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Amendment to Inventory Management Agreement

Supply Agreement

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McKesson Corporation

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Title: Amendment to Inventory Management Agreement
Date: 3/11/2005
Industry: Biotechnology and Drugs     Law Firm: First Horizon Pharmaceutical Corporation,    

Amendment to Inventory Management Agreement, Parties: mckesson corporation
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Exhibit 10.41

November 30, 2004

Greg Yonko
Sr. Vice President, Purchasing
McKesson Corporation
One Post Street
San Francisco, CA 94104-5296

RE:

Amendment to Inventory Management Agreement by and between Supplier and McKesson Corporation dated 6/10/03 ("Amendment")

Dear Mr. Yonko:

        This letter serves to amend the above-referenced Inventory Management Agreement ("Agreement") between First Horizon ("FHPC") and McKesson Corporation ("Wholesaler") dated 6/10/2003.

        The Agreement shall be amended as follows:

Article 1

1.

The following definition shall be added in Article 1 as section 1.15.

1.15

"Contract Year" means the calendar year beginning on January 1 st and ending December 31 st .

2.

The following definition shall be added in Article 1 as section 1.16.

1.16

"Economic Benefit" means the total savings received or realized by Wholesaler that derive from price breaks, purchases made at the Old Price, Product discounts, off invoice allowances, promotions, special offers, or price allowances.

Article 2

3.

The following paragraph shall be added in Article 2 as section 2.1.

2.1

[ ***] . Such notification shall include the following information: (i) the Product name, Product expiration date and lot number; (ii)  [***] ; (iii) the dollar amount of Product being purchased; and (iv)  [***] . In any event and subject to section 2.4 Purchase Limits , Wholesaler shall at all times maintain the Inventory Levels set forth in section 2.3 Inventory Levels .

4.

Delete section 2.2 in its entirety and replace with the following language:

2.2

Inventory Reports . Wholesaler shall prepare inventory reports detailing the status of its Aggregate Inventory of Products by NDC number (" Inventory Reports ") and, for the duration of this Agreement, provide FHPC with monthly Inventory Reports. All such Inventory Reports shall be transmitted in EDI (Electronic Data Interchange) format pursuant to Section 2.7 and shall include such information as reasonably requested by FHPC, including the following:


(a)

On hand inventory level by distribution center; includes all distribution centers and

(b)

On order inventory level by distribution center; inc


 
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