Common use of Allocation of Payments among Settling Distributors Clause in Contracts

Allocation of Payments among Settling Distributors. Payments due from the Settling Distributors under this Section IV, Section IX, and Section X will be allocated among the Settling Distributors as follows: McKesson ±38.1%; Amerisource ±31.0%; Cardinal ± $ 6HWWOLQJ 'LVWULEXWRU¶AVgreemVenRt sOhaHll beUHVSRQV to make its share of each payment. The obligations of the Settling Distributors in this Agreement are several and not joint. No Settling Distributor shall be responsible for any portion of another 6HWWOLQJ 'LVWULEXWRU¶V VKDUH J. Pre-payment Option. 1. Any Settling Distributor shall have the right, subject to the limitations set forth in Section IV.J.3, to prepay any base payment or incentive payment in whole or in SDUW ZLWKRXW SSUetHtlePmeLntXPrPepayRmeUnt´SHQED\OWS\URYDLG³LQJ DW fourteen (14) calendar days prior written notice to the Settlement Fund Administrator and (QIRUFHPHQW P&repRaPymPenLt NWotWiceH´H D $³Q\ 3UHSD\PHQW 1RW specify: (a) the gross amount of the Settlement Prepayment WKGrHoss S³ettlement Amount´, (b) the manner in which such Settlement Prepayment shall be applied to UHGXFH VXFK 6HWWOLQJ 'uLal VPaWymUenLts E(i.Xe.,WtoRwhUic¶h fVutureIXWXUH year(s) the allocable portion of an Annual Payment owed by such Settling Distributor the 6HWWOHPHQW 3UHSD\PHQW VKRXOG EHSettleDmeSntSOLHG as of the Prepayment Date based on the Settlement Prepayment Reduction Schedule using a discount rate equal to the prime rate as published by the Wall Street Journal on the date of the Prepayment Notice plus 1.75% (VXFK QHW SUHVHQNWet YDOXH 0XXXX\XXXX Xx0xxXxxXxxXxxXXxXxx´ WKH ³ 2. On the Prepayment Date the Settling Distributor shall pay the Net Settlement Prepayment Amount to the Settlement Fund and such amount shall be used only as specified in Section V. Following such payment, all future portions of the Annual Payments allocated to the applicable Settling Distributor under Section IV.E and Section IV.F shall be reduced pursuant to the Settlement Prepayment Reduction Schedule, and the Exhibit M will be updated to give effect to such reduction, and going forward such updated schedule will be Exhibit M. 3. $ 6HWWOLQJ 'LVWULEXWRU¶V ULJKW WR PD following limitations: a. Prepayments may apply to base payments or to both base and incentive payments. If the prepayment applies to both base and incentive payments, the prepayments will apply proportionately across base and incentive payments. b. A Settling Distributor shall make no more than three (3) prepayments over the eighteen (18) year payment term. A Settling Distributor shall not make more than one (1) prepayment in a five (5) year period and there shall not be prepayments made in the first two (2) Payment Years. c. Prepayments shall only be applied to one (1) or more of the three