TRANSITIONAL SERVICES AGREEMENT by and between MISYS PLC and ALLSCRIPTS-MISYS HEALTHCARE SOLUTIONS, INC dated as of [•], 2010
Exhibit 99.16
AGREED FORM
by and between
and
ALLSCRIPTS-MISYS HEALTHCARE SOLUTIONS, INC
dated as of [•], 2010
THIS TRANSITIONAL SERVICES AGREEMENT (this “Agreement”), dated as of [ ], 2010,
between Misys plc, a public limited company incorporated under the laws of England and Wales
(“Manchester”), and Allscripts-Misys Healthcare Solutions, Inc., a Delaware corporation
(“Arsenal”).
W I T N E S S E T H :
WHEREAS, Manchester acquired direct and indirect ownership of approximately fifty-four and
one-half percent (54.5%) of the then issued and outstanding Arsenal Shares pursuant to an agreement
and plan of merger, dated March 17, 2008, entered into by and among Manchester, AM LLC, Allscripts
Healthcare Solutions Inc. and Patriot Merger Company, LLC;
WHEREAS, Manchester and Arsenal entered into a Framework Agreement dated as of June 9, 2010
(the “Framework Agreement”) pursuant to which Manchester and Arsenal agreed, among other
things and subject to certain conditions, to reduce Manchester’s existing indirect shareholding in
Arsenal through (i) a repurchase by Arsenal of Arsenal Shares held indirectly by Manchester through
its subsidiaries and (ii) a secondary public offering by subsidiaries of Manchester of additional
Arsenal Shares (the transactions described in clauses (i) and (ii), the “Coniston
Transaction”); and
WHEREAS, following the occurrence of, and subject to the closing of, the Coniston Transaction
(the “Coniston Closing”), Manchester and Arsenal each desire to provide, or cause to be
provided, to the Recipients indicated on the Schedules hereto, and such Recipients desire to accept
and receive, the Services and other services and rights set forth herein.
NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Manchester and Arsenal agree as follows:
1. Definitions and Interpretation
1.1 Definitions. In this Agreement, the following terms have the meanings
specified or referred to in this Section 1.1:
“AAA” has the meaning specified in Section 10.2.
“Action” means any suit, action, cause of action, proceeding, claim, complaint,
grievance, arbitration proceeding, demand, citation, summons, subpoena, cease and desist letter,
injunction, notice of violation or irregularity, review or investigation (whether civil, criminal,
regulatory or otherwise and whether at law or in equity) before or by any Governmental Entity or
before any arbitrator.
“Additional Service” has the meaning specified in Section 2.1(b).
“Affiliate” means, with respect to any Person, another Person that, at the time of
determination, directly or indirectly, through one or more intermediaries, controls, is controlled
by, or is
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under common control with, such first Person, whether by Contract, possession (directly or
indirectly) of power to direct or cause the direction of the management or policies of a Person or
the ownership (directly or indirectly) of securities or other interests in such Person and for the
avoidance of doubt (i) neither Arsenal nor any of its Subsidiaries shall be treated as Affiliates
of Manchester or any of its other Subsidiaries (other than Arsenal and its Subsidiaries) and (ii)
neither Manchester nor any of its Subsidiaries (other than Arsenal and its Subsidiaries) shall be
treated as Affiliates of Arsenal or any of its Subsidiaries.
“Agreement” has the meaning specified in the first paragraph.
“Amended and Restated Relationship Agreement” means the amended and restated
relationship agreement, dated on or about the date of this Agreement, between
Arsenal and Manchester.
“Arsenal” has the meaning specified in the first paragraph and includes its permitted
successors and permitted assigns.
“AM LLC” means Allscripts-Misys Healthcare Systems LLC (formally known as
Misys Healthcare Systems LLC), a North Carolina limited liability company.
“Arsenal Shares” means the issued and outstanding shares of common stock of
Arsenal, par value $0.01 per share.
“Confidential Information” has the meaning specified in Section 4.1.
“Contract” means a contract, agreement, arrangement or lease, whether written or oral.
“Dispute Date” has the meaning specified in Section 10.1.
“Effective Date” has the meaning specified in Section 5.1.
“Executives” means Manchester’s Xxxxxxx Xxxxxx and Arsenal’s Xxxx Xxxxx or such other
persons as each of Manchester and Arsenal shall designate from time to time.
“Expenses” means any and all expenses incurred in connection with investigating,
defending or asserting any Action incident to any matter indemnified against hereunder (including
court filing fees, court costs, arbitration fees or costs, witness fees, and reasonable fees and
disbursements of legal counsel, investigators, expert witnesses, consultants, accountants and other
professionals).
“Fees” means, with respect to any given Service, (a) charges for the provision of such
Service and (b) reasonable out-of-pocket expenses (which, for the avoidance of doubt, shall not
include allocations for overhead or similar general operating expenses) incurred by a Provider on
behalf of a Recipient in the provision of such Service (regardless of whether such reasonable
out-of-pocket expenses are listed on any Schedule); provided, that any such
out-of-pocket expenses that are not set forth on the relevant Schedule (i) for Manila Support
Services individually in excess of $2,000 or in the aggregate in excess of $10,000 per fiscal
quarter shall require the prior consent of the Recipient to be a “Fee” hereunder and (ii) for other
Schedules individually in excess of $5,000 or in the aggregate in excess of $20,000 per fiscal
quarter shall require the prior consent of the Recipient to be a “Fee” hereunder, and
provided, further, that the aggregate of all out-of-pocket expenses not set forth
on a Schedule for all Services shall not exceed $500,000 per Service Period.
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“Financial Services” has the meaning specified in Schedule A.
“Force Majeure” has the meaning specified in Section 12.12.
“Framework Agreement” has the meaning specified in the third paragraph.
“Governmental Entity” means any domestic or foreign (whether national, federal, state,
provincial, local or otherwise) government or any court, administrative agency or commission or
other governmental or regulatory authority or agency, domestic, foreign or supranational.
“Indemnified Party” and “Indemnified Parties” have the meanings specified in
Section 7.1.
“Indemnifying Party” has the meaning specified in Section 7.1.
“Information Systems Services” has the meaning specified in Schedule D.
“Law” (and with the correlative meaning “Laws”) means rule, regulation, statute,
order, ordinance, guideline, code (including the UK Takeover Code) or other legally enforceable
requirement, including, but not limited to common law, state and federal laws or securities laws
and laws, rules and regulations of foreign jurisdictions.
“Liability” means any and all claims, debts, liabilities and obligations, absolute or
contingent, matured or unmatured, liquidated or unliquidated, accrued or unaccrued, known or
unknown, whenever arising (unless otherwise specified in this Agreement), including all reasonable
out-of-pocket costs and reasonable attorneys’ fees and expenses relating thereto, and including
those debts, liabilities and obligations arising under any Law, and those arising under any
Contract, commitment or undertaking.
“Loss” means any and all losses, costs, obligations, liabilities, settlement payments,
awards, judgments, fines, penalties, damages, fees, expenses, deficiencies, or other charges,
absolute or contingent, matured or unmatured, liquidated or unliquidated, accrued or unaccrued,
known or unknown (including the costs and expenses of any and all Actions, demands, assessments,
judgments, settlements and compromises relating thereto and attorneys’ fees and any and all
expenses whatsoever reasonably incurred in investigating, preparing or defending against any such
Actions or threatened Actions).
“Manila Support Services” has the meaning specified in Schedule C.
“Manchester” has the meaning specified in the first paragraph and includes its
permitted successors and permitted assigns.
“Open Source Software License Agreement” has the meaning specified in the Proprietary
Software License Agreement.
“Overdue Rate” means the prime rate of interest as published in the Wall Street
Journal on the date a payment hereunder was due plus one percent (1%).
“Party” means Manchester or Arsenal as the context may require.
“Parties” means Manchester and Arsenal together.
“Person” means an individual, corporation, partnership, joint venture, association,
trust, limited liability company, Governmental Entity, unincorporated organization or other entity.
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“Proprietary Software License Agreement” means the Proprietary Software License
Agreement, dated as of October 10, 2008, between Misys Open Source Solutions LLC and AM LLC.
“Provider” means an entity providing a Service hereunder, as indicated on the
Schedules hereto. Manchester, Arsenal or any of their respective Affiliates may serve as a
Provider hereunder.
“Provider Invoice” has the meaning specified in Section 3.2.
“Provider Party” means either Manchester (if the Provider is Manchester or an
Affiliate of Manchester) or Arsenal (if the Provider is Arsenal or an Affiliate of Arsenal).
“Provider Service Manager” has the meaning specified in Section 2.3(a).
“Provider Software” means all computer systems, software programs and databases and
external data services used by a Provider (i) prior to the date hereof in providing services to a
Recipient or (ii) in the performance of Services hereunder.
“R&D Services” has the meaning specified in Schedule B.
“Recipient” means an entity receiving a Service hereunder, as indicated on the
Schedules hereto. Manchester, Arsenal or any of their respective Affiliates may be a Recipient
hereunder.
“Recipient Data” means all correspondence, communications, memos, e-mails, electronic
or paper records, electronic or paper documents or other information, including but not limited to
client databases, pricing, collections, and any other financial information, prepared or generated
by any Provider with respect to any Recipient or its businesses during the term of this Agreement
contained in such Provider’s data files or systems, any additions or modifications made thereto by
Provider in the course of performing Services under this Agreement, and any output data resulting
from the delivery of Services by Provider.
“Recipient Party” means either Arsenal (if the Recipient is Arsenal or an Affiliate of
Arsenal) or Manchester (if the Recipient is Manchester or an Affiliate of Manchester).
“Recipient Service Manager” has the meaning specified in Section 2.3(a).
“Records” has the meaning specified in Section 3.3(a).
“Schedule” means any schedule attached hereto.
“Service End Date” as it relates to each Service has the meaning specified in the
relevant Schedule for that Service.
“Service Manager” has the meaning specified in Section 2.3(a).
“Service Period” has the meaning specified in Section 5.1.
“Services” has the meaning specified in Section 2.1(a).
“Software” means all computer software, including application software, operating
system software and firmware including all source code and object code versions thereof, in any and
all forms and media, and all related documentation.
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“Subsidiary” means, with respect to any Person, another Person of which more than 50%
of any class of capital stock, voting securities, other voting ownership or voting partnership
interests (or, if there are no such voting interests, more than 50% of the equity interests) are
owned or controlled, directly or indirectly, by such first Person.
“Tax Services” has the meaning specified in Schedule E.
“Third Party” has the meaning specified in Section 2.8(a).
“Third Party Consent” has the meaning specified in Section 2.8(a).
“Third Party Fee” has the meaning specified in Section 2.8(c).
“Trademark and Trade Name License Agreement” means the trademark and trade name
license agreement dated October 10, 2008 between Manchester as licensor and AM LLC as licensee.
“Trademark and Trade Name Sublicense Agreement” means the trademark and trade name
sublicense agreement dated October 10, 2008 between AM LLC as licensor and Arsenal as sublicensee.
“Transition and Migration Plan” has the meaning specified in Section 5.4(c).
1.2 Interpretation.
(a) In this Agreement, unless the context clearly indicates otherwise:
(i) words used in the singular tense include the meanings of those words in
the plural tense, and words used in the plural tense include the meanings of
those words in the singular tense;
(ii) reference to any Person includes such Person’s successors and assigns
but, if applicable, only if such successors and assigns are permitted by
this Agreement;
(iii) reference to any gender includes the other gender;
(iv) the words “include”, “includes” and “including” shall each be deemed to
be followed by the term “without limitation”;
(v) reference to any section, paragraph, exhibit or schedule means such
section or paragraph of, or such exhibit or schedule to, this Agreement, as
the case may be, and references in any section or definition to any clause
means such clause of such section or definition;
(vi) the words “herein,” “hereunder,” “hereof,” “hereto” and words of
similar import shall be deemed references to this Agreement as a whole and
not to any particular Section or other provision hereof;
(vii) reference to any agreement, instrument or other document means such
agreement, instrument or other document as amended, supplemented and
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modified from time to time to the extent permitted by the provisions thereof
and by this Agreement;
(viii) reference to any Law (including statutes and ordinances) means such
Law (including all rules and regulations promulgated thereunder) as amended,
modified, codified or reenacted, in whole or in part, and in effect at the
time of determining compliance or applicability;
(ix) relative to the determination of any period of time, “from” means “from
and including,” “to” means “to but excluding” and “through” means “through
and including”;
(x) in the event of any conflict between the provisions of the body of this
Agreement and the Schedules hereto, the provisions of the relevant Schedule
shall control, unless a Schedule or this Agreement expressly provides
otherwise;
(xi) the titles and sections contained in this Agreement have been inserted
for convenience of reference only and shall not be deemed to be a part of or
to affect the meaning or interpretation of this Agreement; and
(xii) any portion of this Agreement obligating a Party to take any action or
refrain from taking any action, as the case may be, shall mean that such
Party shall also be obligated to cause its relevant Affiliates or
subcontractors to take such action or refrain from taking such action, as
the case may be.
(b) This Agreement was negotiated by the Parties with the benefit of legal
representation, and any rule of construction or interpretation otherwise requiring
this Agreement to be construed or interpreted against either Party shall not apply
to any construction or interpretation hereof.
2. Provision and receipt of Services
2.1 General. (a) Each Provider hereunder shall provide to the relevant
Recipient(s) hereunder, in accordance with the terms hereof and the Schedules, the following
services solely for use in the business of such Recipient and its Affiliates:
(i) | Financial Services (as defined in Schedule A); | ||
(ii) | R&D Services (as defined in Schedule B); | ||
(iii) | Manila Support Services (as defined in Schedule C); | ||
(iv) | Information Systems Services (as defined in Schedule D); and | ||
(v) | Tax Services (as defined in Schedule E), |
(collectively, the “Services,” and each individually, including each individual
service forming a part thereof, a “Service”).
(b) Additional Services. Notwithstanding anything to the contrary
contained herein, if either Party becomes aware of any service (each, an
“Additional Service”), which is
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not already being provided pursuant hereto, and such service was provided by
Manchester or its Subsidiaries to Arsenal or a subsidiary of Arsenal or by Arsenal
or its Subsidiaries to Manchester or a Subsidiary of Manchester prior to the date
hereof, then such Party shall notify the other Party in writing of any such
services and the Parties shall, for thirty (30) days thereafter, negotiate in good
faith an amendment or modification hereto regarding the scope, terms, duration and
cost and fees therefor, which shall be no less favorable to the designated
Recipient than the terms on which such service was previously provided, and if the
Parties cannot reach an agreement on such terms prior to such thirtieth day, such
service shall not be added hereto as an Additional Service. Once agreed, any such
Additional Service shall be a “Service” for all purposes of this Agreement and the
Parties shall amend this Agreement accordingly. Until the execution of any such
amendment, neither the Provider Party nor its Affiliates shall be obligated to
provide any such Additional Service.
2.2 Standard of Care. In the performance of the Services, a Provider
shall perform the Services at a service level equal to or better than the current service
level for that particular Service as provided by a Provider to itself or its Affiliates;
provided that with respect to a particular Service, the Provider and
Recipient may agree on a specific service level relevant to such Service, consistent with
this general principle, which will be set forth as part of the relevant Schedule. During
the transition period, the Services shall be provided at the same service levels, and using
the same personnel, as provided prior to the Effective Date. To the extent any
such personnel used in the provision of the Services ceased to be employed or engaged by the
Provider following the Effective Date, then the Provider shall notify the Recipient and, if
requested by the Recipient, the Provider shall provide the same number of replacement
personnel as is required to replace those who have left at no additional cost to the
Recipient unless otherwise specified in the relevant Schedule for such Service or otherwise
agreed between the Provider and the Recipient.
2.3 Service Managers.
(a) Each Provider and Recipient shall designate one or more of its employees or
representatives to be manager for each of the categories of Services listed in
Section 2.1(a) herein (each, a “Provider Service Manager”,
“Recipient Service Manager” or “Service Manager”, as applicable).
Each Service Manager shall be listed in the Schedules hereto or shall otherwise be
appointed, and the other Party shall be notified of such appointment, promptly
after the date hereof. Each Provider Service Manager’s responsibilities for his or
her identified Services shall include:
(i) supervising the performance of a Provider’s obligations (including
performance of Services); and
(ii) communicating or meeting with the corresponding Recipient Service
Manager as reasonably necessary to review progress and to resolve any issues
relating to the Services.
(b) Each Recipient Service Manager’s responsibilities for his or her identified
Services shall include: (i) supervising the Recipient’s performance of its
responsibilities with respect to the Services; and (ii) communicating or meeting
with the corresponding Provider Service Manager as reasonably necessary to review
progress and to resolve any issues relating to the Services.
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(c) If a Service Manager of either Party is unable to continue to serve in such
capacity or if either Party elects to change a Service Manager, such Party shall
appoint a successor Service Manager and promptly notify the other Party of such
appointment.
2.4 Affiliates. The Provider Party remains responsible for the
performance of any of its Affiliates of the Services. A Provider may subcontract any of its
obligations in relation to the provision of any Service or component thereof to any of its
Affiliates; provided that such Affiliate shall be subject to the standard of
care set forth in Section 2.2 and that the Provider Party remains responsible for
such performance of such Service or component thereof by such Affiliate at the same standard
of care set forth herein for the Services.
2.5 Recipient Obligations. To enable a Provider to provide the Services,
a Recipient shall provide or cause to be provided, at its sole cost and expense, such
information and materials, furnish access to such data, personnel, software licenses and
other resources, and take such other actions as are reasonably necessary for the Provider to
provide the Services.
2.6 Compliance with Laws. A Provider shall have no obligation to engage
in any unlawful activity in connection with the provision of the Services. In the event
that either Party becomes aware of a change in the Law applicable to a Service, each shall
notify the other and negotiate in good faith how to change the Service to accommodate the
change in applicable Law (including cost). If after fifteen (15) days the Parties are
unable to agree on how the Services are to be changed in order to accommodate the change in
Law, then the Provider may terminate the Services or such component thereof immediately upon
giving written notice without any further liability or obligation other than the payment of
Fees for such Services or components thereof provided through the date of such termination.
In performing the Services, the Provider Party and any Provider shall comply in all material
respects with all Laws that apply to the performance of the same.
2.7 Limited License. Subject to the terms and conditions of this
Agreement, the Provider Party hereby grants to the Recipient Party a nonexclusive,
terminable, limited right and license (or sublicense, as the case may be) to access and/or
use the Provider Software solely in connection with the receipt of the Services hereunder to
the extent that the Recipient Party requires access and use of the same; provided
that the grant of such license or sublicense for any piece of Provider Software is
conditioned upon the terms (if any) of the consent to use such software previously granted
by a third-Person (should third-Person consent be applicable in the circumstances) and any
such license to Provider Software shall automatically terminate on the relevant Service End
Date without the parties having to take any further action. The software covered by the
Proprietary Software License Agreement or the Open Source Software License Agreement shall
be governed by the terms of such agreements, as applicable, and not by this Section
2.7. If a Recipient declines to pay the third-Person consent costs as noted above, the
Provider shall not be obligated to grant the applicable license or sublicense and the
Recipient may, at its option, terminate the Service with respect to which such consent was
being sought following 45-days notice to the Provider Party of its intent to do so without
any further liability or obligation other than the payment of Fees for such Services
provided through the date of such termination. All rights in and to the Provider Software
not specifically granted herein are reserved by the Provider Party and its Affiliates, as
applicable.
2.8 Third Party Consents.
(a) The Parties shall cooperate with each other and shall use commercially
reasonable endeavors to obtain the consent of third parties (each a Third Party)
which
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are necessary or desirable (i) to permit the Services to be provided, enjoyed or
used in accordance with the terms of this Agreement or (ii) to achieve the
separation of any other services or benefits provided by a Third Party to either or
both of the Parties (each a Third Party Consent).
(b) Each Party shall be responsible for its own internal personnel and related
costs and external professional costs incurred in relation to obtaining each Third
Party Consent.
(c) If a Third Party requests the payment of a fee as a condition precedent for
granting a Third Party Consent or the Third Party grants a Third Party Consent
subject to an increase in the fees payable to that Third Party (in each case, a
Third Party Fee), then the Parties shall negotiate in good faith as to whether the
relevant contract with that Third Party shall be terminated in accordance with its
terms and the Parties shall bear any costs associated with such termination in
proportion (as at the Effective Date) to each Party’s use of such Third Party’s
services or contract. If the Parties agree (each acting reasonably) that the
relevant contract shall continue, then the Parties shall bear the Third Party Fee
in proportion (as at the Effective Date) to each Party’s use of such Third Party’s
services or contract.
3. Fees; Invoicing and Payment
3.1 Fees Generally. The relevant Recipient or Recipient Party shall pay
the relevant Provider or Provider Party the amounts set forth in Schedule A in
consideration for the Financial Services, the amounts set forth in Schedule B in
consideration for the R&D Services, the amounts set forth in Schedule C in
consideration for the Manila Support Services; the amounts set forth in Schedule D
in consideration for the Information Systems Services and the amounts set forth in
Schedule E in consideration for the Tax Services. With respect to Fees charged by
Manchester or any of its Affiliates, such Fees will use the Manchester budgeted exchange
rates for the then-applicable fiscal period. For purposes of clarification, all Fees set out
in the Schedules to this Agreement are specified and payable in U.S. dollars and are not
subject to change due to exchange rates or currency fluctuations.
3.2 Payments. The Provider Party shall submit or cause to be submitted to
the Recipient Party or a Recipient, within thirty (30) business days following the end of
each calendar month, an invoice specifying the Fees for and nature of each of the Services
provided during the relevant month (each, a “Provider Invoice”). The Provider Party
shall, and shall cause its Affiliates to, provide the Recipient Party with such books and
records as are necessary to support the amounts in the relevant Provider Invoice as the
Recipient Party may reasonably request from time to time. The Recipient Party shall pay or
cause to be paid in full the amounts due under each Provider Invoice within fifteen (15)
days after receipt of such Provider Invoice and such payment shall be accompanied by a copy
of the applicable Provider Invoice. Any portion of the amount due on any Provider Invoice
not paid within such fifteen (15) day period shall bear interest at the Overdue Rate,
calculated on an annualized basis based on a 360-day year comprised of twelve (12) thirty
day months, until paid in full. All amounts invoiced on Provider Invoices shall be in
United States (U.S.) dollars, unless otherwise agreed upon by the Parties.
3.3 Records and Access to Records.
(a) Each Party agrees to maintain, and to cause its applicable Affiliates to
maintain, books and records arising from or related to any Services provided
hereunder that are
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accurate and complete in all material respects during the term of each Service and
for a period of four (4) years following the termination or expiration of such
Service, including but not limited to accounting records and documentation produced
in connection with the rendering of any Service and in the calculation of any
compensation payable pursuant hereto (the “Records”).
(b) During the term hereof and for one year thereafter, no more than once during
each six month period in each fiscal year, the Recipient Party shall have the right
to audit the Records of the Provider Party and its Affiliates pertaining to the
Services received during that fiscal year. The Recipient Party may use an
independent auditor to perform any such audit that is reasonably acceptable to the
Provider Party. Prior to the Recipient Party using an independent auditor, such
independent auditor shall enter into an agreement with the Parties, on terms that
are agreeable to both Parties, under which such independent auditor agrees to
maintain the confidentiality of the information and materials reviewed during the
course of such audit. The findings of such audit shall be considered Confidential
Information for the purposes of this Agreement.
(c) Any audit shall be conducted during regular business hours and in a manner that
does not interfere unreasonably with the operations of the Provider Party or its
Affiliates. Each audit shall begin upon the date agreed by the Parties, but in no
event more than ten (10) days after notice from the Recipient of such audit, and
shall be completed as soon as reasonably practicable. The Recipient Party shall pay
or cause to be paid the costs of conducting such audit, unless the results of an
audit reveal an overpayment of the applicable audited Service of 7.5% or more, in
which case, the Provider Party shall pay or cause to be paid the lesser of the
pro-rata portion of the audit fees for auditing such Service or an amount equal to
the amount of the overpayment. If the audit concludes that an overpayment or
underpayment has occurred during the audited period, such payment shall be remitted
by the Party or its Affiliate responsible for such payment to the other Party or its
Affiliate to whom such payment is owed within thirty (30) days after the date such
auditor’s written report identifying the overpayment or underpayment is delivered to
the Party who is, or whose Affiliate is, responsible for such payment,
provided that should the Provider Party dispute the findings of an
audit conducted by the Recipient Party without the use of an independent auditor,
the Provider Party may withhold any disputed amounts due to the Recipient Party
pursuant to this Section 3.3(c) pending the resolution of such dispute in
accordance with Section 10 hereof. Any such finally determined overpayment
or underpayment shall bear interest at the Overdue Rate, calculated on an annualized
basis based on a 360-day year comprised of twelve thirty day months, from the date
such overpayment or underpayment occurred until paid in full.
(d) In connection with any audit, the Provider Party shall provide the Recipient
Party and the auditors of the Recipient Party who have executed a confidentiality
agreement in accordance with Section 3.3(b) reasonable access to Records
(and permit the Recipient Party and the Recipient Party’s auditors to examine and
make copies and abstracts from such Records), facilities and management personnel
and subcontractors (if applicable) with respect to the relevant Services for the
purpose of: (A) performing the Recipient Party’s end of fiscal quarter or end of
fiscal year financial closing process, and to prepare the related financial
statements and accounting reports, or to revise any financial statements and
accounting reports for any prior periods; or (B) performing audits and inspections
of the relevant businesses necessary to meet applicable regulatory requirements,
including Section 404 of the Xxxxxxxx-Xxxxx Act of 2002.
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(e) Upon written request from the other Party, each Party shall provide the other
Party reasonable access to the Records and relevant personnel during the term of
each Service (and, for a period of four (4) years following the termination or
expiration of such Service, for purposes of defending any litigation, the
preparation of income and other tax returns, demonstrating to any third-Person as
reasonably necessary compliance with applicable laws or regulations or pursuant to
the request of any applicable regulatory authority); provided,
however, that each Party shall bear its own expenses in connection
therewith (including out of pocket expenses), such access shall be provided at a
reasonable time, under the supervision of such first Party’s or its Affiliates’
personnel and in such a manner as not to interfere unreasonably with the normal
operation of such first Party’s or its Affiliates’ businesses, and shall be subject
to any confidentiality obligations on the part of the first Party or its Affiliates
to any third Person, and provided further that nothing herein shall require any
Party to provide the other Party access to any information contained in any Record
that does not relate to the relevant Services. Such access shall include the right
to examine and copy Records to the extent relating to the relevant Services,
subject to the confidentiality obligations set forth in Section 4 herein.
3.4 Taxes. The Fees set forth in the Schedules do not include any sales,
value-added, goods and services, or similar taxes of any nature imposed by any federal,
state, local or foreign jurisdiction. If a Provider or the Provider Party has the legal
obligation to collect and/or pay any such taxes with respect to provision of Services under
this Agreement, the amount of (and the jurisdiction imposing) such taxes shall be added to
the Provider Invoice to a Recipient or the Recipient Party, separately stated, and shall be
paid by a Recipient or the Recipient Party to a Provider or the Provider Party;
provided that (a) in the case of value-added taxes, a Recipient or the
Recipient Party shall not be obligated to pay such taxes unless a Provider or the Provider
Party has issued to a Recipient or the Recipient Party a valid value-added tax invoice in
respect thereof, and (b) in the case of all such taxes, a Recipient or the Recipient Party
shall not be obligated to pay such taxes if and to the extent that a Recipient or the
Recipient Party has provided any exemption certificates or other applicable documentation
that would eliminate or reduce the obligation to collect and/or pay such taxes. If a
Provider or the Provider Party does not have the legal obligation to collect and/or pay any
such taxes with respect to the provision of Services to a Recipient or the Recipient Party
hereunder, a Recipient or the Recipient Party does have such legal obligation with respect
to such taxes, and the amount of such taxes has not been added to the Provider Invoice to a
Recipient or the Recipient Party, a Recipient or the Recipient Party shall pay the invoiced
amount to a Provider or the Provider Party without reduction for such taxes and shall pay to
the applicable federal, state, local or foreign jurisdiction the amount of such taxes due to
such jurisdiction. With respect to each Service, a Recipient and the Recipient Party shall
hold the Provider(s) and the Provider Party harmless from any sales, value added, goods and
services, or similar taxes of any nature imposed by any federal, state, local or foreign
jurisdiction with respect to such Service or payments under this Agreement with respect to
such Service; provided that in the event a Provider or the Provider Party is
obligated by law to add any such taxes to a Provider Invoice and fails to do so, neither the
Recipient nor the Recipient Party shall be responsible for any penalties imposed as a result
of such failure.
4. Confidentiality
4.1 Confidential Information. “Confidential Information” of a
Party means all business, operational, customer, employee, technological, financial,
commercial and other proprietary information and materials disclosed by a Party and its
Affiliates to the other Party, its Affiliates and third-Person vendors pursuant to this
Agreement, and shall include all information and
12
materials that: (a) are contained in any of the Schedules to this Agreement; (b) relate to
the determination of the Fees; (c) are obtained by the other Party after the date hereof in
the course of the receipt or provision of any of the Services; (d) embody or otherwise
summarize Confidential Information; or (e) are identified in writing by the disclosing Party
as confidential and/or proprietary.
4.2 Confidentiality Obligations. Except as expressly authorized by prior
written consent of the disclosing Party, the receiving Party shall:
(a) limit access to any Confidential Information of the other Party received by it
to its and its Affiliates’ directors, officers, employees, subcontractors, agents
and representatives, including third-Person vendors, who need to know in connection
with this Agreement and the obligations of the Parties hereunder;
(b) advise such directors, officers, employees, subcontractors, agents and
representatives, including third-Person vendors, having access to the Confidential
Information of the other Party of the proprietary nature thereof and of the
obligations set forth in this Agreement and confirm their agreement that they will
be bound by such obligations (provided that no individual may
perform R&D Services within India or Manila Support Services within Manila,
Philippines without previously having executed a written non-disclosure agreement
with a Party or its Affiliate);
(c) safeguard all Confidential Information of the other Party received using a
reasonable degree of care, but not less than that degree of care used by the
receiving Party in safeguarding its own similar information or material;
(d) comply in all material respects with all applicable: (i) Laws relating to
maintaining the confidentiality of the Confidential Information of the other Party;
and (ii) privacy policies provided to the receiving Party relating to Confidential
Information of the disclosing Party;
(e) except as set forth in this Agreement, not reproduce or use any Confidential
Information of the other Party or disclose the Confidential Information of the
other Party to any other Person without the prior written consent of the other
Party; and
(f) use the Confidential Information of the other Party only for the purposes and
in connection with the performance of the receiving Party’s obligations set forth
in this Agreement.
4.3 Exceptions. Notwithstanding the obligations set forth in Section
4.2, the obligations of confidentiality, non-use and non-disclosure imposed under this
Section 4 shall not apply to any Confidential Information of the other Party:
(a) that the recipient can demonstrate has been published or otherwise been made
available to the general public without breach of this Agreement;
(b) that the recipient can demonstrate has been furnished or made known to the
recipient without any obligation to keep it confidential by a third Person under
circumstances which are not known or should not have reasonably been known to the
recipient to involve a breach of the third Person’s obligations to a Party hereto;
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(c) that the recipient can demonstrate was developed or acquired independently by
an employee or agent of the recipient without access to or use of Confidential
Information of the other Party furnished to the recipient pursuant to this
Agreement;
(d) that the recipient can demonstrate it is explicitly entitled to disclose
pursuant to the Amended and Restated Relationship Agreement; or
(e) that the recipient can demonstrate was also provided to it, independent of this
Agreement, in its capacity as a director or shareholder of the other Party and is
governed by confidentiality obligations in its capacity as such.
4.4 HIPAA Obligations. Each Party acknowledges that certain Recipient
Data of the other Party may constitute “protected health information” subject to the Health
Insurance Portability and Accountability Act of 1996 (“HIPAA”), and that the other
Party may be considered a “business associate” to customers that are “covered entities”
under HIPAA. Each Party shall treat all such Recipient Data as Confidential Information of
the other Party hereunder, regardless of whether such information is aggregated or otherwise
“de-identified” (as that term is defined under HIPAA). Each Party acknowledges that it has
executed a business associate subcontractor agreement.
4.5 Data Security. The Provider Party shall use commercially reasonable
efforts to protect the physical security and electronic security of the equipment utilized
to provide the Services to the Recipient Party that contains Recipient Data. In the event
of a breach or suspected breach of security of any system, website, database, equipment or
storage medium or facility that results or could result in unauthorized access to Recipient
Data by any third party (including any employee or subcontractor of the Provider Party that
is not authorized to access such information), the Provider Party shall notify the Recipient
Party as promptly as is reasonably possible under the circumstances and make commercially
reasonable efforts to resecure its systems promptly. The Provider Party shall treat any
information related to such security incident(s) as the Recipient’s Confidential
Information. The Provider Party agrees to provide reasonable cooperation to the Recipient
Party and any applicable government agency in investigating and resolving any such security
incident.
4.6 Injunctive Relief. Each Party acknowledges that the disclosing Party
would not have an adequate remedy at Law for the breach of any one or more of the covenants
contained in this Section 4 and agrees that, in the event of such breach, the
disclosing Party may apply to a court for an injunction to prevent breaches of this
Section 4 and to enforce specifically the terms and provisions of this Section
4.
4.7 Disclosure Required by Law. The provisions of this Section 4
shall not preclude disclosures required by Law; provided, however, that each
Party shall use reasonable efforts to notify the other Party prior to making any such
disclosure, in order to permit the other Party to take such steps as it deems appropriate to
minimize any loss of confidentiality.
5. Term and Termination
5.1 Term. The term for each of the Services shall begin on the date
hereof (the “Effective Date”) and shall continue in effect until the Service End
Date (such period being the “Service Period” for each Service). Notwithstanding the
foregoing or anything to the contrary contained in this Agreement, no Service shall continue
to be provided beyond the Service End Date for the
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particular Service and this Agreement shall automatically terminate when each Service End
Date has been reached if it has not been terminated beforehand in accordance with its terms.
5.2 Termination of a Particular Service or Component Thereof. At any
time:
(a) either Party may terminate its rights and obligations with respect to the
provision of a Service or any component thereof effective thirty (30) days
following notice to the other Party if the other Party materially defaults in the
performance of any of its obligations contained in this Agreement for such Service
or component thereof, as applicable, and such default is not remedied to the
reasonable satisfaction of the nondefaulting Party within such notice period; and
(b) any specific Service or part thereof shall be subject to termination at the
election of the Recipient Party upon providing the relevant amount of advance
notice specified for termination in the relevant Schedule to the Provider Party.
Any termination of this Agreement with respect to any Service (or part thereof)
shall not terminate this Agreement with respect to any other Service or any other
services then being provided under this Agreement.
5.3 Consequences of Termination of this Agreement or Termination of any of the
Services or any Component Thereof. Upon termination of this Agreement, any of the
Services or any component thereof:
(a) the Parties shall cooperate with each other as is reasonably necessary to
transition the provision of the applicable Services or components thereof to the
Recipient or its designee, provided that in no case shall the
Providing Party be required to undergo any cost or expense in satisfying this
Section 5.3(a);
(b) such termination shall not affect either Party’s, or either Party’s
Affiliates’, rights (subject to Section 6.3(b)(i)) to payment or refunds
for Services or components thereof that have been provided or paid for by that
Party or its Affiliates prior to such termination;
(c) except as otherwise provided herein, each Party shall and shall cause its
Affiliates to use reasonable efforts to, at the other Party’s option, destroy or
return to the other Party all records obtained by such Party in the course of
performing such Services or components thereof, as applicable, containing
Confidential Information of the other Party that are then in the possession or
control of such Party or its Affiliates; provided, however, that
archived records may be retained. If either Party or any of their respective
Affiliates destroys any record pursuant to this Section 5.3(c), such Party
shall provide the other Party with written confirmation of any such destruction;
and
(d) the Parties shall no longer be required to provide the Services (save as
pursuant to any Transition and Migration Plan (if any)).
5.4 Transition and Migration Upon Discontinuation or Termination.
(a) In preparation for the discontinuation of any Service provided under this
Agreement, the Provider Party shall, and shall cause its Affiliates to, consistent
with its obligations to perform the Services hereunder and with the cooperation and
commercially reasonable assistance of the Recipient Party, take such steps as are
15
reasonably requested in order to facilitate a smooth, efficient and prompt
transition and/or migration of the data, records and responsibilities of the
Services to the Recipient Party so as to avoid a disruption of services;
provided, however, that in no event shall the Provider Party or any
of its Affiliates be required to do anything that would interfere with its ability
to perform its obligations with respect to the Services hereunder unless the
Recipient Party expressly agrees in writing to be executed by both Parties to waive
any claim it may have that the Provider Party or the relevant Affiliate is in
breach in its performance obligations due to the interference in the Services
caused by such assistance. The Parties shall use all commercially reasonable
efforts to complete such transition and/or migration prior to the effective date of
the expiration or termination of the applicable Service Period or the termination
of this Agreement or on such expedited or extended schedule to which the Parties
shall mutually agree in writing.
(b) In preparation for the discontinuation of any Service or termination of this
Agreement for any reason, the Provider Party shall, and shall cause its Affiliates
to, (i) transfer to the Recipient Party, and the Recipient Party shall take
possession of, all of the Recipient Party records, files and Recipient Party data
related to the provision of the Services to the Recipient Party and (ii) provide
systems and software assistance and personnel training so as to enable the
Recipient Party to transition efficiently and migrate such Recipient Party records,
files and Recipient Party data in satisfying its ongoing needs for which Services
have been provided by the Provider Party and its Affiliates hereunder;
provided that any services provided by the Provider Party and its
Affiliates pursuant to this Section 5.4(b) shall be consistent with the
Provider Party’s and its Affiliates’ agreements with third Persons and are
conditioned upon the Provider Party’s or its Affiliate’s receipt of any necessary
third-Person consents, which the Provider Party and its Affiliates shall use
commercially reasonable efforts to obtain.
(c) Upon receipt by the Provider Party of the Recipient Party’s reasonable request
for transition and migration assistance in accordance with this Section
5.4, the Parties shall negotiate in good faith a plan under which such
transition and migration assistance will be provided (each such plan, a
“Transition and Migration Plan”). Each Transition and Migration Plan shall
include a schedule for the transition and migration work and the costs to be
incurred by each Party and their respective Affiliates in performing transition and
migration activities. The Recipient Party shall pay such costs of transition and
migration activities incurred by either Party or its Affiliates pursuant to this
Section 5.4.
5.5 Survival. Upon termination of this Agreement for any reason,
Sections 1, 3, 4, 5.3, 5.4, 5.5, 6,
7, 8, 10 and 12 shall survive.
6. Disclaimer; Limitations of Liability; Remedies
6.1 Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, EACH
PARTY MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO
THE SERVICES TO BE PROVIDED UNDER THIS AGREEMENT.
6.2 Limitations of Liability.
(a) NEITHER PARTY SHALL BE LIABLE, WHETHER IN CONTRACT, IN TORT (INCLUDING
NEGLIGENCE AND STRICT LIABILITY), OR OTHERWISE,
16
FOR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES
WHATSOEVER, INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS, THAT IN ANY WAY ARISE OUT
OF, RELATE TO, OR ARE A CONSEQUENCE OF, ITS PERFORMANCE OR NONPERFORMANCE HEREUNDER,
OR THE PROVISION OF OR FAILURE TO PROVIDE ANY SERVICE HEREUNDER, EXCEPT TO THE
EXTENT THAT SUCH DAMAGES ARE AWARDED TO A THIRD PERSON, WHICH AWARD SHALL BE SUBJECT
TO THE LIMITATIONS IN SECTION 6.2(b) APPLICABLE TO A THIRD PERSON.
(b) THE AGGREGATE LIABILITY OF EITHER PARTY UNDER THIS AGREEMENT SHALL BE LIMITED
TO THE TOTAL AMOUNTS PAID OR PAYABLE TO OR BY SUCH PARTY OR ITS AFFILIATES UNDER
THIS AGREEMENT WITH RESPECT TO THE RELEVANT SERVICE SCHEDULE UNDER WHICH THE
INDEMNIFICATION OBLIGATION ARISES; PROVIDED, HOWEVER, THAT TO THE
EXTENT THE INDEMNIFICATION OBLIGATION ARISES FROM A PARTY’S GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT IN THE PERFORMANCE OR RECEIPT OF THE SERVICES COVERED BY THE
RELEVANT SERVICE SCHEDULE UNDER THIS AGREEMENT, THE AGGREGATE LIABILITY SHALL BE
LIMITED TO THREE (3) TIMES THE TOTAL AMOUNTS PAID OR PAYABLE TO OR BY SUCH PARTY OR
ITS AFFILIATES UNDER THIS AGREEMENT WITH RESPECT TO THE RELEVANT SERVICE SCHEDULE
UNDER WHICH THE INDEMNIFICATION OBLIGATION ARISES; PROVIDED,
FURTHER, HOWEVER, THAT THE FOREGOING LIMITATIONS ON LIABILITY SHALL
NOT APPLY TO DAMAGES FINALLY AWARDED TO A THIRD PERSON BY A COURT, TRIBUNAL,
ARBITRATOR OR JURY OR SUBJECT TO A SETTLEMENT APPROVED IN WRITING BY THE
INDEMNIFYING PARTY THAT RESULT FROM A THIRD PERSON CLAIM FOR PROPERTY DAMAGE,
PERSONAL INJURY (INCLUDING DEATH) OR A BREACH BY THE INDEMNIFYING PARTY OR AN
AFFILIATE OF ITS OBLIGATION TO MAINTAIN AS CONFIDENTIAL THE PROTECTED HEALTH
INFORMATION OF SUCH THIRD PERSON, WHICH SHALL INSTEAD BE LIMITED TO THE TOTAL
AMOUNTS PAID OR PAYABLE TO OR BY SUCH PARTY OR ITS AFFILIATES UNDER THIS AGREEMENT.
(c) FOR THE AVOIDANCE OF DOUBT, THE PARTIES ACKNOWLEDGE AND AGREE THAT CERTAIN
EVENTS AND CLAIMS (INCLUDING LOST DATA, BUSINESS INTERRUPTION AND CLAIMS OF CLIENTS
OR CUSTOMERS) COULD RESULT IN SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL,
EXEMPLARY OR PUNITIVE DAMAGES AS WELL AS DIRECT DAMAGES. IF SUCH DAMAGES ARE
DIRECT, SUCH DAMAGES SHALL BE COVERED BY SECTION 6.2(b). IF SUCH DAMAGES
ARE SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE, SUCH
DAMAGES SHALL BE COVERED BY SECTION 6.2(a).
6.3 Failure to Perform Services.
(a) Notice. If the Provider Party or any of its Affiliates fails to
perform any of the Services or any component thereof at the service level set forth
in Section 2.2 of this Agreement and the Schedules hereto, if applicable,
and such failure by the Provider Party or any of its Affiliates is not due to any
breach by the Recipient Party or its Affiliates of their respective obligations
hereunder, the Recipient Party may notify the
17
Provider Party of such failure and request that the Provider Party correct such
failure within thirty (30) days after notice thereof.
(b) Failure to Remedy. If the Recipient Party notifies the Provider Party
as set forth in Section 6.3(a), and the Provider Party has not corrected
such failure in the time frame set forth in Section 6.3(a), the Recipient
Party may:
(i) withhold payment, or cause its Affiliate to withhold payment, for such
Services or component thereof or seek a refund for Fees already paid for
such Services or such component thereof, which withholding or refund shall
be prorated for the period of noncompliance;
(ii) seek to terminate the provision of the applicable Services or such
component thereof, as applicable, in accordance with Section 5.2(a);
(iii) seek damages from the Provider Party, subject in all cases to the
limitations set forth in Section 6.2 and Section 7; and/or
(iv) require the Provider Party and its Affiliates to cooperate promptly and
in good faith in obtaining an alternative means of providing such Services
or such component thereof. The Provider Party shall be responsible for the
reasonable costs incurred by either Party pursuant to this Section
6.3(b) in either restoring such Services or such component thereof or
obtaining an alternative source of such Services or such component thereof;
provided that the Provider Party shall only be responsible
for the payment of such reasonable costs up to, and not exceeding, the
amount of the Fees for such Services or such component thereof for the
period from the time when the performance failure described in Section
6.3(a) commenced to the time when such Services or such component
thereof were restored.
(c) Errors. The Provider Party shall, at its own expense, promptly correct
any errors in the provision of Services rendered hereunder by the Provider Party,
its Affiliates or third-Person subcontractors after receiving notice thereof from
the Recipient Party or otherwise; provided that the Recipient Party
shall bear the reasonable out-of-pocket expenses of the Provider Party in
correcting any such errors caused by the Recipient Party or any of its Affiliates.
7. Indemnification
7.1 Indemnifying Party’s Obligations. Each Party (for purposes of this
Section 7, the “Indemnifying Party”) shall indemnify, defend and hold
harmless the other Party and each of the other Party’s Affiliates and their respective
directors, officers, employees and agents, and each of the permitted successors and assigns
of any of the foregoing (for purposes of this Section 7, each an “Indemnified
Party” and collectively, the “Indemnified Parties”), from and against any and
all Expenses and Losses incurred or suffered by the Indemnified Parties in connection with,
relating to, arising out of or due to the Indemnifying Party’s or its Affiliates’ (i) breach
of any of their respective covenants, agreements and obligations hereunder or (ii) gross
negligence or willful misconduct in their respective performance or receipt of Services
under this Agreement or (iii) infringement of third Person Intellectual Property rights in
Software in the event that the Indemnifying Party or its Affiliate, acting in its capacity
as a Provider, provides a Recipient with access to Software, provided that
such Recipient shall not receive indemnification pursuant to this
18
clause (iii) in the event that either (a) such Provider has followed specifications provided
by such Recipient (including, but not limited to, if such Recipient requires that such
Provider use particular Software), (b) the Software is modified by any Person other than
such Provider or (c) the Software is combined with other Intellectual Property by any Person
other than such Provider.
7.2 Indemnification Procedure. If an Indemnified Party asserts that an
Indemnifying Party has become obligated to indemnify pursuant to this Section 7, or
if any Action is begun, made or instituted as a result of which the Indemnifying Party may
become obligated to an Indemnified Party hereunder, the Indemnified Party shall give written
notice to the Indemnifying Party within a sufficiently prompt time to avoid prejudice to the
Indemnifying Party (but the failure to so promptly notify the Indemnifying Party shall not
relieve the Indemnifying Party from its obligation to indemnify the Indemnified Party hereto
to the extent it is not actually prejudiced thereby), specifying in reasonable detail the
facts upon which the claimed right to indemnification is based. The Indemnifying Party
shall, at its own cost, contest and defend any Action against the Indemnified Party. The
Indemnifying Party shall not consent to the entry of any judgment or enter into any
settlement without the consent, not to be unreasonably withheld or delayed, of the
Indemnified Party if such judgment or settlement (a) does not include as an unconditional
term thereof the giving by each claimant or plaintiff to the Indemnified Party (and any
applicable Affiliate thereof) of an unconditional and irrevocable release from all Liability
in respect to such claim, (b) would result in the finding or admission of any violation of
applicable Law by the Indemnified Party or its Affiliates or (c) provides for injunctive or
other non-monetary relief affecting the Indemnified Party or its Affiliates. Any payment to
be made by an Indemnifying Party to an Indemnified Party shall be made within thirty (30)
days of (i) the Indemnified Party’s delivery of notice of a claim for indemnification, such
claim being uncontested by the Indemnifying Party within the thirty (30) day period, or (ii)
in the event that the Indemnifying Party contests the claim pursuant to the dispute
resolution procedures set forth in Section 10 hereof and the dispute is resolved in
favor of the Indemnified Party, the date of final determination of the amount to be
indemnified under such claim. The Indemnified Party may not settle any Action itself
without the consent of the Indemnifying Party, not to be unreasonably withheld or delayed.
7.3 Sole and Exclusive Remedy. The Parties acknowledge and agree that
each Party’s right of indemnification under this Section 7 constitutes each Party’s
sole and exclusive remedy under this Agreement, with the exception of each Party’s rights to
injunctive relief under Section 4.4 and Section 10.3 herein.
8. Ownership of and Access Data and Intellectual Property
8.1 Data. All Recipient Data is the exclusive property of, and shall
constitute Confidential Information of, the relevant Recipient. The relevant Recipient
shall retain exclusive ownership and right to use all of its Recipient Data after the
conclusion of this Agreement. The Provider Party represents and warrants that, other than
in connection with providing the Services under this Agreement, the Provider Party shall
not, and shall cause its Affiliates not to, directly or indirectly use or disclose Recipient
Data. Notwithstanding the foregoing, a Provider Party shall be entitled to disclose the
Recipient Data of the other Party and its Affiliates as necessary in accordance with the
Amended and Restated Relationship Agreement.
8.2 Intellectual Property. Unless agreed otherwise in a Schedule, each
Party hereto agrees that any intellectual property of the other Party or its Affiliates or
licensors made available to such Party or its Affiliates in connection with the Services,
and any derivative works, additions, modifications, translations or enhancements thereof
created by a Party or its Affiliates pursuant to
19
this Agreement, are and shall remain the sole property of the original owner of such
intellectual property. To the extent that a Provider uses its own or third-Person
intellectual property in connection with providing the Services, such intellectual property
shall remain the sole property of the Provider or the third-Person.
9. Assignment; Transfer
Neither Party shall assign or attempt to assign its rights or obligations hereunder without
the other Party’s prior written consent; provided, however, that no such
consent shall be required for an assignment, in whole (if applicable) or in relevant part,
in connection with (i) any assignment to an Affiliate of the assigning Party so long as such
assignment is not for the purpose of avoiding indemnification and the assignee assumes and
is capable of performing the obligations assigned in accordance with the terms of this
Agreement, (ii) any assignment or sale of all or substantially all of the equity or similar
interests of Arsenal that are owned by Manchester, so long as the assignee assumes the
assigned rights and obligations, or (iii) any assignment or sale of all or substantially all
of Manchester’s or Arsenal’s assets. The assigning Party shall provide the other Party with
written notice fifteen (15) days prior to the consummation of any such assignment or other
transaction referenced in the preceding sentence. Any assignment or attempt to do so in
violation of this Agreement shall be null and void. This Agreement shall be binding upon
and inure to the benefit of the Parties and their respective heirs, successors and permitted
assigns.
10. Dispute Resolution
10.1 Any dispute arising under this Agreement shall be considered in person or by
telephone by the Provider Service Manager(s) and the Recipient Service Manager(s) within
seven (7) business days after receipt of a notice from either Party specifying the nature of
the dispute (the date of receipt of such notice by the relevant Party, the “Dispute
Date”). If for any reason, including the failure to meet or communicate, the Provider
Service Manager(s) and the Recipient Service Manager(s) have not resolved such dispute to
the satisfaction of both Parties within fifteen (15) business days after the Dispute Date,
then either Party’s Service Manager(s) may immediately refer such dispute to the Executives.
Each Party’s Executives shall make a good faith attempt to consider such dispute in person
or by telephone within seven (7) business days of the date such dispute is referred to them.
No proceedings for the resolution of a dispute pursuant to Section 10.2 may be
commenced until the earlier to occur of: (a) the date a decision is made by the Executives
that resolution of the dispute through continued negotiation does not appear likely; or
(b) the date that is thirty (30) business days after the Dispute Date.
10.2 Any dispute that the Parties are unable to resolve in accordance with the
procedures set forth in Section 10.1 will be submitted to non-binding mediation,
which will be held in Raleigh, North Carolina. The Parties will mutually determine who the
mediator will be from a list of mediators obtained from the American Arbitration Association
(“AAA”) office located in Raleigh, North Carolina. If the Parties are unable to
agree on the mediator, the mediator will be selected by the AAA. Each Party will bear its
own costs and expenses with respect to the mediation, including one-half of the fees and
expenses of the mediator. The Parties, their representatives, other participants and the
mediator shall hold the existence, content and result of the mediation in confidence.
Unless the Parties otherwise agree, either Party may pursue its rights and remedies under
this Agreement after the earlier of: (a) the date a decision is made by the Executives of
both Parties that resolution of the dispute through continued mediation does not appear
likely; or (b) the date that is sixty (60) business days after the date on which the Parties
commenced non-binding mediation with respect to such dispute.
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10.3 This Section 10 shall not prevent the Parties from seeking or
obtaining temporary or preliminary injunctive relief in a court for any breach or threatened
breach of any provision hereof pending the resolution of mediation.
11. Events to occur at the Coniston Closing
11.1 Termination of license agreements. At the Coniston Closing,
Manchester and Arsenal shall, and Arsenal shall procure that AM LLC shall, enter into a
termination agreement in respect of the Trademark and Trade Name License Agreement and the
Trademark and Trade Name Sublicense Agreement in the form set out in Schedule F.
11.2 New license agreement. At the Coniston Closing, the Parties shall
enter into the license agreement in the form set out in Schedule G.
12. Miscellaneous
12.1 Schedules. The Schedules attached to this Agreement are a part of
this Agreement as if fully set forth herein. All references herein to Articles, Sections,
subsections, paragraphs, subparagraphs, clauses and Schedules shall be deemed references to
such parts of this Agreement unless otherwise indicated or unless the context shall
otherwise require.
12.2 Waivers and Amendments; Non-Contractual Remedies; Preservation of
Remedies. This Agreement may be amended, superseded, canceled, renewed or extended, and
the terms hereof may be waived, only by a written instrument signed by each of the Parties
or, in the case of a waiver, by the Party waiving compliance. No delay on the part of any
Party in exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any Party of any right, power or privilege, nor
any single or partial exercise of any such right, power or privilege, preclude any further
exercise thereof or the exercise of any other such right, power or privilege.
12.3 Entire Agreement; No Third Party Beneficiaries. This Agreement
(together with the Schedules attached hereto) constitutes the entire agreement, and
supersedes all prior agreements and representations or understandings, both written and
oral, among the Parties with respect to the subject matter of this Agreement. Nothing in
this Agreement is intended or shall be construed to give any Person, other than the Parties
hereto, their successors and permitted assigns, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision contained herein.
12.4 Governing Law. This Agreement (and any claims or disputes arising
out of or related hereto or to the transactions contemplated hereby or to the inducement of
any party to enter herein, 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 Delaware, including all matters of
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.
12.5 Waiver of Jury Trial. EACH PARTY HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE BREACH,
TERMINATION OR VALIDITY
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OF THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES
AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) IT UNDERSTANDS AND HAS CONSIDERED THE
IMPLICATIONS OF THIS WAIVER, (C) IT MAKES THIS WAIVER VOLUNTARILY AND (D) IT HAS BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 12.5.
12.6 Notices. All notices, requests, claims, demands and other
communications under this Agreement shall be in writing and shall be deemed given (a) on the
date of delivery, upon delivery in person or if sent by facsimile (receipt of which is
confirmed), (b) on the day after delivery, if sent by registered or certified mail (postage
prepaid, return receipt requested), or (c) one business day after having been sent by
express mail through an internationally recognized overnight courier, in each case to the
parties at the following addresses (or at such other address for a party as shall be
specified by like notice):
(a) If
to Manchester, to:
Misys plc
Xxx Xxxxxxx Xxxxxx
Xxxxxxxxxx
Xxxxxx
X0 0XX
Fax: x00 (0)00 0000 0000
Attention: General Counsel & Company Secretary
Xxx Xxxxxxx Xxxxxx
Xxxxxxxxxx
Xxxxxx
X0 0XX
Fax: x00 (0)00 0000 0000
Attention: General Counsel & Company Secretary
with a copy (which copy shall not constitute notice) to:
Xxxxx & Xxxxx LLP
Xxx Xxxxxxx Xxxxxx
Xxxxxx X0 0XX
Xxxxxx Xxxxxxx
Attention: Xxxxxxx Xxxxxxx
Fax: x00 (0)00 0000 0000
Xxx Xxxxxxx Xxxxxx
Xxxxxx X0 0XX
Xxxxxx Xxxxxxx
Attention: Xxxxxxx Xxxxxxx
Fax: x00 (0)00 0000 0000
(b) if to Arsenal, to:
Allscripts-Misys Healthcare Solutions, Inc.
000 Xxxxxxxxxxx Xxxx Xxxxx
Xxxxx 0000, Xxxxxxx, Xxxxxxxx
00000
Attention: General Counsel
Fax: x0 000 000-0000
000 Xxxxxxxxxxx Xxxx Xxxxx
Xxxxx 0000, Xxxxxxx, Xxxxxxxx
00000
Attention: General Counsel
Fax: x0 000 000-0000
22
with a copy (which copy shall not constitute notice) to:
Drinker Xxxxxx & Xxxxx
000 X. Xxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000-0000
XXX
Attention: Xxx Xxxxxx
Fax: x0 000 000-0000
000 X. Xxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000-0000
XXX
Attention: Xxx Xxxxxx
Fax: x0 000 000-0000
12.7 Counterparts. This Agreement may be executed in one or more
counterparts, each of which when executed and delivered shall be deemed an original document
and all of which shall be considered one and the same agreement. Signatures provided by
facsimile or electronic transmission will be deemed to be original signatures.
12.8 Independence. With respect to the provision of any of the Services,
all employees and representatives of the Provider Party and its Affiliates and their
respective third-Person subcontractors providing such Services shall be deemed, for purposes
of all compensation and employee benefits, to be employees, third-Person subcontractors or
representatives of the Provider Party or its Affiliates, and not employees, third-Person
subcontractors or representatives of Recipient Party or any of its Affiliates. In
performing the Services, such employees and representatives shall be under the direction,
control and supervision of the Provider Party or its Affiliates or their respective
third-Person subcontractors. The Provider Party and, as applicable, its Affiliates shall
have the sole right to exercise all authority for the employment (including termination of
employment), assignment and compensation of such employees and representatives.
12.9 No Joint Venture or Partnership Intended. Notwithstanding anything
herein to the contrary, the Parties hereby acknowledge and agree that it is their intention
and understanding that the transactions contemplated hereby do not in any way constitute or
imply the formation of a joint venture or partnership between Manchester and Arsenal.
12.10 Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule or Law, or public policy, all
other terms and provisions of this Agreement shall nevertheless remain in full force and
effect so long as the economic and legal substance of the transactions contemplated hereby
are 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 an acceptable manner to the end that the
transactions contemplated hereby are fulfilled to the extent possible.
12.11 Nonexclusivity. Nothing in this Agreement shall prevent either
Party from providing any service similar to any of the Services to any other Person.
Nothing in this Agreement shall prevent any Recipient from obtaining any Service entirely or
in part from its own or its Affiliates’ employees and facilities or from providers other
than those Providers hereto; provided such Recipient complies with the relevant
terms hereof with respect to its receipt of such Service by a Provider and in the
termination thereof, and provided, further that the termination of a Service
in part would not impede the provision of any other interrelated Service, in which case such
partial termination may not be effected until the Parties have agreed how to do so without
impeding such interrelated Service.
23
12.12 Force Majeure. “Force Majeure” means any acts or omissions
of any civil or military authority, acts of terrorism, acts of God, fires, strikes or other
labor disturbances, equipment failures, fluctuations or non-availability of electrical
power, heat, light, air conditioning or telecommunications equipment, or any other similar
act, omission or occurrence beyond either Party’s reasonable control. If either Party’s
performance is delayed by Force Majeure, the time for performance shall be reasonably
extended. A condition of Force Majeure shall be deemed to continue only so long as the
affected Party is taking reasonable actions necessary to overcome such condition. If either
Party shall be affected by a condition of Force Majeure, such Party shall give the other
Party prompt notice thereof, which notice shall contain the affected Party’s estimate of the
duration of such condition and a description of the steps being taken or proposed to be
taken to overcome such condition of Force Majeure. Any reasonable delay occasioned by any
such cause shall not constitute a default under this Agreement, and the obligations of the
Parties shall be suspended during the period of delay so occasioned. During any period of
Force Majeure, the Party that is not directly affected by such condition of Force Majeure
shall be entitled to take any reasonable action necessary to mitigate the effects of such
condition of Force Majeure; provided that in the event that the Provider
Party is affected by a condition of Force Majeure, the Provider Party shall only be
responsible for the payment of the reasonable costs and expenses incurred by the Recipient
Party for taking such reasonable actions up to, and not exceeding, the amount of the Fees
for the affected Services or such component thereof for the period during which such Force
Majeure condition occurs. If the Force Majeure event is not cured such that the affected
Services or such component thereof are provided as required hereunder within thirty (30)
days, the non-affected Party may terminate the affected Services or such component thereof
and/or seek such Services or such component thereof from a third Person at the affected
Party’s reasonable cost and expense.
12.13 Performance. Each Party shall cause to be performed, and hereby
guarantees the performance of, all actions, agreements and obligations set forth herein to
be performed by any Affiliate of such Party.
12.14 Currency. Unless otherwise specified in this Agreement, all
references to currency, monetary values and dollars set forth herein shall mean United
States (U.S.) dollars and all payments hereunder shall be made in United States (U.S.)
dollars.
12.15 Further Assurances. Each of the Parties hereto agrees to execute
all such further instruments and documents and to take all such further action as the other
Party may reasonably require in order to effectuate the terms and purposes of this
Agreement. The Parties shall act in good faith in the performance of their obligations
under this Agreement.
24
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their authorized
representatives as of the date first above written.
Allscripts-Misys Healthcare Solutions, Inc. | ||||||||
By:
|
By: | |||||||
Name:
|
Name: | |||||||
Title:
|
Title: | |||||||
25
SCHEDULE F
THIS
AGREEMENT dated as of
[•] 2010, is made and entered into
BETWEEN:
(1) | Misys plc, a public limited company incorporated under the laws of England and Wales whose registered office is at Xxx Xxxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxx, X0 0XX (the Licensor); |
(2) | Allscripts-Misys Healthcare Systems LLC, a North Carolina limited liability company and a wholly-owned subsidiary of the Sub-Licensee whose registered office is at 0000 Xxx Xxxxx Xxxx, Xxxxxxx, Xxxxx Xxxxxxxx 00000 (the Licensee); and |
(3) | Allscripts-Misys Healthcare Solutions, Inc., a Delaware corporation whose registered office is at 000 Xxxxxxxxxxx Xxxx Xxxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxxx 00000 (the Sub-Licensee). |
WHEREAS:
(A) | The Licensee and the Licensor are parties to the License Agreement (as defined below). |
(B) | The Licensee has sublicensed its rights under the License Agreement to the Sub-Licensee pursuant to the Sub-License Agreement (as defined below). |
(C) | The parties wish to terminate the License Agreement and the Sub-License Agreement on and subject to the terms of this agreement. |
NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements
set forth herein and in the Transitional Services Agreement (as defined below) and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of
the Licensor, the Licensee and the Sub-Licensee hereby agrees as follows:
1. | INTERPRETATION | |
1.1 | Definitions | |
In this agreement: Agreements means the License Agreement and the Sub-License Agreement; | ||
License Agreement means the agreement between the Licensor and the Licensee dated October 10, 2008 for the use of the Licensed Marks, the Licensed Name and the Licensed Domain Names; | ||
Licensed Domain Names means the domain names identified in Schedule B to the License Agreement; | ||
Licensed Marks means the licensed marks identified in Schedule A to the License Agreement; | ||
Licensed Name means the trade name “Misys” and certain trademarks and service marks consisting of or incorporating the designation “Misys” identified in the schedules to the License Agreement; |
26
Party means a party to this agreement; | ||
Sub-License Agreement means the agreement between the Licensee and the Sub-Licensee dated October 10, 2008 for the use of the Licensed Marks, the Licensed Name and the Licensed Domain Names; and | ||
Transitional Services Agreement means the transitional services agreement dated [•] between the Licensor and the Sub-Licensee. | ||
1.2 | The headings in this agreement do not affect its interpretation. | |
2. | TERMINATION OF AGREEMENTS | |
2.1 | Each of the Parties hereby agrees that, with effect from the date of this agreement, and notwithstanding anything to the contrary contained in either of the Agreements, the Agreements shall terminate and be of no further force and effect and no Party shall be entitled to enforce any of its rights, or be required to perform any of its obligations, set out in the Agreements except that section 8.3 of the License Agreement and section 8.3 of the Sub-License Agreement shall survive in accordance with their terms. | |
2.2 | The termination of the Agreements shall not affect any accrued rights or liabilities of any Party in respect of damages for non-performance of any obligation under the Agreements falling due for performance prior to such lapse and cessation. | |
3. | GENERAL | |
3.1 | This agreement may be signed in two or more counterparts (including by fax or other electronic signature), each of which shall be an original, with the same effect as if the signatures were upon the same instrument. This agreement shall become effective when each Party shall have received a counterpart of this agreement signed by each other Party. | |
3.2 | This agreement is for the sole benefit of the Parties and their successors and permitted assigns and nothing express or implied in this agreement is intended or shall be construed to confer upon any person other than the Parties any legal or equitable rights or remedies under this agreement. | |
4. | GOVERNING LAW AND JURISDICTION | |
4.1 | This agreement (and any claims or disputes arising out of or related to this agreement or the transactions contemplated hereby or to the inducement of any Party to enter into 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 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. Each Party irrevocably and unconditionally waives any objection to the application of the laws of the State of New York to any action, suit or proceeding arising out of this agreement or the transactions contemplated hereby and further irrevocably and unconditionally waives and agrees not to plead or claim that any such action, suit or proceeding should not be governed by the laws of the State of New York. For purposes of any claim, suit, action or proceeding arising out of or in connection with this agreement or the transactions contemplated hereby, each of the Parties hereby irrevocably and unconditionally |
27
submits to the exclusive jurisdiction of the federal and state courts located in the County of New York in the State of New York. |
[Signature page follows]
28
SIGNATORIES
IN WITNESS WHEREOF, each of the Licensor, the Licensee and the Sub-Licensee have caused
their respective duly authorized officers to execute this agreement as of this day of
2010.
MISYS PLC |
||||
By: | ||||
Name: | ||||
Title: | ||||
ALLSCRIPTS-MISYS HEALTHCARE SYSTEMS LLC |
||||
By: | ||||
Name: | ||||
Title: | ||||
ALLSCRIPTS-MISYS HEALTHCARE SOLUTIONS, INC. |
||||
By: | ||||
Name: | ||||
Title: |
29
SCHEDULE G
TRADEMARK LICENSE AGREEMENT
This TRADEMARK LICENSE AGREEMENT is dated as of , 2010 (the “Agreement”), between Misys plc, a
public limited company incorporated under the laws of England and Wales (“Licensor”), and
Allscripts-Misys Healthcare Solutions, Inc., a Delaware corporation (“Licensee”). Licensor and
Licensee are referred to herein collectively as “Parties” and each individually as a “Party”.
W
I T N E S S E T H :
WHEREAS, Licensor is the owner of the trade name “MISYS” and certain trademarks and service
marks consisting of or incorporating the designation “MISYS,” identified in the schedule attached
hereto as Schedule A, and has applied for and registered such trademarks and service marks
throughout the world (such trademarks and service marks and such registrations and applications,
together with any and all common law rights pertaining thereto, are referred to collectively as the
“Licensed Marks”) for use in Licensor’s business;
WHEREAS, Licensee was previously licensed to use the Licensed Marks in connection with
Licensee’s healthcare information technology products and services acquired from Licensor in
October, 2008 (the “Acquisition”) pursuant to a license agreement to one of Licensee’s affiliates
and a sublicense from such affiliate to the Licensee;
WHEREAS, contemporaneously with execution of this Agreement, the above referenced October 2008
license and sublicense agreements (the “Existing Licenses”) are being terminated on the date
hereof; and
WHEREAS, Licensee and its affiliates desire to continue using, and Licensor is willing to
license Licensee and its affiliates to use, the Licensed Marks as set forth below.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Parties agree as follows:
1. Grant of License.
1.1 Grant of Trademark License. Subject to the terms and conditions contained
herein, Licensor hereby grants to Licensee, and Licensee hereby accepts, a nonexclusive,
nonassignable (except as set forth in Section 7.1), royalty-free license to use the Licensed Marks
in the Territory solely for the purpose of providing support to (including delivering updated
versions of) the healthcare information technology products sold under the Licensed Marks prior to
the date of this Agreement (the “Existing Products”) to those customers of the Licensee (or its
Affiliates) who are using such Existing Products prior to the date of this Agreement (the “Existing
Customers”). “Territory” shall refer to the United States; provided, however, that for
customers utilizing the Existing Products prior to the date of the Acquisition, the Territory shall
include any other country in which such customers utilize the Existing Products under their
applicable license agreements which were entered into prior to the date of the Acquisition.
1.2 Restrictions on Use.
30
(a) Except for use of Licensee’s color scheme of orange and grey, which may be used for the
Licensed Marks other than “Misys” used alone, “Misys” in combination with the “M” logo and the “M”
logo, Licensee shall not change or modify the Licensed Marks, or create any design variation of the
Licensed Marks, without the prior written consent of Licensor.
(b) Except for the word “Allscripts”, Licensee shall not join any name, xxxx or logo with the
Licensed Marks so as to form a composite trade name or xxxx, without obtaining the prior written
consent of Licensor.
(c) Licensee shall not use any other name or xxxx that is confusingly similar to the Licensed
Marks, provided, however, that use of the word “Allscripts” with the secondary
words in the Licensed Marks (e.g., Tiger), with or without the word “Misys, will not be considered
confusingly similar.
1.3 Sublicenses.
(a) Subject to the terms and conditions contained herein, Licensee may grant a sublicense of
its rights hereunder to any of its Affiliates to use the Licensed Marks in connection with the
support of the Existing Products in the Territory. Any such sublicence shall be granted solely so
as to enable such Affiliates to continue to support Existing Customers use of those Existing
Products on or after the date of this Agreement (each such permitted sublicensee, an “Affiliate
Sublicensee”). For purpose of this Agreement, “Affiliate” is defined as any entity that, at the
time of determination, directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, Licensee, whether by contract, possession (directly
or indirectly) of power to direct or cause the direction of the management or policies of such
entity or the ownership (directly or indirectly) of securities or other interests in such entity).
(b) In addition to the right to grant sublicenses pursuant to this Section 1.3, Licensee and
each Affiliate Sublicensee shall be permitted to allow those resellers or distributors of the
Existing Products prior to the date of this Agreement (the “Existing Resellers and Distributors”)
to continue to use the Licensed Marks solely to support the use of those Existing Products by the
Existing Customers to the same extent as those Existing Resellers and Distributors have been
performing such obligations under the relevant agreement with Licensee or such Affiliate
Sublicensee prior to the date of this Agreement. Each such agreement shall contain restrictions on
the use of the Licensed Marks by the Existing Resellers and Distributors which are consistent with
the restrictions contained herein.
(c) Notwithstanding the grant of any sublicense hereunder, Licensee shall remain liable for
any breach or default of the applicable terms and conditions of this Agreement by any of its
Affiliate Sublicensees, or Existing Resellers and Distributors with respect to the Licensed Marks.
The Licensee shall notify the Licensor promptly in writing upon becoming aware that the use of the
Licensed Marks by any Affiliate Sublicensee or any of the Existing Resellers and Distributors is in
breach of the terms of this Agreement.
(d) No such Affiliate Sublicensee or Existing Reseller and Distributor shall be permitted to
sublicense to any other person or entity the rights granted to it with respect to the Licensed
Marks.
2. Quality Standards and Control.
2.1 Quality Control. At all times, Licensee shall use and shall cause each
Affiliate Sublicensee to use the Licensed Marks only in the same form and manner used by them in
connection
31
with supporting the Existing Products, prior to the date of this Agreement. At all times the
Licensee shall use (and shall cause each Affiliate Sublicensee) to use the Licensed Marks in
accordance with such quality standards and specifications as were in place prior to the date of
this Agreement and as may be established by Licensor and communicated to Licensee in writing from
time to time. The Licensee shall not use the Licensed Marks in a way which may tarnish them or the
reputation of the Licensor. The Licensor’s use of the “M” xxxx will faithfully reproduce the
design and appearance of such Licensed Xxxx as reflected in the Schedule.
2.2 Inspection. Licensor or its designated representative shall have the
right at any time during normal business hours to inspect any and all uses of the Licensed Marks to
confirm that such use is in conformance with the terms of this Agreement. From time to time, upon
Licensor’s reasonable request in writing, Licensee shall, at Licensee’s expense, provide Licensor
with representative samples of the ways in which the Licensed Marks are then being used (or
photographs depicting the same).
2.3 Deficiencies. If Licensor reasonably believes that the Licensed Marks
are not being used in accordance with Section 2.1, then Licensor shall promptly provide Licensee
with written notice of such defects or violations, and shall allow Licensee thirty (30) days from
the date of such notice in which to cure such defects or violations. Should the defects or
violations not be remedied within such thirty (30) days, Licensor may, in its reasonable
discretion, terminate this Agreement in accordance with Section 7.2 or bring an action to require
specific performance. If such an action is brought and is successful, then Licensee shall have
thirty (30) days within which to comply with the order. If, at the end of such thirty (30) days
Licensee has not complied, this Agreement will terminate automatically.
3. Compliance with Law. Licensee shall use the Licensed Marks only in such
manner as will comply with the provisions of applicable laws and regulations relating to the
Licensed Marks. Licensee shall affix to the Existing Products that bear a Licensed Xxxx,
including, but not limited to, all labels, packaging, advertising and promotional materials,
manuals, and all other relevant printed materials, (a) notices in compliance with
applicable trademark laws and (b) such legend as Licensor may reasonably designate by
written notice and is required or otherwise reasonably necessary to allow adequate protection of
the Licensed Marks and the benefits thereof under applicable trademark laws from time to time. In
connection herewith, Licensee may use the following legend:
“MISYS” is a registered trademark owned by Misys plc and is used
under license.”
4. Ownership.
4.1 Ownership of Licensed Marks (a) Licensee acknowledges and admits the
validity of the Licensed Marks and agrees that it will not, directly or indirectly, challenge
the validity of the Licensed Marks, or any registrations thereof and/or applications therefor
in any jurisdiction, or the right, title and interest of Licensor therein and thereto, nor
will it claim any ownership or other interest in the Licensed Marks in any jurisdiction,
other than the rights expressly granted hereunder.
No impairment of Licensed Marks.Licensee acknowledges that (i) the
Licensed Marks and the goodwill associated therewith are and will remain the exclusive
property of Licensor, (ii) all uses of the Licensed Marks shall inure solely to the
benefit of Licensor, and (iii) Licensee has no right, title or interest in any other
trademarks, services marks, trade names or domain names belonging to Licensor. Licensee
shall not at any time do or suffer to be done any act or thing that will in any way impair
the rights of Licensor in and to the Licensed Marks (including, but not limited to, acquiring
a registration or file and prosecute a trademark application to register the Licensed Marks
or any component, variation or deviation thereof, or any name or xxxx confusingly
32
similar thereto, for any goods or services anywhere in the world). Nothing in this
Agreement grants, nor shall Licensee acquire hereby, any right, title or interest in or to
the Licensed Marks or any goodwill associated therewith, other than those rights expressly
granted hereunder. This Agreement shall not affect Licensor’s right to enjoin or obtain
relief against any acts by third parties of trademark infringement or unfair competition.
5. Indemnification. Neither Party, by virtue of this Agreement, assumes any
liability with respect to the business of the other Party. Each Party (such party being the
“Indemnifying Party”) shall indemnify and hold harmless the other Party, (such party being the
“Indemnified Party”) against any and all claims, actions, damages, losses, liabilities costs and
expenses (including reasonable attorney’s fees and expenses) (“Losses”) resulting from or arising
out of claims, actions or proceedings brought by a third party against the Indemnified Party or its
Affiliates arising out of the Indemnified Party’s (including, in the case of the Licensee, its
Affiliate Sublicensees) breach of this Agreement and in the case of the Licensee, including any
such claims, actions or proceedings made against the Licensor or its Affiliates arising out of
defects in the Existing Products (distributed by Licensee or its Affiliates after the Acquisition)
or misuse of the Licensed Marks.
6. Representations and Warranties. Each Party represents and warrants that
it has executed this Agreement freely, fully intending to be bound by the terms and provisions
contained herein; that it has full corporate power and authority to execute, deliver and perform
this Agreement; that the person signing this Agreement on behalf of such Party has properly been
authorized and empowered to enter into this Agreement by and on behalf of such Party; that prior to
the date of this Agreement, all corporate action of such Party necessary for the execution,
delivery and performance of this Agreement by such Party has been duly taken; and that this
Agreement has been duly authorized and executed by such Party, is the legal, valid and binding
obligation of such Party, and is enforceable against such Party in accordance with its terms.
7. Term; Termination.
7.1 Term. The term of this agreement shall become effective as of the date
hereof, and shall continue in effect until terminated in accordance with the provisions of Section
7.2.
7.2 Termination.
(a) Licensor may terminate this Agreement upon written notice to Licensee if:
(i) Licensee breaches any provision of this Agreement and fails to cure such breach
within thirty (30) days after the date of Licensor’s written notice thereof.
(ii) There is a change of control of Licensee other than in connection with the
Coniston or Emerald transactions.
(iii) Licensee files, or consents to the filing against it of, a petition for relief
under any bankruptcy or insolvency laws, makes an assignment for the benefit of creditors or
consents to the appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator or other official with similar powers over a substantial part of its property;
or a court having jurisdiction over Licensee or any of the property of Licensee shall enter
a decree or order for relief in respect thereof in an involuntary case under any bankruptcy
or insolvency law, or shall appoint a receiver, liquidator, assignee, custodian, trustee,
sequestrator or official with similar powers over a substantial part of the property of
Licensee, or shall order the winding-up,
33
liquidation or rehabilitation of the affairs of Licensee, and such order or decree
shall continue in effect for a period of sixty (60) consecutive days.
(b) Licensee may terminate this Agreement at any time upon thirty (30) days prior notice to
Licensor.
(c) Notwithstanding anything to the contrary contained herein, termination of this Agreement
by either Party in whole or in part shall be without prejudice to any other remedy otherwise
available hereunder, under law or at equity, to such Party or the other Party.
(d) Notwithstanding anything to the contrary contained in this Agreement, the rights and
obligations of the Licensor and the Licensee pursuant to sections 4, 5, 7.2(c), 7.3 and 8 shall
survive indefinitely regardless of any termination of the Agreement.
7.3 Effects of Termination. Any termination of this Agreement in accordance
with the terms hereof shall be final. Upon the termination of this Agreement:
(a) all rights in the Licensed Marks granted to Licensee hereunder shall automatically revert
to Licensor, and Licensee or any Sublicensee shall have no further rights in, and shall immediately
cease all use of, the Licensed Marks, except that Licensee and any Sublicensee shall have a thirty
(30) day period after termination to transition away from use of the Licensed Marks; and
(b) Licensee shall immediately destroy and cause any Sublicensee, reseller or distributor to
destroy all materials used for reproducing the Licensed Marks (including without limitation
photographic negatives, printing plates and tooling), except that Licensee and any Sublicensee
shall have a thirty (30) day period after termination to transition away from use of the Licensed
Marks and shall, within thirty (30) days after such destruction has taken place, provide Licensor
with an affidavit executed by an officer of Licensee attesting thereto.
8. Miscellaneous.
8.1 Assignment. Licensee shall not assign or attempt to assign its rights
or obligations hereunder without Licensor’s prior written consent. Licensor shall not assign or
attempt to assign its rights or obligations hereunder without Licensee’s prior written consent;
provided, however, that no such consent shall be required for an assignment by
Licensor in connection with (i) any assignment to an affiliate, (ii) any assignment
or sale of all or substantially all of the equity or similar interests of Licensee that are owned
by Licensor, or (iii) any assignment or sale of all or substantially all of Licensor’s
assets, or any merger, consolidation or other business combination to which Licensor is a party,
provided, further, however, that Licensor agrees that it will not assign
its rights or obligations hereunder apart from all or substantially all of the equity or similar
interests of Licensee that it owns and the Licensed Marks that are specific to the Existing
Products distributed under the Licensed Marks prior to the date of this Agreement, which for the
avoidance of doubt, do not include the name and xxxx “Misys” or the “M” logo or any other name and
xxxx other than the Licensed Marks. Any assignment or attempt to do so in violation of this
Agreement shall be null and void. This Agreement shall be binding upon and inure to the benefit of
the Parties and their respective heirs, successors and permitted assigns.
8.2 Entire Agreement. This Agreement constitutes the entire agreement
between Licensor and Licensee with respect to the subject matter hereof and supersedes and cancels
all prior agreements and understandings between Licensor and Licensee, whether written and oral,
with respect thereto (including the Existing Licenses, save in respect of the provisions contained
therein which survive regardless of termination). This Agreement shall not be amended, supplemented
or modified except in a
34
writing executed by authorized representatives of the Parties. Waiver by a Party of any
breach of any provision of this Agreement by the other Party shall not operate, or be construed, as
a waiver of any subsequent or other breach. If any provision of this Agreement is inoperative or
unenforceable for any reason in any jurisdiction, such circumstances shall not have the effect of
rendering the provision in question inoperative or unenforceable in any other case, circumstance or
jurisdiction, or of rendering any other provision or provisions herein contained invalid,
inoperative, or unenforceable to any extent whatsoever. The invalidity of any one or more phrases,
sentences, clauses, Sections or subsections of this Agreement in any jurisdiction shall not affect
the remaining portions of this Agreement in such jurisdiction or in any other jurisdiction.
8.3 No Agency. Licensor and Licensee are independent contractors with
respect to each other, and nothing herein shall create any association, partnership, joint venture
or agency relationship between them.
8.4 Governing Law. This agreement shall be governed by and construed in
accordance with the laws of the State of New York without giving effect to its principles or rules
of conflict of laws to the extent such principles or rules are not mandatorily applicable by
statute and would require or permit the application of the laws of another jurisdiction. For
purposes of any claim, suit, action or proceedings arising out of or in connection with this
Agreement, each of the parties hereby irrevocably submits to the exclusive jurisdiction of the
federal and state courts located in the County of New York in the State of New York.
8.5 Equitable Relief. Each Party hereto acknowledges that the other Party
will suffer irreparable harm as a result of the material breach by such Party of any covenant or
agreement to be performed or observed by such Party under this Agreement, and acknowledges that the
other Party shall be entitled to apply for and, if granted, receive from any court or
administrative body of competent jurisdiction a temporary restraining order, preliminary injunction
and/or permanent injunction, without any necessity of proving damages, enjoining Licensee from
further breach of this Agreement or further infringement or impairment of the rights of Licensor.
8.6 Notices. All notices, requests, demands and other communications made
in connection with this Agreement shall be in writing and shall be deemed to have been duly given
(a) if sent by first-class registered or certified mail, return receipt requested, postage
prepaid, on the fifth day following the date of deposit in the mail, (b) if delivered
personally, when received, or (c) if transmitted by facsimile or other telegraphic
communications equipment, when confirmed, in each case addressed as follows:
If to Licensor, to:
Misys plc
Xxx Xxxxxxx Xxxxxx
Xxxxxx X0 0XX
Xxxxxx Xxxxxxx
Telephone: + 00 (0)00 0000 0000
Fax: x00 (0)00 0000 0000
Attention: Group General Counsel & Company Secretary
Xxx Xxxxxxx Xxxxxx
Xxxxxx X0 0XX
Xxxxxx Xxxxxxx
Telephone: + 00 (0)00 0000 0000
Fax: x00 (0)00 0000 0000
Attention: Group General Counsel & Company Secretary
35
If to Licensee, to:
Allscripts-Misys Healthcare Solutions, Inc
000 Xxxxxxxxxxx Xxxx Xxxxx
Xxxxx 0000, Xxxxxxx Xxxxxxxx 00000
Telephone: + 000 000-0000
Fax: x0 000 000-0000
Attention: Corporate Counsel
000 Xxxxxxxxxxx Xxxx Xxxxx
Xxxxx 0000, Xxxxxxx Xxxxxxxx 00000
Telephone: + 000 000-0000
Fax: x0 000 000-0000
Attention: Corporate Counsel
or, in each case, to such other address or facsimile number or to the attention of such other
person as may be specified in writing by such Party to the other Party.
8.7 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which when taken together shall
be one and the same instrument.
8.8 Headings. The headings contained in this Agreement are for purposes of
convenience only and shall not affect the meaning or interpretation of this Agreement.
8.9 Construction of this Agreement. In any construction of this Agreement,
the Agreement shall not be construed against any Party based upon the identity of the drafter of
the Agreement or any provision of it.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written
above.
MISYS PLC |
||||
By: | ||||
Name: | ||||
Title: | ||||
ALLSCRIPTS-MISYS HEALTHCARE SOLUTIONS, INC. |
||||
By: | ||||
Name: | ||||
Title: |
36