Exhibit 10.1
COMPUTER AND DATA PROCESSING
SERVICES AGREEMENT
This COMPUTER AND DATA PROCESSING
SERVICES AGREEMENT , (“this Agreement”) dated as of
May 19, 2008, is by and between HCA — Information
Technology & Services, Inc. , a Tennessee corporation
(“IT&S”) which is a wholly owned subsidiary of HCA
Healthcare Corporation, a Delaware corporation (“HCA”)
formerly known as Columbia Information Systems, Inc., and
LifePoint Corporate Services, General Partnership , a
Delaware general partnership (together with its successors and
permitted assigns, hereinafter sometimes referred to as
“Customer”).
W
I T N E S S E T H:
WHEREAS , IT&S is in the
business of providing certain computer and data processing services
as more fully set forth herein; and
WHEREAS , Customer desires to
purchase from IT&S the services described in this Agreement,
and IT&S is willing to provide such services to Customer, all
on the terms and conditions set forth herein;
WHEREAS , LifePoint
Hospitals, Inc., an Affiliate of Customer, and IT&S are parties
to that certain Computer and Data Processing Services Agreement
dated as of May 11, 1999, as amended (the “Previous
Agreement”), pursuant to which IT&S has provided
Affiliates of Customer with services substantially similar to the
services to be provided under this Agreement; and
WHEREAS , in consideration of
the Parties’ commitment to enter into this Agreement, the
fees charged under the Previous Agreement were revised to be
consistent with this Agreement effective October 1, 2007;
and
WHEREAS , each of the Parties
hereto wish to enter into this Agreement in order to supersede and
replace the Previous Agreement as of the date hereof without any
interruption in the continuity of services provided under the
Previous Agreement, all of which shall continue to be performed
under this Agreement unless otherwise expressly agreed.
NOW, THEREFORE , in
consideration of the premises and the mutual covenants and
obligations set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which are
acknowledged, IT&S and Customer agree as follows:
1. Definitions . The
following terms shall have the meanings set forth below:
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Additional Services . See the
definition in Section 3(a).
Affiliate . Any person or
entity that Controls, is Controlled by or is under common Control
with another person or entity.
Atlas System . The
proprietary intranet network currently provided by IT&S for use
by Customer and its Affiliates to obtain information relevant to
day-to-day operations.
Assigned . See the definition
of Assigned and related terms in Section 12(a) below.
Base Fees . The fees set
forth in the first table on Schedule B.
Business Associate Agreement or
BAA . The Business Associate Agreement between IT&S and
Customer dated May 19, 2008.
Calculation Period . See the
definition set forth in Section 2(i) below.
Change of Control . A
transaction (or a series of related transactions) in which a person
or entity (or a group of persons and/or entities acting in concert)
entities acquires Control of an entity or all or substantially all
of its assets.
Communication Lines . The
telephone communication and diagnostic lines for data transmission
with the Data Center and/or IT&S, whether dedicated or
not.
Complete Sunset . See the
definition in Section 3(d) below.
Consumer Price Index . All
Items of the United States Consumer Price Index published by the
United States Department of Labor, All Cities Average (1986=100) or
such other successor index as the Parties shall agree in
writing.
Contract Entity . An
Affiliate of Customer or an entity that is a party to a contractual
relationship with Customer if the relationship involves more than
providing information technology services (such as a party to a
joint venture or a lease, management or general services
arrangement with respect to a hospital or other entity that is not
an Affiliate of Customer).
Control . The ability,
directly or indirectly, to elect a majority of the Board of
Directors or similar governing body of an entity or to otherwise
direct the management of the entity and/or the use of all or
substantially all of its assets. This definition shall also apply
to the terms “Controlling” and “Controlled
by.”
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Cure Period . See the
definition set forth in Section 11(c) below.
Customer Data . See the
definition set forth in Section 8(a) below.
Customizations . See the
definition set forth in Section 3(b) below.
Data Center . The IT&S
Data Center(s) located in Nashville, Tennessee and/or any of
IT&S’ Regional Data Centers containing computer
processing equipment and the Software used by IT&S to provide
the Services, or such other facilities as IT&S may establish
from time to time.
Delivered . See definition in
Section 3(d).
Divested Facility . See
definition in Section 12(d).
Documentation . The
description of how to use the Services and their functionality and
the related security policies and procedures with respect to the
Services as most recently updated by IT&S pursuant to this
Agreement.
Effective Time .
12:01 A.M. on May 19, 2008.
Equipment . The computer
hardware located at the Facilities and, to the extent used in
connection with the Services, the computer hardware located at any
Affiliate or Contract Entity.
Facility/Facilities . The
hospitals and other healthcare providers that are Affiliates of
Customer or are owned by Customer or Affiliates of Customer.
First Notice Date . See
definition in Section 3(d).
HCA Entities . Collectively,
HCA Inc., its successors (if any), and Affiliates of HCA that
receive information technology services from IT&S.
HIPAA . The Health Insurance
Portability and Accountability Act of 1996, Public Law
104-191.
HIPAA Rules . The rules and
regulations implementing the transaction and code set, privacy,
security and other requirements set forth in the administrative
simplification provisions of HIPAA.
IT&S Software . The
software listed in Schedule A hereto and identified as being
owned by IT&S and any other software owned by IT&S that is
used to provide any Services at any time during the Term, including
Enhancements, upgrades and custom development to any of such
software.
IT&S Update . See
definition in Section 3(c) below.
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Indirect Damages . See
definition in Section 10(a) below.
Initial Term . The period
beginning at the Effective Time of this Agreement as set forth
above and ending on December 31, 2013 unless earlier
terminated pursuant to this Agreement.
Malicious Code . See
definition in Section 9(g) below.
Monthly Processing Fees . The
fees for monthly service under this Agreement as more fully set
forth in Section 2 and Schedule B.
New Software . See definition
in Section 3(d) below.
Operational Customer Data .
See definition in Section 8(a) below.
Parties . Collectively the
individual entities which execute this Agreement.
Previous Agreement . See
definition in the recitals above.
Qualifying Assignee . See
definition in Section 12(a) below.
Qualifying Damages . See
definition in Section 2(d) below.
Sale . See the definition in
Section 12(a) below.
Section 3(d) Period .
See definition in Section 3(d) below.
Service Level Agreements or
SLAs . See definition in Section 7 below.
Service Level Objectives or
SLOs . See definition in Section 7 below.
Services . The installation,
support, training, maintenance, data processing and other services
provided to Customer by IT&S pursuant to this Agreement,
including all services provided under the Previous Agreement during
the previous eighteen (18) months whether or not identified in
this Agreement. “Services” includes the Wide Area
Network and the Communications Lines.
Software . The computer
software identified in Schedule A hereto as either IT&S
Software or Third Party Software (and any future additional
software and/or replacement software) which is used by IT&S in
providing the Services to Customer, including Enhancements,
upgrades and custom development.
Systems . The Equipment and
Software functioning together, located at one or more Facilities,
Affiliates and Contract Entities.
Term . The Initial Term and,
if applicable, any renewal term and the Wind-Down Period.
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Third-Party Software . The
software owned by any third party that is licensed or otherwise
made available to IT&S and used to perform Services now and in
the future, including the software listed on Schedule A hereto
and software used by third parties as application service
providers.
Third-Party Updates . See the
definition set forth in Section 3(c)(1).
Wide Area Network . The
proprietary wide area network currently provided by IT&S for
use by Customer, its Facilities, Contract Entities and Affiliates
that receive Services hereunder and HCA Entities to deliver
IT&S products and/or services (for example, e-mail, host
application access, file transmission, Atlas System access).
Wind-Down Period . See the
definition set forth in Section 11(e) below.
2. Services, Systems, Data,
Payment .
(a) IT&S
shall provide, and Customer shall purchase from IT&S, the
Services and/or licenses to the Software described in the Schedules
hereto, upon the terms and subject to the conditions of this
Agreement, for the benefit of Customer and the Facilities, Contract
Entities and Affiliates that Customer may designate from time to
time with respect to all or a portion of the Services. Services
shall not be provided for Customer or any Facility, Affiliate or
Contract Entity to the extent that Customer notifies IT&S in
writing that some or all of the Services shall not be provided as
of a specific date; provided, however, that Customer shall not use
this Section 2(a) during the Initial Term or any renewal term to
effectively terminate this Agreement (i) by designating the
removal of more than twenty five percent (25%) of its Facilities in
a calendar year or (ii) by removing the Clinical CPCS and PA
(patient accounting) products described in Schedule A from
more than twenty five percent (25%) of its Facilities in a calendar
year.
The
foregoing limitations shall not be read as being in derogation of
Customer’s rights related to Updates in Section 3(c),
New Software in Section 3(d), or its rights to divest
Facilities as discussed in Section 12(d). For the avoidance of
doubt, Customer’s decision to remove services by virtue of
divesting more than twenty five percent of its Facilities would not
be deemed to be a violation of this Section 2(a). The invoices
provided hereunder for the Services shall identify the Facilities,
Affiliates and Contract Entities and the Services each of them
received for the month which is the subject of the invoice. The
parties shall promptly work together in good faith to resolve any
disagreement regarding which Facilities, Affiliates or Contract
Entities are then to receive all or a portion of the
Services.
In
addition, for purposes of applying the limitations set forth in the
first paragraph of this Subsection 2(a):
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(A) the twenty-five percent (25%)
limitation shall be applied during a specific calendar year to the
number of Facilities that received Services on January 1 of that
calendar year for purposes of Subsection 2(a)(i) above and to the
number of Facilities that received the Clinical CPCS and PA
(patient accounting) products on January 1 of that calendar year
for purposes of Subsection 2(a)(ii) above; and
(B) Customer shall not be deemed to
have removed a Facility if the Facility no longer uses the Services
or the Clinical CPCS and PA products in question pursuant to a
divestiture of the Facility, a decision not to use certain Services
pursuant to Section 3(c) regarding Updates or Section 3(d)
regarding New Software or a combination thereof.
(b) Except
as otherwise required by HIPAA, the HIPAA Rules, the Business
Associate Agreement or the requirements of payers, IT&S shall
designate certain coding and naming conventions for the form of
Customer Data and shall provide to Customer the coding requirements
for transmitting Customer Data to the Data Center and the treatment
given to different account and processing codes used by IT&S.
IT&S reserves the right to make changes in operating
procedures, coding and naming conventions, hardware and network
configurations and applications and systems programming. IT&S
shall provide Customer with notice of such changes as far in
advance as possible, but in no event less than thirty
(30) days. Customer shall be responsible for, and bear the
cost of, (i) coding and transmitting Customer Data to the Data
Center, (ii) supervising the conversion of its financial data
into a form that can be processed by IT&S in accordance with
the foregoing, (iii) determining whether it has complied with
applicable accounting practices, (iv) determining whether it
has complied with applicable state and federal regulations
governing financial reporting obligations, (v) verifying the
accuracy of Customer Data generated by Customer if, in
Customer’s sole discretion, it chooses to perform such
verification and (vi) maintaining prudent internal controls of
reports and Customer Data.
(c) If
Customer requests that IT&S correct or reprocess data files
because of erroneous input data or output records, IT&S will
use its reasonable best efforts to perform such correction and
reprocessing. Customer shall use commercially reasonable efforts to
request any correction or reprocessing within three business days
after production of the reports. If correction or reprocessing is
requested because of an error attributable to IT&S or the
negligence of IT&S, there shall be no charge for such rerun and
IT&S shall perform such rerun within ten (10) business
days unless the parties mutually agree that performing a rerun is
impossible from a technical perspective, in which event IT&S
shall promptly compensate Customer for any Qualifying Damages (as
defined below) and correct any erroneous records without performing
a rerun. In the event that the error is attributable to
Customer’s erroneous input data or output records, IT&S
will
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promptly
determine whether it can perform the reprocessing and, if it can
perform the reprocessing, will provide a reasonable cost estimate
to Customer for such reprocessing services. Following mutual
agreement on the cost, IT&S will perform the reprocessing
services. If the parties are unable to agree on the cost for the
reprocessing services, IT&S shall not perform such services. As
used herein, “Qualifying Damages” means the direct and
quantifiable damages incurred by Customer or any Contract Entity
that result from an error attributable to IT&S hereunder (for
example, the amount of an overpayment to an employee or vendor of
Customer due to an error of IT&S or the amount of a vendor
discount lost due to a delay in a payment processed by
IT&S).
(d) Customer
shall pay IT&S on behalf of the Facilities, Affiliates and
Contract Entities for the Services rendered and licenses granted in
accordance with the terms and subject to the conditions contained
herein and in the Schedules hereto. The prices set forth on
Schedule B are subject to change as set forth in Section 2(i)
below. The monthly processing fees set forth in Schedule B and
payable pursuant to subsection 2(g) below shall be the only fees
and costs payable hereunder other than (i) amounts payable for
travel under subsection (e) below, (ii) third party
charges as detailed in Schedule B, (iii) interface
development and deployment, which shall be charged in accordance
with Schedule C, (iv) fees agreed upon in separate work
orders signed by both Parties and (v) fees (if any) that
become due under Section 3 below. Except as otherwise provided
in Section 3(d), all third party costs due hereunder shall be
allocated on an equitable basis among Customer, IT&S, all HCA
Entities and all other customers of IT&S.
(e) In
the event that Customer makes a written request for the performance
of on-site Services by IT&S, Customer shall pay the reasonable
and customary travel expenses of IT&S personnel performing such
Services for Customer, in accordance with IT&S’ standard
business travel policies.
(f) Unless
otherwise provided herein, payment is due within thirty
(30) days of the date of receipt of an invoice except to the
extent that such amounts are the subject of a good faith dispute.
Without limiting IT&S’ rights hereunder, any amounts not
paid within thirty (30) days of the due date shall be subject
to a late charge equal to the lesser of twelve percent (12%) per
annum or the maximum amount allowed by applicable law; provided,
however, that no late charge shall apply with respect to amounts
reasonably disputed by Customer if written notice of such dispute
is given to IT&S within fourteen (14) days of receipt of
invoice; provided, however, that the interest on any disputed
charges that are ultimately resolved against Customer shall accrue
from the date payment would have otherwise been due. Disputes under
this Section will be resolved pursuant to the procedure set forth
in Section 12(f).
(g) Customer’s
processing fees are indicated in Schedule B and shall be
charged with respect to each Facility, Affiliate and Contract
Entity then
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designated by Customer to receive the Services in accordance with
the scope of Services then designated by Customer to be received by
such entity pursuant to Section 2(a) above. If IT&S changes the
manner in which the Services are performed (for example, by
electing to use more expensive software), such changes shall not
result in any additional fee, charge or cost hereunder except as
set forth in Section 3 below.
(h) Added/Divested
Facilities — The parties acknowledge that Customer may add or
divest Facilities from time to time during the Term of this
Agreement. With respect to divested Facilities, IT&S shall
provide Services as described in Section 12(d). For divested
Facilities Customer’s Monthly Processing Fees shall be
reduced beginning on the date of such Facility’s last use of
the System hereunder.
In the
event that, during the Term of this Agreement, Customer acquires
from a third party, or constructs, a hospital or health care
provider establishment, such an establishment shall become a
Facility and shall receive Services hereunder if and to the extent
designated pursuant to Section 2(a). Any such new Facility shall be
entitled to a discount of fifty percent (50%) on Monthly Processing
Fees for Clinical Systems and Patient Accounting for the first six
(6) full calendar months after go-live and a discount of
twenty-five percent (25%) on Monthly Processing Fees for Clinical
System and Patient Accounting for full calendar months seven
through 12 after go-live. If the go-live occurs other than on the
first day of the month, the Monthly Processing Fees will be
prorated over the number of days remaining in the month and the
discounts will be applied beginning with the first full calendar
month after go-live (For example, a Facility with a go-live date of
May 15 will be charged a prorated licensee fee for
May 15-31, without a discount, and then have the fifty percent
discount applied in December through May).
(i) No
more than once annually and effective on January 1 during the Term,
IT&S may increase the monthly processing fees charged pursuant
to Schedule B by an amount equal to the percentage increase in
the Consumer Price Index for the Calculation Period immediately
preceding the January 1 on which such change shall become
effective. As used herein, the “Calculation Period”
means the twelve month period beginning on July 1 and ending on
June 30 of the year preceding the year for which the price
increase shall become effective. Notice of any fee increase with
respect to a Calculation Period must be received by Customer by
August 1 immediately following the Calculation Period so that
Customer may advise its Affiliates of the fee increase that will
affect their budgets. For example, fees may be increased effective
January 1, 2010 by an amount equal to the percentage increase
in the Consumer Price Index for the Calculation Period beginning on
July 1, 2008 and ending on June 30, 2009 if IT&S
gives written notice of such increase to Customer by August 1,
2009.
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(j) IT&S
will provide yearly and at no charge to Customer, two thousand
(2,000) hours of support work to be used at Customer’s
discretion for system enhancements or staff training and support;
provided, however, that such hours shall not be reduced by the time
spent by IT&S in (i) correcting any errors in Services,
(ii) providing enhancements that are generally provided to HCA
Entities or other customers of IT&S, (iii) services
provided as part of IT&S’s general support under this
Agreement or (iv) any other services which IT&S provides
for a separate charge under this Agreement or any other
arrangement. If Customer does not use all of the 2,000 hours during
any calendar year, up to two hundred (200) of such unused
hours for a given year may be used in the next year during the Term
in Customer’s discretion.
3. New Services and Systems;
Updates .
(a) Additional
Services. From time to time, IT&S may offer to perform and
Customer may request IT&S to perform certain new activities for
Customer (similar to, but not included in the Services provided
hereunder), which Customer may purchase in its discretion (the
“Additional Services”). These Additional Services may
require Customer to pay additional fees, purchase additional
Equipment or Communications Lines or license additional software,
all of which shall be disclosed by IT&S to Customer in writing
when it proposes or responds to Customer’s request for
Additional Services. Unless otherwise agreed in writing, any hourly
charges for Additional Services shall not exceed the hourly amount
that may be charged for professional services pursuant to
Schedule C. IT&S shall respond to Customer’s request
for Additional Services within ten (10) days after
Customer’s written request. IT&S shall not reject any
reasonable Customer request for Additional Services including,
without limitation, transition services during the Wind-Down Period
(which shall be provided pursuant to Section 11(e) below). Customer
shall not be obligated to accept any Additional Services except to
the extent that Customer authorizes IT&S in writing to perform
the Additional Services.
(b) Customizations.
From time to time, Customer may request that IT&S create
enhancements, improvements, or other changes to the Software
Systems (each a “Customization”). A
“Customization” may include, without limitation, a new
feature or function which improves the operation, performance, or
efficiency of the Software, Equipment or infrastructure standards.
IT&S shall respond to Customer’s request for
Customizations within ten (10) days after Customer’s
written request. IT&S shall not reject any reasonable Customer
request for Customizations. Fees for Customizations shall be agreed
upon in advance and paid for by Customer consistent with the terms
of this Agreement and any amendment, work order, or other similar
document agreed upon by the Parties. Unless otherwise agreed in
writing, any hourly charges for Customizations shall not exceed the
hourly amount that may be charged for professional services set
forth in Schedule C.
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(c) Updates.
(1) From
time to time IT&S may update the Third Party Software or
provide updates received from the licensor for Third Party Software
(a “Third Party Update”). As used herein, the term
“Third Party Update” means any fix, change or
modification which affects the operating performance or efficiency
of the Third Party Software, but does not alter the basic functions
that it performs. At the request of IT&S and at a mutually
agreed time consistent with past practices (typically after all HCA
Entities have implemented the Third Party Update), Customer will
discontinue use of the then-current version of the Third Party
Software and work with IT&S to implement and use the Third
Party Update in accordance with the Documentation. In the event
that Customer fails to use the Third Party Update as described
herein, IT&S shall not be required to maintain or support the
related third Party Software. Unless otherwise agreed by Customer
in its sole discretion, IT&S shall not charge a fee to Customer
for Third Party Updates, the implementation thereof (including any
existing interfaces) or any related maintenance.
(2) From
time to time IT&S may update the IT&S Software (an
“IT&S Update”). As used herein, the term
“IT&S Update” means any fix, change or modification
which affects the operating performance or efficiency of the
IT&S Software, but (A) does not alter the basic functions
that it performs, (B) permits the IT&S Software to
continue to function effectively in Customer’s distributed
environment ( i.e. , does not require a centralized
approach), (C) does not require significant changes in
Customer’s business processes and (D) does not require
significant expenditures by Customer for other software or
additional Equipment or Communication Lines. At the request of
IT&S and at a mutually agreed time consistent with past
practices (typically after all HCA Entities have implemented the
IT&S Update), Customer will discontinue use of the then-current
version of the IT&S Software and work with IT&S to
implement and use the IT&S Update in accordance with the
Documentation. In the event that Customer fails to use the IT&S
Software as described herein, IT&S shall not be required to
maintain or support the related IT&S Software. Unless otherwise
agreed by Customer in its sole discretion, IT&S shall not
charge a fee to Customer for IT&S Updates, the implementation
thereof (including any existing interfaces) or any related
maintenance.
(d) New
Software. IT&S may, in its sole discretion, migrate to new
Software (“New Software”) to replace any IT&S
Software or Third Party Software which shall be offered to Customer
by IT&S at a price to be determined as set forth below at the
time of such offering; provided, however that the New Software
(1) shall provide substantially all of the functionality as
the Software that it replaces and (2) shall be suitable for
use in Customer’s distributed environment and shall be
implemented in a manner that permits it to function effectively in
Customer’s distributed environment ( i.e. , shall not
require a centralized approach).
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If
Customer elects not to implement the New Software, IT&S shall
continue to support the Software that it was intended to replace
during the Section 3(d) Period (as defined below) for the fees and
charges not to exceed the fees and charges determined in accordance
with Schedule B this Agreement and Customer may elect to
continue to use the old Software for some or all of the Section
3(d) Period. The Section 3(d) Period shall be the longer of
(A) forty-eight (48) months after the initial
notification to Customer by IT&S of its final decision to
migrate to New Software or (B) twenty-four (24) months after
all of the HCA Entities have fully implemented the New Software.
Notwithstanding the foregoing, if the change to New Software is due
to either the full discontinuation of support of any Third Party
Software (without a migration path to a new version or replacement
software that is both commercially reasonable and fits within
IT&S’s strategic plan as documented in its annual plans
and discussed in its quarterly meetings attended by a Customer
representative) or the termination or non-renewal of any Third
Party Software other than as a consequence of breach by IT&S
(each a “Complete Sunset”), the Section 3(d) Period
shall end when the vendor of such Third Party Software stops
providing support for it or when the license terminates or expires.
IT&S shall notify Customer as soon as IT&S knows of any
Complete Sunset and shall assist Customer with transition as
requested by Customer.
Customer
may also at any time elect to use software not provided by IT&S
instead of the New Software regardless of whether it has elected to
continue use of the old Software for some or all of the Section
3(d) Period . IT&S shall, if requested by Customer, provide
Additional Services (for which additional amounts may be charged
pursuant to Section 3(a)) to Customer to assist with the
transition to such other software and/or interfaces between the
Services provided by IT&S hereunder and the other software
selected by IT&S for use instead of the New Software.
Following
initial notification to Customer by IT&S of its final decision
to migrate to New Software, IT&S shall use all commercially
reasonable efforts to provide the following information in order to
facilitate Customer’s transition decision, which shall be
provided to IT&S within twelve (12) months of such initial
notification: (i) the functionality of the New Software
compared to the Software that it shall replace, (ii) the
migration process and required training, (iii) preservation of
Customer Data created or maintained by the old Software and how
such pre-existing Customer Data may be accessed by and used with
the new Software, (iv) any possible adverse impact on the SLOs
or SLAs then in effect and compliance with applicable laws and
regulations, (v) any additional training, hardware,
communications, software or data that will be required, including
any increase in direct or indirect costs to Customer that may
result from the change and (vi) all costs of use of the New
Software (consistent with the following paragraph). Notwithstanding
the foregoing, Customer may at any time during the Term elect to
implement the New Software and the Parties shall then work together
to develop a plan for implementation on a mutually agreed
timetable.
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IT&S
shall promptly update the information listed above if it changes in
any material respect or if additional information is developed or
obtained by IT&S that is different from or relevant to the
information listed above in any material respect. The Parties agree
to negotiate in good faith with respect to whether the Section 3(d)
Period should be extended or other action should be taken in order
to minimize any adverse consequences to Customer that resulted from
Customer’s reliance on the information listed above that is
subsequently changed, corrected or supplemented.
The
charges for the New Software shall not exceed the reasonable,
documented and quantifiable cost of Customer’s use of the New
Software to the extent that such cost is incremental above the cost
that IT&S has incurred or will incur for use of the New
Software by IT&S, all HCA Entities and all other customers of
IT&S. For example, if the New Software is Third Party Software
with license fees based on the number of users, the cost to
Customer hereunder shall be only the additional license fees due
with respect to the number of employees designated by Customer to
use the New Software and other types of incremental costs, as
applicable. In addition, the Base Fees otherwise due with respect
to the functionality that the New Software replaces shall no longer
be charged if Customer elects to implement the New Software. Unless
otherwise agreed in writing, any charges for implementation of the
New Software or related expenses shall not exceed the rates for
professional services set forth on Schedule C.
(e) IT&S
shall give Customer written notice of any proposed change in the
Software at or above the level of a material new release (including
the proposed use of Third-Party Software instead of IT&S
Software but not fixes and regulatory updates to any current
Software) and any proposed new Services as soon as IT&S is
aware of the proposed change or new Services and in no event shall
such notice be given later than internal IT&S approval of the
change or new Service. For purposes of this Section 3(e), a
new release shall not be considered material if it is routine or if
it does not change the functionality of the software or the manner
in which it is used by a majority of the users. IT&S shall also
provide the opportunity for Customer to send a Customer employee as
a representative to IT&S strategic planning sessions at least
as often as quarterly so that Customer can stay abreast of and
provide input on proposed changes to the Systems.
4. Software and Wide Area
Network; Prohibited Uses .
(a) The
use of the IT&S Wide Area Network is expressly restricted to
accessing the Software, Customer Data and Services provided by
IT&S in the manner described in the Documentation. IT&S
represents and warrants and Customer acknowledges that the Wide
Area Network provided by IT&S to support Customer’s
operation is proprietary. Customer and IT&S shall each comply
with the Documentation, which describes the responsibilities and
duties of IT&S and the Customer in respect of the Wide Area
Network. Customer shall not reverse engineer
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the Wide
Area Network in order to obtain access to proprietary data or for
any other purpose not specifically authorized herein.
Customer
shall not perform any of the following activities or any other
activities not conforming to the stated use of the Wide Area
Network and agrees to provide reasonable notification to employees
at the Facilities that they shall not:
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Place any equipment on the Wide Area Network for the purpose of
recording IT&S electronic communications or deciphering the
content and structure of IT&S electronic communications; |
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Access any piece or segment of the IT&S Wide Area Network
of computing infrastructure via any telecommunications utility, for
example, without limitation, Telnet and TCP/IP, other than as
specified in the Documentation; or |
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Take any other action which would have the effect of impeding
or prohibiting normal operation of the Wide Area Network. |
In
addition to the foregoing, Customer will obtain approval from
IT&S prior to adding any additional equipment or connections to
the Wide Area Network, which approval shall not be unreasonably
withheld, conditioned or delayed.
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Customer acknowledges and agrees that access to the IT&S
Wide Area Network may be temporarily terminated at IT&S’
sole discretion (with notice to Customer) under the following
circumstances: |
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Customer engages in unauthorized use of the Wide Area Network
as indicated in this Agreement; |
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A Customer site generates a condition that interferes with the
normal operation of the Wide Area Network, for example, without
limitation, a hardware problem generating excessive network traffic
or conflicting IP addresses are added to the network; or |
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A non-Customer site generates a condition that interferes with
the normal operation of the Wide Area Network and a Customer site
is taken down as part of the process of identifying and remediating
the problem. |
With
respect to any event caused other than by a malicious act of
Customer or by unauthorized use of the Wide Area Network at a
Customer Facility, IT&S will use its reasonable best efforts to
ensure that access to the Wide Area Network is restored in a timely
manner. With respect to any event caused by a malicious act or the
unauthorized use of the Wide Area Network, access will be restored
to the specific area in which the malicious act of the unauthorized
use occurred when IT&S has received reasonable assurance from
Customer that repeat acts or
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unauthorized use will not occur, but all access will be restored to
all other areas as if the event had been caused by another type of
event. IT&S will determine assurance in its reasonable
discretion, recognizing that an interruption in service is likely
to cause substantial harm.
(b) Subject
to the terms in each of the licenses for Third-Party Software
granted to IT&S and as set forth elsewhere in this Agreement,
IT&S grants to Customer, for the Term of this Agreement, a
non-transferable, non-exclusive license to use the Software as
contemplated in this Agreement. In this context, “use”
includes use by Customer, its Facilities, Contract Entities and/or
Affiliates and medical service providers accessing directly or
remotely the Software in the manner permitted by such Software and
the Documentation.
(c) Customer
shall have no rights to the Software or to information (other than
Customer Data) obtained from the Wide Area Network or the Atlas
System not expressly granted under this Agreement. Without limiting
the generality of the foregoing, Customer shall have no right to
(i) alter the Software, (ii) create derivative works,
(iii) distribute or sublicense the Software copies to third
parties, (iv) incorporate additional software into the
Software at the operating system or any other level,
(v) incorporate the Software into any publicly available data
base or (vi) reproduce the Software without IT&S’
prior written consent, which consent will not be unreasonably
withheld, conditioned or delayed. Notwithstanding the foregoing, at
Customer’s reasonable request, IT&S will work with
Customer and Customer’s contractors from time to time to add
software which will load or extract data from the Software and/or
supplement the Meditech software (for example, to add the Iatric
interface to provide information from the System to the electronic
medical record).
(d) Nothing
herein shall be deemed to grant to Customer any ownership interest
in the Software.
(e) Customer
shall not use the Software for any purpose other than as
specifically permitted by this Agreement. Customer shall not alter
or delete any copyright or other proprietary notices in the
Software.
(f) Customer
shall have the right to copy Documentation to support use of the
Software.
5. Equipment,
Installation .
(a) If
Customer purchases a
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