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Document Preview Software License and Support Agreement |
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Title: |
Software License and Support Agreement |
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Entities: |
Empire Healthchoice, Inc.; International Business Machines Corp.; WellChoice, Inc.; Bank of New York; Hale and Dorr LLP; ShawPittman LLP |
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Date: |
2002 |
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Size: |
Preview shows 17KB of 207KB total |
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Price: |
$60 |
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ID: |
#300175 |
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Start of Preview |
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SOFTWARE LICENSE AND SUPPORT AGREEMENT
BETWEEN
EMPIRE HEALTHCHOICE, INC.
AND
INTERNATIONAL BUSINESS MACHINES CORPORATION
DATED
JUNE 1, 2002
{PAGE}
EMPIRE/IBM CONFIDENTIAL FINAL Version 13
TABLE OF CONTENTS
{TABLE}
{S} {C}
1. BACKGROUND ................................................................ 1
1.1 Background .......................................................... 1
1.2 Construction ........................................................ 1
2. DEFINITIONS ............................................................... 1
2.1 Certain Definitions ................................................. 1
2.2 Other Terms ......................................................... 5
3. SOFTWARE DEVELOPMENT AND SYSTEMS INTEGRATION .............................. 5
3.1 Overview ............................................................ 5
3.2 Development Responsibilities ........................................ 5
3.3 Project Management .................................................. 7
3.4 Testing and Initial Approval of the Licensed Works .................. 7
3.5 Migration Planning; Implementation and Systems Integration .......... 8
3.6 Completion of Development and Systems Integration ................... 8
3.7 Acceptance of the Licensed Works .................................... 8
3.8 "Grace Period"; Remedy for Delayed Completion of the
Development and Systems Integration ............................. 9
3.9 Training ............................................................ 10
3.10 Financial Commitment to Complete the Licensed Software .............. 11
3.11 Users Group ......................................................... 11
3.12 Subcontracting ...................................................... 11
3.13 IBM Contract Executive .............................................. 12
4. LICENSES AND RESTRICTIONS ................................................. 12
4.1 License Grant ....................................................... 12
4.2 Copies .............................................................. 12
4.3 Sublicenses ......................................................... 13
4.4 Usage Parameters .................................................... 13
4.5 Certain Restrictions ................................................ 13
4.6 Access to Systems 13
4.7 Patent Rights ....................................................... 14
5. OWNERSHIP; INTELLECTUAL PROPERTY RIGHTS ................................... 14
5.1 Ownership of Intellectual Property .................................. 14
5.2 Third Party Products ................................................ 14
5.3 Reporting ........................................................... 14
5.4 Residual Knowledge .................................................. 14
6. SUPPORT AND MAINTENANCE ................................................... 15
7. FEES; PAYMENT; AND TAXES .................................................. 15
7.1 Fees ................................................................ 15
7.2 Organic Growth; Growth by Merger .................................... 16
7.3 Future Discussion of Maintenance Fees ............................... 16
{/TABLE}
-i-
{PAGE}
EMPIRE/IBM CONFIDENTIAL FINAL Version 13
{TABLE}
{S} {C}
7.4 Invoices .......................................................... 16
7.5 Payment Due ....................................................... 16
7.6 Set Off ........................................................... 17
7.7 Disputed Charges .................................................. 17
7.8 Taxes ............................................................. 18
7.9 Audit of Empire ................................................... 19
7.10 Audit of IBM (and deNovis) ........................................ 20
8. NO OTHER SERVICES ........................................................ 22
9. ESCROW OF SOURCE CODE .................................................... 22
10. LIMITED WARRANTIES AND DISCLAIMERS ....................................... 23
10.1 IBM represents and warrants to Empire that: ....................... 23
10.2 DISCLAIMER OF WARRANTIES .......................................... 24
11. LIABILITY ................................................................ 24
11.1 General Intent .................................................... 24
11.2 Liability Restrictions ............................................ 24
12. INDEMNIFICATION .......................................................... 26
12.1 Intellectual Property Indemnification ............................. 26
12.2 Subcontractor Indemnity ........................................... 26
12.3 Additional Indemnities ............................................ 26
12.4 Infringement: Injunctive Relief ................................... 26
12.5 Procedures With Respect to Indemnities ............................ 27
12.6 Indemnification Procedures ........................................ 27
12.7 Subrogation ....................................................... 28
13. SAFEGUARDING OF DATA; CONFIDENTIALITY .................................... 28
13.1 Empire Information ................................................ 28
13.2 Safeguarding Empire Data .......................................... 29
13.3 Confidentiality ................................................... 29
13.4 HIPAA Privacy and Security Requirements ........................... 31
13.5 HIPAA Transactions Rule ........................................... 34
13.6 HIPAA Security Rule ............................................... 34
13.7 Other HIPAA Administrative Simplification Regulations ............. 34
14. TERM AND TERMINATION ..................................................... 34
14.1 Term .............................................................. 34
14.2 Termination For Cause by Empire ................................... 34
14.3 Additional Termination Rights ..................................... 35
14.4 Termination Prior To The Acceptance Date .......................... 35
14.5 Termination of Maintenance and Support Services by Empire ......... 35
14.6 Termination Upon Change of Control ................................ 35
14.7 Due To IBM's Financial Inability To Perform ....................... 36
14.8 Termination by Empire Due To Force Majeure Event .................. 36
14.9 Termination by Empire for Convenience ............................. 36
{/TABLE}
-ii-
{PAGE}
EMPIRE/IBM CONFIDENTIAL FINAL Version 13
{TABLE}
{S} {C}
14.10 Termination related to Staten Island Sublease ..................... 36
14.11 Effect of Termination ............................................. 37
14.12 Survival .......................................................... 37
15. DISPUTE RESOLUTION ....................................................... 37
15.1 Informal Dispute Resolution ....................................... 37
15.2 Litigation ........................................................ 38
15.3 Continued Performance ............................................. 38
15.4 Waiver of Right to Jury Trial ..................................... 38
16. GENERAL PROVISIONS ....................................................... 38
16.1 Governing Law; Jurisdiction ....................................... 38
16.2 Assignment ........................................................ 38
16.3 Amendments; Waivers ............................................... 39
16.4 Complete Agreement ................................................ 39
16.5 Suspension of Performance ......................................... 39
16.6 Notices ........................................................... 40
16.7 Compliance with Laws .............................................. 40
16.8 No Third Party Beneficiaries ...................................... 41
16.9 Counterpart and Facsimile Signatures .............................. 41
16.10 Force Majeure ..................................................... 41
16.11 Revenue Sharing for Sales of the Licensed Software ................ 42
16.12 Most Favored Customer ............................................. 45
16.13 Public Disclosures ................................................ 45
16.14 Service Marks ..................................................... 45
16.15 Nonsolicitation of Employees ...................................... 46
16.16 Covenant of Good Faith ............................................ 46
16.17 Consents and Approval ............................................. 46
16.18 Severability ...................................................... 46
16.19 Relationship of the Parties ....................................... 46
16.20 Mutually Negotiated ............................................... 47
16.21 Effect of Headings ................................................ 47
{/TABLE}
-iii-
{PAGE}
EMPIRE/IBM CONFIDENTIAL FINAL Version 13
ATTACHMENTS
Attachment A: Description of Licensed Works and Software Requirements
Document
Attachment A-1: Description of Licensed Software
Attachment A-2: Empire's Business Features and Function Requirements
Attachment A-3: Description of Licensed Software Features and
Functions
Attachment A-4: Empire's Technical Requirements (Including Specific
"Scalability" Requirements)
Attachment A-4-1: Empire's Technical Requirements for the
Licensed Software
Attachment A-4-2: Empire's "Scalability" Requirements for the
Licensed Software
Attachment A-5: Information Resource Management Requirements (Data
Access and Integration Requirements
Attachment B: Support and Maintenance
Attachment C: Development and License Fee and Maintenance Fees
Attachment D: Identification of Escrow Agreement
Attachment D-1: Preferred Escrow Agreement
Attachment E: Third Party Products
Attachment F: Development Project Management Guidelines
Attachment F-1: Project Management Process
Attachment G: Development Project Testing Procedures
Attachment H: [Not Used.]
Attachment I: Development Project Software Engineering Process
Attachment I-1: Details of Development Project Software Engineering
Process
Attachment J: Overall Project Plan
Attachment K: Development Project Plan
Attachment L: Development Project Disaster Recovery Plan Outline
Attachment M: DeNovis Statement Regarding Back-Up of Licensed Software
Attachment N: Empire Competitors
-iv-
{PAGE}
EMPIRE/IBM CONFIDENTIAL FINAL Version 13
SOFTWARE LICENSE AND SUPPORT AGREEMENT
This Software License and Support Agreement, effective as of June 1, 2002
(the "Effective Date"), is entered into by and between International Business
Machines Corp., a New York corporation, having a place of business at Route 100,
Somers, New York 10589 ("IBM"), and Empire HealthChoice, Inc. doing business as
Empire Blue Cross and Blue Shield, a New York corporation with its corporate
headquarters located at 11 W. 42/nd/ Street, New York, New York 10036 ("Empire")
an independent licensee of the Blue Cross and Blue Shield Association.
1. BACKGROUND
1.1 Background.
This Agreement is being made and entered into with reference to the
following:
(a) Empire desires to outsource to IBM certain services currently
performed by Empire, in order to generate savings, which savings (a
key element of generating these savings to Empire is the utilization
of IBM Personnel in India) will be used in part in connection with the
Licensed Software, and modernization of Empire's other core
applications.
(b) IBM desires to license the new Claims Engine to Empire, and Empire
desires to utilize such Claims Engine as its primary insurance claims
processing product.
(c) Empire desires to license the Portal Toolkits and Framework Software
to IBM, in return for credits earned from IBM's sale of such software
and related products based on such software.
(d) The Parties desire to mutually enter into a structure allowing future
joint development of health care products.
(e) Having reached agreement on contract terms, the Parties are entering
into the following agreements to memorialize the terms and conditions
under which the foregoing shall be consummated and provided: (i) this
Agreement, (ii) the Licensing and Joint Development Agreement, and
(iii) the Master Services Agreement.
1.2 Construction.
The provisions of this Section 1 are intended to be a general introduction
to this Agreement and are not intended to expand the scope of the Parties'
obligations under this Agreement or to alter the plain meaning of the terms
and conditions of this Agreement. However, to the extent the terms and
conditions of this Agreement do not address a particular circumstance or
are otherwise unclear or ambiguous, such terms and conditions are to be
interpreted and construed so as to give full effect to the provisions in
this Section 1.
2. DEFINITIONS
2.1 Certain Definitions.
(a) "Acceptance Date" has the meaning specified in Section 3.7(d).
(b) "Affiliate" means, with respect to any entity, any other entity
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