FORM OF TRANSITION SERVICES AGREEMENT dated as of [•] between CARDINAL HEALTH, INC. and CAREFUSION CORPORATION
Exhibit 10.1
FORM OF
TRANSITION SERVICES AGREEMENT
TRANSITION SERVICES AGREEMENT
dated as of [•]
between
CARDINAL HEALTH, INC.
and
CAREFUSION CORPORATION
TABLE OF CONTENTS
Page | ||||
ARTICLE I DEFINITIONS |
1 | |||
Section 1.01. Certain Defined Terms |
1 | |||
ARTICLE II SERVICES, DURATION AND SERVICES MANAGERS |
3 | |||
Section 2.01. Services |
3 | |||
Section 2.02. Duration of Services |
4 | |||
Section 2.03. Additional Unspecified Services |
4 | |||
Section 2.04. New Services |
5 | |||
Section 2.05. Transition Services Managers |
5 | |||
Section 2.06. Personnel |
6 | |||
ARTICLE III CARDINAL HEALTH MATERIALS |
7 | |||
Section 3.01. Corporate Policies |
7 | |||
Section 3.02. Limitation on Rights and Obligations with Respect to the Cardinal
Health Materials |
7 | |||
ARTICLE IV OTHER ARRANGEMENTS |
8 | |||
Section 4.01. Software and Software Licenses |
8 | |||
ARTICLE V ADDITIONAL AGREEMENTS |
9 | |||
Section 5.01. Cardinal Health Computer-Based and Other Resources |
9 | |||
Section 5.02. Co-location and Facilities Matters |
10 | |||
Section 5.03. Access |
11 | |||
Section 5.04. Cooperation |
12 | |||
ARTICLE VI COSTS AND DISBURSEMENTS |
12 | |||
Section 6.01. Costs and Disbursements |
12 | |||
Section 6.02. Taxes |
13 | |||
Section 6.03. No Right to Set-Off |
13 | |||
ARTICLE VII STANDARD FOR SERVICE |
14 | |||
Section 7.01. Standard for Service |
14 | |||
Section 7.02. Disclaimer of Warranties |
14 | |||
Section 7.03. Compliance with Laws and Regulations |
15 | |||
ARTICLE VIII LIMITED LIABILITY AND INDEMNIFICATION |
15 | |||
Section 8.01. Consequential and Other Damages |
15 | |||
Section 8.02. Limitation of Liability |
15 | |||
Section 8.03. Obligation To Reperform; Liabilities |
15 |
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Page | ||||
Section 8.04. Release and Recipient Indemnity |
15 | |||
Section 8.05. Provider Indemnity |
16 | |||
Section 8.06. Indemnification Procedures |
16 | |||
Section 8.07. Liability for Payment Obligations |
16 | |||
Section 8.08. Exclusion of Other Remedies |
16 | |||
ARTICLE IX DISPUTE RESOLUTION |
16 | |||
Section 9.01. Dispute Resolution. |
16 | |||
ARTICLE X TERM AND TERMINATION |
17 | |||
Section 10.01. Term and Termination |
17 | |||
Section 10.02. Effect of Termination |
19 | |||
Section 10.03. Force Majeure |
19 | |||
ARTICLE XI GENERAL PROVISIONS |
19 | |||
Section 11.01. No Agency |
19 | |||
Section 11.02. Subcontractors |
20 | |||
Section 11.03. Treatment of Confidential Information |
20 | |||
Section 11.04. Further Assurances |
21 | |||
Section 11.05. Notices |
21 | |||
Section 11.06. Severability |
22 | |||
Section 11.07. Entire Agreement |
22 | |||
Section 11.08. No Third-Party Beneficiaries |
22 | |||
Section 11.09. Governing Law |
22 | |||
Section 11.10. Amendment |
23 | |||
Section 11.11. Rules of Construction |
23 | |||
Section 11.12. Counterparts |
23 | |||
Section 11.13. Assignability |
23 | |||
Section 11.14. Waiver of Jury Trial |
24 | |||
Section 11.15. Non-Recourse |
25 | |||
SCHEDULE A Cardinal Health Services |
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SCHEDULE B Cardinal Health Facilities |
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SCHEDULE C CareFusion Services |
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SCHEDULE D CareFusion Facilities |
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ANNEX A Cardinal Health Materials |
ii
ANNEX B Software Fee Arrangement |
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ANNEX C Compliance Requirements for CareFusion Services |
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EXHIBIT I Services Managers |
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This Transition Services Agreement, dated as of [•] (this “Agreement”), is made
between Cardinal Health, Inc., an Ohio corporation (“Cardinal Health”), and CareFusion
Corporation, a Delaware corporation (“CareFusion”).
RECITALS
WHEREAS, Cardinal Health and CareFusion entered into the Separation Agreement, dated as of [•]
(as amended, modified or supplemented from time to time in accordance with its terms, the
“Separation Agreement”).
WHEREAS, pursuant to the Separation Agreement, the Parties (as defined below) agreed that (a)
Cardinal Health shall provide or cause to be provided to CareFusion (and/or its Affiliates on the
date of this Agreement immediately after giving effect to the Distribution (as defined in the
Separation Agreement), collectively referred to as the “CareFusion Entities”) certain
services, use of facilities and other assistance on a transitional basis and in accordance with the
terms and subject to the conditions set forth in this Agreement and (b) CareFusion shall provide or
cause to be provided to Cardinal Health (and/or its Affiliates on the date of this Agreement
immediately after giving effect to the Distribution, collectively referred to as the “Cardinal
Health Entities”) certain services, use of facilities and other assistance on a transitional
basis and in accordance with the terms and subject to the conditions set forth in this Agreement;
and
WHEREAS, the Separation Agreement requires execution and delivery of this Agreement by
Cardinal Health and CareFusion on or prior to the Distribution Date (as defined in the Separation
Agreement).
NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained in this
Agreement, the Parties hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1.01. Certain Defined Terms. (a) Unless otherwise defined in this Agreement,
all capitalized terms used in this Agreement shall have the same meaning as in the Separation
Agreement.
(b) The following capitalized terms used in this Agreement shall have the meanings set forth
below:
“Additional Services” shall have the meaning set forth in Section 2.03(a).
“Agreement” shall have the meaning set forth in the Preamble.
“Cardinal Health” shall have the meaning set forth in the Preamble.
“Cardinal Health Entities” shall have the meaning set forth in the Recitals.
“Cardinal Health Facilities” shall have the meaning set forth in Section
5.02(a).
“Cardinal Health Materials” shall have the meaning set forth in Section
3.01(a).
“Cardinal Health Services” shall have the meaning set forth in Section 2.01.
“Cardinal Health Services Manager” shall have the meaning set forth in Section
2.05(a).
“CareFusion” shall have the meaning set forth in the Preamble.
“CareFusion Entities” shall have the meaning set forth in the Recitals.
“CareFusion Facilities” shall have the meaning set forth in Section 5.02(a).
“CareFusion Services” shall have the meaning set forth in Section 2.01.
“CareFusion Services Manager” shall have the meaning set forth in Section
2.05(b).
“Confidential Information” shall have the meaning set forth in Section
11.03(a).
“Dispute” shall have the meaning set forth in Section 9.01(a).
“Facilities” shall have the meaning set forth in Section 5.02(b).
“Force Majeure” means, with respect to a Party, an event beyond the control of such
Party (or any Person acting on its behalf), which by its nature could not have been reasonably
foreseen by such Party (or such Person), or, if it could have been reasonably foreseen, was
unavoidable, and includes acts of God, storms, floods, riots, fires, sabotage, civil commotion or
civil unrest, interference by civil or military authorities, acts of war (declared or undeclared)
or armed hostilities or other national or international calamity or one or more acts of terrorism
or failure of energy sources or distribution facilities. Notwithstanding the foregoing, the
receipt by a Party of an unsolicited takeover offer or other acquisition proposal, even if
unforeseen or unavoidable, and such Party’s response thereto shall not be deemed an event of Force
Majeure.
“Interest Payment” shall have the meaning set forth in Section 6.01(b).
“New Services” shall have the meaning set forth in Section 2.04(a).
“Party” means Cardinal Health and CareFusion individually, and “Parties” means
Cardinal Health and CareFusion collectively, and, in each case, their permitted successors and
assigns.
“Provider” means the Party or its Subsidiary or Affiliate providing a Service under
this Agreement.
“Provider Indemnified Party” shall have the meaning set forth in Section 8.04.
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“Recipient” means the Party or its Subsidiary or Affiliate to whom a Service under
this Agreement is being provided.
“Recipient Indemnified Party” shall have the meaning set forth in
Section 8.05.
“Representative” of a Person means any director, officer, employee, agent, consultant,
accountant, auditor, attorney or other representative of such person.
“Schedule(s)” shall have the meaning set forth in Section 2.02.
“Separation Agreement” shall have the meaning set forth in the Preamble.
“Service Charges” shall have the meaning set forth in Section 6.01(a).
“Service Extension” shall have the meaning set forth in Section 10.01(d).
“Service Increases” shall have the meaning set forth in Section 2.03(b).
“Services” shall have the meaning set forth in Section 2.01.
“Termination Charges” shall mean, with respect to the early termination of any Service
(i) prior to the expiration of the applicable minimum service period or (ii) without the requisite
early termination notice, in each case, as set forth in the Schedule relating to such Service, a
monthly amount equal to any and all Services Charges payable by the Recipient in connection with
such Service (x) for the remainder of the applicable minimum service period, if any, or (y) if
there is no minimum service period, for the remainder of the term of such Service, in each case, as
set forth on the applicable Schedule and payable on a monthly basis in accordance with Section
6.01(a); provided, that the Provider shall use its commercially reasonable efforts to
reduce any costs, fees or expenses incurred by the Provider or payable to any unaffiliated
third-party provider in connection with the provision of such Service and credit any such
reductions against the Termination Charges payable by the Recipient (for the avoidance of doubt, no
Termination Charges shall be payable by a Recipient with respect to the early termination of a
Service in accordance with Section 10.01(b) and after the minimum service period applicable
to such Service set forth in the applicable Schedule).
ARTICLE II
SERVICES, DURATION AND SERVICES MANAGERS
Section 2.01. Services. Subject to the terms and conditions of this Agreement, (a)
Cardinal Health shall provide (or cause to be provided) to CareFusion Entities the services and
access to facilities listed on Schedule A and Schedule B to this Agreement (the
“Cardinal Health Services”) and (b) CareFusion shall provide (or cause to be provided) to
the Cardinal Health Entities the services and access to facilities listed on Schedule C and
Schedule D to this Agreement (the “CareFusion Services,” and, collectively with the
Cardinal Health Services, any Additional Services, any Service Increases and any New Services, the
“Services”). All of the Services shall be for the sole use and benefit of the respective
Recipient and its respective Party. For the avoidance of doubt, none of the Services listed on any
Schedule shall require the relevant
3
Provider to provide the legal services of any attorney to the Recipient in connection with any
such Service and the Recipient shall be responsible for obtaining legal services on its own.
Section 2.02. Duration of Services. Subject to the terms of this Agreement, each of
Cardinal Health and CareFusion shall provide or cause to be provided to the respective Recipients
each Service until the earlier to occur of, with respect to each such Service, (i) the expiration
of the period of the maximum duration for such Service as set forth on Schedule A,
Schedule B, Schedule C or Schedule D (each a “Schedule”, and
collectively, the “Schedules”) or (ii) the date on which such Service is terminated under
Section 10.01(b); provided, however, that each Recipient shall use its
commercially reasonable efforts in good faith to transition itself to a stand-alone entity with
respect to each Service during the period for such Service as set forth in the relevant Schedules;
and provided, further, to the extent that a Provider’s ability to provide a Service
is dependent on the continuation of either a Cardinal Health Service or a CareFusion Service (and
such dependence has been made known to the other Party), as the case may be, the Provider’s
obligation to provide such dependent Service shall terminate automatically with the termination of
such supporting Cardinal Health Service or supporting CareFusion Service, as the case may be.
Section 2.03. Additional Unspecified Services. (a) After the date of this Agreement,
if Cardinal Health or CareFusion (i) identifies a service that (x) the Cardinal Health Entities
provided to the CareFusion Business prior to the Distribution Date that CareFusion reasonably needs
in order for the CareFusion Business to continue to operate in substantially the same manner in
which the CareFusion Business operated prior to the Distribution Date, and such service was not
included on Schedule A or Schedule B (other than because the Parties agreed such
service shall not be provided), or (y) the CareFusion Entities provided to Cardinal Health or its
Affiliates prior to the Distribution Date that Cardinal Health reasonably needs in order for the
Cardinal Health Business to continue to operate in substantially the same manner in which the
Cardinal Health Business operated prior to the Distribution Date, and such service was not included
on Schedule C or Schedule D (other than because the Parties agreed such service
shall not be provided), and (ii) provides written notice to the other party within one hundred
twenty (120) days following the Distribution Date requesting such additional services, then such
other party shall provide such requested additional services (such additional services, the
“Additional Services”). In connection with any request for Additional Services in
accordance with this Section 2.03(a), the Cardinal Health Services Manager and the
CareFusion Services Manager shall in good faith negotiate the terms of a supplemental Schedule,
which terms shall be consistent with the terms of, and the pricing methodology used for, similar
Services provided under this Agreement. The Parties shall agree to the applicable Service Charge
and the supplemental Schedule shall describe in reasonable detail the nature, scope, service
period(s), termination provisions and other terms applicable to such Additional Services. Each
supplemental Schedule, as agreed to in writing by the Parties, shall be deemed part of this
Agreement as of the date of such agreement and the Additional Services set forth therein shall be
deemed “Services” provided under this Agreement, in each case subject to the terms and conditions
of this Agreement.
(b) After the date of this Agreement, if (i) (x) a Recipient requests or (y) a Provider
reasonably determines that the Recipient’s business requires, the Provider to increase, relative to
historical levels prior to the Distribution Date, the volume, amount, level or frequency,
4
as applicable, of any Service provided by such Provider and (ii) such increase is reasonably
determined by the Recipient as necessary for the Recipient to operate its businesses (such
increases, the “Service Increases”), then such Provider shall provide the Service Increases
in accordance with such request; provided, that no Party shall be obligated to provide any
Service Increase if it does not, in its reasonable judgment, have adequate resources to provide
such Service Increase or if the provision of such Service Increase would significantly disrupt the
operation of its businesses. In connection with any request for Service Increases in accordance
with this Section 2.03(b), the Cardinal Health Services Manager and the CareFusion Services
Manager shall in good faith negotiate the terms of an amendment to the applicable Schedule, which
amendment shall be consistent with the terms of, and the pricing methodology used for, the
applicable Service. Each amended Schedule, as agreed to in writing by the Parties, shall be deemed
part of this Agreement as of the date of such agreement and the Service Increases set forth therein
shall be deemed a part of the “Services” provided under this Agreement, in each case subject to the
terms and conditions of this Agreement.
Section 2.04. New Services. (a) From time to time during the term of this Agreement,
either Party may request the other Party to provide additional or different services which such
other Party is not expressly obligated to provide under this Agreement (the “New
Services”). The Party receiving such request shall consider such request in good faith and
shall use commercially reasonable efforts to provide any such New Services; provided, that
no Party shall be obligated to provide any New Services if it does not, in its reasonable judgment,
have adequate resources to provide such New Services or if the provision of such New Services would
significantly disrupt the operation of its businesses; and, for the avoidance of doubt, neither
Party shall have any obligation to provide New Services if, after negotiations between the Parties
pursuant to Section 2.04(b), the Parties fail to reach an agreement with respect to the
terms (including the Service Charges) applicable to the provision of such New Services.
(b) In connection with any request for New Services in accordance with Section
2.04(a), the Cardinal Health Services Manager and the CareFusion Services Manager shall in good
faith (i) negotiate the applicable Service Charge and the terms of a supplemental Schedule, which
supplemental Schedule shall describe in reasonable detail the nature, scope, service period(s),
termination provisions and other terms applicable to such New Services, and (ii) determine any
costs and expenses, including any start-up costs and expenses, that would be incurred by the
Provider in connection with the provision of such New Services, which costs and expenses shall be
borne solely by the Recipient. Each supplemental Schedule, as agreed to in writing by the Parties,
shall be deemed part of this Agreement as of the date of such agreement and the New Services set
forth therein shall be deemed “Services” provided under this Agreement, in each case subject to the
terms and conditions of this Agreement.
Section 2.05. Transition Services Managers. (a) Cardinal Health hereby appoints and
designates the individual holding the Cardinal Health position set forth on Exhibit I to
act as its initial services manager (the “Cardinal Health Services Manager”), who will be
directly responsible for coordinating and managing the delivery of the Cardinal Health Services and
have authority to act on Cardinal Health’s behalf with respect to matters relating to this
Agreement. The Cardinal Health Services Manager will work with the personnel of the Cardinal
Health Entities to periodically address issues and matters raised by CareFusion relating to this
Agreement. Notwithstanding the requirements of Section 11.05, all communications from
5
CareFusion to Cardinal Health pursuant to this Agreement regarding routine matters involving
the Services set forth on the Schedules shall be made through the Cardinal Health Services Manager,
or such other individual as specified by the Cardinal Health Services Manager in writing and
delivered to CareFusion by email or facsimile transmission with receipt confirmed. Cardinal Health
shall notify CareFusion of the appointment of a different Cardinal Health Services Manager, if
necessary, in accordance with Section 11.05.
(b) CareFusion hereby appoints and designates the individual holding the CareFusion position
set forth on Exhibit I to act as its initial services manager (the “CareFusion Services
Manager”), who will be directly responsible for coordinating and managing the delivery of
CareFusion Services and have authority to act on CareFusion’s behalf with respect to matters
relating to this Agreement. The CareFusion Services Manager will work with the personnel of
CareFusion Entities to periodically address issues and matters raised by Cardinal Health relating
to this Agreement. Notwithstanding the requirements of Section 11.05, all communications
from Cardinal Health to CareFusion pursuant to this Agreement regarding routine matters involving
the Services set forth on the Schedules shall be made through the CareFusion Services Manager or
such other individual as specified by the CareFusion Services Manager in writing and delivered to
Cardinal Health by email or facsimile transmission with receipt confirmed. CareFusion shall notify
Cardinal Health of the appointment of a different CareFusion Services Manager, if necessary, in
accordance with Section 11.05.
Section 2.06. Personnel. (a) The Provider of any Service will make available to the
Recipient of such Service such personnel as may be necessary to provide such Service. The Provider
will have the right, in its reasonable discretion, to (i) designate which personnel it will assign
to perform such Service, and (ii) remove and replace such personnel at any time, so long as there
is no resulting increase in costs or decrease in the level of service for the Recipient;
provided, however, that the Provider will use its commercially reasonable efforts
to limit the disruption to the Recipient in the transition of the Services to different personnel.
(b) In the event that the provision of any Service by the Provider requires, as set forth in
the Schedules, the cooperation and services of the applicable personnel of the Recipient, the
Recipient will make available to the Provider such personnel (who shall be appropriately qualified
for purposes of the provision of such Service by the Provider) as may be necessary for the Provider
to provide such Service. The Recipient will have the right, in its reasonable discretion, to (i)
designate which personnel it will make available to the Provider in connection with the provision
of such Service, and (ii) remove and replace such personnel at any time, so long as there is no
resulting increase in costs to, or any adverse effect to the provision of such Service by, the
Provider; provided, however, that the Recipient will use its commercially
reasonable efforts to limit the disruption to the Provider in the transition of such personnel.
The Provider may, in its reasonable discretion and following discussions with the Recipient,
request the Recipient to remove and/or replace any such personnel from their roles in respect of
the Services being provided by the Provider. All personnel of the Recipient made available to the
Provider pursuant to this Section 2.06(b) shall be dedicated full-time to the provision of
the applicable Services in accordance with the direction of the Provider and shall be instructed to
comply with the applicable policies and guidelines of the Provider, including any policies and
guidelines relating to enterprise information technology (EIT).
6
(c) No Provider shall be liable under this Agreement for any Liabilities incurred by the
Recipient Indemnified Parties that are primarily attributable to, or that are a consequence of, any
actions or inactions of the personnel of the Recipient, except for any such actions or inactions
undertaken pursuant to the direction of the Provider.
ARTICLE III
CARDINAL HEALTH MATERIALS
Section 3.01. Corporate Policies. (a) Cardinal Health shall provide CareFusion
access and rights to those policies and manuals published on the Cardinal Health Intranet and
listed in Annex A (the “Cardinal Health Materials”). Subject to the terms and
conditions of this Agreement, Cardinal Health grants to CareFusion a non-exclusive, royalty-free,
fully paid-up, worldwide license to create or have created materials based on the Cardinal Health
Materials for distribution to employees and suppliers of CareFusion and use such materials in the
operation of the CareFusion Business in substantially the same manner as the Cardinal Health
Materials were used by Cardinal Health prior to the Distribution. It is understood and agreed that
Cardinal Health makes no representation or warranty, express or implied, as to the accuracy or
completeness of any of the Cardinal Health Materials, as to the noninfringement of any of the
Cardinal Health Materials or as to the suitability of any of the Cardinal Health Materials for use
by CareFusion in respect of its business or otherwise.
(b) Notwithstanding the foregoing and except as may be permitted under the Transitional
Trademark License Agreement, dated as of the date hereof, by and between Cardinal Health and
CareFusion, the text of any materials related to or based upon any of the Cardinal Health Materials
created by or for CareFusion may not contain any references to Cardinal Health (or any use of
Cardinal Health’s marks, names, trade dress, logos or other source or business identifiers,
including the Cardinal Health Name and Cardinal Health Marks), Cardinal Health’s publications,
Cardinal Health’s personnel (including senior management), Cardinal Health’s management structures
or any other indication that such materials are based upon any of the Cardinal Materials.
Section 3.02. Limitation on Rights and Obligations with Respect to the Cardinal Health
Materials. (a) Cardinal Health shall have no obligation to (i) notify CareFusion of any
changes or proposed changes to any of the Cardinal Health Materials, (ii) include CareFusion in any
consideration of proposed changes to any of the Cardinal Health Materials, (iii) provide draft
changes of any of the Cardinal Health Materials to CareFusion for review and/or comment or (iv)
provide CareFusion with any updated materials relating to any of the Cardinal Health Materials.
CareFusion acknowledges and agrees that, except as expressly set forth above, Cardinal Health
reserves all rights (including all Intellectual Property rights) in, to and under the Cardinal
Health Materials and no rights with respect to ownership or use, except as otherwise expressly
provided in this Agreement, shall vest in CareFusion. The Parties acknowledge and agree that the
Cardinal Health Materials are the Confidential Information of Cardinal Health. CareFusion shall
use at least the same degree of care to prevent and restrain the unauthorized use or disclosure of
any materials created by or for CareFusion that are based upon any of the Cardinal Health Materials
as it uses for its other confidential information of a like nature, but in no event less than a
reasonable degree of care. CareFusion will allow Cardinal
Health
7
reasonable access to personnel and information as reasonably necessary to determine
CareFusion’s compliance with the provisions set forth above; provided, however,
such access shall not unreasonably interfere with any of the business or operations of CareFusion.
Subject to Section 9.01, in the event that Cardinal Health determines that CareFusion has
not materially complied with some or all of its obligations with respect to any or all of the
Cardinal Health Materials, Cardinal Health may terminate CareFusion’s rights with respect to such
Cardinal Health Materials upon written notice to CareFusion and, in such case, Cardinal Health
shall be entitled to require such Cardinal Health Materials to be returned to Cardinal Health or
destroyed and any materials created by or for CareFusion that are based upon such Cardinal Health
Materials to be destroyed (with such destruction certified by CareFusion in writing to Cardinal
Health promptly after such termination).
(b) If CareFusion determines to cease to avail itself of any of the Cardinal Health Materials
or upon expiration or termination of any period during which CareFusion is permitted to use any of
the Cardinal Health Materials, Cardinal Health and CareFusion shall cooperate in good faith to take
reasonable and appropriate actions to effectuate such determination, expiration or termination, to
arrange for the return to Cardinal Health or destruction of such Cardinal Health Materials and to
protect Cardinal Health’s rights and interests in such Cardinal Health Materials.
ARTICLE IV
OTHER ARRANGEMENTS
Section 4.01. Software and Software Licenses. (a) If and to the extent requested by
CareFusion, Cardinal Health shall use commercially reasonable efforts to assist CareFusion in its
efforts to obtain licenses (or other appropriate rights) to use, duplicate and distribute, as
necessary and applicable, certain computer software necessary for Cardinal Health to provide, or
CareFusion to receive, Cardinal Health Services (which assistance shall include providing
CareFusion the opportunity to receive a copy of, or participate in, any communication between
Cardinal Health and the applicable third party licensor in connection therewith); provided,
however, that Cardinal Health and CareFusion shall identify the specific types and
quantities of any such software licenses; provided, further, that, subject to the
terms set forth in Annex B, Cardinal Health shall not be required to pay any fees or other
payments or incur any obligations or liabilities to enable CareFusion to obtain any such license or
rights; provided, further, that Cardinal Health shall not be required to seek
broader rights or more favorable terms for CareFusion than those applicable to Cardinal Health or
CareFusion, as the case may be, prior to the date of this Agreement or as may be applicable to
Cardinal Health from time to time hereafter; and, provided, further, that, subject
to the terms set forth in Annex B, CareFusion shall bear only those costs that relate
directly to obtaining such licenses (or other appropriation rights) in the ordinary course, which
shall not include any payments relating to the discharge of Excluded Liabilities which are not
related to the provision of Cardinal Health Services. The Parties acknowledge and agree that there
can be no assurance that Cardinal Health’s efforts will be successful or that CareFusion will be
able to obtain such licenses or rights on acceptable terms or at all and, where Cardinal Health
enjoys rights under any enterprise or site license or similar license, the Parties acknowledge that
such license typically precludes partial transfers or assignments or operation of a service bureau
on behalf of unaffiliated entities. In the event that
8
CareFusion is unable to obtain such software licenses, the Parties shall work together using
commercially reasonable efforts to obtain an alternative software license to allow Cardinal Health
to provide, or CareFusion to receive, such Cardinal Health Services, and the Parties shall
negotiate in good faith an amendment to the applicable Schedule to reflect any such new
arrangement, which amended Schedule shall not require CareFusion to pay for any fees, expenses or
costs relating to the software license that CareFusion was unable to obtain pursuant to the
provisions of this Section 4.01(a).
(b) If and to the extent requested by Cardinal Health, CareFusion shall use commercially
reasonable efforts to assist Cardinal Health in its efforts to obtain licenses (or other
appropriate rights) to use, duplicate and distribute, as necessary and applicable, certain computer
software necessary for CareFusion to provide, or Cardinal Health to receive, CareFusion Services
(which assistance shall include providing Cardinal Health the opportunity to receive a copy of, or
participate in, any communication between CareFusion and the applicable third party licensor in
connection therewith); provided, however, that Cardinal Health and CareFusion shall
identify the specific types and quantities of any such software licenses; provided,
further, that, subject to the terms set forth in Annex B, CareFusion shall not be
required to pay any fees or other payments or incur any obligations or liabilities to enable
Cardinal Health to obtain any such license or rights; provided, further, that
CareFusion shall not be required to seek broader rights or more favorable terms for Cardinal Health
than those applicable to Cardinal Health or CareFusion, as the case may be, prior to the date of
this Agreement or as may be applicable to CareFusion from time to time hereafter; and,
provided, further, that, subject to the terms set forth in Annex B,
Cardinal Health shall bear only those costs that relate directly to obtaining such licenses (or
other appropriation rights) in the ordinary course, which shall not include any payments relating
to the discharge of CareFusion Liabilities which are not related to the provision of CareFusion
Services. The Parties acknowledge and agree that there can be no assurance that CareFusion’s
efforts will be successful or that Cardinal Health will be able to obtain such licenses or rights
on acceptable terms or at all and, where CareFusion enjoys rights under any enterprise or site
license or similar license, the Parties acknowledge that such license typically precludes partial
transfers or assignments or operation of a service bureau on behalf of unaffiliated entities. In
the event that Cardinal Health is unable to obtain such software licenses, the Parties shall work
together using commercially reasonable efforts to obtain an alternative software license to allow
CareFusion to provide, or Cardinal Health to receive, such CareFusion Services, and the Parties
shall negotiate in good faith an amendment to the applicable Schedule to reflect any such new
arrangement, which amended Schedule shall not require Cardinal Health to pay for any fees, expenses
or costs relating to the software license that Cardinal Health was unable to obtain pursuant to the
provisions of this Section 4.01(b).
ARTICLE V
ADDITIONAL AGREEMENTS
Section 5.01. Cardinal Health Computer-Based and Other Resources.
(a) As of the date of this Agreement, except as otherwise expressly provided in the Separation
Agreement or in any other Transaction Documents, or unless required in connection with the
performance of or delivery of a Service, CareFusion and its Affiliates shall
9
cease to use and shall have no further access to, and Cardinal Health shall have no obligation
to otherwise provide, the Cardinal Health Intranet and other owned or licensed computer software,
networks, hardware or technology of Cardinal Health or its Affiliates and shall have no access to,
and Cardinal Health shall have no obligation to otherwise provide, computer-based resources
(including e-mail and access to Cardinal Health’s or its Affiliates’ computer networks and
databases) that require a password or are available on a secured access basis only. From and after
the date of this Agreement, CareFusion and its Affiliates shall cause all of their personnel having
access to the Cardinal Health Intranet or such other computer software, networks, hardware,
technology or computer based resources pursuant to the Separation Agreement, any Transaction
Document or in connection with performance, receipt or delivery of a Service to comply with all
security guidelines (including physical security, network access, internet security,
confidentiality and personal data security guidelines) of Cardinal Health and its Affiliates (of
which Cardinal Health provides CareFusion notice). CareFusion shall ensure that the access
contemplated by this Section 5.01 shall be used by such personnel only for the purposes
contemplated by, and subject to the terms of, this Agreement.
(b) Except as expressly provided in the Separation Agreement or in any other Transaction
Documents or unless required in connection with the performance or delivery of any Services, each
of the Parties and its Affiliates shall cease using (and shall cause their employees to cease
using) the services made available by the other Party and its Affiliates prior to the date of this
Agreement.
Section 5.02. Co-location and Facilities Matters. (a) Cardinal Health hereby grants
to CareFusion a limited license to use and access space at certain facilities and to continue to
use certain equipment located at such facilities (including use of office security and badge
services), in each case as listed in Schedule B (the “Cardinal Health Facilities”),
for substantially the same purposes as used immediately prior to the date of this Agreement.
CareFusion hereby grants, or shall cause one or more of its Affiliates to grant, to Cardinal Health
a limited license to use and access space at certain facilities and to continue to use certain
equipment located at such facilities (including use of office security and badge services), in each
case as listed in Schedule D (the “CareFusion Facilities”), for substantially the
same purposes as used immediately prior to the date of this Agreement. In the event that after the
date of this Agreement, either Cardinal Health or CareFusion determines that there are other
facilities where such Party needs or reasonably desires to co-locate or that such Party does not
require use of one or more of the Cardinal Health Facilities or CareFusion Facilities, as the case
may be, the Parties will discuss such Party’s request and negotiate in good faith a mutually
satisfactory arrangement. For the avoidance of doubt, at each of the Cardinal Health Facilities
and CareFusion Facilities, Cardinal Health and CareFusion, as the case may be, shall, in addition
to providing access and the right to use such facilities, shall provide to the personnel of
Cardinal Health and CareFusion, as the case may be, substantially all ancillary services that are
provided as of the date of this Agreement to its own personnel at such facility, such as, by way
of example and not limitation; reception, general maintenance (subject to the immediately following
sentence), janitorial, security (subject to the immediately following sentence) and telephony
services; access to duplication, facsimile, printing and other similar office services; and use of
cafeteria, breakroom, restroom and other similar facilities. Unless otherwise provided in the
Schedules, such ancillary services (i) shall not include research and development services or
medical services and (ii) shall only include (A) in the case of security, those services provided
in connection with shared areas of a Cardinal
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Health Facility or a CareFusion Facility, as the case may be, it being understood that the
Provider shall not provide security services to Recipient-specific areas of Provider’s facility (to
the extent that it is reasonably practicable for Recipient to provide such services with respect to
any such Recipient-specific area) or security passes that permit entrance to Provider-specific
areas of Provider’s facility and (B) in the case of maintenance services, those services
historically provided that are general in nature and within the scope of customary maintenance of
ordinary wear and tear.
(b) The Parties shall only permit their authorized Representatives, contractors, invitees or
licensees to use CareFusion Facilities and Cardinal Health Facilities (collectively, the
“Facilities”), except as otherwise permitted by the other Party in writing. Each Party
shall, and shall cause its respective Subsidiaries, Representatives, contractors, invitees or
licensees to, vacate the other Party’s Facilities at or prior to the expiration date relating to
each Facility set forth in Schedule B and Schedule D and shall deliver over to the
other Party or its Subsidiaries, as applicable, the Facilities in substantially the same repair and
condition at that date as on the date of this Agreement, ordinary wear and tear excepted;
provided, however, that in the event that the third-party lease for a Facility
specifies otherwise, the Party vacating a Facility shall deliver over such Facility in such repair
and condition (taking into account the date that the Party began its occupation of such Facility)
as set forth in the third-party lease. In addition to the access rights provided under Section
5.03, the Parties or their Subsidiaries, or the landlord in respect of any third-party lease,
shall have reasonable access to their respective Facilities from time to time as reasonably
necessary for the security and maintenance thereof in accordance with past practice and the terms
of any third-party lease agreement, if applicable. The Parties agree to maintain commercially
appropriate and customary levels (in no event less than what is required by the landlord under the
applicable lease agreement) of property and liability insurance in respect of the Facilities they
occupy and the activities conducted thereon and to be responsible for, and to indemnify and hold
harmless the other Party in accordance with Article VIII in respect of, the acts and
omissions of its Representatives, contractors, invitees and licensees. Each of the Parties shall,
and shall cause its Subsidiaries, Representatives, contractors, invitees and licensees to, comply
in all material respects with (i) all Laws applicable to their use or occupation of any Facility
including those relating to environmental and workplace safety matters, (ii) the Party’s applicable
site rules, regulations, policies and procedures, and (iii) any applicable requirements of any
third-party lease governing any Facility. The Parties shall not make, and shall cause their
respective Subsidiaries, Representatives, contractors, invitees and licensees to refrain from
making, any material alterations or improvements to the Facilities except with the prior written
approval of the other Party or its Subsidiaries, as applicable. The Parties shall provide heating,
cooling, electricity and other utility services for the respective Facilities substantially
consistent with levels provided prior to the date of this Agreement. The rights granted pursuant
to this Section 5.02 shall be in the nature of a license and shall not create a leasehold
or other estate or possessory rights in CareFusion or Cardinal Health, or their respective
Subsidiaries, Representatives, contractors, invitees or licensees, with respect to the Facilities.
Section 5.03. Access. (a) CareFusion shall, and shall cause its Subsidiaries to,
allow Cardinal Health and its Representatives reasonable access to the facilities of CareFusion
necessary for Cardinal Health to fulfill its obligations under this Agreement.
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(b) Cardinal Health shall, and shall cause its Subsidiaries to, allow CareFusion and its
Representatives reasonable access to the facilities of Cardinal Health necessary for CareFusion to
fulfill its obligations under this Agreement.
(c) Notwithstanding the other rights of access of the Parties under this Agreement, each Party
shall, and shall cause its Subsidiaries to, afford the other Party, its Subsidiaries and
Representatives, following not less than five (5) business days’ prior written notice from the
other Party, reasonable access during normal business hours to the facilities, information,
systems, infrastructure, and personnel of the relevant Providers as reasonably necessary for the
other Party to verify the adequacy of internal controls over information technology, reporting of
financial data and related processes employed in connection with the Services, including in
connection with verifying compliance with Section 404 of the Xxxxxxxx-Xxxxx Act of 2002;
provided, however, such access shall not unreasonably interfere with any of the
business or operations of such Party or its Subsidiaries.
Section 5.04. Cooperation. It is understood that it will require the significant
efforts of both Parties to implement this Agreement and to ensure performance of this Agreement by
the Parties at the agreed upon levels in accordance with all of the terms and conditions of this
Agreement. The Parties will cooperate, acting in good faith and using commercially reasonable
efforts, to effect a smooth and orderly transition of the Services provided under this Agreement
from the Provider to the Recipient (including repairs & maintenance Services and the assignment or
transfer of the rights and obligations under any third-party contracts relating to the Services);
provided, however, that this Section 5.04 shall not require either Party to
incur any out-of-pocket costs or expenses unless and except as expressly provided in this Agreement
or otherwise agreed to in writing by the Parties.
ARTICLE VI
COSTS AND DISBURSEMENTS
Section 6.01. Costs and Disbursements. (a) Except as otherwise provided in this
Agreement or in the Schedules to this Agreement, a Recipient of Services shall pay to the Provider
of such Services a monthly fee for the Services (or category of Services, as applicable) (each fee
constituting a “Service Charge” and, collectively, “Service Charges”), which
Service Charges shall be agreed to by the Parties from time to time and generally determined in
accordance with the applicable methodologies specified by the Parties. During the term of this
Agreement, the amount of a Service Charge for any Services (or category of Services, as applicable)
shall not increase, except to the extent of (i) any increases described in the Annexes or as
otherwise mutually agreed to by the Parties, (ii) any Service Charges applicable to any Additional
Services or New Services, and (iii) any increase in the rates or charges imposed by any third-party
provider that is providing Services. All charges based on a monthly or other time basis will be
pro-rated based on actual days elapsed during the period of service.
(b) The Provider shall deliver two (2) invoices to the Recipient on a monthly basis, which
shall consist of one (1) invoice relating to any Service Charges payable on a fixed-fee basis and a
separate invoice relating to any Service Charges payable on a variable or pass-through basis, in
each case, beginning on the second (2nd) month following the Distribution
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Date, in arrears for the Service Charges due to the Provider under this Agreement. The
Recipient shall pay the amount of each such invoice by wire transfer to the Provider within fifteen
(15) days of the receipt of each such invoice, including appropriate documentation as described
herein, as instructed by the Provider; provided, that, to the extent consistent with past
practice with respect to Services rendered outside the United States, payments may be made in local
currency. If the Recipient fails to pay such amount by such date, the Recipient shall be obligated
to pay to the Provider, in addition to the amount due, interest at an annual interest rate of nine
percent (9%) (the “Interest Payment”), accruing from the date the payment was due through
the date of actual payment. Together with any monthly invoice for Service Charges that are payable
on a variable or pass-through basis delivered to the Recipient, the Provider shall provide the
Recipient with data and documentation (including copies of all applicable third-party invoices,
other than invoices for repair & maintenance Services) reasonably satisfactory to the Recipient
supporting the calculation of any Service Charges that are variable from month to month (as a
result of any changes in the employee count of the Recipient, changes to the costs incurred by the
Provider from any third-party provider in relation to such Service, any reduction in Services or
otherwise) for the purpose of verifying the accuracy of such calculation.
(c) Subject to the confidentiality provisions set forth in Section 11.03, each Party
shall, and shall cause their respective Affiliates to, provide, upon ten (10) days’ prior written
notice from the other Party, any information within such Party’s or its Affiliates’ possession that
the requesting Party reasonably requests in connection with any Services being provided to such
requesting Party by an unaffiliated third-party provider, including any applicable invoices,
agreements documenting the arrangements between such third-party provider and the Provider and
other supporting documentation; provided, that each Party shall make no more than one such
request during any fiscal quarter.
Section 6.02. Taxes. (a)Without limiting any provisions of this Agreement, the
Recipient shall bear any and all sales, use, transaction and transfer taxes and other similar
charges (and any related interest and penalties) imposed on, or payable with respect to, any fees
or charges, including any Service Charges, payable by it pursuant to this Agreement;
provided, that any applicable gross receipts taxes shall be borne by the Provider unless
the Provider is required by law to obtain, or allowed to separately invoice for and obtain,
reimbursement of such taxes from the Recipient.
(b) Notwithstanding anything to the contrary in Section 6.02(a) or elsewhere in this
Agreement, the Recipient shall be entitled to withhold from any payments to the Provider any such
taxes that Recipient is required by law to withhold and shall pay over such taxes to the applicable
taxing authority.
Section 6.03. No Right to Set-Off. The Recipient shall pay the full amount of Service
Charges and shall not set-off, counterclaim or otherwise withhold any amount owed to the Provider
under this Agreement on account of any obligation owed by the Provider to the Recipient that has
not been finally adjudicated, settled or otherwise agreed upon by the Parties in writing;
provided, however, that the Recipient shall be permitted to assert a set-off right
with respect to any obligation that has been so finally adjudicated, settled or otherwise agreed
upon by the Parties in writing against amounts owed by the Recipient to the Provider under this
Agreement.
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ARTICLE VII
STANDARD FOR SERVICE
Section 7.01. Standard for Service. Except where the Provider is restricted by an
existing contract with a third party or by Law, the Provider agrees (i) to perform the Services
such that the nature, quality, standard of care and the service levels at which such Services are
performed are no less than that which are substantially similar to the nature, quality, standard of
care and service levels at which the same or similar services were performed by or on behalf of the
Provider (which in the case of CareFusion and its Subsidiaries and its Affiliates providing
Services under this Agreement, shall mean the nature, quality, standard of care and service levels
at which the same or similar services were performed by or on behalf of the Cardinal Health
Business for Cardinal Health) prior to the Distribution Date (or, if not so previously provided,
then substantially similar to that which are applicable to similar services provided to the
Provider’s Affiliates or other business components); (ii) upon receipt of written notice from the
Recipient identifying any outage, interruption or other failure of any Service, to respond to such
outage, interruption or other failure of any Services in a manner that is no less than that which
is substantially similar to the manner in which such Provider or its Affiliates responded to any
outage, interruption or other failure of the same or similar services prior to the Distribution
Date (the Parties acknowledge that an outage, interruption or other failure of any Service shall
not be deemed to be a breach of the provisions of this Section 7.01 so long as the
applicable Provider complies with this clause (ii)); and (iii) in the event that a CareFusion
Entity is the Recipient, to comply with the requirements set forth in Annex C (which
requirements are intended by the Parties to describe, and not to modify in any way, the
substantially similar level of service required under this Section 7.01). As of or
following the date of this Agreement, if the Provider is or becomes aware of any restriction on the
Provider by an existing contract with a third-party that would restrict the nature, quality,
standard of care or service levels applicable to delivery of the Services to be provided by the
Provider to the Recipient, the Provider shall use commercially reasonable efforts to promptly
notify the Recipient of any such restriction (which notice shall in any event precede any change
to, or reduction in, the nature, quality, standard of care or service levels applicable to delivery
of the Services resulting from such restriction) and use commercially reasonable efforts in good
faith to provide such Services in a manner as closely as possible to the standards described in
this Section 7.01, and the Parties shall negotiate in good faith an amendment to the
applicable Schedule to reflect any such new arrangement.
Section 7.02. Disclaimer of Warranties. Except as expressly set forth in this
Agreement, the Parties acknowledge and agree that the Services are provided as-is, that the
Recipients assume all risks and liability arising from or relating to its use of and reliance upon
the Services and each Provider makes no representation or warranty with respect thereto. EXCEPT AS
EXPRESSLY SET FORTH IN THIS AGREEMENT, PROVIDERS HEREBY EXPRESSLY DISCLAIM ALL REPRESENTATIONS AND
WARRANTIES REGARDING THE SERVICES, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY REPRESENTATION OR
WARRANTY IN REGARD TO QUALITY, PERFORMANCE, NONINFRINGEMENT, COMMERCIAL UTILITY, MERCHANTABILITY OR
FITNESS OF THE TRANSITION SERVICES FOR A PARTICULAR PURPOSE.
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Section 7.03. Compliance with Laws and Regulations. Each Party shall be responsible
for its own compliance with any and all Laws applicable to its performance under this Agreement.
No Party will knowingly take any action in violation of any such applicable Law that results in
liability being imposed on the other Party.
ARTICLE VIII
LIMITED LIABILITY AND INDEMNIFICATION
Section 8.01. Consequential and Other Damages. Notwithstanding anything to the
contrary contained in the Separation Agreement or this Agreement, the Provider shall not be liable
to the Recipient or any of its Affiliates or Representatives, whether in contract, tort (including
negligence and strict liability) or otherwise, at law or equity, for any special, indirect,
incidental or consequential damages whatsoever (including lost profits or damages calculated on
multiples of earnings approaches), which in any way arise out of, relate to or are a consequence
of, the performance or nonperformance by the Provider (including any Affiliates and Representatives
of the Provider and any third-party providers, in each case, providing the applicable Services)
under this Agreement or the provision of, or failure to provide, any Services under this Agreement,
including with respect to loss of profits, business interruptions or claims of customers.
Section 8.02. Limitation of Liability. Subject to Section 8.03, the
Liabilities of each Provider and its Affiliates and Representatives, collectively, under this
Agreement for any act or failure to act in connection herewith (including the performance or breach
of this Agreement), or from the sale, delivery, provision or use of any Services provided under or
contemplated by this Agreement, whether in contract, tort (including negligence and strict
liability) or otherwise, shall not exceed the total aggregate Service Charges (excluding any
third-party costs and expenses included in such Service Charges) actually paid to such Provider by
the Recipient pursuant to this Agreement.
Section 8.03. Obligation To Reperform; Liabilities. In the event of any breach of
this Agreement by any Provider with respect to the provision of any Services (with respect to which
the Provider can reasonably be expected to reperform in a commercially reasonable manner), the
Provider shall (a) promptly correct in all material respects such error, defect or breach or
reperform in all material respects such Services at the request of the Recipient and at the sole
cost and expense of the Provider and (b) subject to the limitations set forth in Sections
8.01 and 8.02, reimburse the Recipient and its Affiliates and Representatives for
Liabilities attributable to such breach by the Provider. The remedy set forth in this Section
8.03 shall be the sole and exclusive remedy of the Recipient for any such breach of this
Agreement. Any request for reperformance in accordance with this Section 8.03 by the
Recipient must be in writing and specify in reasonable detail the particular error, defect or
breach, and such request must be made no more than one (1) month from the date such breach
occurred.
Section 8.04. Release and Recipient Indemnity. Subject to Section 8.01, each
Recipient hereby releases the applicable Provider and its Affiliates and Representatives (each, a
“Provider Indemnified Party”), and each Recipient hereby agrees to indemnify, defend and
hold harmless each such Provider Indemnified Party from and against any and all Liabilities arising
15
from, relating to or in connection with the use of any Services by such Recipient or any of
its Affiliates, Representatives or other Persons using such Services, except to the extent that
such Liabilities arise out of, relate to or are a consequence of the applicable Provider
Indemnified Party’s bad faith, gross negligence or willful misconduct.
Section 8.05. Provider Indemnity. Subject to Section 8.01, each Provider
hereby agrees to indemnify, defend and hold harmless the applicable Recipient and its Affiliates
and Representatives (each a “Recipient Indemnified Party”), from and against any and all
Liabilities arising from, relating to or in connection with the use of any Services by such
Recipient or any of its Affiliates, Representatives or other Persons using such Services or in
connection with the sale, delivery, provision or use of any Services provided under or contemplated
by this Agreement to the extent that such Liabilities arise out of, relate to or are a consequence
of the applicable Provider’s bad faith, gross negligence or willful misconduct.
Section 8.06. Indemnification Procedures. The provisions of Article V of the
Separation Agreement shall govern claims for indemnification under this Agreement.
Section 8.07. Liability for Payment Obligations. Nothing in this Article VIII
shall be deemed to eliminate or limit, in any respect, Cardinal Health’s or CareFusion’s express
obligation in this Agreement to pay Termination Charges or Service Charges for Services rendered in
accordance with this Agreement.
Section 8.08. Exclusion of Other Remedies. The provisions of Sections 8.03,
8.04 and 8.05 of this Agreement shall be the sole and exclusive remedies of the
Provider Indemnified Parties and the Recipient Indemnified Parties, as applicable, for any claim,
loss, damage, expense or liability, whether arising from statute, principle of common or civil law,
principles of strict liability, tort, contract or otherwise under this Agreement.
ARTICLE IX
DISPUTE RESOLUTION
Section 9.01. Dispute Resolution.
(a) In the event of any dispute, controversy or claim arising out of or relating to the
transactions contemplated by this Agreement, or the validity, interpretation, breach or termination
of any provision of this Agreement, or calculation or allocation of the costs of any Service,
including claims seeking redress or asserting rights under any Law (each, a “Dispute”),
Cardinal Health and CareFusion agree that the Cardinal Health Services Manager and the CareFusion
Services Manager (or such other persons as Cardinal Health and CareFusion may designate) shall
negotiate in good faith in an attempt to resolve such Dispute amicably. If such Dispute has not
been resolved to the mutual satisfaction of Cardinal Health and CareFusion within fifteen (15) days
after the initial written notice of the Dispute (or such longer period as the Parties may agree),
then such Dispute shall be resolved in accordance with the dispute resolution process referred to
in Article VII of the Separation Agreement; provided, that such dispute resolution process
shall not modify or add to the remedies available to the Parties under this Agreement.
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(b) In any Dispute regarding the amount of a Service Charge, if after such Dispute is finally
resolved pursuant to the dispute resolution process set forth or referred to in Section
9.01(a), it is determined that the Service Charge that the Provider has invoiced the Recipient,
and that the Recipient has paid to the Provider, is greater or less than the amount that the
Service Charge should have been, then (a) if it is determined that the Recipient has overpaid the
Service Charge, the Provider shall within five (5) business days after such determination reimburse
the Recipient an amount of cash equal to such overpayment, plus the Interest Payment, accruing from
the date of payment by the Recipient to the time of reimbursement by the Provider; and (b) if it is
determined that the Recipient has underpaid the Service Charge, the Recipient shall within five (5)
business days after such determination reimburse the Provider an amount of cash equal to such
underpayment, plus the Interest Payment, accruing from the date such payment originally should have
been made by the Recipient to the time of payment by the Recipient.
ARTICLE X
TERM AND TERMINATION
Section 10.01. Term and Termination. (a) This Agreement shall commence immediately
upon the Distribution Date and shall terminate upon the earlier to occur of: (i) the last date on
which either Party is obligated to provide any Service to the other Party in accordance with the
terms of this Agreement or (ii) the mutual written agreement of the Parties to terminate this
Agreement in its entirety.
(b) (i) Without prejudice to a Recipient’s rights with respect to a Force Majeure, a Recipient
may from time to time terminate this Agreement with respect to the entirety of any individual
Service (other than depreciation and repairs & maintenance Services which, for the avoidance of
doubt, may not be terminated prior to June 30, 2011) but not a portion thereof, (A) for any reason
or no reason (x) if the applicable Schedule provides for a minimum service period that is shorter
than the maximum service period for such Service (the Parties agree that the Recipient of each such
Service shall have a right of early termination in respect of such Service in accordance with the
terms of this Section 10.01(b) and the applicable Schedule), (y) upon providing to the
Provider the requisite prior written notice for such termination as specified in the applicable
Schedule or, if no such notice period is provided in the applicable Schedule, on sixty (60) days’
prior written notice, and (z) subject to the obligation to pay any applicable Termination Charges
pursuant to Section 10.02, or (B) if the Provider of such Service has failed to perform any
of its material obligations under this Agreement with respect to such Service, and such failure
shall continue to exist thirty (30) days after receipt by the Provider of written notice of such
failure from the Recipient; and (ii) a Provider may terminate this Agreement with respect to one or
more Services, in whole but not in part, at any time upon prior written notice to the Recipient if
the Recipient has failed to perform any of its material obligations under this Agreement relating
to such Services, including making payment of Service Charges when due, and such failure shall be
continued uncured for a period of thirty (30) days after receipt by the Recipient of a written
notice of such failure from the Provider. The relevant Schedule shall be updated to reflect any
terminated Service. In the event that any Service is terminated other than at the end of a month,
the Service Charge associated with such Service shall be pro-rated appropriately. The Parties
acknowledge that there may be interdependencies among the Services
17
being provided under this Agreement that are not identified on the applicable Schedules, and
agree that if the Provider’s ability to provide a particular Service in accordance with this
Agreement is materially and adversely impacted by the termination of another Service in accordance
with Section 10.01(b)(i)(A) prior to the expiration of the period of the maximum duration
for such Service, the Parties shall negotiate in good faith to amend the Schedule relating to such
impacted continuing Service, which amendment shall be consistent with the terms of, and the pricing
methodology used for, comparable Services.
(c) A Recipient may from time to time request a reduction in part of the scope or amount of
any Service that is identified on the applicable Schedule as being subject to the provisions of
this Section 10.01(c). If requested to do so by Recipient, the Provider agrees to discuss
in good faith appropriate reductions to the relevant Service Charges in light of all relevant
factors including the costs and benefits to the Provider of any such reductions. If, after such
discussions, the Recipient and the Provider do not agree to any requested reduction of the scope or
amount of any Service and the relevant Service Charges in connection therewith, then there shall be
no change to the scope or amount of any Services or Service Charges under this Agreement. In the
event that a Recipient and a Provider agreed to any reduction of Service and the relevant Service
Charges, the relevant Schedule shall be updated to reflect such reduced Service. In the event that
any Service is reduced other than at the end of a month, the Service Charge associated with such
Service for the month in which such Service is reduced shall be pro-rated appropriately.
(d) In connection with the termination of any Service other than the Services identified on
the Schedules as not being subject to the provisions of this Section 10.01(d), if the
Recipient or the Provider reasonably determines that it will require such Service to continue
beyond the date on which such Service is scheduled to terminate (either in accordance with any
termination notice provided pursuant to Section 10.01(b)(i)(A) or the termination date
specified in the applicable Schedule), either Party may request the other Party to extend such
Service for a specified period beyond the scheduled termination of such Service (which period shall
in no event be longer than sixty (60) days, a “Service Extension”) by written notice to the
other Party no less than sixty (60) days prior to the date of such scheduled termination, and the
Parties shall use commercially reasonable efforts to comply with such Service Extension;
provided, that (i) there shall be no more than one (1) Service Extension with respect to
each Service and (ii) the Provider shall not be obligated to provide such Service Extension if a
third-party consent is required and cannot be obtained by the Provider. Within five (5) days
following either Party’s receipt of a written notice requesting a Service Extension, the Cardinal
Health Services Manager and the CareFusion Services Manager shall in good faith (x) negotiate the
terms of an amendment to the applicable Schedule, which amendment shall be consistent with the
terms of, and the pricing methodology used for, the applicable Service, and (y) determine the costs
and expenses (which shall not include any Service Charges payable under this Agreement), if any,
that would be incurred by the Provider or the Recipient, as the case may be, in connection with the
provision of such Service Extension, which costs and expenses shall be borne solely by the Party
requesting the Service Extension. Each amended Schedule, as agreed to in writing by the Parties,
shall be deemed part of this Agreement as of the date of such agreement and any Services provided
pursuant to such Service Extensions shall be deemed “Services” provided under this Agreement, in
each case subject to the terms and conditions of this Agreement.
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Section 10.02. Effect of Termination. Upon termination of any Service pursuant to
this Agreement, the Provider of the terminated Service will have no further obligation to provide
the terminated Service, and the relevant Recipient will have no obligation to pay any future
Service Charges relating to any such Service; provided, that the Recipient shall remain
obligated to the relevant Provider for the (i) Service Charges owed and payable in respect of
Services provided prior to the effective date of termination and (ii) any applicable Termination
Charges, which shall be payable only in the event that the Recipient terminates any Service (x)
prior to the expiration of the applicable minimum service period or (y) without providing the
requisite early termination notice, in each case, as set forth in the Schedule relating to such
Service. In connection with termination of any Service, the provisions of this Agreement not
relating solely to such terminated Service shall survive any such termination, and in connection
with a termination of this Agreement, Article I, Article VIII (including liability
in respect of any indemnifiable Liabilities under this Agreement arising or occurring on or prior
to the date of termination), Article IX, Article X, Article XI, all
confidentiality obligations under this Agreement and liability for all due and unpaid Service
Charges and any applicable Termination Charges payable pursuant to the early termination of a
Service prior to the minimum service period provided in the applicable Schedule, shall continue to
survive indefinitely.
Section 10.03. Force Majeure. (a) Neither Party (nor any Person acting on its behalf)
shall have any liability or responsibility for failure to fulfill any obligation (other than a
payment obligation) under this Agreement so long as and to the extent to which the fulfillment of
such obligation is prevented, frustrated, hindered or delayed as a consequence of circumstances of
Force Majeure; provided, that (i) such Party (or such Person) shall have exercised
commercially reasonable efforts to minimize the effect of Force Majeure on its obligations; and
(ii) the nature, quality and standard of care that the Provider shall provide in delivering a
Service after a Force Majeure shall be substantially the same as the nature, quality and standard
of care that the Provider provides to its Affiliates and its other business components with respect
to such Service. In the event of an occurrence of a Force Majeure, the Party whose performance is
affected thereby shall give notice of suspension as soon as reasonably practicable to the other
stating the date and extent of such suspension and the cause thereof, and such Party shall resume
the performance of such obligations as soon as reasonably practicable after the removal of such
cause.
(b) During the period of a Force Majeure, the Recipient shall be entitled to seek an
alternative service provider with respect to such Service(s) and shall be entitled to permanently
terminate such Service(s) (and shall be relieved of the obligation to pay Service Charges for such
Services(s) throughout the duration of such Force Majeure) if a Force Majeure shall continue to
exist for more than fifteen (15) consecutive days, it being understood that Recipient shall not be
required to provide any advance notice of such termination to Provider or pay any Termination
Charges in connection therewith.
ARTICLE XI
GENERAL PROVISIONS
Section 11.01. No Agency. Nothing in this Agreement shall be deemed in any way or for
any purpose to constitute any party an agent of another unaffiliated party in the
19
conduct of such other party’s business. A Provider of any Service under this Agreement shall
act as an independent contractor and not as the agent of the Recipient in performing such Service,
maintaining control over its employees, its subcontractors and their employees and complying with
all withholding of income at source requirements, whether federal, state, local or foreign.
Section 11.02. Subcontractors. A Provider may hire or engage one or more
subcontractors to perform any or all of its obligations under this Agreement; provided,
that (i) such Provider shall use the same degree of care in selecting any such subcontractor as it
would if such contractor was being retained to provide similar services to the Provider and (ii)
such Provider shall in all cases remain primarily responsible for all of its obligations under this
Agreement with respect to the scope of the Services, the standard for services as set forth in
Article VII and the content of the Services provided to the Recipient.
Section 11.03. Treatment of Confidential Information.
(a) The Parties shall not, and shall cause all other persons providing Services or having
access to information of the other Party that is known to such Party as confidential or proprietary
(“Confidential Information”) not to, disclose to any other person or use, except for
purposes of this Agreement, any Confidential Information of the other Party; provided,
however, that each Party may disclose Confidential Information of the other Party, to the
extent permitted by applicable Law: (i) to its Representatives on a need-to-know basis in
connection with the performance of such Party’s obligations under this Agreement; (ii) in any
report, statement, testimony or other submission required to be made to any Governmental Authority
having jurisdiction over the disclosing Party; or (iii) in order to comply with applicable Law, or
in response to any summons, subpoena or other legal process or formal or informal investigative
demand issued to the disclosing Party in the course of any litigation, investigation or
administrative proceeding. In the event that a Party becomes legally compelled (based on advice of
counsel) by deposition, interrogatory, request for documents subpoena, civil investigative demand
or similar judicial or administrative process to disclose any Confidential Information of the other
Party, such disclosing Party shall provide the other Party with prompt prior written notice of such
requirement, and, to the extent reasonably practicable, cooperate with the other Party (at such
other Party’s expense) to obtain a protective order or similar remedy to cause such Confidential
Information not to be disclosed, including interposing all available objections thereto, such as
objections based on settlement privilege. In the event that such protective order or other similar
remedy is not obtained, the disclosing Party shall furnish only that portion of the Confidential
Information that has been legally compelled, and shall exercise its commercially reasonable efforts
(at such other Party’s expense) to obtain assurance that confidential treatment will be accorded
such Confidential Information.
(b) Each Party shall, and shall cause its Representatives to protect the Confidential
Information of the other Party by using the same degree of care to prevent the unauthorized
disclosure of such as the Party uses to protect its own confidential information of a like nature.
(c) Each Party shall cause its Representatives to agree to be bound by the same restrictions
on use and disclosure of Confidential Information as are binding upon such Party in advance of the
disclosure of any such Confidential Information to them.
20
(d) Each Party shall comply with all applicable state, federal and foreign privacy and data
protection Laws that are or that may in the future be applicable to the provision of Services under
this Agreement.
Section 11.04. Further Assurances. Each Party covenants and agrees that, without any
additional consideration, it shall execute and deliver any further legal instruments and perform
any acts that are or may become necessary to effectuate this Agreement.
Section 11.05. Notices. Except with respect to routine communications by the Cardinal
Health Services Manager and CareFusion Services Manager under Section 2.05, all notices,
requests, claims, demands and other communications under this Agreement shall be in writing and
shall be given or made (and shall be deemed to have been duly given or made upon receipt) by
delivery in person, by overnight courier service, by facsimile or electronic transmission with
receipt confirmed (followed by delivery of an original via overnight courier service) or by
registered or certified mail (postage prepaid, return receipt requested) to the respective Parties
at the following addresses (or at such other address for a Party as shall be specified in a notice
given in accordance with this Section 11.05):
(i) | if to Cardinal Health: |
Cardinal Health, Inc. 0000 Xxxxxxxx Xxxxx Xxxxxx, Xxxx 00000 Attention: General Counsel Facsimile: (000) 000-0000 with a copy to: |
|||
Weil, Gotshal & Xxxxxx LLP 000 Xxxxx Xxxxxx Xxx Xxxx, Xxx Xxxx 00000 Attention: Xxxxxx Xxxxxxxxxx Xxxxxxx Xxxxxx Facsimile: (000) 000-0000 |
|||
Wachtell, Lipton, Xxxxx & Xxxx 00 Xxxx 00xx Xxxxxx Xxx Xxxx, Xxx Xxxx 00000 Attention: Xxxxx Xxxx Xxxxx Xxx Facsimile: (000) 000-0000 |
|||
(ii) | if to CareFusion: | ||
CareFusion Corporation 0000 Xxxxxx Xxxx Xxxxx Xxx Xxxxx, Xxxxxxxxxx 00000 Attention: Executive Vice President and General Counsel Facsimile: (000) 000-0000 |
21
with a copy to: | |||
Weil, Gotshal & Xxxxxx LLP 000 Xxxxx Xxxxxx Xxx Xxxx, Xxx Xxxx 00000 Attention: Xxxxxx Xxxxxxxxxx Xxxxxxx Xxxxxx Facsimile: (000) 000-0000 |
|||
Wachtell, Lipton, Xxxxx & Xxxx 00 Xxxx 00xx Xxxxxx Xxx Xxxx, Xxx Xxxx 00000 Attention: Xxxxx Xxxx Xxxxx Xxx Facsimile: (000) 000-0000 |
Section 11.06. Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced under any Law or as a matter of public policy, all
other conditions and provisions of this Agreement shall nevertheless remain in full force and
effect so long as the economic or legal substance of the transactions contemplated by this
Agreement is not affected in any manner materially adverse to any Party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the Parties
shall negotiate in good faith to modify this Agreement so as to effect the original intent of the
Parties as closely as possible in a mutually acceptable manner in order that the transactions
contemplated by this Agreement be consummated as originally contemplated to the greatest extent
possible.
Section 11.07. Entire Agreement. Except as otherwise expressly provided in this
Agreement, this Agreement, the Separation Agreement and the other Transaction Documents constitute
the entire agreement of the Parties with respect to the subject matter of this Agreement and
supersede all prior agreements and undertakings, both written and oral, between or on behalf of the
Parties with respect to the subject matter of this Agreement.
Section 11.08. No Third-Party Beneficiaries. Except as provided in Article
VIII with respect to Provider Indemnified Parties and Recipient Indemnified Parties, this
Agreement is for the sole benefit of the Parties and their permitted successors and assigns and
nothing in this Agreement, express or implied, is intended to or shall confer upon any other
Person, including any union or any employee or former employee of Cardinal Health or CareFusion,
any legal or equitable right, benefit or remedy of any nature whatsoever, including any rights of
employment for any specified period, under or by reason of this Agreement.
Section 11.09. Governing Law. This Agreement (and any claims or disputes arising out
of or related to this Agreement or to the transactions contemplated by this Agreement or to the
inducement of any Party to enter into this Agreement or the transactions contemplated by this
Agreement, whether for breach of contract, tortious conduct or otherwise and whether predicated on
common law, statute or otherwise) shall in all respects be governed by, and construed in accordance
with, the Laws of the State of New York, including all matters of
22
construction, validity and performance, in each case without reference to any conflict of Law
rules that might lead to the application of the Laws of any other jurisdiction.
Section 11.10. Amendment. No provision of this Agreement, including any Schedules to
this Agreement, may be amended, supplemented or modified except by a written instrument making
specific reference to this Agreement or any such Schedules to this Agreement, as applicable, signed
by all the Parties.
Section 11.11. Rules of Construction. Interpretation of this Agreement shall be
governed by the following rules of construction: (a) words in the singular shall be held to
include the plural and vice versa, and words of one gender shall be held to include the other
gender as the context requires; (b) references to the terms Article, Section, paragraph and
Schedule are references to the Articles, Sections, paragraphs and Schedules of this Agreement
unless otherwise specified; (c) references to “$” shall mean U.S. dollars; (d) the word “including”
and words of similar import when used in this Agreement shall mean “including without limitation,”
unless otherwise specified; (e) the word “or” shall not be exclusive; (f) references to “written”
or “in writing” include in electronic form; (g) provisions shall apply, when appropriate, to
successive events and transactions; (h) the headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement; (i)
Cardinal Health and CareFusion have each participated in the negotiation and drafting of this
Agreement and if an ambiguity or question of interpretation should arise, this Agreement shall be
construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise
favoring or burdening either Party by virtue of the authorship of any of the provisions in this
Agreement or any interim drafts of this Agreement; (j) a reference to any Person includes such
Person’s successors and permitted assigns; (k) any reference to “days” means calendar days unless
business days are expressly specified; and (l) when calculating the period of time before which,
within which or following which any act is to be done or step taken pursuant to this Agreement, the
date that is the reference date in calculating such period shall be excluded, if the last day of
such period is not a business day, the period shall end on the next succeeding business day.
Section 11.12. Counterparts. This Agreement may be executed in one or more
counterparts, and by each Party in separate counterparts, each of which when executed shall be
deemed to be an original but all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile
or portable document format (PDF) shall be as effective as delivery of a manually executed
counterpart of this Agreement.
Section 11.13. Assignability. This Agreement shall not be assigned by operation of
Law or otherwise without the prior written consent of Cardinal Health and CareFusion, except that
each Party may:
(a) assign all of its rights and obligations under this Agreement to any of its Subsidiaries,
provided, that no such assignment shall release Cardinal Health or CareFusion, as the case
may be, from any liability or obligation under this Agreement;
23
(b) in connection with the divestiture of any Subsidiary or business of such Party that is a
Recipient to an acquiror that is not a competitor of the Provider, assign to the acquiror of such
Subsidiary or business its rights and obligations as a Recipient with respect to the Services
provided to such divested Subsidiary or business under this Agreement, provided, that (i)
no such assignment shall release Cardinal Health or CareFusion, as the case may be, from any
liability or obligation under this Agreement, (ii) any and all costs and expenses incurred by
either Party in connection with such assignment (including in connection with clause (iii) of this
proviso) shall be borne solely by the assigning Party, and (iii) the Parties shall in good faith
negotiate any amendments to this Agreement, including the Annexes and Schedules to this Agreement,
that may be necessary or appropriate in order to assign such Services; and
(c) in connection with the divestiture of any Subsidiary or business of such Party that is a
Recipient to an acquiror that is a competitor of the Provider, assign to the acquiror of such
Subsidiary or business its rights and obligations as a Recipient with respect to the Services
provided to such divested Subsidiary or business under this Agreement, provided, that (i)
no such assignment shall release Cardinal Health or CareFusion, as the case may be, from any
liability or obligation under this Agreement, (ii) any and all costs and expenses incurred by
either Party in connection with such assignment (including in connection with clause (iii) of this
proviso) shall be borne solely by the assigning Party, (iii) the Parties shall in good faith
negotiate any amendments to this Agreement, including the Annexes and Schedules to this Agreement,
that may be necessary or appropriate in order to ensure that such assignment will not (x)
materially and adversely affect the businesses and operations of each of the Parties and their
respective Affiliates or (y) create a competitive disadvantage for the Provider with respect to an
acquiror that is a competitor, and (iv) no Party shall be obligated to provide any such assigned
Services to an acquiror that is a competitor if the provision of such assigned Services to such
acquiror would disrupt the operation of such Party’s businesses or create a competitive
disadvantage for such Party with respect to such acquiror;
provided, that, notwithstanding anything to the contrary in this Section 11.13, no
Party shall be entitled to assign any rights or obligations under this Agreement that relate to
Services provided to the former Medical Products Technologies business of Cardinal Health
(including respiratory, infection prevention, X. Xxxxxxx and On-Site businesses).
Section 11.14. Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT WAIVES TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT TO
ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.
EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER; AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY TO THIS
AGREEMENT HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER TRANSACTION AGREEMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.14.
24
Section 11.15. Non-Recourse. No past, present or future director, officer, employee,
incorporator, member, partner, stockholder, Affiliate, agent, attorney or representative of either
Cardinal Health or CareFusion or their Affiliates shall have any liability for any obligations or
liabilities of Cardinal Health or CareFusion, respectively, under this Agreement or for any claims
based on, in respect of, or by reason of, the transactions contemplated by this Agreement.
[The remainder of this page is intentionally left blank.]
25
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the date first
written above by their respective duly authorized officers.
CARDINAL HEALTH, INC. |
||||
By: | ||||
Name: | ||||
Title: | ||||
CAREFUSION CORPORATION |
||||
By: | ||||
Name: | ||||
Title: | ||||
Schedule A
Cardinal
Health Services - EIT
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-A3.1
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - Ordering Applications | Incident Mgmnt, Setup, Mapping, Support for CTS-Alaris, and X. Xxxxxxx, Intranet Administration, Web Application Portal Server Support, Web Administration, Enterprise Directory Search Software, Online login and authentication, Online navigation to applications assigned to user ID., Support of Legacy CAR Application: Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.10
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - MPT Applications - Web Quoting, Bundling and Assembling, Online pricing | MPT - - Web quoting application Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.11
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - MPT Applications -Complaint management and quality control | MPT - Complaint Management Application Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.12
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - MPT Business Support Applications | MPT - All inclusive Business Support Applicatons - Cost Analysis Review Process, NIA - New Item Add, NBP - New Business Processor, Supplier Contacts, Supply Chain Notes, CASPAR - Cardinal Alternate Source Purchasing, SPA - Strategic Price Analysis: Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/11 | 6/30/13 | 120 |
Page 1 of 20
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-A3.13
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - MPT Applications - MPT Manufacturing site-specific support applications | MPT - Manufacturing site-specific applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.14
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - MPT Applications - Data Warehouse | Data Warehouse Reporting Applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.15
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - MPT Applications - Other | MPT - Other Rebate Tracking Application Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.16
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - MPT Applications - PreSource Manufacturing | MPT - PreSource Manufacturing Applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications.2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.17
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - MPT Applications - Warehouse & Global Trade | Global Trade Support Applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications.2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 |
Page 2 of 20
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-A3.18
|
Application Maint and Support (Tier 2& 3) | Application Maintenance and Support (Tier 2 & 3) - EDI | CTS-EDI Services provide application hosting, maintenance, and application support of technical environments supporting EDI transactions. This also includes development of new maps and enhancements to existing maps as well as customer implementations.2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.19
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - Sales Support | Sales Support Applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications.2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.2
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - EDI | CTS-EDI Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
North America | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.3
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - Business Intelligence | Business Intelligence Applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
North America | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.4
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - Financial Systems | Financial Support Applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 |
Page 3 of 20
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-A3.4.1
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - Spend Analytics | Spend Analytics Applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 12/31/09 | 6/30/11 | 120 | |||||||||
EIT-A3.5
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - Corporate Applications | Corporate Applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.6
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - Call Center | Call Center Applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
North America | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.7
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - Call Center and EIT Applications | Call Center and EIT Applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.8
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - MPT Applications - APO | MPT - Planning and optimization applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.9
|
Application Maint and Support (Tier 2& 3) | Application Maint and Support (Tier 2& 3) - Shared Applications - MPT Applications - Vmueller Support | MPT - Customer Support Applications Services provide application hosting, maintenance, and application support of technical environments and user-facing support for automated business process applications2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 |
Page 4 of 20
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-A3.91A
|
Application Maint and Support (Tier 2& 3) | GSS OA - Disaster Recovery | Disaster Recovery plan support for FSP and Treasury Interfaces in addition to third party Disaster Recovery Support Contract Maintenance for CMP infrastructure. Costs also include hot site recovery for CMP Applications and Systems.2 Maintenance & Support as defined in the Catalog of Services Section 3 |
North America | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-A3.91B
|
See EIT-A3.91A | See EIT-A3.91A | Pass-Thru portion of EIT-A3.91A Disaster Recovery plan support for FSP and Treasury Interfaces in addition to third party Disaster Recovery Support Contract Maintenance for CMP infrastructure. Costs also include hot site recovery for CMP Applications and Systems.2 Maintenance & Support as defined in the Catalog of Services Section 3 |
See EIT-A3.91A | See EIT-A3.91A | See EIT-A3.91A | See EIT-A3.91A | |||||||||
EIT-A3.92
|
Application Maint and Support (Tier 2& 3) | GSS OA Quality Operations - Dedicated and shared applications | Change control, release management, configuration management, quality control, and IOQ execution tied to CMP/MPT dedicated applications and shared applications used by CMP.1,2 Maintenance & Support as defined in the Catalog of Services Section 3 |
North America | 6/30/10 | 6/30/11 | 120 | |||||||||
Total: 23 |
||||||||||||||||
EIT-B1.1
|
Communication | Communication - E-mail/Mobile Messaging | Exchange, MS Communicator, BlackBerry Enterprise Server, GoodLink, RightFax, SharePoint; Services provides configuration, hardware IMACD, support, maintenance of the technical environments.2 Maintenance & Support as defined in the Catalog of Services Section 2 |
Global | 12/31/09 | 6/30/11 | 120 | |||||||||
EIT-B2.1
|
Communication | Communication - LAN, A/V | Local network connectivity, Wireless LAN access, Configuration Management, Performance / Capacity reporting, 24x7 monitoring and NOC support, Maintenance of Technical Environments, Enable Audio, Video & Internet conferencing.2 LAN Maintenance & Support as defined in the Catalog of Services Section 3 AV Maintenance & Support as defined in the Catalog of Services Section 2 |
Global | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-B2.2A
|
Communication | Communication - WAN/MAN/Internet | Wide Area Network connections, Metro Area Network, Internet and services (Security, firewall, content filtering) (e.g. MPLS). Data Network Services include; Router, switch, firewall, configuration, installation and management, performance / capacity reporting, 24x7 monitoring and NOC support, maintenance of technical environments.2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 9/30/09 | 6/30/11 | 90 |
Page 5 of 20
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-B2.2B
|
See EIT-B2.2A | See EIT-B2.2A | Pass-Thru portion of EIT-B2.2A Wide Area Network connections, Metro Area Network, Internet and services (Security, firewall, content filtering) (e.g. MPLS). Data Network Services include; Router, switch, firewall, configuration, installation and management, performance / capacity reporting, 24x7 monitoring and NOC support, maintenance of technical environments.2 Maintenance & Support as defined in the Catalog of Services Section 3 |
See EIT-B2.2A | See EIT-B2.2A | See EIT-B2.2A | See EIT- B2.2A |
|||||||||
EIT-B2.3A
|
Communication | Communication - VPN | Remote VPN connectivity, access and application support; Services provides configuration, hardware IMACD, support, maintenance of the technical environments.2 Maintenance & Support as defined in the Catalog of Services Section 2 |
Global | 12/31/09 | 6/30/11 | 120 | |||||||||
EIT-B2.3B
|
See EIT-B2.3A | See EIT-B2.3A | Pass-Thru portion of EIT-B2.3A Remote VPN connectivity, access and application support; Services provides configuration, hardware IMACD, support, maintenance of the technical environments.2 Maintenance & Support as defined in the Catalog of Services Section 2 |
See EIT-B2.3A | See EIT-B2.3A | See EIT-B2.3A | See EIT-B2.3A | |||||||||
EIT-B2.4
|
Communication | GSS OA - Network Security from Information Security team | Manage network security risks and operational assurance; develop parameters for security and risks, perform monitoring and compliance reporting.2 | North America | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-B2.5
|
Communication | Dominican Republic Connectivity (WAN/MAN) | CAT 2 costs associated with WAN (Wide Area Network) and MAN (Metropolitan Area Network - the connection between the two facilities) third party circuit.2 | Dominican Republic | 6/30/10 | 6/30/11 | 90 |
Page 6 of 20
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-B3.1
|
Communication | Telecom - Hardware/Software/Wireline Services - CMP Call Centers | VOIP/PBX, Voicemail, telephony circuitry, CTI Provides support, maintenance, testing, deployment of all hardware and software (e.g., PBX, v-mail, circuits, routing control services, call center) along with technical research and strategy development.2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-B3.2
|
Communication | Telecom - Hardware/Software/Wireline/Conferencing Services - Back Office | VOIP/PBX, Voicemail, telephony circuitry. Provides support, maintenance, testing and deployment of all hardware and software (e.g., PBX, v-mail, circuits, routing control services, call center) along with technical research and strategy development.2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-B4.1
|
Communication | Wireless Devices - Domestic | 2nd and 3rd tier device support for cellular devices. In-building cellular solutions. 1st tier wireless device support 2 | North America | 7/31/09 | 12/31/09 | 30 | |||||||||
Total: 11 |
||||||||||||||||
EIT-C1.1
|
Employee Workspace | Service Center | Services specific to North America (US, Canada, Mexico): Help desk support for employee technology environments (e.g., desktop, laptop, remote access, business applications, etc). Provides initial troubleshooting support and escalated support when necessary.2 Maintenance & Support as defined in the Catalog of Services Section 2 |
North America | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-C1.2
|
Employee Workspace | Service Center | Services specific to UK (Basingstoke): Help desk support for employee technology environments (e.g., desktop, laptop, remote access, business applications, etc). Provides initial troubleshooting support and escalated support when necessary.2 Maintenance & Support as defined in the Catalog of Services Section 2 |
UK | 12/31/09 | 6/30/11 | 120 | |||||||||
EIT-C2.1A
|
Employee Workspace | RTS - On-site | On-site desktop support services: On-site support for employee technology environments (e.g., desktop, laptop, PDA, etc). Provides tier2 troubleshooting support and escalated support when necessary. Performs hardware deployments, retrievals and technical refresh activities.2 Maintenance & Support as defined in the Catalog of Services Section 2 |
North America | 9/30/09 | 6/30/11 | 90 |
Page 7 of 20
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-C2.1B
|
See EIT-C2.1A | See EIT-C2.1A | Pass-Thru portion of EIT-C2.1A Monthly cost for all peripherals, (i.e., monitors, docking stations, and all upgrades) . This also includes all component expenses.2 |
See EIT-C2.1A | See EIT-C2.1A | See EIT-C2.1A | See EIT- C2.1A |
|||||||||
EIT-C2.2
|
Employee Workspace | RTS - Engineering | Desktop engineering services: Ensuring hardware and software standards, testing, compatibility, and functionality assurance.2 Maintenance & Support as defined in the Catalog of Services Section 2 |
North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-C2.3
|
Employee Workspace | Dominican Republic Local IT Support | On-island IT resources to provide basic IT & communications support, maintenance, and deployment to neighboring CareFusion facility.2 | Dominican Republic | 6/30/10 | 6/30/11 | 90 | |||||||||
EIT-C3.1
|
Employee Workspace | RTS - Depot | Remote desktop support services for remote employees (e.g. “The Depot”): Remote help desk support for employee technology environments (e.g., desktop, laptop, PDA, etc). Provides initial troubleshooting support and escalated support when necessary.2 Maintenance & Support as defined in the Catalog of Services Section 2 |
North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-C4.1
|
Employee Workspace | Communication - Collaboration IDM/AD | ID Management, Active Directory, MDAS, Manual ID Management: Management and admin of user Id’s, maintaining and monitoring technical environments, providing escalated support when necessary.2 Maintenance & Support as defined in the Catalog of Services Section 2 |
Global | 12/31/09 | 6/30/11 | 120 | |||||||||
Total: 8 |
||||||||||||||||
EIT-D1.1
|
Enterprise Computing | Enterprise Computing - Domestic Data Center | Provide physical (environmental) monitoring of power and cooling systems in the data center and delivery assurance including failover initiation and management, fire suppression services and backups; Provide Tier 1 support, monitoring against service levels, reporting and escalation where necessary.2 Maintenance & Support as defined in the Catalog of Services Section 3: |
North America | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-D2.1
|
Enterprise Computing | Enterprise Computing - International Data Center | Provide enterprise monitoring, SRT facilitation, root cause analysis for WAN outages; Provide Tier 1 support, monitoring against service levels, reporting and escalation where necessary - are based out of Dublin Only.2 Maintenance & Support as defined in the Catalog of Services Section 3 |
Global | 6/30/10 | 6/30/11 | 120 |
Page 8 of 20
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-D3.1
|
Enterprise Computing | Enterprise Computing - Servers and storage | Provide support, maintenance, reporting, standards compliance and continuous monitoring for UNIX servers, storage (Tier 1), Offsite Storage, Data Recovery (Shared), and backup systems. Cost does not include Remote Tier 2 Storage.2 Maintenance & Support as defined in the Catalog of Services Section 3: |
North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-D3.11
|
Enterprise Computing | GSS OA - Server Security from Information Security team | Manage server security risks and operational assurance; develop parameters for security and risks, perform monitoring and compliance reporting.2 | North America | 6/30/10 | 6/30/11 | 120 | |||||||||
EIT-D3.2
|
Enterprise Computing | Enterprise Computing - Commodity Computing | Provide support, maintenance, reporting, standards compliance and continuous monitoring for Wintel Servers, Citrix, VMWare, NAS (Tier 2 & 3), Backups (remote sites).2 | North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-D4.1
|
Enterprise Computing | Enterprise Computing - Infrastructure Management - End User | Deployment and management for desktop security software; support where escalated.2 | Global | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-D4.2
|
Enterprise Computing | Enterprise Computing - Infrastructure Management - Data Center | Deployment and management for scheduling and monitoring software; support where escalated.2 | North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-D5.1
|
Enterprise Computing | Enterprise Computing - Database, ERP, Middleware Administration - Global | Deployment and management for Middleware, database and business functionality applications. 2 | North America | 6/30/10 | 6/30/11 | 120 | |||||||||
Total: 8 |
||||||||||||||||
EIT-E1.1
|
Enterprise Gen and Admin Support | Enterprise General & Admin Support - Contract Management - Telecommunications and Repairs and Maintenance | Vendor performance management; managing contract and delivery compliance, quality performance, and commitment performance | Global (for Telecommunications) North America (for R&M) |
9/30/09 | 6/30/11 | 90 | |||||||||
EIT-E2.1
|
Enterprise Gen and Admin Support | Enterprise General & Admin Support - Contract Management - wireline billing & wireless device support / provisioning | Vendor performance management; managing contract and delivery compliance, quality performance, and commitment performance | North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-E3.1
|
Enterprise Gen and Admin Support | Enterprise General & Admin Support - Contract Management - Third Party Application Maintenance and Support | Vendor performance management; managing contract and delivery compliance, quality performance, and commitment performance | Global | 9/30/09 | 6/30/11 | 90 |
Page 9 of 20
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-E4.1
|
Enterprise Gen and Admin Support | Enterprise General & Admin Support - Asset Management | Tracking hardware and software licensing, reporting, warranty management, vendor compliance and renewals | North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-E6.1
|
Enterprise Gen and Admin Support | Enterprise General & Admin Support - Core Processes | Service delivery management (SDM), examples: Service Restoration, Escalation & Notification, Daily Incident Review, Root Cause Analysis, Problem Resolution, Service Request Management, Demand Management, Training, Client Satisfaction.1 | North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-E6.1.1
|
Enterprise Gen and Admin Support | EIT Performance and Service Management | Provide management of metrics and measures including application SLAs, IT operational performance, and executive level reports | North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-E6.1.2
|
Enterprise Gen and Admin Support | EIT Process Services | EIT process services team support including process governance and management of OWOW site/processes.1 | North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-E6.1.4
|
Enterprise Gen and Admin Support | Ent. General & Admin Support - Compliance EIT SOX Testing | SOX controls testing services for EIT controls managed by Cardinal during the EIT Application and Infrastructure TSA periods.1 | North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-E6.1.5
|
Enterprise Gen and Admin Support | GSS OA - Operational Excellence XXX | Providing oversight, guidance and training to support the execution of operational excellence projects to improve shared EIT processes | North America | 9/30/09 | 6/30/11 | 90 | |||||||||
EIT-E6.1.6
|
Enterprise Gen and Admin Support | GSS OA - EIT Operational Excellence | Providing oversight, guidance and training to support the execution of operational excellence projects to improve shared EIT processes.1 | North America | 9/30/09 | 6/30/11 | 90 | |||||||||
Total: 10 |
||||||||||||||||
EIT-G1.1
|
Other | Depreciation | Depreciation on Shared Fixed Assets - CareFusion portion of corporate level IT investments benefiting all segments.10 | 6/30/11 | 6/30/11 | N/A | ||||||||||
EIT-G2.1
|
Other | R&M | Repairs and Maintenance Contracts and Agreements - TSA costs will be handled as Pass-Thru costs. Actual incurred costs will be passed thru on a monthly basis to CareFusion.11 | 6/30/11 | 6/30/11 | N/A | ||||||||||
EIT-G3.1
|
Other | Executive Leadership | Administrative Assistants, Senior Vice Presidents, and Above | 6/30/11 | 6/30/11 | N/A | ||||||||||
EIT-G4.1
|
Other | Other Labor | Other areas of EIT that are shared across segments - NOT included in direct labor above. Areas are: Application Services, PMO, Customer Sales and Solutions | 6/30/11 | 6/30/11 | NA | ||||||||||
EIT-G4.1B
|
Other | Other Labor | Other areas of EIT that are shared across segments - NOT included in direct labor above. Areas are: Shared / Transformation team, ES/TS management (not included in G3.1 or management allocation), and Financial Solutions. | 6/30/10 | 6/30/11 | 120 | ||||||||||
EIT-G5.1A
|
Other | Other Non-Labor | Other spend not captured in other categories: Technology equipment lease, building (XxXxx Park Dutch Xxxxxxx Data Center), outside services, license & permits, and delivery. | 6/30/11 | 6/30/11 | N/A |
Page 10 of 20
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-G5.1B
|
Other | Other Non-Labor | Other spend not captured in other categories: Consulting, employee activities, T&E, recruiting, relocation, and supplies (non-capital equipment). | 6/30/10 | 6/30/11 | 120 | ||||||||||
EIT-G5.1C
|
See EIT-G5.1B | See EIT-G5.1B | Pass-Thru portion of EIT-G5.1B | See EIT-G5.1B | See EIT-G5.1B | See EIT-G5.1B | See EIT-G5.1B | |||||||||
EIT-G6.1A
|
Other | Cellular | Payment of bills for Sprint, Verizon, and ATT cellular services. Fixed amount to be billed monthly as part of TSA. | 6/30/10 | 6/30/11 | N/A | ||||||||||
EIT-G6.1B
|
See EIT-G6.1A | See EIT-G6.1A | Pass-Thru portion of EIT-G6.1A. When CareFusion establishes direct contracts with telecom vendors, the Pass-Thru telecom billing amounts will be adjusted accordingly. On a quarterly basis, during the TSA period, there will be a joint review of actual telecom spend and the Pass-Thru portion of the billing will be adjusted as a result of the review.1 | See EIT-G6.1A | See EIT-G6.1A | See EIT-G6.1A | See EIT-G6.1A | |||||||||
EIT-G7.1A
|
Other | Non-Cellular | Payment of bills for local, long distance, WAN / LAN, conferencing, pagers, etc. Fixed amount to be billed monthly as part of TSA.1 | 6/30/10 | 6/30/11 | 120 | ||||||||||
EIT-G7.1B
|
See EIT-G7.1A | See EIT-G7.1A | Pass-Thru portion of EIT-G7.1A. When CareFusion establishes direct contracts with telecom vendors, the Pass-Thru telecom billing amounts will be adjusted accordingly. On a quarterly basis, during the TSA period, there will be a joint review of actual telecom spend and the Pass-Thru portion of the billing will be adjusted as a result of the review.1 | See EIT-G7.1A | See EIT-G7.1A | See EIT-G7.1A | See EIT-G7.1A | |||||||||
EIT-G8.1
|
Other | Project-Work | Estimated portion of project expense to complete corporate shared investments that will benefit all segments. Fixed amount represents estimate to complete FY09 Shared in flight projects and FY10 new corporate shared portfolio. | N/A | 6/30/11 | N/A | ||||||||||
Total: 13 |
||||||||||||||||
EIT-M1.1 (EIT -G1.1) |
MPT | Depreciation | Depreciation on Shared Fixed Assets - CareFusion portion of IT investments benefiting all segments.4, 00 | Xxxxx Xxxxxxx | N/A - subject to EIT - G1.1 parent | 6/30/13 | 120 | |||||||||
EIT-M1.2 (EIT-G2.1)
|
MPT | R&M | Repairs and Maintenance Contracts and Agreements - TSA costs will be handled as Pass-Thru costs. Actual incurred costs will be passed through on a monthly basis to CareFusion via the TSA.4, 11 | North America | N/A - subject to EIT - G2.1 parent | 6/30/13 | 120 | |||||||||
EIT-M1.3 (EIT-G7.1A)
|
MPT | Non-Cellular | Payment of bills for local, long distance, WAN / LAN, conferencing, pagers, etc. Fixed amount to be billed monthly as part of TSA.1, 4 | North America | N/A - subject to EIT - G7.1A parent | 6/30/13 | 120 |
Page 11 of 20
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
EIT-M1.4 (EIT-D1.1)
|
MPT | Enterprise Computing – Domestic Data Center | Provide physical (environmental) monitoring of power and cooling systems in the data center and delivery assurance including failover initiation and management, fire suppression services and backups (including Iron Mountain); Provide Tier 1 support, monitoring against service levels, reporting and escalation where necessary.2, 4 Maintenance & Support as defined in the Catalog of Services Section 3: |
North America | N/A – subject to EIT – D1.1 parent | 6/30/13 | 120 | |||||||||
Total: 4 |
Page 12 of 20
Cardinal Health Services - HR/HRS
Term | ||||||||||||||||||
Geographic | Notice | |||||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||||
HR - 4
|
HR | Learning | LMS system support | North America | 0 | 6/30/10 | 60 | |||||||||||
HR - 5
|
HR | Compensation Planning Cycle Support |
Compensation Planning Cycle Support | North America | 0 | 9/30/09 | 60 | |||||||||||
HR - 6
|
HR | Compensation XXX Administration |
XXX compensation support, Peoplesoft data integrity audit, SOX reporting/Audit reporting |
North America | 0 | 6/30/10 | 60 | |||||||||||
HR - 7
|
HR | Benefits Administration |
XXX benefits support, escalated issues, vendor management, PTO payout and exceptions. | North America | 12/31/09 | 12/31/09 | 60 | |||||||||||
Int - 1
|
International | Canada Health & Welfare Benefits |
CHC 301 (CareFusion) employees on XXX 000 (XXXX) H&W plans.7 | Canada | 0 | 6/30/10 | 60 | |||||||||||
Int - 2
|
International | Canada Payroll and HR Administrative Services | CHC 301 (CareFusion) receives HR administrative services (HRMS, Payroll, Benefits Admin) from Source Medical Corp (HSCS) billed under a services agreement with no expiration including payroll and administrative services.7 | Canada | 7/1/10 | 6/30/10 | 60 | |||||||||||
Int - 3
|
International | COLA & Compensation Services |
Provide biannual cost of living adjustments, along with other compensation services for CareFusion Global Assignees, as requested.7 | Multi-Country | 0 | 12/31/09 | 60 | |||||||||||
Int - 4
|
International | BTA Benefits | Provide Business Travel and Accident coverage for CareFusion Global Assignees for remaining prepaid coverage period. | Multi-Country | 0 | 12/31/09 | 60 | |||||||||||
HRS - 1
|
HR Services | Third-Party HR Vendor Provided Solutions - Base Fees | Third-party HR service provider contracted base fees. Note that services listed in Schedule 4 of the contract will be reviewed for joint impacts during the TSA period and assessed for allocation to CAH vs. CareFusion as needed.5, 00 | Xxxxx Xxxxxxx | 7/31/10 | 7/31/10 | 90 | |||||||||||
HRS - 2
|
HR Services | Third-Party HR Vendor Provided Solutions - Variable fees |
Third-party HR service provider Variable fees - incremental to services covered in base fees such as SOW fees and fees based on transaction volumes. 5, 00 | Xxxxx Xxxxxxx | 7/31/10 | 7/31/10 | 90 | |||||||||||
Page 13
of 20
Term | ||||||||||||||||||
Geographic | Notice | |||||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||||
HRS - 3
|
HR Services | Project Green SOW # 3 (Third-Party HR Vendor Provided Solutions - TSA Period Incremental Fees) | Incremental support costs that the Third-Party HR service provider will incur to support CareFusion during the TSA.5, 00 | Xxxxx Xxxxxxx | 10/31/09 | 7/31/10 | 90 | |||||||||||
HRS - 4
|
HR Services | Internal Labor peforming Vendor management, contract management and Third-Party HR Vendor Interaction | HRS Services costs for vendor management support during TSA (replacement of corp allocation that happens today) | North America | 7/31/10 | 7/31/10 | 90 | |||||||||||
HRS - 5
|
HR Services | External Labor performing Supplemental Project Management and business analysis support | External labor to support HR Services projects and production support activities. | North America | 7/31/10 | 7/31/10 | 90 | |||||||||||
HRS - 6
|
HR Services | EIT Labor providing support for interfaces and interdependencies with Third-Party HR Vendor | Internal IT labor to support HR Services projects and production support activities related to interfaces with HR application. | North America | 7/31/10 | 7/31/10 | 90 | |||||||||||
Benefits
|
Benefit Costs | Health & Welfare Benefits |
Estimate of direct benefit costs. Domestic & Global Assignees attributable to CareFusion headcount.6, 7 | North America & Global Assignees |
7/31/10 | 7/31/10 | 60 | |||||||||||
Page 14
of 20
Cardinal Health Services - MPT/DMG/QRA
Term | ||||||||||||||||||
Geographic | Notice | |||||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||||
Ops - 1
|
Operations | Technical Services for international Convertors products | El Paso (Cardinal Health) Technical Services provides support for International (CareFusion) sourcing of Convertors products. Services are in the form engineering time in support of product enhancements and material changes. | Europe | 0 | 6/30/10 | 60 | |||||||||||
Ops - 2
|
Operations | Provide purchasing and logistics services for International XXXX manufacturing activities | El Paso (Cardinal Health) currently manages some of the raw materials used to make
Convertors products for sale by Carefusion in Japan, Australia and New Zealand. El Paso
will provide continuity of services for the purchase, consolidation and forwarding of
raw materials to vendors in China. Additionally, El Paso will continue to manage logistics for laminated materials for International. As per ICA # 72 referred to as the Lamination Agreement, CareFusion should have taken ownership of laminated materials at the dock in El Paso. CAH El Paso will continue to manage freight and delivery for laminated materials for CFN for the term of this agreement. |
Products that are made in China and sold in Europe, Japan, Australia and New Zealand. | 0 | 9/30/09 | none | |||||||||||
El Paso will pay the raw materials vendors within 30 days of purchase, however, will not receive payment from CareFusion Finshed Goods suppliers for 120 days as is the current practice. As such, this service includes the carrying cost for the investment in Accounts Receivable. | ||||||||||||||||||
This service is limited as follows: | ||||||||||||||||||
El Paso will only manage current activity. | ||||||||||||||||||
El Paso will not manage any new vendors during the term of the agreement | ||||||||||||||||||
El Paso will not develop any new ship-to locations during the term of the agreement | ||||||||||||||||||
R&D - 1
|
R&D | Technical Services for Respiratory Care R&D engineering: Project Side-Step |
Cardinal Health Singapore R&D department will provide support to Project Side-Step (Respiratory Care (CareFusion) R&D engineering project in China). Services are in the form of engineering time and expenses in support of process and product qualification, project management, FOC and technical support for initial production run. | China | 0 | 12/31/09 | 60 | |||||||||||
R&D - 2
|
R&D | Technical Services for Respiratory Care R&D engineering: VIS Mass Reduction |
Cardinal Health Singapore R&D department will provide support to the VIS Mass Reduction project (Respiratory Care (CareFusion) R&D engineering) in China. Services are in the form of engineering time and expenses in support of process and product qualification, project management, FOC and technical support for initial production run. | China | 0 | 12/31/09 | 60 | |||||||||||
QRA - 1
|
QRA | Complaint and Recall Processing | The Professional Services department will process customer complaints (including communication to plants and obtaining samples) for the VMueller, Interventional Specialties, Patient Care, and Legacy Prep businesses. Professional Services will obtain information from customers to enable proper classification and submit the required information to FDA. Note: MedWatch complaints are those that result in a death or injury. In the event of a CMP recall, Professional Services will notify FDA, notify customers (distributors and end users), manage affected inventories, reconcile quantities, and achieve closure. This includes support of the FCA Tracker software in CMP operation. | Global | 0 | 6/30/11 | 60 | |||||||||||
*Assumes 2 recall per year. A cost of $20k will be rendered for each additional recall. | ||||||||||||||||||
Contracts-1
|
Contracts | Rebate Processing | Provide rebate processing for 25 Care Fusion suppliers, equating to 107,000 rebateable contract lines per month. Services include: Daily report prepared for accounting to post, monthly rebate reporting and “long-form” production, monthly production and submission of 867/Sales & Trace reports to suppliers, rebate discrepancy research and resubmission management. | North America | 0 | 6/30/11 | 60 | |||||||||||
This service assumes a volume of 107,000 rebateable contract lines per month. Each incremental 50,000 rebateable contract lines per month will result in the necessity of an additional resource and revision to the monthly cost accordingly. | ||||||||||||||||||
QA-1
|
QA | Engineering/Inspection Services for Respiratory Care | Cardinal Health Singapore Quality department will provide support to Respiratory Care (CareFusion) in China in the form of engineering/inspection time and expenses in support Project Management of the Trach Care kit transfer from Amsino / Kangnuo to Amsino / Jading, and technical support for initial production run. | Singapore | 0 | 12/31/09 | 60 | |||||||||||
QA-2
|
QA | Pre-shipment Inspection, sterilization batch release and Training Services for Respiratory Care | Cardinal Health China Quality department will provide support to Respiratory Care (CareFusion) in China for pre-shipment inspection, sterilization batch release, and expenses at toll processor sites in China and training Swissco QE stationed in Shanghai office. | China | 0 | 12/31/09 | 60 | |||||||||||
Int-Acctg-1
|
Accounting | Accounting Support | Provide ongoing accounting support for the CareFusion Shanghai entities. Services include: daily finance operation, bank account management, finance report preparation, tax declare and associated IT support. | China | 9/30/2009 | 12/31/09 | 30 |
Page 15
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Cardinal Health Services - IPS
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
IPS - 1
|
Sales Operations Master Data Management |
Master Data Management Maintenance | Provide service to link customers across business units.8 | Dublin | 12/31/09 | 6/30/11 | 7 | |||||||||
IPS - 2
|
Sales Compensation | Exchange data related to sales team performance | Provide data as a service on a monthly basis to calculate commissions and bonuses and create associated reporting. Needed until CMP can train and resource individuals to appropriately access data and drives (Data Warehouse, DWMS, proprietary sales comp share drive data) . More specifically, temp labor used for completion of FY09 close, set up of FY10, transitioning scorecards within Sales Comp | XxXxx | 7/31/09 | 10/31/09 | 7 | |||||||||
IPS - 3
|
Sales Compensation | Data warehouse sytem maintenance to support sales incentive compensation processing (i.e. XxXxx Park/MPS sales data warehouse, kit component tracing system, & DMG tracings) | CAH individual providing data and information to support CareFusion sales incentive compensation processing (i.e. XxXxx Park/MPS sales data warehouse, kit component tracing system, & DMG tracings). Systems used in providing this service include data warehouse, data warehouse system maintenance, and business objects. | XxXxx | 7/31/09 | 6/30/11 | 30 |
Page 16 of 20
Cardinal Health Services - GFS
Term | ||||||||||||||||||
Geographic | Min | Max | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Term | Term | (Days) | |||||||||||
GFS-1
|
Finance | FSP Operation
Services (RTR, PTP, ALM, OTC, BI, BCS, Security) |
FOS will supplement current staff with contractors/associates to be managed by current FOS leads for Spin Co (estimated at 16). Staffing for CareFusion will be incremental as permanent staff is not expected to go down after spin due to support requirements. (Detailed activities will include: Maintenance, IDOC’s, master data, security setup and maintenance, interface maintanance, cross reference tables, Asset management, month-end close support, opening/closing periods, budget loads, reporting) | Global | 0 | 6/30/11 | 60 | |||||||||||
GFS-2
|
GFS | EIT Procurement
Process (IT contracts/shopping cart creation) |
The EIT Procurement Process supports the management of IT Contracts and creation of shopping cards within the FSP SAP system. The EIT Procurement team is responsible for procuring hardware/software and services in support of the EIT TSA for CareFusion until ultimate transfer of EIT services.9 This services does not include the tasks after the shopping cart is submitted (PO approval, goods receipt, invoice receipt, payment or financial activities). | North America | 0 | 6/30/11 | 60 | |||||||||||
GFS-3
|
GFS | Check Printing | Cardinal Health will provide check stock, labor, equipment, and mail services needed to print and mail CareFusion checks (drafts). | North America | 0 | 12/31/09 | 60 |
Page 17 of 20
Cardinal Health Services - MPT/DMG/QRA
Term | ||||||||||||||||
Geographic | Notice | |||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||
GL - 1
|
Global Logistics (GL) |
Procurement Settlement Strategic Management Month-End Reporting Visibility Tool Support | Cardinal Health Global Logistics (GL) will continue to provide support for
International (CareFusion) spot air heavyweight and ocean rate quotes consistent
with pre-separation activity. This includes rate-matrix updating and management
and fuel surcharge calculations and amendments. GL will continue to manage the month-end activities and the current tactical process of freight and other related payments in the lanes. This asumes strong participation as needed by a CareFusion representative to provide information that may no longer be available to Cardinal Health. GL will continue to manage the strategic relationship with the carriers to CareFusion’s benefit as GL sees appropriate. Monthly Review of logistics data with business units, Carriers, and Global Trade to monitor and recommend adjustments to achieve minimum quantity commitments in corporate ocean contracts. GL will continue to provide consultation services to assist CareFusion in the advancement of the Ocean Visibility tool. This includes inclusion of CareFusion issues in our carrier interactions,but does not include support for bringing up booking locations other than Thailand, US, and Malaysia. (Limited to 15 hours per week. If exceeding that amount, service to be revisited) |
Global | 8/31/09 | 12/31/09 | 30 |
Page 18
of 20
Cardinal Health Services — TAX
Term | ||||||||||||||||||
Geographic | Min | Max | Notice | |||||||||||||||
Ref ID | Function | Service | Description/Comments | Scope | Term | Term | (Days) | |||||||||||
Tax – 1
|
Tax | Transactional & Property Tax related services | Assistance with overflow workload related to newly transitioned CH Solutions and Viasys tasks | Xxxxxx | 0 | 9/30/09 | 7 | |||||||||||
Tax - 2
|
Tax | Property & Sales Tax outsourcing services | Pass-through of personal property and sales tax outsourcing costs (these services to be provided by third parties). | Xxxxxx | 0 | 9/30/09 | 7 |
Page 19 of 20
Footnotes
1 These Services
shall be reviewed quarterly as provided in Section 10.01(c) of
the Agreement.
2 Services
provided are subject to Section 2.06(b) of the Agreement.
4 CareFusion is required to maintain this service, or its parent service (noted in
parenthesis), for at least the duration of EIT-A3.12, and the service only becomes valid when the
respective parent service has been terminated. This service is not required to be maintained
beyond the termination of A3.12.
5
Intentionally Omitted.
6 Per eligible employee cost is fixed and will be adjusted to actual number of eligible
CareFusion employees each month.
7 This Service is not subject to the automatic Service Extension described in Section
10.01(d)
8 Canceled if GFS-1 is terminated.
9 This Service and the Service Charge relate only to the support of purchasing
hardware/software. All of the actual costs and expenses for the hardware and software purchased by
Cardinal Health under this Service line for CareFusion shall be paid directly by CareFusion or in
the event that arrangement is not acceptable to the third party vendor then shall be paid by
Cardinal Health and reimbursed promptly (but in no event later than 15 days from receipt of
invoice) by CareFusion.
10 The monthly depreciation charge is subject to review and adjustment initially and on
a quarterly basis. Reductions to depreciation will be made for any fixed assets transferred from
Cardinal to CareFusion initially and throughout the duration of this Agreement.
11 Intentionally
Omitted.
12 If the duration of this service is extended beyond 12 mos. the additional service
costs incurred by Cardinal on behalf of CareFusion will be passed through to CareFusion.
Page 20 of 20
Schedule B
Cardinal Health Facilities
None
Schedule C
CareFusion Services
CareFusion Services
Corporate Requirements | ||||||||||||||||||
Term | ||||||||||||||||||
Geographic | Notice | |||||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||||
EIT-R1.1
|
EIT | Application Management & Support: existing provider | Provide technical support for the web, database, and application in its code base. Learning Management System functional support (e.g. Courseware development, administration functionality provided by the administration tools within the Learning Management System application) will be provided as indicated in HR-R1. Please see HR-R1, HR-R2 and HR-R3 for additional TSA coverage related to Learning Management System support. | North America | 12/31/09 | 6/30/11 | 60 | |||||||||||
EIT-R3.1
|
EIT | Application Management & Support: Malta C12 - Existing Provider |
CareFusion resources provide ERP support to Cardinal Manufacturing site in Malta | Global | 12/31/09 | 6/30/10 | 120 | |||||||||||
EIT-R4.1
|
EIT | Asset depreciation | Total capital and expense associated with the Viasys Complaint Management Project attributable to Cardinal Health | Global | 12/31/09 | 6/30/10 | 120 | |||||||||||
EIT-R5.1
|
EIT | Enterprise Computing - Database, ERP, Middleware Administration - Global |
CareFusion resources to provide
technical support for databases
and tools for Cardinal Health. Provide database administration services in support of: |
North America | 12/31/09 | 6/30/10 | 120 | |||||||||||
ongoing operational support, build outs, tuning, preventative maintenance, on call, issue resolution and any other standard database service delivery for all database environments. | ||||||||||||||||||
Corporate Requirements | ||||||||||||||||||
Term | ||||||||||||||||||
Geographic | Notice | |||||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||||
HR - R1
|
HR | Learning Management System |
Functional TSA includes: • If Cardinal reports a functional bug on their system, then resources will be available to resolve that bug. |
Domestic USA only | 0 | 6/30/11 | 60 | |||||||||||
• Assisting Cardinal course developers with deploying courses on Cardinal Learning Management System. (This does not include course development. See HR-R2 for content development TSA.) | ||||||||||||||||||
• Integrating new Stakeholders, new users onto the Cardinal Learning Management System |
||||||||||||||||||
• Customer service, Quality/LMS interface, author and execute test scripts when changes are made to the Cardinal Learning Management System, load courseware onto Learning Management System, manage training records. | ||||||||||||||||||
Functional TSA does NOT include: | ||||||||||||||||||
• Implementing enhancements designed for CareFusion onto the Cardinal system |
||||||||||||||||||
HR - R2
|
HR | Learning Management Content |
Provide assistance to Cardinal on Learning Management content development on an on-call basis. Note that approval of content development project(s) estimates is required from Cardinal prior to services being rendered. | Domestic USA only | 0 | 6/30/11 | 60 | |||||||||||
HR - R3
|
HR | Learning Management System |
TSA includes: • Routine software maintenance and enhancements required for Cardinal Learning Management System system. If Cardinal reports a technical bug on their system, then resources will be available to resolve that bug. There will also be resources available to implement enhancements deemed necessary by the Cardinal governance board, and to generate customer reports. |
Domestic USA only | 12/31/09 | 6/30/11 | 60 | |||||||||||
Corporate Requirements | ||||||||||||||||||
Term | ||||||||||||||||||
Geographic | Notice | |||||||||||||||||
Ref ID | Function | Service | Description | Scope | Min Term | Max Term | (Days) | |||||||||||
VMD - R1
|
V Xxxxxxx Distribution Services |
Provide general customer service and warehouse operations to support of CAH national sample center and applicable business | Provide C/S support (2) FTE’s to provide order fulfillment activity for HSCS” less than case” quantity sales rep samples for the current level of CAH sku’s. Case quantity sales rep sample requests are not handled by the National Sample Center. Provide distribution support to provide general warehouse services of the following: inbound receipt, pick, pack, ship activity. Provide limited finance support to process monthly financial charge back to the CAH BU based on outbound orders. Increase in current business sku’s managed today which would increase the headcount to support would need to be agreed by CareFusion in advance of the sku add and any additonal headcount (temporary labor) would be absorbed by CAH. This Service is not subject to the automatic Service Extension described in Section 10.01(d) | Domestic USA only | 9/30/09 | 6/30/10 | 90 | |||||||||||
QRA - R1
|
QRA | Authorized Rep | Functions required by the European Union including registration of products with European governments, maintenance of regulatory documents, adminstration of complaints that pertain to death or injury, and various other duties. During the term of the agreement, the duties will diminish to simply forwarding information to the new CAH Authorized Rep. | Europe | 0 | 6/30/11 | 60 | |||||||||||
QRA - R2
|
QRA | Language Translation | Use CareFusion network of language translators for multilingual product labels | Global | 0 | 6/30/11 | 60 | |||||||||||
Tax - R1
|
Tax | Transactional & Property Tax related services |
Assistance with overflow workload related to newly transitioned HSCS-M tasks. | XxXxx | 0 | 9/30/09 | 7 |
Schedule D
CareFusion Facilities
None
Annex A
Cardinal Health Materials
Category | Scope | Policy / Procedure Document Title | ||
Accounting
|
Global, Corporate | Accounting provisions of the U.S. Foreign Corrupt Practices Act | ||
Accounting
|
Global, Corporate | Audit and non-audit services compliance manual | ||
Accounting
|
Global, Corporate | Financial accounting and reporting | ||
Accounting
|
Global, Corporate | Management approval matrix | ||
Accounting
|
Global, Corporate | Retention of the independent auditor | ||
Accounting
|
Global, Corporate | Significant accounting policies | ||
Administration of Cardinal Health policies
|
Global, Corporate | Annual review of Cardinal Health policy documents | ||
Administration of Cardinal Health policies
|
Global, Corporate | Establishment and application of Cardinal Health policies | ||
Administration of Cardinal Health policies
|
Global, Corporate | Release of new or substantial revisions to Cardinal Health policies and related documents | ||
Administration of Cardinal Health policies
|
Global, Corporate | Request for new, or revision, to Cardinal Health policies and related documents | ||
Privacy & Information
|
Global, Corporate | Personal information protection policy | ||
Business Conduct
|
Global, Corporate | Expense reporting on Expenselink from Gelco | ||
Business Conduct
|
Global, Corporate | Reporting obligations | ||
Business Conduct
|
Global, Corporate | Solicitation and acceptance of meals, gifts and entertainment | ||
Business Conduct
|
Global, Corporate | Standards of Business Conduct | ||
Business Conduct
|
Global, Corporate | Third-party educational or professional meeting | ||
Business Conduct
|
Global, Corporate | Training, meetings and demonstrations regarding Cardinal Health products and services | ||
Business Conduct
|
Global, Corporate | Using customers as consultants | ||
EIT and Global Security
|
Global, Corporate | Identification badges | ||
EIT and Global Security
|
Global, Corporate | Information security and classification policy | ||
EIT and Global Security
|
Global, Corporate | Modifications of computing facilities and license restrictions |
Category | Scope | Policy / Procedure Document Title | ||
EIT and Global Security
|
Global, Corporate | Photographic and recording equipment | ||
EIT and Global Security
|
Global, Corporate | Secured storage areas (lockers) | ||
EIT and Global Security
|
Global, Corporate | Security and asset protection | ||
EIT and Global Security
|
Global, Corporate | Weapons restriction | ||
EIT and Global Security
|
Global, Corporate | Wireless communication devices | ||
EIT and Global Security
|
Global, Corporate | Workplace surveillance and searches | ||
EIT and Global Security
|
Global, Corporate | Workplace violence prevention | ||
Enterprise Risk Management
|
Global, Corporate | Business continuity management | ||
Enterprise Risk Management
|
Global, Corporate | Business continuity management — Crisis Leadership Guide | ||
Environmental, Health and Safety
|
Global, Corporate | Bloodborne pathogens | ||
Environmental, Health and Safety
|
Global, Corporate | Control of hazardous energy (lockout/tagout) | ||
Environmental, Health and Safety
|
Global, Corporate | Electrical safety | ||
Environmental, Health and Safety
|
Global, Corporate | Environmental, Health and Safety (“EH&S”) | ||
Environmental, Health and Safety
|
Global, Corporate | Fall protection | ||
Environmental, Health and Safety
|
Global, Corporate | Hazard communication | ||
Environmental, Health and Safety
|
Global, Corporate | Personal protective equipment | ||
Environmental, Health and Safety
|
Global, Corporate | Powered industrial trucks | ||
Environmental, Health and Safety
|
Global, Corporate | Reporting obligations to global EH&S | ||
Environmental, Health and Safety
|
Global, Corporate | Respiratory protection programs | ||
Environmental, Health and Safety
|
Global, Corporate | Welding, cutting and brazing (hot work) | ||
Environmental, Health and Safety
|
Global, Corporate | Workplace safety and health program | ||
Global Trade
|
Global, Corporate | Communication of trade obligations to third parties | ||
Global Trade
|
Global, Corporate | Country of origin determination and marking |
2
Category | Scope | Policy / Procedure Document Title | ||
Global Trade
|
Global, Corporate | Donation of products destined for export | ||
Global Trade
|
Global, Corporate | Exporting or re-exporting goods across international borders | ||
Global Trade
|
Global, Corporate | International transactions records retention | ||
Global Trade
|
Global, Corporate | Security of goods transported across international borders | ||
Global Trade
|
Global, Corporate | Trade classification of goods crossing international borders | ||
Global Trade
|
Global, Corporate | Valuation of goods crossing international borders | ||
Insurance and Loss Prevention
|
Global, Corporate | Insured claim reporting | ||
Insurance and Loss Prevention
|
Global, Corporate | Property damage claim reporting | ||
Insurance and Loss Prevention
|
Global, Corporate | Property loss control | ||
Legal
|
Global, Corporate | Anti-Diversion | ||
Legal
|
Global, Corporate | Anti-Diversion — Know Your Customer Compliance Manual | ||
Legal
|
Global, Corporate | Bribery and corruption prevention | ||
Legal
|
Global, Corporate | Bribery and corruption prevention procedure | ||
Legal
|
Global, Corporate | Contract pricing | ||
Legal
|
Global, Corporate | Fair competition and antirust | ||
Legal
|
Global, Corporate | False Claims Act compliance | ||
Legal
|
Global, Corporate | Internet pharmacy | ||
Legal
|
Global, Corporate | Legal entity change approval procedure | ||
Legal
|
Global, Corporate | Personal information protection policy | ||
Legal
|
Global, Corporate | Political involvement and contributions | ||
Legal
|
Global, Corporate | Prescription pharmaceutical purchases from exclusive distributors procedure | ||
Legal
|
Global, Corporate | Purchases and sales due to medical emergencies, U.S. government requests, manufacturer-recognized product shortages | ||
Legal
|
Global, Corporate | Records retention |
3
Category | Scope | Policy / Procedure Document Title | ||
Legal
|
Global, Corporate | Records retention schedule | ||
Legal
|
Global, Corporate | Restrictions on buying and selling stock and securities (xxxxxxx xxxxxxx) | ||
Legal
|
Global, Corporate | Use of investigative firms | ||
Other
|
Global, Corporate | Charitable contributions | ||
Other
|
Global, Corporate | Media and investor relations | ||
Privacy & Information
|
Global, Corporate | BA Agreement w/ security provisions | ||
Privacy & Information
|
Global, Corporate | HIPAA technical safeguards | ||
Privacy & Information
|
Global, Corporate | HIPAA physical safeguards | ||
Privacy & Information
|
Global, Corporate | HIPAA administrative safeguards | ||
Privacy & Information
|
Global, Corporate | Employment data protection procedure | ||
Privacy & Information
|
Global, Corporate | Information security and classification policy | ||
Privacy & Information
|
Global, Corporate | Patient privacy and HIPAA compliance policy | ||
Privacy & Information
|
Global, Corporate | Personal information access procedure | ||
Privacy & Information
|
Global, Corporate | Personal information and recruiting procedure | ||
Privacy & Information
|
Global, Corporate | Personal information protection policy | ||
Privacy & Information
|
Global, Corporate | Service provider data protection procedure | ||
Privacy & Information
|
Global, Corporate | Detecting, preventing & mitigating identity theft | ||
Quality and Regulatory Affairs
|
Global, Corporate | Change control | ||
Quality and Regulatory Affairs
|
Global, Corporate | Complaint management | ||
Quality and Regulatory Affairs
|
Global, Corporate | Corrective and preventative action | ||
Quality and Regulatory Affairs
|
Global, Corporate | Development of CQRA Policy | ||
Quality and Regulatory Affairs
|
Global, Corporate | Document control | ||
Quality and Regulatory Affairs
|
Global, Corporate | Electronic signatures |
4
Category | Scope | Policy / Procedure Document Title | ||
Quality and Regulatory Affairs
|
Global, Corporate | Environmental assurance | ||
Quality and Regulatory Affairs
|
Global, Corporate | Equipment selection, qualification and maintenance | ||
Quality and Regulatory Affairs
|
Global, Corporate | Escalation of quality and regulatory issues | ||
Quality and Regulatory Affairs
|
Global, Corporate | Facility selection, qualification and maintenance | ||
Quality and Regulatory Affairs
|
Global, Corporate | Field service and support | ||
Quality and Regulatory Affairs
|
Global, Corporate | Information technology validation | ||
Quality and Regulatory Affairs
|
Global, Corporate | Label and user instruction | ||
Quality and Regulatory Affairs
|
Global, Corporate | Manufacturing and operational controls | ||
Quality and Regulatory Affairs
|
Global, Corporate | Materials and supplier management | ||
Quality and Regulatory Affairs
|
Global, Corporate | Packaging and labeling controls | ||
Quality and Regulatory Affairs
|
Global, Corporate | Personnel qualification and training | ||
Quality and Regulatory Affairs
|
Global, Corporate | Product registration management | ||
Quality and Regulatory Affairs
|
Global, Corporate | Qualification and validation | ||
Quality and Regulatory Affairs
|
Global, Corporate | Quality management review | ||
Quality and Regulatory Affairs
|
Global, Corporate | Quality organization | ||
Quality and Regulatory Affairs
|
Global, Corporate | Quality policy | ||
Quality and Regulatory Affairs
|
Global, Corporate | Recall and correction and Form QRA-HHE | ||
Quality and Regulatory Affairs
|
Global, Corporate | Records management | ||
Quality and Regulatory Affairs
|
Global, Corporate | Regulatory inspection management | ||
Quality and Regulatory Affairs
|
Global, Corporate | Sanitation and cleaning | ||
Quality and Regulatory Affairs
|
Global, Corporate | Storage and distribution | ||
Real Estate
|
Global, Corporate | Real estate | ||
Real Estate
|
Global, Corporate | Real estate CAR preparation |
5
Category | Scope | Policy / Procedure Document Title | ||
Travel
|
Global, Corporate | Air transportation or other mass transit | ||
Travel
|
Global, Corporate | Expense reporting on Expenselink from Gelco | ||
Travel
|
Global, Corporate | Lodging | ||
Travel
|
Global, Corporate | Personal travel associated with business travel | ||
Travel
|
Global, Corporate | Reimbursement of travel and business expenses for third parties doing business with Cardinal Health | ||
Travel
|
Global, Corporate | Reimbursement of travel and business expenses | ||
Travel
|
Global, Corporate | Rental vehicles and business use of personal vehicles | ||
Travel
|
Global, Corporate | Travel reservations | ||
Travel — EMEA
|
Global, Corporate | Air transportation or other mass transit | ||
Travel — EMEA
|
Global, Corporate | Expense reporting on Expenselink from Gelco | ||
Travel — EMEA
|
Global, Corporate | Lodging | ||
Travel — EMEA
|
Global, Corporate | Personal travel associated with business travel | ||
Travel — EMEA
|
Global, Corporate | Reimbursement of travel and business expenses | ||
Travel — EMEA
|
Global, Corporate | Rental vehicles and business use of personal vehicles | ||
Travel — EMEA
|
Global, Corporate | Travel reservations | ||
Treasury and Finance
|
Global, Corporate | Corporate authorization | ||
Treasury and Finance
|
Global, Corporate | Vendor setup | ||
Human Resources — US
|
Global, Corporate | Bereavement leave | ||
Human Resources — US
|
Global, Corporate | Cardinal Health career opportunities | ||
Human Resources — US
|
Global, Corporate | Corrective action | ||
Human Resources — US
|
Global, Corporate | Employee referral awards | ||
Human Resources — US
|
Global, Corporate | Employment at will | ||
Human Resources — US
|
Global, Corporate | Employment of minors |
6
Category | Scope | Policy / Procedure Document Title | ||
Human Resources — US
|
Global, Corporate | Equal employment opportunity/nondiscrimination | ||
Human Resources — US
|
Global, Corporate | Excused unpaid leave of absence | ||
Human Resources — US
|
Global, Corporate | Exhaustion of available leave — administrative termination | ||
Human Resources — US
|
Global, Corporate | Family and medical leave of absence | ||
Human Resources — US
|
Global, Corporate | Financial assistance | ||
Human Resources — US
|
Global, Corporate | Harassment and bullying prevention | ||
Human Resources — US
|
Global, Corporate | Holiday postings | ||
Human Resources — US
|
Global, Corporate | Jury duty | ||
Human Resources — US
|
Global, Corporate | Military leave | ||
Human Resources — US
|
Global, Corporate | Paid time off | ||
Human Resources — US
|
Global, Corporate | Smoke-free workplace | ||
Human Resources — US
|
Global, Corporate | Solicitation and distribution | ||
Human Resources — US
|
Global, Corporate | Time reporting | ||
Human Resources — US
|
Global, Corporate | Training and e-learning | ||
Human Resources — US
|
Global, Corporate | Union-free philosophy | ||
Human Resources — US
|
Function Specific | Adjusted date of hire | ||
Human Resources — US
|
Function Specific | Applicant flow log | ||
Human Resources — US
|
Function Specific | Automobile accident leave | ||
Human Resources — US
|
Function Specific | Bonus payments | ||
Human Resources — US
|
Function Specific | Breastfeeding period | ||
Human Resources — US
|
Function Specific | Chauffeur’s social security leave | ||
Human Resources — US
|
Function Specific | COBRA | ||
Human Resources — US
|
Function Specific | Commissions |
7
Category | Scope | Policy / Procedure Document Title | ||
Human Resources — US
|
Function Specific | Compensation | ||
Human Resources — US
|
Function Specific | Compensatory time off | ||
Human Resources — US
|
Function Specific | Direct deposit | ||
Human Resources — US
|
Function Specific | Dress code, protective clothing & equipment | ||
Human Resources — US
|
Function Specific | Drug Free Workplace | ||
Human Resources — US
|
Function Specific | Education Expense Reimbursement | ||
Human Resources — US
|
Function Specific | E-Mail & Internet Use (Tech. Access) | ||
Human Resources — US
|
Function Specific | Employee Assistance Program | ||
Human Resources — US
|
Function Specific | Employee classification | ||
Human Resources — US
|
Function Specific | Employee discounts | ||
Human Resources — US
|
Function Specific | Employment status | ||
Human Resources — US
|
Function Specific | Equal opportunity/affirmative action | ||
Human Resources — US
|
Function Specific | Everyone Matters — Reward & Recognition | ||
Human Resources — US
|
Function Specific | Fitness center or subsidy | ||
Human Resources — US
|
Function Specific | Flexible spending accounts | ||
Human Resources — US
|
Function Specific | Fund raising | ||
Human Resources — US
|
Function Specific | Honors & awards | ||
Human Resources — US
|
Function Specific | Incentive programs | ||
Human Resources — US
|
Function Specific | Interviewing & selection | ||
Human Resources — US
|
Function Specific | Involuntary pay deductions | ||
Human Resources — US
|
Function Specific | Job descriptions | ||
Human Resources — US
|
Function Specific | Job sharing & flexible work arrangements | ||
Human Resources — US
|
Function Specific | Life and AD&D insurance |
8
Category | Scope | Policy / Procedure Document Title | ||
Human Resources — US
|
Function Specific | Lockers & personal property | ||
Human Resources — US
|
Function Specific | Manual checks | ||
Human Resources — US
|
Function Specific | Maternity leave | ||
Human Resources — US
|
Function Specific | Medical/ dental/vision insurance | ||
Human Resources — US
|
Function Specific | Merit increases | ||
Human Resources — US
|
Function Specific | Misc deductions | ||
Human Resources — US
|
Function Specific | Municipal assembly members leave | ||
Human Resources — US
|
Function Specific | Non-occupational disability leave | ||
Human Resources — US
|
Function Specific | Orientation | ||
Human Resources — US
|
Function Specific | Other deductions from pay | ||
Human Resources — US
|
Function Specific | Other earnings | ||
Human Resources — US
|
Function Specific | Overtime pay | ||
Human Resources — US
|
Function Specific | Parking | ||
Human Resources — US
|
Function Specific | Pay advances | ||
Human Resources — US
|
Function Specific | Pay cycles | ||
Human Resources — US
|
Function Specific | Pay methods | ||
Human Resources — US
|
Function Specific | Performance evaluations | ||
Human Resources — US
|
Function Specific | Personal information changes | ||
Human Resources — US
|
Function Specific | Personnel files | ||
Human Resources — US
|
Function Specific | Plant shut down | ||
Human Resources — US
|
Function Specific | Political contributions | ||
Human Resources — US
|
Function Specific | Postings required by law | ||
Human Resources — US
|
Function Specific | Pre-employ screening |
9
Category | Scope | Policy / Procedure Document Title | ||
Human Resources — US
|
Function Specific | Recruitment | ||
Human Resources — US
|
Function Specific | Relationships at work | ||
Human Resources — US
|
Function Specific | Relocation | ||
Human Resources — US
|
Function Specific | Renewal of driving license | ||
Human Resources — US
|
Function Specific | Retroactive pay | ||
Human Resources — US
|
Function Specific | Risk management/worker’s compensation | ||
Human Resources — US
|
Function Specific | Sabbaticals | ||
Human Resources — US
|
Function Specific | School visitation | ||
Human Resources — US
|
Function Specific | Searches & inspections | ||
Human Resources — US
|
Function Specific | Service credit | ||
Human Resources — US
|
Function Specific | Severance pay | ||
Human Resources — US
|
Function Specific | Shift pay | ||
Human Resources — US
|
Function Specific | Sick pay leave | ||
Human Resources — US
|
Function Specific | Sports leave | ||
Human Resources — US
|
Function Specific | State insurance fund | ||
Human Resources — US
|
Function Specific | STD & LTD | ||
Human Resources — US
|
Function Specific | Tax withholding | ||
Human Resources — US
|
Function Specific | Temporary & contract employees | ||
Human Resources — US
|
Function Specific | Time & attendance | ||
Human Resources — US
|
Function Specific | Time off for voting | ||
Human Resources — US
|
Function Specific | Training & education | ||
Human Resources — US
|
Function Specific | Transaction Effective Date | ||
Human Resources — US
|
Function Specific | Unemployment compensation |
10
Category | Scope | Policy / Procedure Document Title | ||
Human Resources — US
|
Function Specific | Union payroll transactions | ||
Human Resources — US
|
Function Specific | Vacation leave | ||
Human Resources — US
|
Function Specific | Verification of Employment | ||
Human Resources — US
|
Function Specific | Void/Reissue of Check | ||
Human Resources — US
|
Function Specific | Volunteer Activities | ||
Human Resources — US
|
Function Specific | Wage and tax statements | ||
Human Resources — US
|
Function Specific | Witness in criminal cases | ||
Human Resources — US
|
Function Specific | Work week | ||
Human Resources — US
|
Function Specific | Exhaustion of available leave — administrative termination | ||
Human Resources — US
|
Function Specific | Training and e-learning | ||
Human Resources — PR
|
Location Specific | Automobile accident leave | ||
Human Resources — PR
|
Location Specific | Bereavement leave | ||
Human Resources — PR
|
Location Specific | Cardinal Health career opportunities | ||
Human Resources — PR
|
Location Specific | Corrective action | ||
Human Resources — PR
|
Location Specific | Employee referral awards | ||
Human Resources — PR
|
Location Specific | Employment at will | ||
Human Resources — PR
|
Location Specific | Employment of minors | ||
Human Resources — PR
|
Location Specific | Equal employment opportunity/non-discrimination | ||
Human Resources — PR
|
Location Specific | Excused unpaid leave of absence | ||
Human Resources — PR
|
Location Specific | Family and medical leave of absence | ||
Human Resources — PR
|
Location Specific | Financial assistance | ||
Human Resources — PR
|
Location Specific | Harassment and bullying prevention | ||
Human Resources — PR
|
Location Specific | Holiday postings |
11
Category | Scope | Policy / Procedure Document Title | ||
Human Resources — PR
|
Location Specific | Jury duty | ||
Human Resources — PR
|
Location Specific | Military leave | ||
Human Resources — PR
|
Location Specific | Paid time off | ||
Human Resources — PR
|
Location Specific | Smoke-free Workplace | ||
Human Resources — PR
|
Location Specific | Solicitation and distribution | ||
Human Resources — PR
|
Location Specific | Time reporting | ||
Human Resources — PR
|
Location Specific | Union-free philosophy | ||
Human Resources — PR
|
Location Specific | Breastfeeding period | ||
Human Resources — PR
|
Location Specific | Chauffeur’s social security leave | ||
Human Resources — PR
|
Location Specific | Maternity leave | ||
Human Resources — PR
|
Location Specific | Time off for voting | ||
Human Resources — PR
|
Location Specific | Municipal assembly members leave | ||
Human Resources — PR
|
Location Specific | Non-occupational disability leave | ||
Human Resources — PR
|
Location Specific | Renewal of driving license | ||
Human Resources — PR
|
Location Specific | Sick pay leave | ||
Human Resources — PR
|
Location Specific | Sports leave | ||
Human Resources — PR
|
Location Specific | State insurance fund | ||
Human Resources — PR
|
Location Specific | Vacation leave | ||
Human Resources — PR
|
Location Specific | Witness in criminal cases |
12
Annex B
Software Fee Arrangement
In the event that there are any costs associated with obtaining software licenses in accordance
with Section 4.01 that (i) would not be payable in the ordinary course, whether (x) in
the form of a “transfer fee” or other similar fees or expenses payable by the Recipient, or
(y) in connection with a third-party demand to resolve an issue that is unrelated to the
Recipient or the license that the Recipient is seeking to obtain, and (ii) would not have been
payable by the Recipient absent the need for a consent or waiver in connection with the
license that the Recipient is seeking to obtain, such costs shall be split 50/50 between the
Provider and the Recipient.
Annex C
Compliance Requirements for CareFusion Services
General Top / Level Language – Applicable to All Services Provided to CareFusion
1. | Quality Systems Regulations (QSR). The medical device products of CareFusion are regulated by the Food and Drug Administration (FDA). The applicable regulations are contained in the Code of Federal Regulations (CFR). These regulations will be observed when Cardinal Health’s documentation is being prepared. Services provided and work performed on CareFusion systems will be performed in compliance with these regulations and standards. | ||
2. | ISO Standards / Industry Standards. Cardinal Health designs, manufactures, services and distributes medical equipment and medical disposable products. CareFusion has been ISO certified at each site. To maintain that certification, CareFusion must operate under strict compliance with all of its policies and procedures. Services provided and work performed on CareFusion systems will be performed in compliance with these regulations and standards. | ||
3. | Training. Each Cardinal Health employee, temporary employee or contractor providing services or performing work for CareFusion must be trained. Depending on the job, there are various levels of training that must be observed to be in compliance with FDA regulations and Industry / ISO Standards Individuals providing services and/or obtaining access to controlled / validated systems will be trained as appropriate for the services provided or access allowed. Individual Director/Managers will be responsible for ensuring training prior to performing any work. CareFusion will utilize eClass as the System of Record for training. | ||
4. | Supplier Approval and Purchasing Controls for Services Provided to CareFusion. Ongoing review, audit and approval related to services provided to CareFusion, under this or any other agreement, will be conducted as defined by the CareFusion Quality System. |
Business System Validations and Automated Process (EIT) Requirements
1. | Business Systems Validation Procedures. The CareFusion business systems validation procedures (governed by the CareFusion quality system 0000-000-000 Automated Process Standard Operating Procedure and following associated documents) will be used to build and manage all CareFusion related systems going forward. However, Cardinal Health will manage the IOQ process for all activities being performed by Cardinal Health employees during the TSA (transition services agreement) period. IOQ and supporting documentation will be provided to CareFusion by CAH for review and approval in accordance with the CareFusion Quality Management System, prior to work being |
performed. Documentation required by the process governing the performance of the work will be provided to CareFusion for maintenance and storage. | ||
2. | Quality System. The CareFusion quality system will be expanded by CareFusion management to address all new MPT businesses (e.g., Viasys, V Xxxxxxx, Enturia, etc.) that are a part of CareFusion. For example, if systems are identified that require validation but are not currently validated (e.g., Viasys), then CareFusion management is accountable for defining and driving remediation efforts. Cardinal Health will perform any support activities necessary as defined within the agreed upon TSAs. Any validation remediation efforts in progress as of December 2008 will continue with the current site-specific validation processes. Remediation efforts initiated in 2009 (date needs to be set – e.g., February 1st, March 1st, etc.) will be performed utilizing 0000-000-000 Automated Process Standard Operating Procedure and following associated documents. | |
3. | Electronic Signature Policy. CareFusion has elected to use the electronic signature feature of its various systems (including SAP) to expedite and streamline its signature process on certain electronic records. An electronic signature is an electronic record of approval of a specific process on SAP. It is not a digitalized picture of a handwritten signature. CareFusion has developed the following Electronic Signature Policy in accordance with the FDA Electronic Records; Electronic Signatures 21 CFR Part 11: (i) CareFusion has approved the use of electronic signatures to authenticate certain electronic records; (ii) electronic signatures are legally binding and, as such, equivalent to traditional handwritten signatures; (iii) Users are accountable and responsible for actions initiated under their electronic signature; (iv) individual passwords and signature identifications must be protected by each employee / user; (v) misrepresenting oneself through the use of another employee’s password or signature, sharing passwords and/or signature keys is strictly prohibited; and (vi) misuse of the authentication process may result in disciplinary action, up to and including, termination. | |
4. | CAPA Process. The CareFusion CAPA process will be used to manage all CAPA issues related to CareFusion systems even if the issue is identified as a part of a TSA related service provided by Cardinal Health. |
2
Exhibit I
Services Managers
Position | ||||
Cardinal Health Services Manager |
||||
CareFusion Services Manager |