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W <br /> 340B CONTRACT PHARMACY SERVICES AGREEMENT <br /> This 340B Contract Pharmacy Services Agreement ( "Agreement " ) is made and entered into <br /> January 1 , 2020 ( " Effective Date " ) by and between Orange County , North Carolina , a political <br /> subdivision of the State of North Carolina , on behalf of its Orange County Health Department ( " Covered <br /> Entity" ) and Walgreen Co . ( "Walgreens " ) . <br /> 1 . RECITALS <br /> 1 . 1 . Covered Entity qualifies for and participates in a federal drug discount program established <br /> under Section 340B of the Public Health Service Act that requires participating pharmaceutical <br /> manufacturers to extend discounted pricing to certain health care providers classified as covered <br /> entities ; <br /> 1 . 2 . Covered Entity is authorized : ( i ) to purchase prescription and non - prescription medications at <br /> reduced cost through Section 340B of the Public Health Service Act for outpatients of Covered Entity <br /> Locations ; and ( ii ) to contract with a licensed pharmacy to manage and dispense its 340B Drugs ; <br /> 1 . 3 . Covered Entity desires to contract with Walgreens to manage and dispense Covered Entity ' s <br /> 340B Drugs pursuant to Covered Entity ' s 340B Drug Program ; and <br /> 1 . 4 . Walgreens agrees to manage and dispense Covered Entity ' s 340B Drugs pursuant to the terms <br /> and conditions of this Agreement . <br /> 1 . 5 . In consideration of the promises , covenants and agreements hereinafter set forth , Covered <br /> Entity and Walgreens hereby agree to the following terms and conditions : <br /> 2 . DEFINITIONS <br /> 2010 " 34013 Drugs " means drugs which are " covered outpatient drugs " as defined in Section 1927 ( k ) <br /> of the Social Security Act , 42 USC 1396r- 8 ( k ) ( 2 ) , and which are prescribed by an authorized medical <br /> provider affiliated with Covered Entity . All 340B Drugs shall be subject to the limiting definition of <br /> " covered outpatient drug" set forth in Section 1927 ( k ) of the Social Security Act , 42 USC 1396r- 8 ( k ) ( 3 ) . <br /> 2022 " 34013 Drug Program " means the Covered Entity' s program to purchase and either dispense or <br /> arrange for the dispensing of 340B Drugs to Eligible Patients in accordance with Section 340B of the <br /> Public Health Service Act ( the "Act " ) . <br /> 2 . 3 . "Aged Drug " means a 340B Drug dispensed by Walgreens in an amount less than full package <br /> size that has not subsequently been dispensed within ninety ( 90 ) days of the date that such 340B Drug <br /> was last dispensed by any Pharmacy Location . <br /> 2 . 4 . "Average Wholesale Price " or "AWP" means the Average Wholesale Price for each drug product <br /> in the database as defined by MediSpan or another nationally recognized source used by Walgreens . <br /> 2 . 5 . " Contracted Rate " means the contracted and / or agreed upon reimbursement rate between <br /> Walgreens and the applicable Private Insurer and includes any Taxes , Eligible Patient co - pay, or other <br /> amounts that may be due from an Eligible Patient or Private Insurer or arise out of the coordination of <br />