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0 9GGK 20 PIGE 7 <br />contractors, is deemed Confidential Information of such party under this Agreement <br />4.2 Right to Audit Rebates. Customer, at its sole expense, may audit a reasonable sample of records <br />directly related to Customer's Rebates once in each twelve-month period (following sixty (60) days written notice to <br />AdvancePCS). Such records shall be limited to information necessary for validating the accuracy of the Rebate <br />amounts distributed to Member County by AdvancePCS. The parties agree that an independent third-party auditor <br />agreeable to Customer and AdvancePCS shall conduct such audit, and that such firm will sign an AdvancePCS <br />confidentiality agreement ensuring that all details and terms of all Manufacturer Rebate contracts with AdvancePCS <br />(except the total aggregate amount due to Customer) will be treated as confidential to AdvancePCS and will not be <br />revealed in any manner or form by or to any person or entity. Furthermore, such audit shall be conducted at <br />AdvancePCS' office where such records are located, during normal business hours, without undue interference with <br />business activities, and in accordance with reasonable audit procedures. <br />5. CONFIDENTIALITY AND INTELLECTUAL PROPERTY. <br />5.1 Confidential and Proprietary Information. In connection with this Agreement, each party may <br />disclose to the other parry certain proprietary or confidential technical and business information, databases, trade <br />secrets, and innovations belonging to the disclosing party ("Confidential Information"), the value of which might <br />be lost if the proprietary nature or confidentiality of such Confidential Information is not maintained. For the <br />purposes of this Section, the contents of this Agreement and of any exhibits, amendments, or addenda attached <br />hereto are deemed Confidential Information. Furthermore, any work, compilation, processes or inventions <br />developed by AdvancePCS, Member County or Customer, or their respective agents, employees or contractors, is <br />deemed Confidential Information of such party under this Agreement. Notwithstanding the foregoing, Confidential <br />Information may be disclosed by Member County in response to a request made pursuant to the Member County's <br />applicable stale Freedom of Information Law, insofar as disclosure is required by that Law. Member County shall <br />provide AdvancePCS with (i) notice of its intent to disclose Confidential Information and (ii) an opportunity for <br />AdvancePCS to object to such disclosure in accordance with Law. Information submitted to the Member County <br />may be subject to disclosure under the Member County's applicable state Freedom of Information Law ("FOIL") <br />and other Laws. <br />5.2 Non-Disclosure of Confidential Information. 'fire parties will not (except to the extent <br />expressly authorized by this Agreement) disclose Confidential Information of any other to anyone outside of <br />AdvancePCS, Member County or Customer, nor will they copy or reproduce any Confidential Information of <br />another unless expressly authorized to do so by such party in writing. Each party will disclose Confidential <br />Information of another only to its employees who have a need to know the Confidential Information in order to <br />accomplish the purpose of this Agreement and who (i) have been informed of the confidential and proprietary nature <br />of the Confidential Information, and (ii) have agreed not to disclose it to others. In order to preserve and protect the <br />confidential or proprietary nature of any Confidential Information and to prevent it from falling into the public <br />domain or into the possession of persons not bound to maintain its confidentiality. each party will handle the <br />Confidential Information of any other party with the same degree of care that it applies with respect to its own <br />information that it considers as confidential and proprietary, but in no event with less than reasonable care. <br />5.3 Exceptions and Permitted Disclosures. The receiving party of Confidential Information will not <br />be liable for any disclosure or use of Confidential Information which is publicly available or later becomes publicly <br />available other than through a breach of this Agreement, or if the Confidential Information is shown by written <br />documentation to be known to the receiving party on the date of execution of this Agreement, having been received <br />from a source (other than a party to this Agreement) that had the right to disclose the Confidential Information. <br />5.4 Subpoena. Confidential Information may be disclosed pursuant to a bona fide subpoena if the <br />party receiving the bona fide subpoena has given the other party prompt written notice of receipt of the subpoena so <br />that the other party can object or otherwise intervene as it deems proper. <br />SS Return or Destruction of Information. All Confidential Information will remain the property of <br />the disclosing party. and the receiving party will return all written or tangible materials, and all copies thereof, upon <br />request of the disclosing par. If and to the extent feasible, upon termination of this Agreement. AdvancePCS will <br />destroy or will return to Member County or Customer all PHI obtained pursuant to this Agreement and shall retain <br />NAOC k' v2.doe (07/06/2005) ~RwCk Intl Page s of i5 <br />This document contains proprietan' into inarion of Adv aucePCS. and mac not be used for any purpose other than to evaluate emering irrto a <br />relationship o-ith AdvancePCS_ nor mars it be duplicmed or disclosed to others for any purpose. <br />