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SECOND AMENDMENT TO CORE
DISTRIBUTION AGREEMENT
THIS SECOND
AMENDMENT TO CORE DISTRIBUTION AGREEMENT (“ Second
Amendment ”) is entered into as of October 11, 2006,
by and between Connetics Corporation (“ Connetics
”) and McKesson Corporation (“ McKesson
”). Connetics and McKesson entered into a Core Distribution
Agreement dated December 23, 2004 (“ Original
Agreement ”), as amended by that certain Amendment to
Core Distribution Agreement dated as of December 22, 2005
(“ First Amendment ”; the Original Agreement
together with the First Amendment shall hereinafter be collectively
referred to as the “ Agreement ”). Capitalized
terms not defined herein shall have the meaning ascribed to such
terms in the Agreement.
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1.
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Section 2.3.1
of the Agreement is
hereby deleted and replaced in its entirety with the
following:
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2.3.1
Inventory Levels .
During the term of this Agreement, McKesson will use its best
efforts to maintain an inventory level of ** inventory level shall
be referred to herein as the “ SKU Inventory Level
”). The SKU Inventory Level shall be based on EDI 852
reports. Each SKU Inventory Level shall include Product located at
both the SRC and all other facilities where Product is stored or
warehoused. If at any time the inventory level of a particular SKU
exceeds the SKU I
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