Exhibit 10.1
EXECUTION COPY
SHARED SERVICES
AGREEMENT
THIS SHARED SERVICES AGREEMENT (this
“ Agreement ”), dated as of March 1, 2009
and effective as of October 10, 2008 (the “ Effective
Date ”), between Misys plc, a public limited company
incorporated under the laws of England (“ Misys
”), and Allscripts-Misys Healthcare Solutions, Inc., a
Delaware corporation formerly named Allscripts Healthcare
Solutions, Inc. (“ Allscripts ”).
W
I T N
E S S E T H
:
WHEREAS, Section 6.6 of the Agreement and Plan of
Merger, dated as of March 17, 2008 (the “ Merger
Agreement ”), by and among Misys, Misys Healthcare
Systems, LLC, a North Carolina limited liability company (“
Misys Healthcare ”), Allscripts and Patriot Merger
Company, LLC, a North Carolina limited liability company requires
the Parties hereto to use commercially reasonable efforts to
negotiate and enter into a mutually acceptable transition services
agreement covering research, development and support services,
management services and related costs, human resources services,
procurement services, tax services, finance services and other
services to be mutually agreed;
WHEREAS, the Parties have fulfilled their obligation
under Section 6.6 of the Merger Agreement by negotiating and
entering into this Agreement; and
WHEREAS , the Parties 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, Misys and Allscripts agree as
follows:
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1.
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Definitions
and Interpretation
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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 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; provided that , for the purposes of this
Agreement, (i) neither Allscripts nor any of its Subsidiaries
shall be treated as Affiliates of Misys or any of its other
Subsidiaries (other than Allscripts and its Subsidiaries) and
(ii) neither Misys nor any of its Subsidiaries (other than
Allscripts and its Subsidiaries) shall be treated as Affiliates of
Allscripts or any of its Subsidiaries.
“ Agreement
” has the meaning specified in the first
paragraph.
“ Allscripts
” has the meaning
specified in the first paragraph.
“ Closing Date
” has the meaning
specified in the Merger Agreement.
“ Confidential
Information ” has the meaning specified in
Section 4.1 .
“ Contract
” means a contract, agreement, arrangement or lease, whether
written or oral.
“ CPI-U ”
means the unseasonably adjusted U.S. City Average All Items
Consumer Price Index for All Urban Consumers, published by the
Bureau of Labor Statistics or if such index is no longer published,
a comparable index published at least annually by a reasonably
similar source agreed to by the Parties.
“ Dispute Date
” has the meaning specified in Section 10.1
.
“ Effective Date
” has the meaning specified in the first
paragraph.
“ Executives
” means Misys’ James Gelly and Allscripts’ Bill
Davis.
“ Exhibit
” means any exhibit
attached hereto.
“ 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).
“ Facilities Management
Services ” has
the meaning specified in Schedule G .
“ Fees ”
means, with respect to any given Service, (a) charges for the
provision of such Service and (b) other than for Management
Services, 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 Facilities Management Services, Procurement Services
or Manila Support Services individually in excess of $2,000 or in
the aggregate in excess of $10,000 per fiscal
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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, in each case, unless
the Parties otherwise agree to exceed such amounts. For purposes of
clarification, Misys shall be responsible for its out-of-pocket
expenses incurred in connection with delivery of the Management
Services.
“ Financial
Services ” has the meaning specified in Schedule
B .
“ Force Majeure
” has the meaning specified in Section 11.12
.
“ 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.
“ HIPAA
” has the meaning
specified in Section 4.4 .
“ HR Services
” has the meaning specified in Schedule A .
“ 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 J .
“ Initial Service
Period ” has
the meaning specified in Section 5.1 .
“ Intellectual
Property ” means all trademarks, service marks, trade
names, trade dress, including all goodwill associated with the
foregoing, domain names, copyrights, Software and Internet
websites, and registrations and applications to register or renew
the registration of any of the foregoing, patents and patent
applications and Trade Secrets.
“ 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.
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“ 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).
“ Management
Services ” has the meaning specified in Schedule
C .
“ Manila Support
Services ” has the meaning specified in Schedule
I .
“ Merger Agreement
” has the meaning
specified in the first WHEREAS clause.
“ Misys ”
has the meaning specified in the first paragraph and includes its
permitted successors and permitted assigns.
“ Misys Healthcare
” has the meaning
specified in the first WHEREAS clause.
“ 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 Misys or Allscripts.
“ Parties
” means Misys and
Allscripts together.
“ Person ”
means an individual, corporation, partnership, joint venture,
association, trust, limited liability company, Governmental Entity,
unincorporated organization or other entity.
“ Procurement
Services ” has the meaning specified in Schedule
D .
“ Proprietary Software
License Agreement ” means the Proprietary Software License
Agreement, dated as of the Effective Date, between Misys Open
Source Solutions LLC, a Delaware limited liability company, and
Misys Healthcare.
“ Provider
” means an entity
providing a Service hereunder, as indicated on the Schedules
hereto. Misys, Allscripts or any of their respective Affiliates may
serve as a Provider hereunder.
“ Provider Invoice
” has the meaning
specified in Section 3.2 .
“ Provider Party
” has the meaning
specified in Section 2.1(b) .
“ Provider Service
Manager ” has the meaning specified in
Section 2.3(a) .
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“ Provider
Software ” means all computer systems, software
programs and databases and external data services used by a
Provider (i) prior to the Effective Date in providing services
to a Recipient or (ii) in the performance of Services
hereunder and that the Provider has the right to use.
“ R&D
Services ” has the meaning specified in Schedule
F .
“ Recipient
” means an entity
receiving a Service hereunder, as indicated on the Schedules
hereto. Misys, Allscripts 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
” has the meaning
specified in Section 2.1(b) .
“ Recipient Service
Manager ” has the meaning specified in
Section 2.3(a) .
“ Records
” has the meaning
specified in Section 3.3(a) .
“ Relationship
Agreement ” means the Relationship Agreement, dated as of
March 17, 2008, between Allscripts and Misys.
“ SaaS Services
” has the meaning
specified in Schedule H .
“ Schedule
” means any schedule attached hereto.
“ 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.
“ 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 .
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“ Trade Secrets
” shall mean all
inventions, processes, designs, formulae, trade secrets, know-how,
ideas, research and development, data, databases and confidential
information.
“ 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 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
Exhibits or Schedules hereto, the provisions of the body of this
Agreement shall control, unless an Exhibit or Schedule expressly
provides otherwise;
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(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.
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2.
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Performance
of Services by Provider
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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) HR Services (as defined in
Schedule A );
(ii) Financial Services (as defined
in Schedule B );
(iii) Management Services (as
defined in Schedule C );
(iv) Procurement Services (as
defined in Schedule D );
(v) Tax Services (as defined in
Schedule E );
(vi) R&D Services (as defined in
Schedule F );
(vii) Facilities Management Services
(as defined in Schedule G );
(viii) SaaS Services (as defined in
Schedule H );
(ix) Manila Support Services (as
defined in Schedule I ); and
(x) Information Systems Services (as
defined in Schedule J )
(collectively, the “
Services ,” and each individually, including each
individual service forming a part thereof, a “ Service
”).
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(b) Additional Services . If
at any time during the term hereof, a Recipient becomes aware of
any service the provision of which by a Provider is necessary or
advisable, which is not already being provided pursuant hereto
(each, an “ Additional Service ”), then either
Allscripts (if the Recipient is Allscripts or an Affiliate of
Allscripts) or Misys (if the Recipient is Misys or an Affiliate of
Misys) (either Party, the “ Recipient Party ”)
may notify either Misys (if the Provider is Misys or an Affiliate
of Misys) or Allscripts (if the Provider is Allscripts or an
Affiliate of Allscripts) (either Party, the “ Provider
Party ”) in writing of such Additional Service. Upon
receipt of such written notice, the Provider Party shall promptly,
but in no event later than seven (7) days, verify if such
request is an Additional Service, and the Parties shall then, as
promptly as reasonably practicable, negotiate in good faith
regarding (i) whether the Provider Party shall provide such
Additional Service and (ii) upon the Provider Party’s
agreement to provide such Additional Service, the scope, terms,
duration and cost and fees therefor. Notwithstanding anything to
the contrary contained herein, if either Party becomes aware of any
service, which is not already being provided pursuant hereto, and
such service was provided by Misys or its Subsidiaries to Misys
Healthcare or by Misys Healthcare or its Subsidiaries to Misys or a
Subsidiary of Misys prior to the Effective Date, 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. Except as expressly set forth in Schedule
J or as otherwise may be mutually agreed upon in writing by the
Parties, the service levels provided by Misys to business
operations acquired by Allscripts shall be at least as high as the
service levels provided to such business operations prior to the
Closing Date under the Merger Agreement.
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
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(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.
(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 Service Modifications
.
(a) Subject to
Section 2.5 , the Provider Party may reasonably
supplement, modify, substitute or otherwise alter any of the
Services or any component thereof from time to time in a manner
consistent with supplements, modifications, substitutions or
alterations made for similar services provided or otherwise made
available by, as applicable, the Provider Party or one of its
Affiliates to itself or its Affiliates; provided ,
however , that the level of service shall not be decreased
in any material respect as a result of such supplements,
modifications, substitutions or alterations; provided ,
further , however , that prior to any such
supplement, modification, substitution or other alteration, the
Provider Party shall provide the Recipient Party with at least
forty-five (45) days notice prior to implementing any such
change and the Provider Party and Recipient Party shall, during
such 45-day period, negotiate mutually agreeable terms and
conditions for such supplement, modification, substitution or other
alteration and if no such agreement is reached, the Recipient Party
may, at its option (1) agree to such change on the most recent
terms proposed by the Provider Party or (2) terminate the
Service or such component thereof with respect to which such change
is proposed on an agreed upon date, which shall be no earlier than
thirty (30) days after the end of such 45-day period 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, it being understood that during such thirty
(30) day period such supplement, modification, substitution or
alteration shall not be implemented with respect to the Recipient
Party. Once the Recipient Party has elected to terminate the
Service or such component thereof, if an agreement on the date of
such termination cannot be reached, such termination will occur on
the one hundred twentieth (120th) day after the end of the
45-day period unless earlier requested by the Recipient
Party.
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(b) The Recipient Party may request
that the Provider Party supplement, modify, substitute or otherwise
alter any of the Services or any component thereof. Upon such
request, the Parties shall discuss in good faith the scope and
nature of such request and related issues, including, but not
limited to, the Fees therefor. If the Parties agree upon the scope
and nature of such request and related issues, 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 altered Services.
2.5 Third Persons . Following
the Effective Date, a Provider may subcontract any of its
obligations in relation to the provision of any Service or
component thereof to a third-Person vendor. Notwithstanding the
foregoing, (x) a Provider may not after the Effective Date
begin to subcontract to a third-Person vendor its obligations in
relation to the provision of any Service it is then providing
hereunder or change a subcontractor that it is using on the
Effective Date without the consent of the Recipient if doing so
will increase the Fees by more than 4% for such Service or
component thereof during the current Service Period or materially
reduce the level of service, and (y) in any case, a Provider
shall remain responsible for the performance of such Service or
component thereof by such third-Person vendor at the same standard
of care set forth herein for the Services; provided ,
however , that prior to engaging a subcontractor to provide
a Service then provided by a Provider or changing a subcontractor
providing a Service, the Provider Party shall provide the Recipient
Party with at least forty-five (45) days notice prior to
implementing any such change and the Provider Party and Recipient
Party shall, during such 45-day period, negotiate mutually
agreeable terms and conditions for such subcontracting and if no
such agreement is reached, the Recipient may, at its option
(1) agree to such subcontracting on the most recent terms
proposed by the Provider or (2) terminate the Service or
component thereof with respect to which such subcontracting is
proposed on an agreed upon date, which shall be no earlier than
thirty (30) days after the end of such 45-day period without
any further liability or obligation other than the payment of Fees
for such Services or component thereof provided through the date of
such termination, it being understood that during such thirty
(30) day period such subcontractor change shall not be
implemented with respect to the Recipient Party. Once the Recipient
Party has elected to terminate the Service or such component
thereof, if an agreement on the date of such termination cannot be
reached, such termination will occur on the one hundred twentieth
(120th) day after the end of the 45-day period unless earlier
requested by the Recipient Party. Notwithstanding anything to the
contrary herein, the Provider Party may not increase the fees
charged to the Recipient Party by more than the actual increase in
costs to the Provider Party (if any) to deliver the applicable
Service as a result of subcontracting permitted under this
paragraph.
2.6 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.
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2.7 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; provided , however , that the Recipient
shall not be obligated to provide materially more of the foregoing
resources, or incur materially greater expenses in doing so, than
the Recipient was providing in connection with performance or
receipt of the Services prior to the Closing Date under the Merger
Agreement unless the Recipient agrees to do so.
2.8 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). Any such change shall be done
in accordance with the provisions of Section 2.4 . 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.
2.9 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 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, provided, that
so long as the Recipient Party is informed in writing of such
third-Person consent costs and agrees in writing to bear such cost,
such cost shall be borne solely by the Recipient Party or its
Affiliates. If as a result of any negotiations with third Persons
regarding Provider Software licenses or sublicenses the costs
thereof (but not including costs that are based on amount of use
that increase as a result of increased use) to the Provider
increases, the Provider shall bear the full cost of such increase
and the Fees hereunder shall not be increased. 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 2.9
. 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 forty-five (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
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not specifically granted herein are
reserved by the Provider Party and its Affiliates, as applicable.
The licenses granted pursuant to this Section 2.9 shall
survive the termination or expiration of this Agreement in the
event that transition services are being provided to the Recipient
Party in accordance with Section 5 after the effective
date of such termination or expiration; provided that , in
the event any such licenses survive the termination or expiration
of this Agreement, such licenses shall terminate no later than the
date of completion of such transition services.
2.10 Personnel Approval, Removal
and Continuity . At the Recipient Party’s request, the
Provider Party will deliver the qualifications and experience of
all personnel to be assigned to perform the Services hereunder. At
any time during the term of this Agreement, the Recipient Party
shall have the right to reject placement of, or subsequently
request replacement of, any personnel that the Recipient Party
reasonably believes is unqualified or not performing. Within five
(5) business days of receiving the Recipient Party’s
request for removal or replacement, the Parties shall meet to
resolve the issue. If, after the meeting, the Recipient Party
continues to reject or request replacement of the applicable
personnel, the Provider Party shall, as promptly as is reasonably
practicable under the circumstances, fulfill the Recipient
Party’s request.
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3.
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Fees;
Invoicing and Payment
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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 HR Services, the amounts set forth
in Schedule B in consideration for the Financial Services,
the amounts set forth in Schedule C in consideration for the
Management Services, the amounts set forth in Schedule D in
consideration for the Procurement Services, the amounts set forth
in Schedule E in consideration for the Tax Services, the
amounts set forth in Schedule F in consideration for the
R&D Services, the amounts set forth in Schedule G in
consideration for the Facilities Management Services, the amounts
set forth in Schedule H in consideration for the SaaS
Services, the amounts set forth in Schedule I in
consideration for the Manila Support Services and the amounts set
forth in Schedule J in consideration for the Information
Systems Services. With respect to Fees charged by Misys or any of
its Affiliates, such Fees will use the Misys budgeted exchange
rates for the then-applicable fiscal period.
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 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.
12
3.3 Audit Rights .
(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 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.
13
(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 Sarbanes-Oxley Act of 2002.
(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 (other than
Management 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
14
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 (other than Management Services), 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.
3.5 Sharing of Savings . The
Parties acknowledge and agree that the Fees for Services are, in
part, based upon an allocation of expenses associated with
personnel involved in providing the HR Services, Procurement
Services, R&D Services and Information Systems Services. In the
event that the Providing Party eliminates some of the personnel,
functions or services comprising the HR Services, Procurement
Services, R&D Services or Information Systems Services, then
the Fees charged to the Recipient Party for any such Services shall
be reduced in accordance with the original percentage of costs
allocated to the Fees for such Services during the period in which
such personnel, functions or services are not provided. In the
event that the Parties did not expressly identify in a Schedule the
pro-rata allocation of costs between the Providing Party and
Recipient Party, the Parties will agree upon the pro-rata reduction
hereunder based upon the actual allocation percentages. For
purposes of clarification, if any personnel are terminated by the
Providing Party, any severance payments or related termination
payments shall not be included in the calculation of Fees. This
Section 3.5 applies only to the Services specifically
mentioned in the first two sentences of this Section 3.5 and
does not apply to the Management Services identified in Schedule
C , as the Fees identified therein reflect both the applicable
Services and other considerations contemplated in the Merger
Agreement.
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4.
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Confidentiality; Data Security
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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 materials that:
(a) are contained in any of the Schedules or Exhibits to this
Agreement; (b) relate to the determination of the Fees;
(c) are obtained by
15
the other Party in the course of an
audit pursuant to Section 3.3 ; (d) are obtained
by the other Party after the Effective Date in the course of the
receipt or provision of any of the Services; (e) embody or
otherwise summarize Confidential Information; or (f) 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;
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(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;
(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
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 shall execute a business
associate subcontractor agreement(s), which agreement(s) shall
include the customary provisions required under HIPAA as well as
flow through provisions that the other Party is required to execute
as a business associate to one or more of its customers.
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 .
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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.
5.1 Term . The term for each
of the Services shall begin on the Effective Date (unless otherwise
stated in a Schedule) and, except as otherwise provided in this
Agreement, shall continue in effect until the first anniversary of
the Effective Date (such period, the “ Initial Service
Period ”). This Agreement may be extended for additional
one-year periods by mutual agreement of the Parties (each such
extension and the Initial Service Period, a “ Service
Period ”), provided that a Party notifies
the other Party at least ninety (90) days prior to end of the
then-current Service Period of such Party’s desire to extend
the Agreement and the Parties reach an agreement on the terms and
conditions applicable to such extension prior to the end of the
then-current Service Period, unless the Parties agree otherwise. In
the event that the Parties cannot reach an agreement on the Fees to
be charged during the extension, but otherwise agree to the
extension of this Agreement for a subsequent Service Period, the
percent increase in the Fees will be the CPI-U increase for the 90
day period immediately preceding the anniversary date until such an
agreement on Fees has been reached. In no event shall this
Agreement continue for more than ninety (90) days beyond the
end of the then-current Service Period, other than for R&D
Services and Information Systems Services, which may continue for
no more than one hundred eighty (180) days beyond the end of
the then-current Service Period, unless the Parties have agreed on
the other relevant terms and conditions for the proposed extension.
Under no circumstances shall this Agreement, or any Services or
components thereof, terminate prior to the date that is four
(4) months after the Effective Date, except as provided in the
second paragraph of Section 5.2 .
5.2 Termination of a Particular
Service or Component Thereof . At any time following the date
that is four (4) months after the Effective Date:
(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
18
(b) Any specific Service or part
thereof shall be subject to termination at the election of the
Recipient Party upon providing advance notice to the Provider Party
in accordance with the notice for termination period set forth for
that particular Service in the Schedules, or, alternatively, if the
Schedules do not set forth a specific notice for termination period
for such Service, upon forty-five (45) days’ notice 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.
Notwithstanding the foregoing
(including the four (4) month period referred to above), if
(i) within thirty (30) days following the Effective Date
the Recipient Party determines that it (or a Recipient) will be
responsible for a material amount of taxes pursuant to
Section 3.4 of this Agreement with respect to any
Service or part thereof, a notice referred to in clause
(b) above with respect to such Service or part thereof may be
provided within such thirty (30) day period and (ii) the
Recipient Party provides a notice to terminate a specific Service
or part thereof pursuant to clause (b) above as a result of
the Recipient Party (or a Recipient) determining that it (or a
Recipient) will be responsible for a material amount of taxes
pursuant to Section 3.4 , the reference in clause
(b) to forty-five (45) days shall be to thirty
(30) days with respect to such Service or part
thereof.
5.3 Consequences of Termination
of this Agreement or Termination of any of the Services or any
Component Thereof . Upon termination of this Agreement for any
reason, 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;
(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; and
(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.
19
5.4 Transition and Migration Upon
Discontinuation or Termination .
(a) In preparation for the
discontinuation of any Service provided under this Agreement for
any reason, 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 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 a 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. Subject to the minimum transition period
duration requirement for the R&D Services, Manila Support
Services and Information Systems Services pursuant to
Section 5.4(c) , 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 expiration or 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
the schedule for transition and migration work and 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 . With respect to the R&D Services,
Manila Support Services and Information Systems Services only, the
transition period specified in the Transition and Migration Plan
shall be no less than one hundred twenty (120) days after the
effective date of the expiration or termination of the applicable
Service Period.
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5.5 Survival . Upon
termination of this Agreement for any reason, Sections 1 ,
2.9 , 3.1 , 3.2 , 3.3 , 3.4 ,
4.1 , 4.2 , 4.3 , 4.6 , 4.7 ,
5.3 , 5.4 , 5.5 , 6 , 7 ,
8 , 10 and 11 shall survive.
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6.
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Disclaimer;
Limitations of Liability; Remedies
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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, 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 (1) IF
SUCH LIABILITY IS DETERMINED AFTER THE FIRST ANNIVERSARY OF THE
EFFECTIVE DATE, 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 DURING THE IMMEDIATELY PRECEDING TWELVE
(12) MONTHS OR (2) IF SUCH LIABILITY IS DETERMINED PRIOR
TO THE FIRST ANNIVERSARY OF THE EFFECTIVE DATE, THE GREATER OF THE
ACTUAL AMOUNT 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 THROUGH SUCH DATE
OF DETERMINATION OR THE AMOUNT THAT WOULD BE PAYABLE UNDER THIS
AGREEMENT WITH RESPECT TO THE RELEVANT SERVICE SCHEDULE UNDER WHICH
THE INDEMNIFICATION OBLIGATION ARISES DURING THE FIRST YEAR OF THE
TERM HEREOF; PROVIDED , HOWEVER , THAT TO THE EXTENT
THE INDEMNIFICATION OBLIGATION ARISES FROM A PARTY’S GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT IN THE
21
PERFORMANCE OR RECEIPT OF THE
SERVICES COVERED BY THE RELEVANT SERVICE SCHEDULE UNDER THIS
AGREEMENT, THE AGGREGATE LIABILITY SHALL BE LIMITED TO (1) IF
SUCH LIABILITY IS DETERMINED AFTER THE FIRST ANNIVERSARY OF THE
EFFECTIVE DATE, 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 DURING THE IMMEDIATELY PRECEDING
TWELVE (12) MONTHS OR (2) IF SUCH LIABILITY IS DETERMINED
PRIOR TO THE FIRST ANNIVERSARY OF THE EFFECTIVE DATE, THE GREATER
OF THREE (3) TIMES THE ACTUAL AMOUNT 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 THROUGH SUCH DATE OF DETERMINATION OR THREE
(3) TIMES THE AMOUNT THAT WOULD BE PAYABLE UNDER THIS
AGREEMENT WITH RESPECT TO THE RELEVANT SERVICE SCHEDULE UNDER WHICH
THE INDEMNIFICATION OBLIGATION ARISES DURING THE FIRST YEAR OF THE
TERM HEREOF; 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 (1) IF SUCH
LIABILITY IS DETERMINED AFTER THE FIRST ANNIVERSARY OF THE
EFFECTIVE DATE, THE TOTAL AMOUNTS PAID OR PAYABLE TO OR BY SUCH
PARTY OR ITS AFFILIATES UNDER THIS AGREEMENT DURING THE IMMEDIATELY
PRECEDING TWELVE (12) MONTH PERIOD OR (2) IF SUCH
LIABILITY IS DETERMINED PRIOR TO THE FIRST ANNIVERSARY OF THE
EFFECTIVE DATE, THE GREATER OF THE ACTUAL AMOUNT PAID OR PAYABLE TO
OR BY SUCH PARTY OR ITS AFFILIATES UNDER THIS AGREEMENT THROUGH
SUCH DATE OF DETERMINATION OR THE AMOUNT THAT WOULD BE PAYABLE
UNDER THIS AGREEMENT DURING THE FIRST YEAR OF THE TERM
HEREOF.
(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
22
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 Exhibits and
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 Provider Party of
such failure and request that the Provider Party correct such
failure within thirty (30) days after notice thereof. For the
avoidance of doubt, to the extent that any service level failure
constitutes the Provider Party’s material default pursuant to
Section 5.2(a) hereunder, the Recipient Party may
exercise its termination rights under Section 5.2(a)
.
(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) , or, if such failure is not capable of
correction within such time frame, the Provider Party has not begun
the correction process or ceases to diligently pursue to completion
the correction process, 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.
23
(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.
7.1 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 Affiliate’s (i) breach
of any of their respective covenants, agreements and obligations
hereunder, (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 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 third-Person 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
third-Person Action against the Indemnified Party. The Indemnifying
Party shall not consent to the entry of any judgment or enter into
any settlement of any third-Person Action 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
24
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 third-Person
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:
(i) injunctive relief under Section 4.6 and
Section 10.3 herein; or (ii) the remedies
specified in Section 6.3 .
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8.
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Ownership of
and Access Data and Intellectual Property
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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 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 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.
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
25
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 Allscripts
that are owned by Misys, so long as the assignee assumes the
assigned rights and obligations; ( iii ) any assignment
or sale of all or substantially all of the business comprising
Misys Open Source Solutions LLC, an indirect wholly-owned
subsidiary of Misys, or ( iv ) any assignment or sale
of all or substantially all of Misys’ or Allscripts’
assets, or any merger, consolidation or other business combination
to which Misys or Allscripts is a party. The assigning Party shall
provide the other Party with written notice sixty (60) 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.
10.1 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.
26
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.
11.1 Schedules and Exhibits .
The Schedules and Exhibits 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, Schedules and Exhibits shall be deemed references to such
parts of this Agreement unless otherwise indicated or unless the
context shall otherwise require.
11.2 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; provided ,
however , that so long as Misys can appoint a majority of
the Board of Directors of Allscripts, any supersession,
cancellation, renewal, material extension, material waiver or
material amendment of this Agreement shall only be effected if both
(a) the audit committee of Allscripts’ Board of
Directors approves such action by a majority vote of the members of
such committee then in office and (b) the Allscripts’
Board of Directors approves such action. Without prejudicing the
ability of either Party to bring matters to the attention of the
audit committee or the Board of Directors of Allscripts as such
Party deems appropriate, each Party shall have the opportunity to
present and discuss any such action with the audit committee and
the Board of Directors of Allscripts prior to any vote. 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.
11.3 Entire Agreement; No Third
Party Beneficiaries . This Agreement (together with the
Schedules and Exhibits attached hereto) constitutes the entire
agreement, and supersedes all prior agreements and 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.
11.4 Governing Law . This
Agreement (and any claims or disputes arising out of or related
thereto or to the transactions contemplated thereby or to the
inducement of any party to enter therein, 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.
27
11.5 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 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 11.5 .
11.6 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, 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):
Misys plc
One Kingdom Street
London W2 6BL
United Kingdom
Fax: + 44 (0)20 3320 5000
Attention: Group General
Counsel & Company Secretary
with a copy (which copy shall not
constitute notice) to:
Debevoise & Plimpton
LLP
919 Third Avenue
New York, NY 10022
Attention: Andrew L. Bab,
Esq.
Fax: +1 212 909-6836
28
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(b)
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if to
Allscripts, to:
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Allscripts-Misys Healthcare
Solutions, Inc.
222 Merchandise Mart Plaza, Suite
2024
Chicago, IL 60654
Attention: General
Counsel
Fax: +1 312 506-1208
with a copy (which copy shall not
constitute notice) to:
Sidley Austin LLP
One South Dearborn
Chicago, Illinois 60603
Attention: Gary D.
Gerstman
Fax: +1 312 853-7036
11.7 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.
11.8 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.
11.9 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 Misys and
Allscripts.
11.10 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.
29
11.11 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.
11.12 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.
11.13 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.
11.14 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.
30
11.15 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.
31
IN WITNESS WHEREOF
, the Parties have caused this
Agreement to be executed by their authorized representatives as of
the date first above written.
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Misys
plc
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Allscripts-Misys Healthcare Solutions,
Inc.
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By:
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/s/ Dan
Fitz
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By:
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/s/ Lee
Shapiro
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Name:
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Dan
Fitz
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Name:
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Lee
Shapiro
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Title:
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EVP, General
Counsel & Company Secretary
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Title:
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President and
Chief Operating Officer
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Shared
Services Agreement Schedule
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EXECUTION COPY
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HR Services
Schedule A
Start Date: Effective
Date
Summary of
Services:
Misys plc and its Affiliates
(collectively, the “ Provider ”) will provide to
Allscripts-Misys Healthcare Solutions, Inc. and its Affiliates
(collectively, the “ Recipient ”) the Services
outlined in the table below (the “ HR Services
”).
For the avoidance of doubt, unless
otherwise stated below, Allscripts shall bear the costs of the
implementation and execution of any designs created by Misys
pursuant to this Schedule. For purposes of clarification, the
Provider shall have no final authority to bind the Recipient to
implement any plan, hire or fire any personnel of the Recipient,
change any compensation of personnel of the Recipient or enter into
any contract without the Recipient’s consent
thereto.
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Service Name
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Description of
Service
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1.
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HR- Talent
& Organization Development
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Internal
Employee and leadership development, consulting and
design
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1.1
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Employee
Engagement
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• Coordinate
annual Misys Employee Engagement Survey. (Misys global HR will
cover the cost of the survey design. Allscripts will cover the cost
of Pulse Surveys.)
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1.2
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Talent &
Succession Planning
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• Design
consistent methodology for Misys Talent & Succession
Plans.
• Design
templates for Talent Management & Development Plans.
(Allscripts will cover the cost of Talent Management &
Development Plans and all costs for Heidrick & Struggles’
services.)
• Design
talent plans.
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1.3
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Performance
Management
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• Design
standard forms for Misys Performance Reviews.
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1.4
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Training
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• Vendor
selection and RFP and vendor management for Misys training and
talent.
• Design
and develop training programs. (Allscripts will implement and
facilitate the programs and cover all costs relating
thereto.)
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2.
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HR-Compensation & Benefits
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Internal
design, support and management of employee compensation &
benefits plans
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2.1
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Benefits
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• Plan
design, financial analysis, utilization analysis, vendor selection,
vendor service agreements of all health and welfare, 401k, and
miscellaneous employee benefits.
• Fiduciary
and regulatory compliance for all benefit plans.
• Audit
Misys records against vendor invoices and authorize
payments.
• Coordinate
and participate in company required Health & Welfare, 401k
& NQDC Committees.
• Manage
all formal plan appeal processes for health and welfare and 401k
plans to meet requirements.
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Service Name
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Description of
Service
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• Manage
& administer NQDC Plan.
• Coordinate/manage
all external and any internal audits of 401k plans (2
plans).
• Management
and analysis of all self-funded benefit plans.
Notwithstanding anything in the
Agreement, (a) by June 1st of each Service Period, Allscripts
will have had the opportunity to review fiscal year-to-date
expenses in connection with the benefit plans in which it
participates pursuant to this Section 2.1, and (b) by July 1st
of each Service Period, as long as Allscripts has had the
opportunity to conduct a review pursuant to clause (a) of this
sentence, Misys can proceed to provide Services within contracts
for the upcoming fiscal year, unless Allscripts has notified Misys
of its intent to discontinue its participation in any contract for
the upcoming fiscal year.
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2.2
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Compensation
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• Misys
role profile and banding design.
• Design
of Misys compensation and bonus plan(s) including participation in
design of sales compensation plans.
• Review
and seek appropriate approval (Misys CEO, EVP, and/or Compensation
Committee) for any change to the compensation and benefits of
direct reports to the EVP.
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Fees:
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FTE Charge to
Allscripts (2.25 FTEs) covering Services in Sections 1 and
2.
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$336,000 for
the Service Period.
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Compensation & Benefits Fees
1
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Service
contracts and invoices to be billed on a cost per head or pro-rata
share of cost, as appropriate.
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Benefit Services Fees (including 401k
Administration, Regulatory Testing, Cobra and FSA Administration,
Consulting, Salary Surveys, Deferred Comp
Administration)
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An estimated
$356,400 for the Service Period.
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ERISA
Legal Fees (merging 401k plans and new health & welfare
plan docs)
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Legal fees will
be invoiced for ERISA services provided on behalf of Allscripts. An
estimated $150,000 for the Service Period.
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ASO
Fees
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Fees are
contractual for the benefit plan year. An estimated $837,600 for
the Service Period.
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1
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Please note that the
Compensation & Benefits Fee figures provided herein are
estimates only of the third-party Fees incurred in connection with
Compensation & Benefits Services that will be managed by
Misys on Allscripts’ behalf. It is intended that the
third-party Fees for these Services will be billed to and paid
directly by Allscripts. To the extent that the vendors are not
able to, or would charge extra to, bill Allscripts directly for the
applicable services, Misys shall pay the applicable bill and be
reimbursed by Allscripts for the actual, documented charges
applicable directly to Allscripts, which Allscripts shall, upon
receipt of an invoice from Misys, pay to Misys in accordance with
Section 3.2 of the Agreement.
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2
Service Managers:
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Misys
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Name:
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Anne
Tinker
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Title:
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VP Compensation
and Benefits
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Phone:
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919-329-1764
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Email:
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Anne.Tinker@misys.com
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Allscripts
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Name:
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Bob
Rook
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Title:
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HR
Consultant
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Phone:
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312-506-1244 or
919-329-1840
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Email:
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bob.rook@allscripts.com
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3
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Shared
Services Agreement Schedule
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EXECUTION COPY
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Financial Services
Schedule B
Start Date: Effective Date
(unless otherwise indicated below)
Summary of
Services:
Misys plc and its Affiliates and
Allscripts-Misys Healthcare Solutions, Inc. and its Affiliates will
provide to one another the Services outlined in the table below
(the “ Financial Services ”).
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Service
Name
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Provider
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Recipient
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Description of
Service
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Service Period (if
Service available for
less than the full
term of the Shared
Services
Agreement)
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Fees
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Notice required by
Recipient to Terminate
(if more than 45 days
advance notice from
Recipient is needed)
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1.
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Payroll
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FTE charge to Misys (from the Effective Date
through December 31, 2008): $105,000 per year
(pro-rated)
FTE charge to Misys (starting
January 1, 2009): $130,000 per year (pro-rated)
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Service
Name
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Provider
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Recipient
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Description of Service
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Service Period (if
Service available for
less than the full
term of the Shared
Services
Agreement)
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Fees
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Notice required by
Recipient to Terminate
(if more than 45 days
advance notice from
Recipient is needed)
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1.1
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Payroll
Services
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Allscripts-Misys Healthcare Solutions, Inc. and
its Affiliates
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Misys plc and
its Affiliates (including the “Misys Banking Division,”
which includes the following entities: Almonde, Inc., Misys
International Banking Systems (Risk) Inc., Summit Systems Inc.,
Misys International Banking Systems Inc., Misys IQ LLC and Misys
Holdings Inc.)
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Allscripts to
provide (or cause to be provided) payroll-related services
including computing amounts payable, sending the correct amounts to
the payroll system, calculating tax liabilities, paying appropriate
tax obligations, providing information to accounting for recording
the expense and other duties related to payroll for Misys Banking
Division employees. Misys Banking Division to pass required payroll
funding to Allscripts prior to the funding date of the payrolls.
The Services will be provided by Eric Redding, as well as members
of his team. This will be an ongoing relationship that will need to
be reviewed as a global payroll solution is implemented.
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60
days
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1.2
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Payroll
Services to be Provided Effective January 1,
2009
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Allscripts-Misys Healthcare Solutions,
Inc. and its Affiliates
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Misys plc and
its Affiliates (including the Misys Banking Division)
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Allscripts to
gather information for: changes in active/leave/term status, new
pay rates, modified tax information, 401k deductions, other earning
and deduction information and additional information as required
from HR, create 401k deposit files. Allscripts to create
garnishment check requests and send to A/P, create shadow payrolls
for secondees, update direct deposit information as needed,
calculate Washington state unemployment information, produce Cognos
reports for HR, apply for tax ids in newly populated states as
required and provide customer service to employees as
required.
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January 1, 2009
through the end of the term of this Agreement
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60 days
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2
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Service
Name
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Provider
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Recipient
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Description of Service
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Service Period (if
Service available for
less than the full
term of the Shared
Services
Agreement)
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Fees
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Notice required
by Recipient to
Terminate (if
more than 45
days advance
notice from
Recipient is
needed)
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1.3
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Salary of
Transferring Employees
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Allscripts-Misys Healthcare Solutions, Inc. and
its Affiliates
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Misys plc and
its Affiliates
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Allscripts will
charge back to Misys the salaries, benefits and expenses for the
following employees who are transferring from an Allscripts payroll
to a Misys payroll. Each employee’s annual salary will be
charged back to Misys on a pro-rated basis from the Effective Date
through the date of transfer.
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Through
January 1, 2009
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Transfer Date**
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Robert
Koslosky
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11/01/2008
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Joanne
Felix
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11/01/2008
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Peter
Tantillo
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11/01/2008
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Michael
Donohue
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11/01/2008
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Beth
Robertson
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11/01/2008
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Linda
Whalen
|
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11/01/2008
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Christopher
Mason
|
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11/16/2008
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