Rebate Contracting. (a) PBM agrees to work with United HealthCare to negotiate new or amended rebate agreements with drug manufacturers by June 30, 2002 that will result in United HealthCare earning *** of incremental rebates (from amounts that would have been earned from manufacturers absent such new or amended agreements) on an annualized basis. As a condition to PBM's guarantee of such incremental rebates, United HealthCare agrees to use its best efforts to coordinate its formulary initiates with PBM's negotiations with drug manufacturers for PBM's book of business generally.
Rebate Contracting. (a) Administrator acknowledges that United shall have the right to contract directly with Drug Manufacturers if, in its sole discretion, United decides to do so (“United Rebate Agreements”). In the event that United contracts directly with any Drug Manufacturer, any minimum rebate guarantees set forth on Exhibit C-1, et seq., as applicable, shall not apply and Administrator agrees to provide reasonable assistance and support to United as mutually agreed by the Parties in connection with such contracting process. In addition, Administrator agrees to administer, on behalf of United, the terms and conditions of the United Rebate Agreements.
Rebate Contracting. In order to maximize savings on drug spending for both the FHS Affiliated Plans and Advance Paradigm's other pharmacy benefit management business, the parties, acting on behalf of all entities for which they provide formulary/rebate services, intend to negotiate together for new Drug Manufacturer Agreements that cover all of such business. The parties acknowledge that each is a party to agreements with certain drug manufacturers for discounts relating to drug utilization. Pursuant to the procedures mutually agreed to by the parties, Advance Paradigm and Client shall jointly negotiate with targeted manufacturers, in accordance with the Work Plan set forth in Exhibit C in order to improve the terms of their respective drug manufacturer arrangements and enter into new contracts upon such terms as mutually agreed (the "Drug Manufacturer Agreements"). The parties shall work together to establish and thereafter modify, as appropriate a work plan to be agreed upon prior to the Closing and to be attached hereto as Exhibit C, regarding negotiations with drug manufacturers to ensure that the parties' overall intent of maximizing the relationship created by this Service Agreement is met (the "REBATE STRATEGY WORK PLAN"). Such work plan shall identify the responsibility of the parties with respect to all such negotiations, the parties to the agreement, the administration of such agreements, FHS Affiliated Members' formulary requirements, the selection of appropriate drug manufacturers to support formulary requirements, the scope of drug manufacturer payments, and other matters related thereto. The parties shall use their reasonable best efforts to comply with the Rebate Strategy Work Plan and schedule, in order to timely implement the joint negotiation strategy contemplated hereby.
