OMNICARE DESIGNATED PREFERRED PROVIDER. During the term of this Agreement, Extendicare, on behalf of itself and each of the Extendicare Facilities, designates Omnicare as its pharmacy of choice and as the preferred provider of Pharmacy Services and Ancillary Supplies ("Preferred Provider") for all current and future Extendicare Facilities located in the United States. Omnicare accepts such designation and agrees to provide Pharmacy Services and Ancillary Supplies to such Extendicare Facilities and their residents in accordance with the terms, conditions and procedures set forth in this Agreement and the Standard Facility Pharmacy Services Contracts to be entered into hereunder. <PAGE> In connection with Extendicare's designation of Omnicare as its Preferred Provider of Pharmacy Services, Extendicare agrees to cause the Extendicare Facilities which are from time to time party to Standard Facility Pharmacy Services Contracts with an Omnicare Pharmacy (as hereinafter defined) (i) to designate such Omnicare Pharmacy as its provider of Pharmacy Services for regulatory purposes, and to use such Omnicare pharmacy as the provider of those Pharmacy Services which the Extendicare Facility uses itself, (ii) to use such Omnicare Pharmacy as the provider of those Pharmacy Services which the Extendicare Facility provides to its residents at its expense (e.g., under the current Medicare prospective payment system or a capitated managed care arrangement, in accordance with the fee schedules attached hereto as Schedule 1 and Schedule 2, respectively), and (iii) to inform its other residents that the Omnicare Pharmacy is the designated provider of Pharmacy Services for such Facility for regulatory purposes and such Facility's pharmacy of choice, and to recommend to such other residents (other than those residents whose applicable managed care payor will not reimburse the applicable Omnicare Pharmacy for Pharmacy Services provided to such resident) that they use the Omnicare Pharmacy as their provider of Pharmacy Services, in preference to any other pharmacy. Notwithstanding the previous sentence or anything to the contrary set forth herein, (i) in no event shall this Agreement or any Standard Facility Pharmacy Service Contract be construed to restrict the right of individual residents of the Extendicare Facilities to receive pharmaceuticals from the pharmacy provider of their choice and to be advised of such right, and (ii) any Extendicare Facility which is located outside of the Omnicare Geographic Service Area ...
