were below the minimum PRxO Generics Net Purchase for such quarter. By way of example, if Customer’s PRxO Generics Net Purchases were *
(that is, * or more but less than *) for a quarter, the effective Price of Goods for Branded Rx for the following quarter could change (*) from Cost minus * to Cost minus *. 
 (3) If total PRxO Generics Net Purchases by Customer is less than * or Customer does not meet the Primary Vendor requirements under this Agreement then,
notwithstanding the *-quarter non-adjustment under Paragraph 1(A), ABDC may, in addition to any other remedies, reasonably adjust Price of Goods and Program fees on * prior written notice to reflect lower than expected Net Purchase volume.

  
 [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
  

 8 

 EXHIBIT 2 TO 
 PRIME VENDOR AGREEMENT 
 * 
 1. Services. * 
 2. Ordering & Reporting Software and Hardware 
 * 
 3. Repackaging Program 
 * 
 4. Recalls 
 ABDC will notify Customer of all recalls as instructed in the supplier’s notification. 
 5. Drop Ship Service 
 ABDC provides drop ship service when Customer’s needs dictate this approach and the
supplier meets ABDC’s liability insurance and other requirements. Drop shipments may be subject to an additional charge. 
  
 [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 
  

 9 

 EXHIBIT 3 TO 
 PRIME VENDOR AGREEMENT 
 PROVISIONS 
 1. RECORDS, AUDITS. 
 ABDC will maintain records of
transactions during the Term and for one year after. Customer’s employees may audit such records only pursuant to ABDC’s audit policies, as modified from time to time. Such audits may be conducted only during ordinary business hours and
upon reasonable notice and may only cover * prior to the request or any shorter period set by the manufacturer for chargeback audits. No audit may cover any period previously audited. All costs of such audit will be borne by Customer, including
costs to produce records. If an audit shows net overcharges or undercharges and ABDC agrees with such findings, (i) ABDC will credit or charge Customer within * of receipt of written notice of the net overcharge (or, if later, within * of
receiving an applicable supplier’s credit) or undercharge and *. If there is a net overcharge, Customer may expand the audit to * prior to the request. 
 2. DUTIES OF CUSTOMER 
 2.1 Primary Vendor Orders. For Products required by Facilities, Customer will submit an electronic order for
all Products. If allowed, non-electronic orders may be subject to additional charges. 
 2.2 Disclosure. Each party will comply with all laws,
including reporting or reflecting discounts, rebates and other price reductions pursuant to 42 U.S.C. §1320a-7b(b)(3)(A) on cost reports or claims submitted to federal or state healthcare programs, retaining invoices and related pricing
documentation and making them available on request to healthcare program representatives. 
 2.3 Notice of Changes. Customer will promptly notify ABDC
of changes in ownership, name, business form (e.g., sole proprietorship, partnership or corporation) or state of incorporation or formation. 
 2.4 No
Set-Off. Customer’s obligation to pay for Products will be absolute, unconditional and not subject to reduction, set-off, counterclaim or delay. 
 2.5 Billing Statements. Billing disputes must be brought promptly to the attention of ABDC’s accounts receivable department and any claim against ABDC will be barred unless commenced within twelve (12) months after receipt
of the first statement containing the amount in dispute or Customer will be deemed to accept the accuracy of such statements and to waive its right to dispute the amount. 
 2.6 Late Payment. All payments must be received in ABDC’s account during normal business hours on the date due. Drivers and other ABDC employees cannot accept cash. Price of Goods reflects a prompt payment
discount. If payment is not received by the due date, ABDC will invoice Customer such unearned discount by recalculating Price of Goods, solely with respect to the Products for which payment was not received or late, based on Cost * (or, if greater,
* more than the invoiced Price of Goods) effective as of the due date. Thereafter, if payment is delinquent, ABDC may withhold any payments to Customer and will assess a per-day late payment fee of the lower of * (*) or the maximum rate permitted by
law on the outstanding balance until paid, beginning on the first (1st) business day after such due date. *. Such rights are in addition to ABDC’s other remedies and will not relieve Customer of its obligation to make prompt payment in
accordance with this Agreement. 
 2.7 Title And Risk Of Loss. All goods are F.O.B. Customer’s location, with freight prepaid for normal
delivery. Expedited delivery is extra. Title and risk of loss pass upon delivery to Customer. 
 2.8 Extension Of Credit. Payment terms are an
extension of credit based upon an evaluation of Customer’s financial condition upon commencement of this Agreement as reflected in written information from Customer. Customer will abide by ABDC’s standard credit terms as amended from time
to time by ABDC. Customer will promptly notify ABDC in writing of any Claim that, with an unfavorable result, would have a material adverse effect on Customer’s financial condition or operation. Upon request, Customer will furnish ABDC complete
annual and quarterly financial statements and other evidence of its financial condition necessary to establish, in ABDC’s opinion, Customer’s ability to perform its obligations. If ABDC reasonably believes Customer’s ability to make
payments may be materially impaired, ABDC may from time to time amend Customer’s payment terms, require past due amounts to be paid and/or require posting of adequate security or such other documents as ABDC may require. Pending receipt of
requested items, ABDC may withhold delivery of Products and providing Services; place Customer on a C.O.D. basis if ABDC has not received payment when due after giving notice by 10:00 a.m. and giving Customer until 2:00 p.m. the same day for ABDC to
receive payment; and/or require Customer to pay part or all of any past due amount as a condition to continued service. 
 3. NO WARRANTIES

 Customer acknowledges that ABDC is not the manufacturer of any Products and ABDC DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THOSE OF
MERCHANTABILITY, NON-INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE, FOR PRODUCTS AND SERVICES. No oral or written information provided by ABDC, its employees or other representatives will create any such warranty. In no event will ABDC be liable
for any special, incidental or consequential damages in connection with or related to Products, hardware, Software, including ordering software, or Services. 
 4. CONFIDENTIALITY 
 Each party and its employees or representatives (“Receiving Party”) will protect all proprietary and
confidential information (“Confidential Information”) disclosed by the other (“Disclosing Party”) and not use or disclose it except in connection with the Program or as otherwise agreed. Confidential Information does not include
information (i) available on a non-confidential basis, (ii) known or able to be formulated by Receiving Party, or (iii) required to be disclosed by law. Pricing and payment terms are confidential and may not be shared with any third
party. Customer will remove Exhibit “1” (or request confidential treatment) if it discloses this Agreement for any reason, including in a Securities and Exchange Commission filing. 
 5. TERMINATION OF AGREEMENT 
 5.1 Extended Term. During the
Extended Term, either party may terminate this Agreement at any time, with or without cause, upon 90 days’ prior written notice to the other party. 
 5.2 Default. In addition to other available remedies, either party may immediately terminate this Agreement for cause upon written notice to the other party upon the other party’s: 
 (a)(i) Filing an application for or consenting to appointment of a trustee, receiver or custodian of its assets; (ii) having an order for relief entered in
Bankruptcy Code proceedings; (iii) making a general assignment for the benefit of creditors; (iv) having a trustee, receiver or custodian of its assets appointed unless proceedings and the person appointed are dismissed within thirty
(30) days; (v) insolvency within the meaning of Uniform Commercial Code Section 1-201 or failing generally to pay its debts as they become due within the meaning of Bankruptcy Code Title 11, Section 303(h)(1) (11 U.S.C.
§303(h)(1)), as amended; or (vi) certification in writing of its inability to pay its debts as they become due (and either party may periodically require the other to certify its ability to pay its debts as they become due) (collectively,
“Bankruptcy”); 
 (b) Failure to pay any amount due and such failure continues five (5) days after written notice; or 
 (c) Failure to perform any other material obligation of this Agreement or any other agreement now or hereafter entered into between the parties and such failure
continues for thirty (30) days after it receives notice of such breach from the non-breaching party; provided, however, if the other party has commenced to cure such breach within such thirty (30) days, but is not reasonably able to
complete it within such thirty (30) days, such party will have a reasonable time to complete its cure if it diligently pursues the cure until completion. “For cause” does not include Customer’s receiving a more favorable offer
from an ABDC competitor. 
 5.3 Survival Upon Termination. Within five (5) days after expiration or earlier termination of this Agreement, all
amounts owed by Customer will be immediately due and payable, and Customer will (i) pay ABDC any amount owed and (ii) return to ABDC all hardware, Software and other equipment, including ordering devices and totes, or pay to ABDC the
replacement cost of such items that are not returned; provided, however, if this Agreement is terminated by Customer due to a default by ABDC, any such payments will be 
  

 [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS. 
  

 10 

 
* in this Agreement. Obligations in Provisions Paragraphs 4, 5.2, 6 and 9 and any provision the context of which shows the parties intended it to survive
will remain in effect after the Term. 
 6. INDEMNIFICATION 
 Each party (“Indemnifying Party”) will indemnify and defend the other, its employees and representatives (“Indemnified Party”) against all claims and damages (including expenses and attorneys’ fees)
(“Claim”) to the extent arising out of Indemnifying Party’s obligations under this Agreement. Failure to give prompt written notice of a Claim will not relieve Indemnifying Party of liability except to the extent caused by such
failure. Indemnifying Party will defend a Claim with counsel reasonably satisfactory to Indemnified Party and Indemnified Party will cooperate fully in such defense. 
 7. CUSTOMER’S INSURANCE 
 Customer will maintain sufficient insurance to cover all unpaid inventory in its
possession. Customer will maintain professional liability insurance with limits of no less than * per incident and * aggregate. 
 8. SOFTWARE LICENSE

 8.1 License. ABDC grants Customer a non-exclusive, nontransferable and revocable license to use software and related documentation ABDC provides
for use in the Program (“Software”). Customer may not make, or allow others to make, copies except one backup copy. Customer must include all proprietary notices in permitted copies. Customer may not modify Software or create derivative
works and may not translate, reverse engineer, disassemble or decompile Software. 
 8.2 Limited Warranty. ABDC warrants that (i) Software will
perform substantially in accordance with its documentation if operated as directed; (ii) hardware provided by ABDC and diskettes, CD-ROMs or other media on which the Software is provided will be free from defects under normal use; and
(iii) Software will not infringe the rights of any third party. ABDC DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THOSE OF MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE, FOR HARDWARE AND SOFTWARE, AND ACCURACY OF ANY
DATA. ALL DATA IS PROVIDED “AS IS.” DUE TO THE NATURE OF SOFTWARE, HARDWARD AND DATA, ERRORS AND INTERRUPTIONS MAY OCCUR AND CUSTOMER HAS ALL RISKS FOR QUALITY AND PERFORMANCE. No oral or written information provided by ABDC, its employees
or other representatives will create any warranty. 
 8.3 Remedy. ABDC’s liability and Customer’s exclusive remedy for breach of warranties
in Paragraph 8.2 will be, at ABDC’s option, to (i) repair or replace Software or hardware so it performs substantially in accordance with its documentation and is non-infringing; (ii) advise Customer how to achieve substantially the
same functionality using different procedures, or (iii) replace defective media that is returned. 
 9. MISCELLANEOUS 
 9.1 Force Majeure. If ABDC’s performance is prevented, delayed or otherwise adversely affected by labor disputes, fire, terrorism, acts of God or any other
cause beyond its control, including unavailability of Products, transportation, materials or fuel, delays by suppliers, loss of facilities, internet, telecommunication or electrical system failures or interruptions, voluntary foregoing a right in
order to comply with or accommodate government orders or requests, compliance with any law or any other cause beyond its control (“Force Majeure”), (i) ABDC may reduce or eliminate Products without liability or obligation during the
Force Majeure period and (ii) to the extent ABDC reduces or eliminates Products, Customer shall not be required to maintain ABDC as the Primary Vendor of all requirements of Customer’s Facilities for Products during the Force Majeure
period. In addition, if Force Majeure affects ABDC’s cost of operations and Customer elects to utilize ABDC as a vendor for Products to Customer’s Facilities during the Force Majeure period (provided that Customer shall not be required to
maintain ABDC as a Primary Vendor to such extent), ABDC may, at its discretion, add to the price of Products all of its increased costs, including taxes, so long as Force Majeure affects such costs. 
 9.2 Security Interest. In addition to any security interest previously or hereafter provided by Customer to ABDC, Customer hereby grants to ABDC a security
interest which shall be a purchase money security interest in Products that Customer has not paid for and in Customer’s proceeds from such Products until all amounts are paid. ABDC may do such things as are necessary to achieve the purposes of
this Paragraph. 
 9.3 Assignment. (a) All covenants, promises and agreements in this Agreement inure to the benefit of and are binding upon the
successors and permitted assigns of each party. In no event will an agreement between a successor to or permitted assign of Customer and any third party negate or diminish in any way such successor’s or assign’s obligations under this
Agreement. 
 (b) Neither party may assign its rights or delegate its duties under this Agreement, including by asset sale, without the written consent of
the other party. Each party hereby consents to the other party assigning part or all of its obligations to any affiliate and to assigning or granting a security interest in this Agreement in connection with any financing or securitization by such
party or any affiliate; provided, however, any assignment will not relieve a party of its performance obligations under this Agreement. 
 (c)
Notwithstanding anything to the contrary set forth in this Agreement, Customer may not undertake any merger, change of ownership, change-in-control or other transaction without the consent of ABDC unless (i) *, this Agreement will remain in
full force and effect and the survivor of such transaction will * under this Agreement by operation of law, and (ii) Customer has no knowledge prior to undertaking such transaction that * under this Agreement. For clarity, such * include but
are not limited to *. For further clarity, it is understood that the foregoing does not affect the obligation of Customer to obtain the written consent of ABDC to any assignment of this Agreement in any event. 
 (d) Each party acknowledges that money damages would not be a sufficient remedy for any breach of restrictions under this Paragraph 9.3 and, if there is a breach or
threatened breach, the other party will be entitled to specific performance and injunctive or other equitable relief in addition to any other available remedies at law or in equity. 
 9.4 EEO Requirements. ABDC warrants it does not and will not discriminate against any employee or applicant for employment because of race, creed, color, national origin, religion, gender, sexual preference,
veteran status, handicap or as otherwise may be prohibited by law and will meet affirmative action obligations as are imposed by law. 
 9.5
Miscellaneous. The successful party in any legal action, including in a Bankruptcy proceeding, may recover all costs, including reasonable attorneys’ fees. Pennsylvania law will govern this Agreement without reference to conflict of laws
provisions. Any waiver or delay in enforcing this Agreement will not deprive a party of the right to act at another time or due to another breach. All provisions are severable. In the event of a conflict between a prior document between the parties
and this Agreement, this Agreement will control. This Agreement supersedes prior oral or written representations by the parties that relate to its subject matter other than the security interest, which is in addition to and not in lieu of any
security interest created in other agreements. Captions are intended for convenience of reference only. The parties may not modify this Agreement, or its Exhibits, other than by a subsequent writing signed by each party. This Agreement will be
interpreted as if written jointly by the parties. The parties are independent contractors. 
 9.6 Excluded Providers. The Office of Inspector General
(“OIG”) Special Advisory Bulletin on the Effect of Exclusions on Participation in Federal Health Care Programs clarifies OIG’s sanction authority to impose civil money penalties and deny reimbursement under federal health care
programs for products or services provided by an excluded entity. Specifically, it provides that “items or equipment sold by an excluded manufacturer or supplier used in the care or treatment of beneficiaries and reimbursed, directly or
indirectly, by a federal health care program violate the OIG’s exclusion.” ABDC certifies that neither it, nor any of its key personnel, are listed by a federal agency as being debarred, excluded, or otherwise ineligible for federal
program participation as of the Effective Date and ABDC will immediately notify Customer in writing if any of these events occurs. 
 9.7 HIPAA. This
Agreement and certain data that may be exchanged under this Agreement may be subject to (i) the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and ABDC may be a “business associate” of Customer for
purposes of HIPAA and the rules and regulations promulgated under HIPAA and (ii) the Confidentiality of Medical Information Act (California Civil Code Sections 56.10 et seq.) (the “Medical Information Act”). The parties
will amend this Agreement, if and to the extent required, to comply with HIPAA and the Medical Information Act, including provisions relating to written contracts among business associates. 
  
 [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
  

 11 

 EXHIBIT 4 TO 
 PRIME VENDOR AGREEMENT 
 ABDC’S * RETURNS POLICY 
 ABDC will comply with the Prescription Drug Marketing Act of 1987, as well as all state PDMA regulations, with regard to Customer’s return of prescription drugs.
Credit for a returned Product will not exceed Customer’s original acquisition price. 
 Returnable Product 
 1. Product originally purchased from ABDC and returned in saleable condition within * of invoice date will be credited at * of Customer’s original acquisition price.
Saleable Products are those that ABDC reasonably determines can be resold back into the marketplace in the normal course of business and must (i) be in original condition with no defects or adulteration in packaging; (ii) be unopened with
seals intact; (iii) have at least * (current month plus *) dating remaining before expiration; (iv) have been stored and transported under proper conditions while in custody of Customer; and (v) have been sold by ABDC to Customer
in the ordinary course (e.g., not in a special sale or subject to conditions that restrict returns). 
 2. Product originally purchased from ABDC and
returned in saleable condition beyond * the date of the invoice provided will be credited at * of Customer’s *. 
 3. Product originally purchased from
ABDC and returned in non-saleable condition but that is accepted for return by the manufacturer will be credited at * of the estimated value received from the manufacturer, less *. 
 4. Products that was damaged prior to its delivery by ABDC to Customer and for which damage was promptly reported to ABDC will be credited at * of Customer’s original acquisition price. 
 5. Products originally purchased from ABDC and recalled by any governmental authority or by the manufacturer of such products will be credited at * of the applicable
manufacturer credit. 
 Non-Refundable Product 
 The
following Product will not be accepted for credit: 
 1. Class II and Class IIN controlled substances; 
 2. Open packages, partial bottles, broken seals, or any other product not returned in unopened original packaging, except for manufacturing recalls and products damaged
prior to delivery to Customer; 
 3. Products whose manufacturer requires direct or third-party return, except in the case of Product mis-shipments or
mis-orders if reported within 5 business days of receipt; 
 4. Products sold as non-returnable by the manufacturer or ABDC, including any Product subject to
a Florida or other pedigree. 
 Schedule Item Returns 
 Return of scheduled items (other than Schedule II and IIN) must be pre-approved by ABDC’s distribution center. Scheduled drug returns must be packed separately from other returns and proper procedures must be followed to ensure
compliance with current law, including CFR Part 21. Schedule items returned in violation of this policy will receive no credit. 
 Hazardous Substances
Returns 
 Return of hazardous substances must be pre-approved by ABDC’s distribution center. Hazardous substance returns must be clearly marked and
packed separately from other returns. Hazardous substances returned in violation of this policy will receive no credit. 
 Temperature Control Returns

 Items requiring temperature control during shipment must be called in to customer service/returned goods department for return authorization.

 Electronic Credit & Return Requests 
 Returns
are typically processed within * of ABDC’s receipt of return request. Credit and return requests should be entered electronically to assure proper and prompt credit. Echo credit entry should be used for ordering errors, defectives, outdated,
and overstocked items. Requests for credits involving billing errors, damaged in shipment, shortages, and filling errors must be phoned into the ABDC customer service/returned goods department at ABDC’s distribution center serving
Customer’s Facility. 
 PDMA Certification 
 To
receive credit, a signed and dated PDMA return certification must accompany all prescription drug returns. A sample return certification follows: 
 I certify that the pharmaceutical products being returned are saleable and have been stored and maintained while in our possession in accordance with the manufacturer’s temperature and storage requirements listed on the packaging and
in accordance with the requirements listed in the current edition of USP/NF. I further certify that this product has not been transferred to this facility from another location and that I am able to certify as to the product’s proper storage
and condition. 
 NOTE: This Policy is subject to change from time to time, in ABDC’s sole discretion, and such changes will be effective * after notice
is provided to Customer. Any such changes by ABDC that are applicable to Customer will be non-discriminatory, generally applicable to ABDC’s customers, and consistent with the terms of this Agreement. 
  
 [*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
  

 12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]