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Outsourcing Agreement

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Title:

Outsourcing Agreement

Entities:

Iron Mountain Inc.; Neoforma, Inc.; McDermott, Will & Emery; Skadden, Arps, Slate, Meagher & Flom LLP

Date:

2005

Size:

163KB total

Price:

$52

ID:

#1201923

► Business ► Sourcing ► Outsourcing Agreements
► Transportation
► Technology ► Computer Services
► Services ► Legal

Start of Preview

Confidential materials omitted and filed

separately with the Securities and Exchange

Commission. Asterisks denote such omission.

OUTSOURCING AGREEMENT

dated as of October 10, 2005

among

NOVATION, LLC,

VHA INC.,

UNIVERSITY HEALTHSYSTEM CONSORTIUM,

HEALTHCARE PURCHASING PARTNERS INTERNATIONAL, LLC,

and

GLOBAL HEALTHCARE EXCHANGE, LLC

TABLE OF CONTENTS


				Page
1.	*DEFINITIONS*			2

2.	*SERVICE PROVIDER OBLIGATIONS*			10
	2.1	Migration		10
		2.1.1	Migration Plan	10
		2.1.2	Assumptions and Further Development	10
		2.1.3	Migration Services	10
	2.2	Services		11
		2.2.1	Pre-Migration Services	11
		2.2.2	Post-Migration Services	11
		2.2.3	[***] [*] [***]	12
	2.3	Service Levels; Root-Cause Analysis		13
		2.3.1	Service Levels	13
		2.3.2	Root-Cause Analysis	13
	2.4	[*****]		14
	2.5	Service Providers Interaction with Members; Pre-Existing Data and Service Arrangements		14
		2.5.1	Member-Facing Plan	14
		2.5.2	Members Using Service Provider prior to the Effective Date	14
		2.5.3	Maintenance of [*****]	14
		2.5.4	Participation of Additional and Renewal Members.	15
	2.6	Data From Suppliers		16
		2.6.1	[*****]	16
		2.6.2	Product Data	16
		2.6.3	[*****]	16
	2.7	Knowledge Sharing		16
	2.8	Communications with Novation and Alliances		17
		2.8.1	Notice of Materially Adverse Facts	17
		2.8.2	Reports.	17
		2.8.3	Regular Meetings	17
	2.9	Goals and Incentives		18

3.	*THE GHX EXCHANGE*			18
	3.1	Maintenance as Leading Provider		18
	3.2	User Registration		18
		3.2.1	NPS	18
		3.2.2	GHX Exchange.	19
		3.2.3	Novation Marketplace	20
	3.3	Notice of Novation Contracts		20
	3.4	Provision of Product Information		20
		3.4.1	Provision of Non-Novation Contract Product Information	20
		3.4.2	Provision of Novation Contract Product and [*****]	20
	3.5	Removal of Materials and Products from NPS		21

-i-

TABLE OF CONTENTS

(continued)


				Page
		3.5.1	Removal of Materials	21
		3.5.2	Removal of Products	21
	3.6	Other GPOs		21
	3.7	Reasonable Assistance		21

4.	*NOVATION PROPRIETARY SERVICES AND CHANGES IN SERVICES*			21
	4.1	Novation Proprietary Services		21
	4.2	Change Control for Novation Proprietary Services		22
		4.2.1	Change Control Procedure	22
		4.2.2	Adjustment in [*****]	22
		4.2.3	Emergency Changes	22

5.	*SERVICE PROVIDER EXCLUSIVITY*			23
	5.1	Exclusivity		23
	5.2	Marketing Other Services To Members		23

6.	*LICENSES*			23
	6.1	Marks		23
	6.2	Service Provider Materials		24
	6.3	Novation Materials		24
	6.4	Licenses; Source Code Escrow; Proprietary Rights		24
		6.4.1	Access License	24
		6.4.2	License to Service Provider	24
		6.4.3	Grant of Source Code License.	25
		6.4.4	Third Party Technology	27
		6.4.5	Source Code Escrow.	27
		6.4.6	Proprietary Rights; Restrictions	29

7.	*FEES AND TAXES*			29
	7.1	Fees		29
	7.2	Taxes		29
	7.3	Other Expenses		29
	7.4	Payment Terms		30
		7.4.1	Invoices	30
		7.4.2	Payments	30
		7.4.3	Credits	30
	7.5	Member-Based Pricing		30
		7.5.1	Conversion to Member-Based Pricing	30
		7.5.2	[*****] Member-Based Pricing	30

8.	*TERM AND TERMINATION*			31
	8.1	Initial Term		31
	8.2	Renewal and Extension of Term		31

-ii-

TABLE OF CONTENTS

(continued)


				Page
	8.3	Termination for Cause or Dissolution		31
		8.3.1	For Cause	31
		8.3.2	[***] [***]	32
		8.3.3	Termination of Merger Agreement	32
	8.4	Termination for Insolvency Events		32
		8.4.1	Service Provider Insolvency Event	32
		8.4.2	Novation Insolvency Event	33
		8.4.3	[***] [*] [*] [***]	33
	8.5	Termination Upon Service Provider Change of Control		34
	8.6	Return of Materials		34
	8.7	Survival		35
	8.8	Termination Assistance Services		35
	8.9	Equitable Remedies		35

9.	*DATA RIGHTS; INTELLECTUAL PROPERTY*			36
	9.1	Data Rights		36
		9.1.1	Member Data	36
		9.1.2	Transaction Data	36
		9.1.3	Aggregated GHX Data	36
		9.1.4	Aggregated Alliance Member Data	37
		9.1.5	Product Data	37
	9.2	Analytic Data		37
	9.3	No Other Licenses or Use		38
	9.4	Ownership by Third Parties		38
	9.5	Intellectual Property		38
		9.5.1	Deliverables	38
		9.5.2	Proprietary Rights; Restrictions	38

*10.*	*SAFEGUARDING OF DATA; CONFIDENTIALITY*			39
	10.1	Confidentiality		39
		10.1.1	Confidential Information	39
		10.1.2	Confidentiality Obligations	39
		10.1.3	Exclusions	40
		10.1.4	No License	40
		10.1.5	Loss of Confidential Information	40
	10.2	Safeguarding of Data		40
	10.3	Business Associate Provisions		41

*11.*	*REPRESENTATIONS, WARRANTIES AND COVENANTS*			41
	11.1	Representations by Service Provider		41
		11.1.1	Due Organization	41
		11.1.2	Authority; Non-Contravention.	41
		11.1.3	Performance	42

-iii-

TABLE OF CONTENTS

(continued)


				Page
		11.1.4	Extension of Other Agreements	42
		11.1.5	Source Code Escrow	43
		11.1.6	Agreements.	43
	11.2	Representations by Novation, VHA, UHC and HPPI		43
		11.2.1	Due Organization	43
		11.2.2	Authority; Non-Contravention.	43
	11.3	Compliance with Laws and Regulations; Other Covenants		44
		11.3.1	Compliance with Laws	44
		11.3.2	HHS and Comptroller General	44
		11.3.3	No Exclusion or Debarment	45
		11.3.4	No Exchange of Competitively Sensitive Information	45
	11.4	Warranty Disclaimer		45

*12.*	*USE OF SUBCONTRACTORS; RIGHTS TO REQUEST REPLACEMENT*			46
	12.1	Generally		46
	12.2	Right to Request Replacement		46
	12.3	Continuing Responsibility		46
	12.4	Confidential Information		47

*13.*	*INSURANCE*			47
	13.1	Insurance		47
	13.2	Proof of Insurance		47

*14.*	*INDEMNITY*			47
	14.1	Service Provider Indemnity		47
	14.2	Novation Indemnity		48
	14.3	Infringement Claims		48
		14.3.1	Indemnity	48
		14.3.2	Indemnity Exclusions	49
		14.3.3	Injunction or Prohibition	49
	14.4	Indemnity Procedures		49
	14.5	Exclusive Remedy		50

*15.*	*LIMITATION OF LIABILITY*			50

*16.*	*AUDIT RIGHTS*			51
	16.1	General		51
	16.2	Frequency of Audits		51
	16.3	Auditors		51
	16.4	Record Retention		51
	16.5	Cooperation		51
	16.6	Overcharges and Undercharges		51
	16.7	Audit Reports		52

-iv-

TABLE OF CONTENTS

(continued)


				Page
*17.*	*DISPUTE RESOLUTION*			52

*18.*	*GENERAL PROVISIONS*			52
	18.1	No Waiver		52
	18.2	Entire Agreement		52
	18.3	Publicity		52
	18.4	Assignment; Successors and Assigns		53
	18.5	Governing Law		53
	18.6	Notices		53
	18.7	No Agency		54
	18.8	Force Majeure		54
		18.8.1	Performance Excused	54
		18.8.2	Period of Excused Performance	54
		18.8.3	Critical Functions	55
	18.9	Severability		55
	18.10	Counterparts		55
	18.11	Headings		55
	18.12	Section 365(n) Matters		55
	18.13	Additional Members		55
	18.14	Termination of Neoforma Outsourcing Agreement		55

*19.*	*[*] OF [*]*			56
	19.1	[***] and [*] [***]		56
	19.2	[***] and [*] [***]		56
	19.3	[***] of [***]		57

-v-

TABLE OF CONTENTS

(continued)


		Page
EXHIBIT A:	MIGRATION PLAN

EXHIBIT B:	SCOPE OF SERVICES

EXHIBIT C:	SERVICE LEVELS, METRICS AND PERFORMANCE CREDITS

EXHIBIT D:	MEMBER-FACING PLAN

EXHIBIT E:	FORM OF MEMBER AGREEMENT

EXHIBIT F:	REPORTS AND METRICS