Exhibit 10.6
Confidential Treatment Requested
CLINICAL DOCUMENTATION SOLUTION
AGREEMENT
This Clinical Documentation Solution
Agreement (this “Agreement”) , effective as of
September 28 th , 2004 (the “Effective
Date” ), is entered into by and between Transcend
Services, Inc., a corporation duly formed and existing under the
laws of the State of Delaware, with its principal place of business
located at 945 East Paces Ferry Road, Suite 1475, Atlanta, Georgia,
30326 ( “Client” ), and Multimodal Technologies,
Inc., a corporation duly formed and existing under the laws of the
Commonwealth of Pennsylvania, with its principal place of business
located at 319 South Craig Street, Pittsburgh, Pennsylvania, 15213
( “M*Modal” ). (Client and M*Modal are, from
time to time, each individually referred to herein as a
“Party” and, together, as the
“Parties.” )
WHEREAS, M*Modal specializes in the
research, development and commercial deployment of speech-related
technologies, and has created a speech recognition-enabled
documentation software solution designed to transcribe and manage
dictated clinical information (the “Clinical Documentation
Solution” );
WHEREAS, Client is a medical
transcription service organization, has tested M*Modal’s
Clinical Documentation Solution, and desires to engage M*Modal to
adapt and customize its Clinical Documentation Solution in ways
useful to Client’s business; and
WHEREAS, M*Modal has the necessary
technical expertise and ability to adapt and customize its Clinical
Documentation Solution in ways useful to Client’s business,
and desires to be engaged by Client to so adapt and customize its
Clinical Document Solution; and
WHEREAS, Client desires to license
from M*Modal the adapted and customized Clinical Documentation
Solution, and M*Modal wishes to license such adapted and customized
Clinical Documentation Solution to Client upon the terms and
subject to the conditions set forth in this Agreement;
NOW, THEREFORE, the Parties hereby
agree as follows:
Article I. Definitions
The following terms, when used with
initial capital letters in this Agreement, shall have the
following, corresponding definitions:
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1.01
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“Author” means a medical specialist within a Clinical
Department (defined herein) who documents medical processes
relating to such Clinical Department through dictation.
“Medical Domain” means, collectively, (1) a
generally recognized and standard medical treatment-related
department within a physician practice, clinic or hospital (a
“Clinical Department” ), and (2) specified
dictation instructions, habits, and documentation practices of the
dictating Authors within such Clinical Department, including
particularized recording setup. By way of illustration, such
Medical Domains include desktop radiology in connection with PACS,
telephony-based cardiology without normals, and handheld dictation
recorder general medicine with templates. “Activated
Author” means an Author whose status has been changed
through AnyModal CDS (defined below) from “learning
mode” to “activated” in accordance with the
procedures set forth in the Information Sheet (defined below), to
allow for such Author’s dictation recordings to be processed
by AnyModal CDS to create AnyModal CDS Draft Documents (defined
below).
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1.02
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“AnyModal CDS”
means M*Modal’s set of speech
recognition-based software components, in Object Code (defined
below) form, and any and all portions thereof, designed to work in
connection with transcription workflow software to convert
real-time ( e.g. , not compressed in time) Author dictation
recordings of applicable Medical Domain information into Structured
Medical Reports (defined below) by enabling the transcription
workflow software to make calls to application services deployed
and accessible via the Internet by means of standardized Web
Services, along with any and all Web Services interfaces and
related information necessary to integrate such software services
into the transcription workflow software. To the extent the Pilot
Solution (defined below), or any and all portions thereof, fall
within the foregoing definition of AnyModal CDS, such Pilot
Solution shall be deemed to be AnyModal CDS.
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1.03
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“AnyModal CDS Draft
Document” means a
draft medical report transcript created by AnyModal CDS as a result
of submission to AnyModal CDS of an Activated Author dictation
recording, which draft medical report transcript is designed for
(a) review and editing (to the extent necessary) by medical
transcription personnel through use of the Editing Tools (defined
below), and (b) subsequent submission of the reviewed/edited
transcript to AnyModal CDS to obtain a Structured Medical Report
(defined herein). (Note: In accordance with section 3.02, below,
AnyModal CDS Draft Documents may only be used by Client as set
forth immediately above.) “Structured Medical
Report” means a structured document representing a final
medical report customized for the applicable Medical Domain using
the HL7® CDA (Clinical Document Architecture) standard,
created by AnyModal CDS as a result of submission to AnyModal CDS
of a reviewed/edited AnyModal CDS Draft Document.
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1.04
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“AnyModal CDS Editing Tools” or
“Editing Tools” meansM*Modal’s user interface-based
software components, in Object Code (defined below) form, and any
and all portions thereof, designed for integration into, and use
by, transcription workflow software to enable editing of AnyModal
CDS Draft Documents by medical transcription personnel, along with
any and all APIs (application programming interfaces) and related
information necessary to integrate such software components into
the transcription workflow software. To the extent the Pilot
Solution (defined below), or any and all portions thereof, fall
within the foregoing definition of Editing Tools, such Pilot
Solution shall be deemed to be Editing Tools.
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1.05
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“Client Customer”
means a physician practice, clinic
or hospital that has engaged Client to provide the service of
transcribing dictation of clinical information into textual medical
reports.
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1.06
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“Client Workflow System”
means Client’s software-based
system designed to enable (a) workflow from Client Customers to
Client medical transcription personnel, (b) quality assurance of
transcribed documents, and (c) distribution of textual medical
reports to medical specialists, in addition to working with
AnyModal CDS and the Editing Tools as described, respectively, in
sections 1.02 and 1.04, above.
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1.07
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“Confidential
Information” means
business or technical information, including third party
information, disclosed by one Party (the “Disclosing
Party” ) to the other Party (the “Receiving
Party” ), in whatever form or medium, tangible or
intangible, that (a) was or is so disclosed to the other Party as
part of, or in connection with, the Pilot Solution, in connection
with this Agreement, or in connection with any of the activities
contemplated by this Agreement, (b) is designated, either in
writing or orally, as confidential at or within a reasonable time
after such disclosure, or (c) by the nature of the circumstances
surrounding such disclosure, ought, in good faith, to be treated as
confidential information of the Disclosing Party, whether or not
such information is identified as such by the Disclosing Party,
including, without limitation, information that has or could have
commercial value or other utility in the business or prospective
business of the Disclosing Party, as well as information of which
unauthorized disclosure could be detrimental to the interests of
the Disclosing Party. Without limiting the foregoing, all patient
data, as well as any other data subject to confidentiality as
required by law, rule or regulation (including, without limitation,
the Health Insurance Portability and Accountability Act of 1996)
shall be deemed to be Confidential Information. Subject to sections
6.05 and 12.01, below, and without limiting the foregoing, the
Parties expressly agree that the existence and the terms and
conditions of this Agreement constitute Confidential
Information.
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1.08
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“Derivative Work”
means a revision, modification,
translation, abridgement, condensation, expansion, upgrade or
enhancement of a work (including, without limitation, computer
software and related documentation), or any other form in which
such work may be recast, transferred or adapted, and which, if
prepared without authorization of the owner of the copyright or
trade secret in and of such work, would constitute copyright or
trade secret infringement under the laws of the United States of
America or relevant state law, as applicable.
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1.09
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“Enhancement”
means any change or addition to
Object Code (defined below) or Source Code (defined below) that
improves function or improves performance by changes in system
configuration, system design or coding, including, without
limitation, new releases of software. “Update”
means any modification or revision, other than an Enhancement, to
Object Code (defined below) or Source Code (defined below) that
corrects any Error, supports a new release of the operating system
with which the Object Code is expressly designed to operate, or
provides other incidental updates or corrections.
“Error” means a mistake, problem or defect that
causes an incorrect functioning of Object Code (defined below), if
such mistake, problem or defect either (a) renders the Object Code
inoperable, or (b) causes the Object Code to fail to meet the
relevant Specifications (described in Article II below) established
by the Parties.
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1.10
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“Information Sheet”
means the document set forth in
Attachment A to this Agreement, designed to provide an overview of
Author enrollment practice and adaptation of AnyModal CDS to
Medical Domains.
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1.11
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“Intellectual Property”
means any and all rights created
under laws governing patents, copyrights, mask works, trade
secrets, trademarks, publicity rights, and any other law that gives
a Person (defined below) a right to control or preclude another
Person’s use of, or access to, information on the basis of
the holder-of-right’s interest in such information, and
includes, without limitation, software and all know-how, trade
secrets, copyrights, and patentable inventions relating thereto, as
well as materials, notes, designs, technical data, ideas, research,
reports, documentation and other similar information.
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1.12
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“Internal” or
“Internally” means, with respect to any action capable of
being taken by a Party under this Agreement, that such action may
be taken only by employees of such Party.
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1.13
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“Object Code”
means a computer software program
assembled or compiled in binary form on software media that is
readable and usable by machine, but not generally readable by
humans without reverse assembly, reverse compiling, reverse
engineering, or similar action, commonly referred to as
“object code.” Notwithstanding anything to the contrary
in the foregoing, the term Object Code specifically excludes any
item that otherwise constitutes Source Code (defined herein).
“Source Code” means the human-readable form of
computer programming code and related system documentation,
including, without limitation, documentation relating to
sequencing, organization and architecture, as well as comments,
programmer notes, and procedural languages.
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1.14
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“Person” means a natural person, corporation, business
trust, non-business trust, estate, joint venture, partnership,
limited liability company, association, governmental subdivision,
instrumentality or agency, or any other, legally cognizable entity.
(For the purpose of clarity, the term “Person” does not
extend to, or cover, any legally cognizable entity, natural person
or other party affiliated with, or otherwise related to, such
Person (each, an “Affiliate” ), including,
without limitation, any Affiliate that or who wholly or partially
owns such Person, is wholly or partially owned by such Person, or
is under common ownership or control with such Person.)
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1.15
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“Pilot
Solution” means
M*Modal’s technology and related information as already
piloted by Client in connection with a radiology-related Medical
Domain for Client Customer designated “33.100,”
including, without limitation, sample documents and style sheets
for the Editing Tools, style sheets to convert Structured Medical
Reports to text documents and HTML documents, style sheets to
extract ADT (admission, discharge and transfer) information from
Structured Medical Reports, sample integration code using
Microsoft ® Visual Basic® for incorporating the
Editing Tools into the Client Workflow System, and integration code
using Microsoft Visual Basic to illustrate and facilitate the use
of AnyModal CDS Web Services interfaces in connection with the
Client Workflow System.
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1.16
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“Process” means that, in exchange for the submission by
the Client Workflow System to Customized AnyModal CDS (defined in
section 2.02, below) of one Activated Author dictation recording
(regardless of the number of minutes of such recording), Customized
AnyModal CDS returns and makes available to Client an AnyModal CDS
Draft Document.
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Article II. Engineering Services
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2.01
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Adaptation. M*Modal shall adapt AnyModal CDS (in each case,
“Adapted AnyModal CDS” ) to work in connection
with particular Medical Domains (each, an “Adapted Medical
Domain” ) in accordance with the Adaptation Work Plan set
forth in Attachment B to this Agreement (the “Adaptation
Services” ) (which Adaptation Work Plan shall be
completed and executed by the Parties coincident with execution of
this Agreement and may be amended thereafter upon mutual, written
and signed agreement of the Parties), and the specifications stated
therein for Adapted AnyModal CDS (the “Adaptation
Specifications” ). As a condition of M*Modal performing
the Adaptation Services, Client shall provide M*Modal with any and
all information and assistance as required by the Adaptation Work
Plan.
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2.02
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Integration
Configuration. M*Modal
shall configure AnyModal CDS (“Integration-ready AnyModal
CDS”) to enable integration of AnyModal CDS into the
Client Workflow System and shall configure the Editing Tools (the
“Integration-ready Editing Tools,” together with
Integration-ready AnyModal CDS, the “Integration-ready
Solution” ; also, Adapted AnyModal CDS, with
Integration-ready AnyModal CDS, individually and collectively (as
applicable) shall be referred to as “Customized AnyModal
CDS” ; and Customized AnyModal CDS, with the
Integration-ready Editing Tools, individually and collectively (as
applicable) shall be referred to as the “Customized
Solution” ) to enable integration of such Editing Tools
into the Client Workflow System in accordance with the Integration
Configuration Work Plan set forth in Attachment C to this Agreement
(the “Integration Configuration Services” )
(which Integration Configuration Work Plan shall be completed and
executed by the Parties coincident with execution of this
Agreement), and the specifications stated therein, respectively,
for Integration-ready AnyModal CDS and the Integration-ready
Editing Tools (collectively, the “Integration-ready
Specifications,” with the Adaptation Specifications,
individually and collectively (as applicable) the
“Specifications.” ). As a condition of M*Modal
performing the Integration Configuration Services, Client shall
provide M*Modal with any and all information and assistance as
required by the Integration Configuration Work Plan. Without
limiting or expanding the foregoing, any items marked in the
Integration Configuration Work Plan with the “#” symbol
shall be deemed part of Integration-ready AnyModal CDS or the
Integration-ready Editing Tools, as applicable.
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2.03
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Testing. M*Modal shall indicate to Client that the
Integration-ready Solution is ready for Client’s acceptance
testing. Client, with the reasonable assistance of M*Modal (if
requested), shall examine and test the Integration-ready Solution
to determine whether such Integration-ready Solution conforms to
the Integration-ready Specifications. The Integration-ready
Solution shall be considered to have conformed to the
Integration-ready Specifications if it does not contain any Error
that prevents it from functioning in accordance with such
Integration-ready Specifications.Within fourteen (14) business days
after Client’s notification that the Integration-ready
Solution is ready for Client’s acceptance testing, Client
shall provide M*Modal with either written acceptance of the
Integration-ready Solution ( “Acceptance” ) or a
specific and objective statement of Error(s) to be corrected.
M*Modal shall then correct any Error(s) and redeliver, within a
commercially reasonable period (given the number and the complexity
of such Error(s)), the Integration-ready Solution to Client for
re-testing under the procedures set forth above in this section
2.03. Notwithstanding the foregoing, Client shall be deemed to have
provided Acceptance in connection with the Integration-ready
Solution to the extent Client either (a) makes such
Integration-ready Solution, or any portion thereof, available for
use by Client medical transcription personnel and Client delivers
to one or more Client Customers a Structured Medical Report or any
derivative of such Structured Medical Report (including, without
limitation, a rendering of a Structured Medical Report into a text
document – e.g., into Microsoft® Word®, PDF, RTF or
plain text formats) on or after December 1, 2004, or (b) fails to
provide a statement of Error(s) within the specified
time.
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Article III. License
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3.01
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Grant. Upon and subject to the terms and conditions of
this Agreement, M*Modal hereby grants to Client, and Client hereby
accepts, a non-exclusive, non-transferable (except as specifically
provided herein), revocable (but only as specifically provided
herein) license to
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(a) Internally integrate
Integration-ready AnyModal CDS into Client’s Workflow
System,
(b) Internally integrate the
Integration-ready Editing Tools into Client’s Workflow
System,
(c) Internally use Customized
AnyModal CDS for the sole purpose of assisting Client with the
Internal transcription and management of dictated clinical
information within the parameters of the Adapted Medical Domains,
and
(d) Internally use the
Integration-ready Editing Tools in connection with Customized
AnyModal CDS for the sole purpose of assisting Client with the
Internal transcription and management of dictated clinical
information within the parameters of the Adapted Medical Domains,
provided Client must use only the Integration-ready Editing Tools
(and no other editing software or tools) in connection with
Customized AnyModal CDS.
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3.02
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Restrictions. Without expanding the limited grant contained in
section 3.01, above, Client shall not (a) disassemble, reverse
compile or reverse engineer the Customized Solution (or any portion
thereof), or take any action in order to derive a source code
equivalent of such Customized Solution (except as M*Modal is
required under applicable law to allow Client to do, in which case
the Client agrees that any such works are Derivative Works of the
Customized Solution, and thus are the sole and exclusive property
of M*Modal), (b) release to any Person results of any benchmark,
performance, or functionality tests performed on the Customized
Solution, except as expressly set forth in this Agreement, (c)
release to any Person any results obtained through use of the
Customized Solution, including, without limitation, media or text
output, except as expressly set forth in this Agreement, (d)
incorporate, bundle or pre-load the Customized Solution into any
software or computing device manufactured by Client, or for Client,
except as expressly set forth in section 3.01, above, (e) create
Derivative Works of any part of the Customized Solution, except as
expressly set forth in section 3.01, above, (f) sublicense the
Customized Solution to any Person, or otherwise permit use of the
Customized Solution (including timesharing or networking use) by
any Person, except as expressly set forth in section 3.01, above,
(g) subject to section 12.01, below, distribute any press release,
demonstrate or otherwise publicize or promote the Customized
Solution (or any portion thereof), or the functionalities of such
Customized Solution, whether or not M*Modal is identified as the
proprietor of such Customized Solution, except as agreed by M*Modal
in advance in writing, which agreement shall not be unreasonably
withheld or delayed in connection with Client’s proposed
demonstration of such Customized Solution to one or more
prospective or existing Client Customers or to securities analysts
(and Persons acting in a capacity similar to a securities analyst),
provided that the prospective or existing Client Customers, the
securities analysts and the Persons acting in a capacity similar to
a securities analyst cannot reasonably be deemed competitors of
M*Modal, or (h) use the AnyModal CDS Draft Documents other than for
purposes of Internal review and editing (to the extent necessary)
by Client medical transcription personnel of such AnyModal CDS
Draft Documents and subsequent submission of the reviewed/edited
AnyModal CDS Draft Documents to Customized AnyModal CDS to obtain a
Structured Medical Report.
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Article IV. Maintenance and
Support
M*Modal shall provide maintenance
and support to Client as set forth in Attachment D to this
Agreement.
Article V. Payment
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5.01
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Integration
Configuration Services and Adaptation Services Fees.
[***Omitted and filed separately
with the commission.***]
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5.02
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Additional
Services Fees .
[***Omitted and filed separately with the Commision.***]
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5.03
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Transaction
Fees . [***Omitted and
filed separately with the Commission.***]
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5.04
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M*Modal
Service Commitment/Minute-based Discount. [***Omitted and filed separately with the
Commission.***]
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5.05
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Maintenance
and Support . [***
Omitted and separately filed with the Commission.***]
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5.06
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Remittance
Process. Client shall pay
to M*Modal the Integration Configuration Services Fees and
Additional Services Fees not more than five (5) business days after
the date on which such amounts are due. Within thirty (30) calendar
days following the end of each Billing Period, Client shall pay to
M*Modal the Transaction Fee due for such Billing Period.
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5.07
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Taxes. The Integration Configuration Services Fees,
Additional Services Fees and the Transaction Fees (and any other
amounts payable by Client under this Agreement) are exclusive of
all applicable taxes, including, without limitation, excise, sales,
use, added value, and customs, duties or governmental impositions,
and similar taxes or fees, now in force or enacted in the future,
and Client shall have sole responsibility for the payment of such
taxes, with the exception of taxes on M*Modal’s net
income.
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5.08
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Delinquent
Payment. For each
calendar month (or any portion thereof) during which payment of the
Integration Configuration Services Fees, Additional Services Fees
or Transaction Fee is delinquent, a late fee of one and one-half
percent (1.5%) of the amount due shall automatically be charged by
M*Modal and due with such payment.
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5.09
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Accounting
Records, Audit Rights. During the Term of this Agreement (defined in
section 9.01, below) and for the twelve (12) months immediately
following Termination (defined in section 9.04, below) of this
Agreement, Client shall maintain full, clear and accurate records
reflecting and recording all transactions pertaining to
Client’s use of the Customized Solution and the Transaction
Fees. Upon reasonable notice to Client, and not more than once per
calendar year, M*Modal shall have the right, by itself or through
an independent certified public accounting firm engaged on a
non-contingent basis, to audit the books and records of Client
reflecting information relating to the calculation or payment of
such Transaction Fees hereunder for any year within three (3) years
of the date of the request of the audit by M*Modal (each, an
“Original Audit” ). In the event the Original
Audit of Client’s books or records reveals any underpayment
to M*Modal of such Transaction Fees, payment of such amount shall
be made within seven (7) calendar days thereafter. If such
underpayment is greater than seven and one-half percent (7.5%) of
the payment due for the audited period, then Client shall pay all
reasonable and customary costs associated with the Original Audit.
If Client believes that such report is incorrect, then it may
request an independent audit by an independent accounting firm of
national reputation mutually acceptable to the Parties, any and all
costs of which shall be borne solely by Client unless such report
sustains the position taken by Client in all material respects. The
report of such firm shall be final and binding upon the Parties.
All auditors shall be required to sign an appropriate
non-disclosure agreement.
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Article VI. Confidentiality, Intellectual
Property
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6.01
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Non-Disclosure of Confidential
Information . Each Party
shall use it best efforts to hold and maintain in strictest
confidence the Confidential Information of the other Party. Without
limiting the generality of the foregoing statement, absent express,
written consent of the other Party, neither Party shall disclose
the other Party’s Confidential Information to any third party
(including a consultant or independent contractor), and each
Receiving Party shall protect the confidentiality of the
Confidential Information furnished by the Disclosing Party with at
least the same degree of care the Receiving Party uses to safeguard
its own highly sensitive, proprietary information, and, in any
event, shall exercise not less than the standard of care necessary
to maintain and protect trade secret status for the Confidential
Information (whether or not such Confidential Information actually
constitutes a trade secret), and each Party shall store the other
Party’s Confidential Information in a safe and secure
location.
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6.02
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Use of
Confidential Information . Each Party shall only receive and use the
other Party’s Confidential Information Internally and as
strictly necessary to perform its respective obligations under this
Agreement. In doing so, each Party shall provide such Confidential
Information only to those of its employees who have a legitimate
“need to know” to effect such purpose, and who are
bound in writing to exercise the degree of care imposed by this
Agreement with respect to the other Party’s Confidential
Information. Upon written request of the Disclosing Party, unless
such request would otherwise violate the terms and conditions of
this Agreement, the Receiving Party shall promptly return to the
Disclosing Party all documents and other tangible objects
containing or representing Confidential Information previously
furnished by the Disclosing Party, along with any all copies
thereof.
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6.03
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Ownership of
Confidential Information. The Parties expressly acknowledge that, at all
times, each Disclosing Party retains any and all right, title and
interest in and to its own Confidential Information. To the extent
the Receiving Party or its personnel acquires, by operation of law,
any right, title or interest in or to the Disclosing Party’s
Confidential Information, such Receiving Party irrevocably assigns
all such right, title and interest exclusively to the Disclosing
Party. Each Party shall maintain and enforce agreements and
policies with its personnel sufficient to give effect to this
section 6.03.
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6.04
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Exclusion(s)
of Liability .
Notwithstanding the above, the Receiving Party shall not have
liability to the Disclosing Party with regard to any Confidential
Information of the Disclosing Party that (a) is shown by written
documentation to be already in the possession of, known to, or
independently developed by the Receiving Party prior to disclosure
hereunder and prior to such Receiving Party having an obligation of
confidentiality with respect to such Confidential Information, in
each case, provided that, to the extent such Confidential
Information was obtained by the Receiving Party from a third party,
such third party did not commit a breach of an obligation of
confidence with respect to such Confidential Information, (b)
becomes publicly available through no fault or breach of the
Receiving Party, (c) is shown by written documentation to have been
obtained by the Receiving Party from a third party without breach
by such third party of an obligation of confidence with respect to
the Confidential Information disclosed, or (d) has been or is
developed by, as demonstrated through written documentation, the
Receiving Party independently of ( i.e. , without use of)
any such Confidential Information disclosed by the Disclosing
Party
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6.05
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Lawful Order
and Reference Exception(s) . In the event a Receiving Party is requested to
disclose Confidential Information of a Disclosing Party pursuant to
the lawful order of a court of law or government agency, the
Receiving Party may disclose such Confirmation Information,
provided the Receiving Party promptly provides the Disclosing Party
with written notification of the underlying request for disclosure
and takes any and all action (at the request and expense of the
Disclosing Party) necessary to preserve the confidential nature of
the Confidential Information, including, without limitation, moving
to put in place an appropriate protective order. Notwithstanding
the foregoing, the Parties expressly agree that Client shall be
able to disclose the
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Confidential Treatment Requested
existence (but not the terms or
conditions) of this Agreement to the Securities and Exchange
Commission in accordance with any reporting requirements of the
Securities and Exchange Commission with which Client must, by law,
comply; and, to the extent one or more of the terms or conditions
of this Agreement, under a reasonable interpretation of relevant
law, are required to be disclosed to the Securities and Exchange
Commission, the Parties shall mutually agree, in writing, prior to
any such disclosure, upon which terms and conditions shall be so
disclosed and which terms and conditions shall be redacted (or
otherwise withheld from disclosure). In the event that the Parties
cannot mutually agree regarding the requisite disclosure to the
Securities and Exchange Commission, the securities counsel of the
Party objecting to the disclosure of certain terms and conditions
shall issue a legal opinion regarding the appropriateness of such
nondisclosure at the expense of the objecting Party and the
disclosure shall be made in conformity with such opinion. The
provisions contained in this section 6.05 shall not be construed to
prohibit any activity of the Parties contemplated by section 12.01,
below.
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6.06
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Confidentiality Term . Each Party expressly acknowledges and agrees
that, notwithstanding the Termination (defined in section 9.04,
below) of this Agreement, the obligations regarding Confidential
Information imposed by this Agreement shall continue in perpetuity
following the date of Termination of this Agreement.
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6.07
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Intellectual
Property Ownership/Rights . Except for the limited license(s) granted
herein, all right, title and interest in and to the Pilot Solution,
the Customized Solution (including any portion thereof),
M*Modal’s Confidential Information, and all Intellectual
Property attendant to such Pilot Solution, Customized Solution and
M*Modal’s Confidential Information (individually and
collectively, the “ M*Modal Solutions, Information and
IP ”) are retained by M*Modal, and this Agreement shall
not be construed to grant Client any right or license to such
M*Modal Solutions, Information and IP, whether by implication,
estoppel or otherwise, except as expressly provided. Neither
changes, modifications, additional features or other derivative
works made by Client to the M*Modal Solutions, Information and IP,
nor changes, modifications, additional features or other derivative
works made by M*Modal to the M*Modal Solutions, Information and IP
as a result of feedback from Client, shall provide any basis for
any claim of right by Client to the M*Modal Solutions, Information
and IP, or Derivative Works of same, and shall remain the exclusive
property of M*Modal. To the extent Client or its personnel acquires
any such right, title or interest therein by operation of law,
Client irrevocably assigns all such right, title and interest
exclusively to M*Modal, and shall maintain and enforce agreements
and policies with its personnel sufficient to give effect to this
section 6.07. Except as expressly provided herein, M*Modal does not
grant any right to Client to any other M*Modal intellectual
property, including, without limitation, any patent, copyright,
trademark, or trade secret right.
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6.08
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Intellectual
Property Protection. Client shall use best efforts to protect the
M*Modal Solutions, Information and IP from unauthorized use by
agents of Client (such as medical transcription personnel and other
employees) and by third parties. Absent the prior, written consent
of M*Modal, Client shall not alter or remove any trademark,
copyright, trade secret, patent, proprietary or other legal notice
or legend contained in or on copies of the Pilot Solution,
Customized Solution (including any portion thereof), or
M*Modal’s Confidential Information.
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Article VII. Limited Representations and
Warranties, Limited Liability
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7.01
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Representations and Warranties –
Services. M*Modal
represents and warrants that it shall perform the Adaptation
Services, Integration Configuration Services and the maintenance
and support services under this Agreement in a diligent, timely and
workmanlike manner. OTHER THAN AS EXPRESSLY STATED IN THIS
AGREEMENT AND, TO THE MAXIMUM EXTENT PERMITTED BY LAW, M*MODAL
MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO SUCH SERVICES, THE
DELIVERY OF THE CUSTOMIZED SOLUTION (INCLUDING ANY PORTION
THEREOF), OR ANY OTHER SERVICES RENDERED IN CONNECTION WITH THIS
AGREEMENT, INCLUDING, WITHOUT LIMITATION, THAT M*MODAL’S
SERVICES WILL MEET CLIENT’S REQUIREMENTS, AND M*MODAL
EXPRESSLY DISCLAIMS THE IMPLIED WARRANTY OF MERCHANTABILITY AND THE
IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE.
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9
Confidential Treatment Requested
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7.02
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Representations and Warranties –
Products. M*Modal
represents and warrants that, for a period of ninety (90) calendar
days following Client’s Acceptance of the Integration-ready
Solution under this Agreement (the “Integration-ready
Warranty Period” ), such Integration-ready Solution shall
function substantially in accordance with the Integration-ready
Specifications, and, for a period of ninety (90) calendar days
following M*Modal’s adaptation of AnyModal CDS under Exhibit
B to work in connection with a particular Medical Domain (the
“Adaptation Warranty Period,” together with the
Integration-ready Warranty Period, individually and collectively
(as applicable), the “Warranty Period” ),
Adapted AnyModal CDS shall function substantially in accordance
with the Adaptation Specifications. NOTWITHSTANDING THE FOREGOING,
CLIENT EXPRESSLY ACKNOWLEDGES AND AGREES THAT ANY SPEECH
RECOGNITION ERROR RATE DEPENDS ON VARIOUS EXTERNAL CONDITIONS, SUCH
AS RECORDING SETUP, INTELLIGIBILITY OF UTTERED SPEECH, AND
BACKGROUND NOISE, AND THEREFORE TRANSCRIPTION WILL NOT BE ONE
HUNDRED PERCENT (100%) ACCURATE. IN THE EVENT CLIENT NOTIFIES
M*MODAL WITHIN THE APPLICABLE WARRANTY PERIOD THAT THE
INTEGRATION-READY SOLUTION OR ADAPTED ANYMODAL CDS, AS APPLICABLE,
IS NOT FUNCTIONING SUBSTANTIALLY IN ACCORDANCE WITH THE
SPECIFICATIONS PERTAINING THERETO, M*MODAL SHALL USE COMMERCIALLY
REASONABLE EFFORTS, AS ELECTED BY M*MODAL WITHIN ITS SOLE
DISCRETION, TO (A) CORRECT THE ERROR, (B) REPLACE THE
INTEGRATION-READY SOLUTION OR ADAPTED ANYMODAL CDS, AS APPLICABLE,
WITH A FUNCTIONAL EQUIVALENT, OR (C), SOLELY IN THE CASE OF THE
INTEGRATION-READY SOLUTION, (i) RETURN TO CLIENT ANY AMOUNTS PAID
BY CLIENT UNDER THIS AGREEMENT PRIOR TO AND DURING THE
INTEGRATION-READY WARRANTY PERIOD, AND (ii) IF M*MODAL SO ELECTS
UPON RETURN OF SUCH AMOUNTS, TO RIGHTFULLY TERMINATE THIS
AGREEMENT. THE REMEDY FOR BREACH OF THE ABOVE WARRANTY SHALL BE
LIMITED TO SAID CORRECTION, REPLACEMENT OR REPAYMENT, IF
APPLICABLE. OTHER THAN AS EXPRESSLY STATED IN THIS AGREEMENT AND TO
THE MAXIMUM EXTENT PERMITTED BY LAW, M*MODAL MAKES NO WARRANTY,
EXPRESS OR IMPLIED, AS TO THE INTEGRATION-READY SOLUTION, THE
CUSTOMIZED SOLUTION (INCLUDING ANY PORTION THEREOF), OR ANY OTHER
ITEMS OR SERVICES PROVIDED OR RENDERED IN CONNECTION WITH THIS
AGREEMENT, INCLUDING, WITHOUT LIMITATION, THAT THE
INTEGRATION-READY SOLUTION OR CUSTOMIZED SOLUTION (INCLUDING ANY
PORTION THEREOF) WILL MEET CLIENT’S REQUIREMENTS, AND M*MODAL
EXPRESSLY DISCLAIMS THE IMPLIED WARRANTY OF MERCHANTABILITY AND THE
IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE.
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7.03
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LIABILITY . TO THE MAXIMUM EXTENT PERMITTED BY LAW,
M*MODAL DISCLAIMS ANY AND ALL LIABILITY, UNDER CONTRACT,
NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY, FOR ANY
CONSEQUENTIAL, INCIDENTAL, SPECIAL, OR INDIRECT DAMAGES WHATSOEVER
(INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS
PROFITS, BUSINESS INFORMATION, BUSINESS INTERRUPTION, PERSONAL
INJURY) ARISING UNDER THIS AGREEMENT OR OTHERWISE IN CONNECTION
WITH THE ITEMS OR SERVICES PROVIDED OR RENDERED HEREUNDER. WITHOUT
LIMITING THE GENERALITY OF THE FOREGOING, CLIENT ALONE (NOT
M*MODAL) ASSUMES THE RISK FOR ANY HARM OR DAMAGE TO CLIENT PROPERTY
AS A RESULT OF CLIENT’S USE OF ANY SERVICES, THE CUSTOMIZED
SOLUTION (INCLUDING ANY PORTION THEREOF), OR M*MODAL CONFIDENTIAL
INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY HARM OR DAMAGE
NECESSITATING REPAIR, EVEN IF M*MODAL HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH HARM OR DAMAGE. SUBJECT ONLY TO ARTICLE VIII,
BELOW, IN NO EVENT SHALL M*MODAL’S LIABILITY TO CLIENT EXCEED
THE TOTAL AMOUNTS PAID TO M*MODAL BY CLIENT UNDER THIS
AGREEMENT.
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10
Confidential Treatment Requested
Article VIII. Intellectual Property
Indemnification
[*** Omitted and separately filed with the
Commission.***]
Article IX. Term and Termination, Concomitant
Obligations
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9.01
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Term .
[***Omitted and filed separately with the
Commission.***]
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11
Confidential Treatment Requested
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9.02
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Early
Termination with Possibility of Cure . Either Party may terminate this Agreement upon
written notice in the event the other Party is in breach of any
provision of this Agreement, if such breach materially and
adversely affects the benefits of the non-breaching Party under
this Agreement and the breaching Party has failed to cure such
breach within thirty (30) calendar days after receiving written
notice from the non-breaching Party of such breach.
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9.03
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Early
Termination Without Cure. In the event either Party willfully breaches or
breaches as a result of gross negligence any provision set forth in
Article VI of this Agreement in any material respect, then, in
addition to the rights the non-breaching Party has under section
9.02, above, the non-breaching Party may terminate this Agreement
upon five (5) business days’ written notice to the other
Party, with such termination becoming effective immediately upon
expiration of the fifth (5th) business day, and Client shall
immediately erase or otherwise destroy any and all copies of
Adapted AnyModal CDS, Integration-ready AnyModal CDS, the
Integration-ready Editing Tools, the Customized Solution, and other
Confidential Information of M*Modal stored in fixed media or
resident in the memory of any computer owned or controlled by
Client, as well as any and all other copies of same, and shall send
to M*Modal written certification, by an officer of Client, of such
erasure or destruction. Notwithstanding the foregoing, in the event
M*Modal invokes its right under this section 9.03 to terminate this
Agreement as a result of Client’s gross negligence, M*Modal
shall grant to Client sixty (60) days to cease Client’s use
of Adapted AnyModal CDS, Integration-ready AnyModal CDS, the
Integration-ready Editing Tools, the Customized Solution, and other
C
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