Document:

exv10w1

 

Exhibit
10.1

No. 0002204-QUO

EXECUTION FINAL

VeriCenter

Master Services Agreement

This Master Services Agreement No. 0002204-QUO  (the “MSA”) between
VeriCenter, Inc. (“VeriCenter”) and Quovadx, Inc (“Customer”) is made effective as of September 30,
2005 (the “Effective Date”).

Article 1 – Introduction

     1.1 General. This MSA sets forth the terms and conditions of VeriCenter’s delivery and
Customer’s receipt of any or all of the services provided by VeriCenter, including Professional
Services. The specific Services to be provided under this MSA are identified in the Order Forms
submitted by Customer and accepted by VeriCenter and described in detail in the Order Forms and/or
Statements of Work attached to each Order Form. The service levels VeriCenter will provide to
Customer for each Service ordered, other than Professional Services, are defined in detail in the
Service Level Agreements. Each Service Level Agreement and Order Form submitted, accepted and
executed by both parties is hereby incorporated by reference into this MSA. This MSA is intended
to cover any and all Services ordered by Customer and provided by VeriCenter.

     1.2 Definitions. Capitalized terms used and not elsewhere defined in this MSA, have the
meanings given them in Schedule 1.2 to this MSA.

Article 2 – Delivery of Services and Term

     2.1 Delivery of Services.

          (a) General. By submitting an Order Form, Customer agrees to receive and pay for in
accordance with the terms hereof, and, by accepting the Order Form, VeriCenter agrees to provide,
the Services specified on the Order Form during the Initial Term and for any Renewal Term, as
specified in Section 2.2(b).

          (b) Delivery of Supplemental Services. The purpose of this provision is to enable VeriCenter
to provide Customer with certain limited services and equipment needed by Customer on a “one-off”
or emergency basis (“Supplemental Services”) where such services are not included within the scope
of the Services as described in the Order Form and/or Statements of Work. Supplemental Services
may include, as an example, a request from Customer to VeriCenter via telephone that VeriCenter
immediately replace a problem Customer server with a VeriCenter server for a temporary period of
time. VeriCenter shall notify Customer of the fees for any Supplemental Services requested by
Customer and obtain Customer’s written approval prior to providing such services. Customer agrees
to pay VeriCenter the approved fees charged by VeriCenter for Supplemental Services. VeriCenter
will use commercially reasonable efforts to provide Supplemental Services, which shall be subject
to the terms hereof., including applicable express warranties. Vericenter shall have no obligation
to determine the need for or to provide Supplemental Services.

          (c) Delivery of Supplemental Services on an Emergency Basis. In the event VeriCenter reasonably
determines that Supplemental Services are required on an emergency basis, VeriCenter may provide
such services without the consent of Customer, thereafter provide notice of the services to
Customer and bill Customer at its then standard hourly rates, as provided to Customer from time to
time (“Standard Hourly Rates”) for such services. VeriCenter’s standard hourly rates as of the
date of this Agreement are set forth in Schedule 2.1. Customer agrees to pay VeriCenter the
reasonable fees charged by VeriCenter for Supplemental Services required on an emergency basis, not
to exceed [*]on any one occasion.

          (d) Billing for Supplemental Services. Customer will be charged for Supplemental Services in the
invoice issued the month following delivery of the Supplemental Services.

     2.2 Term of Services.

          (a) Commencement of Initial Term. The term of this MSA shall commence on the Effective Date
and end on the date on which there are no longer any Services being provided hereunder. The term
of this MSA and any Services being performed hereunder may be terminated earlier as set forth below
in Section 10. The term for each Service will commence on the Service Commencement Date indicated
in the Notice of Service Commencement delivered by VeriCenter to Customer and signed by Customer.
VeriCenter will begin providing each Service to Customer on the applicable Service Commencement
Date and each Service will continue for an Initial Term of three years.

          (b) Renewal Terms. Each Service will continue automatically for additional terms equal to the
Initial Term (“Renewal Term”) unless either Party notifies the other Party in writing at least
thirty (30) days prior to the end of the Initial Term or a Renewal Term, as applicable, that it has
elected to terminate such Service, in which case such Service shall terminate at the end of such
term, provided however that in the event of a termination by VeriCenter, the Services shall
continue for a period of up to 120 days after the end of the term to allow Customer to make an
orderly transition to another facility. The termination of any Service will not affect Customer’s
obligations to pay for other Services. Except as otherwise expressly provided in this MSA,
VeriCenter is obligated to provide and Customer is obligated to pay for each Service through its
Initial Term and any Renewal Term.

Article 3 – Payment Terms for Fees and Expenses

     3.1 Fees and Expenses. Customer will pay all fees and expenses due according to the prices
and terms listed in the Order Forms. The prices listed in the Order Forms will remain in effect
during the Initial Term indicated in the Order Forms and will continue thereafter, unless modified
in accordance with Section 2.2(b).

	 	 	 
	MASTER SERVICES AGREEMENT

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	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	 

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     3.2 Payment Terms. On the Service Commencement Date for each Service, Customer will be billed an
amount equal to all non-recurring charges indicated in the Order Form and the monthly recurring
charges for the first month of the term. Monthly recurring charges for all other months will be
billed in advance of the provision of Services. All other charges for Services received and
expenses incurred during a month (e.g., time and materials billing fees, travel expenses, etc.)
will be billed at the end of the month in which the Services were provided. Charges stated in the
Order Forms shall be all inclusive for the Services specified in the Order Forms, and Customer
shall not be invoiced for pass-through or other expenses except as expressly agreed in an Order
Form. Time and materials based charges shall, unless otherwise agreed in an Order Form, be based
upon the Standard Hourly Rates. Payment for all fees and expenses is due 30 days after receipt
of each VeriCenter invoice. All payments will be made in the United States in U.S. dollars.

     3.3 Late Payments. Any payment (other than amounts disputed in good faith by Customer) not
received within sixty (60) days of the due date will accrue interest at a rate of one percent (1 %)
per month, or the highest rate allowed by applicable law, whichever is lower. VeriCenter reserves
the right to shut down any service for undisputed payments greater than 90 days past due.

     3.4 Taxes. All fees charged by VeriCenter for Services are exclusive of all taxes and
similar fees now in force or enacted in the future imposed on the transaction or the delivery of
Services, all of which Customer will be responsible for and will pay in full, except for franchise
taxes and taxes based on VeriCenter’s net income.

Article 4 – Confidential Information; Intellectual Property
Ownership; License Grants

     4.1 Confidential Information.

          (a) Nondisclosure of Confidential Information. Each party acknowledges that it will have
access to certain confidential information of the other party concerning the other party’s
business, plans, customers, technology, and products, and other information held in confidence by
the other party (“Confidential Information”). Confidential Information will include all information
in tangible or intangible form that is marked or designated as confidential, and all information
that includes any business or technical nonpublic information of Customer or VeriCenter, including
but not limited to any information relating to either party’s products, services, marketing plans,
business opportunities or personnel, any third-party customer or protected health information of
Customer or that, under the circumstances of its disclosure, should be considered confidential.
Confidential Information will also include, but not be limited to, VeriCenter Technology, Customer
Technology, and the terms and conditions of this MSA and all documents incorporated by reference
into this MSA. Each party agrees that it will maintain the Confidential Information of the other
party in strict confidence and that it will not use in any way, for its own account or the account
of any third party, except as expressly permitted by, or required to achieve the purposes of, this
MSA, nor disclose to any third party (except as required by law or to that party’s attorneys,
accountants and other advisors as reasonably necessary), any of the other party’s Confidential
Information (and in each such case only subject to binding use and disclosure restrictions at least
as protective as those set forth herein). Each party also agrees that it will take reasonable
precautions to protect the confidentiality of the other party’s Confidential Information, at least
as stringent as it takes to protect its own Confidential Information.

          (b) Exceptions. Information will not be deemed Confidential Information under this MSA if
such information: (i) is known to the receiving party prior to receipt from the disclosing party
directly or indirectly from a source other than one having an obligation of confidentiality to the
disclosing party; (ii) becomes known (independently of disclosure by the disclosing party) to the
receiving party directly or indirectly from a source other than one having an obligation of
confidentiality to the disclosing party; (iii) becomes publicly known or otherwise ceases to be
secret or confidential, except through a breach of this MSA by the receiving party; or (iv) is
demonstrated by the receiving party to have been independently developed by the receiving party.
The receiving party may disclose Confidential Information pursuant to the valid order or
requirements of a court or governmental agency, provided that it gives the disclosing party
reasonable prior written notice sufficient to permit the disclosing party to contest such
disclosure.

     4.2 Intellectual Property.

          (a) Ownership. Except for the rights expressly granted in this MSA, this MSA does not
transfer from VeriCenter to Customer any VeriCenter Technology, and all right, title and interest
in and to VeriCenter Technology will remain solely with VeriCenter. Except for the rights
expressly granted in this MSA, this MSA does not transfer from Customer to VeriCenter any Customer
Technology, and all right, title and interest in and to Customer Technology will remain solely with
Customer. VeriCenter and Customer each agrees that it will not, directly or indirectly, reverse
engineer, decompile, disassemble or otherwise attempt to derive source code or other trade secrets
from the other party. VeriCenter Technology shall in no event include Customer’s data, including
patient third-party customer or protected health information, or other content provided by
Customer.

          (b) General Skills and Knowledge. Notwithstanding anything to the contrary in this MSA,
either party may use at any time any skills or knowledge of a general nature acquired during the
course of providing or receiving the Services, including, without limitation, in the case of
VeriCenter, information publicly known or available or that could reasonably be acquired in similar
work performed for another customer of VeriCenter.

     4.3 License Grants.

          (a) By VeriCenter. VeriCenter hereby grants to Client a nonexclusive, royalty-free license,
during the term of this MSA, to use the VeriCenter Technology solely for purposes of using the
Services. Customer shall have no right to use the VeriCenter Technology for any purpose other than
using the Services.

          (b) By Customer. Customer agrees that if, in the course of performing the Services, it is
necessary for VeriCenter to use Customer Technology, VeriCenter is hereby granted and shall have a
nonexclusive, royalty-free license, during the term of this MSA, to use the Customer Technology
solely for the purposes of delivering the Services to Customer. VeriCenter shall have no right to
use the Customer Technology for any purpose other than providing the Services.

Article 5 – VeriCenter Representations and Warranties and Covenants

     5.1 General.

          (a) Authority and Performance of VeriCenter. VeriCenter represents and warrants that (i) it
has the legal right and authority to enter into this MSA and perform its obligations under this
MSA, (ii) the performance of its obligations and delivery of the Services to Customer will not
violate any applicable U.S., state or local laws or

	 	 	 
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regulations, including OSHA and HIPAA requirements, or cause a breach of any agreements with any
third parties and (iii) VeriCenter and each of its officers, directors, employees,
representatives, or agents are not barred, suspended or prohibited from participation in any
Medicare/Medicaid program. In the event of a breach of the warranties set forth in this Section
5.1(a), Customer’s sole remedy is termination pursuant to Article 10.

          (b) Date Compliance. VeriCenter warrants that none of the computer hardware and software
systems and equipment incorporated into or utilized in the delivery of the Services contains any
date dependent routines or logic which will fail to operate correctly by reason of such date
dependence; provided, however, that no representation or warranty is made as to the adequacy of any
Customer or third party service provider hardware or software used in connection with the Services
except for third party hardware and software provided by VeriCenter. In the event of any breach of
the warranties under this Section 5.1(b), Customer’s sole remedy is termination pursuant to Article
10 of this MSA.

          (c) HIPAA Compliance. VeriCenter will comply with all applicable provisions of the federal
privacy regulations as set forth at 45 C.F.R. Parts 160 through 164 (the “Federal Privacy
Regulations”) and the federal security regulations set forth in proposed form at 45 C.F.R. Part 142
(the “Federal Security Regulations”), and as they may be amended or changed from time to time in
the future (collectively, “HIPPA Requirements”). The parties shall execute the Business Associate
Addendum.

     5.2 Service Level Warranties.

          (a) Service Level Warranty. Subject to the exceptions set forth in the Service Level
Agreement applicable to a specific Service, VeriCenter warrants that it will provide each Service
at or above the service levels defined in the applicable Service Level Agreement (the “Service
Level Warranty”).

          (b) Remedies. In the event that VeriCenter fails to provide a Service at the level required
by the Service Level Warranty, Customer’s only remedies are those set forth in the Service Level
Agreement applicable to that Service (the “Remedies”).

          (c) Remedies Shall Be Cumulative; Maximum Remedy. The Remedies set forth in each Service Level
Agreement are cumulative. The aggregate maximum Remedy for any and all failures to provide
Services at the level required by a particular Service Level Agreement that occur in a single
calendar month shall not exceed the maximum set forth in such Service Level Agreement.

          (d) Termination Option for Chronic Problems. Customer may terminate a specific Service if the
Customer experiences Chronic Problems (as defined in the applicable Service Level Agreement) with
such Service. If the Service Level Agreement for a specific Service so provides, or if Customer
experiences Chronic Problems in more than one Service Level Agreement during any twelve (12) month
period, Customer may terminate this MSA if Customer experiences Chronic Problems with such Service.
Customer must provide VeriCenter written notice of termination for Chronic Problems as specified
in the Service Level Agreement and such termination will be effective as provided in the Service
Level Agreement.

          (e) The service level warranty set forth in this section 5.2 does not apply to
(i) any Professional Services except as expressly provided in any applicable service level
agreement; (ii) any Supplemental Services; or (iii) any Services that expressly exclude this
service level warranty (as stated in the Service Level Agreements for such Services).

     5.3 Service Performance Warranty. VeriCenter warrants that it will perform the Services in a
timely, professional and workmanlike manner consistent with the highest industry standards
reasonably applicable to the performance thereof.

     5.4 SECURITY SERVICES. VERICENTER WILL USE COMMERCIALLY REASONABLE
MEASURES TO PROVIDE SECURITY IN CONNECTION WITH THE PROVISION OF THE SERVICES, INCLUDING BUT NOT
LIMITED TO, AS APPLICABLE (I) OPERATING CUSTOMER’S SYSTEMS ON SECURE EQUIPMENT LOCATED IN A
PHYSICALLY SECURE DATA CENTER, (II) EMPLOYING TECHNOLOGY THAT IS CONSISTENT WITH INDUSTRY STANDARDS
FOR FIREWALLS AND OTHER SECURITY TECHNOLOGY TO HELP PREVENT CUSTOMER’S SYSTEMS HOSTED BY VERICENTER
FROM BEING ACCESSED BY UNAUTHORIZED PERSONS, (III) HAVING, MAINTAINING AND IMPLEMENTING INDUSTRY
STANDARD PHYSICAL SECURITY MEASURES AND POLICIES, (IV) EMPLOYING TECHNOLOGY THAT IS CONSISTENT WITH
INDUSTRY STANDARDS FOR BACKUP AND RECOVERY OF CUSTOMER’S DATA AND SYSTEMS, (V) UTILIZING
COMMERCIALLY ACCEPTABLE PRACTICES TO VALIDATE THE DATA ON THE TAPE MATCHES DATA ON THE DISKS BEING
BACKED UP, AND (VI) PROVIDING COPIES OF THE MOST CURRENT SAS 70 AUDIT REPORT, WHICH SHALL BE
TREATED AS CONFIDENTIAL INFORMATION OF VERICENTER. VERICENTER AGREES TO USE COMMERCIALLY
REASONABLE EFFORTS TO SAFEGUARD CUSTOMER’S SYSTEMS FROM VIRUSES, WORMS, TROJAN HORSES, OTHER
MALICIOUS CODE OR SECURITY FLAWS. VERICENTER’S SECURITY SHALL COMPLY WITH ALL APPLICABLE LAWS AND
REGULATIONS AND THE REQUIREMENTS SET FORTH IN THE BUSINESS ASSOCIATE ADDENDUM .

     5.5 No Other Warranty. Except for the express warranties in this MSA or any Service
Level Agreement, VeriCenter does not make, and hereby disclaims, any and all other Express or
implied warranties, including, but not limited to, warranties of merchantability, fitness for a
particular purpose, noninfringement and title, and any warranties arising from a course of dealing,
usage, or trade practice. VeriCenter does not warrant that the Services will be uninterrupted,
error-free, or completely secure.

     5.6 Disclaimer of Actions Caused by or Under the Control of Third Parties. VeriCenter
does not and cannot control the flow of data to or from VeriCenter’s network and other portions of
the internet. Such flow depends in large part on the performance of internet services provided or
controlled by third parties. At times, actions or inactions of such third parties can impair or
disrupt customer’s connections to the Internet (or portions thereof). Although VeriCenter will use
commercially reasonable efforts to take all actions it deems appropriate to remedy and avoid such
events, VeriCenter cannot guarantee that such events will not occur. Accordingly, VeriCenter
disclaims any and all liability resulting from or related to such events.

Article 6 – Customer Representations, Warranties and Obligations

	 	 	 
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No. 0002204-QUO

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     6.1 Representations and Warranties of Customer.

          (a) Authority and Performance. Customer represents and warrants that (i) it has the legal
right and authority to enter into this MSA and perform its obligations under this MSA, and (ii) the
performance of its obligations and use of the Services (by Customer, its customers and users) will
not violate any applicable laws, regulations or the Acceptable Use Policy or cause a breach of any
agreements with any third parties or unreasonably interfere with other VeriCenter customers’ use of
VeriCenter services.

          (b) Breach of Warranties. In the event of any breach of any of the foregoing warranties,
VeriCenter will not have the right to suspend Services, but will have any other remedies available
at law or in equity. VeriCenter will provide notice and opportunity to cure if practicable
depending on the nature of the breach. Once cured, VeriCenter will promptly restore the Services.

     6.2 Compliance with Law and Acceptable Use Policy. Customer agrees that it will use the
Services only for lawful purposes and in accordance with this MSA. Customer will comply at all
times with all applicable laws and regulations and the Acceptable Use Policy, as updated by
VeriCenter from time to time. The Acceptable Use Policy are incorporated into this MSA and made a
part of this MSA by this reference. VeriCenter may change the Acceptable Use Policy upon fifteen
(15) days’ notice to Customer. Customer agrees that it has received, read and understands the
current version of the Acceptable Use Policy. The Acceptable Use Policy contains restrictions on
Customers and Customer’s users’ online conduct (including prohibitions against unsolicited
commercial email) and contains penalties for violations of such restrictions. Customer agrees to
comply with such restrictions and, in the event of a failure to comply, Customer agrees to be
subject to the penalties in accordance with the Acceptable Use Policy. Customer acknowledges that
VeriCenter exercises no control whatsoever over the content of the information passing through
Customer’s sites and that it is the sole responsibility of Customer to ensure that the information
it and its users transmit and receive complies with all applicable laws and regulations and the
Acceptable Use Policy.

     6.3 Accesses and Security. Except with the advanced written consent of VeriCenter,
Customer’s access to the VeriCenter Data Centers will be limited solely to the Representatives as
set forth in the Customer Registration Form which is hereby incorporated by reference into this
MSA. Representatives may only access the VeriCenter Data Centers when accompanied by an authorized
VeriCenter representative or with a properly issued VeriCenter access badge.

     6.4 Restrictions on Use of Services. Customer shall not, without the prior written consent
of VeriCenter (which may be withheld in its sole discretion), resell the Services to any third
parties.

Article 7
– Insurance

     7.1 VeriCenter Minimum Levels. During the term of this Agreement and prior to the
performance of any service hereunder by VeriCenter, VeriCenter shall, at its own expense, procure
and maintain the following insurance coverage of the type and amounts specified below for the
benefit and protection of Customer and VeriCenter, which insurance coverage shall be maintained in
full force and effect through out the entire term of this Agreement and until all of the Services
are completed and accepted for final payment:

          (a) A
Commercial General Liability Insurance Policy with a limit of not less than [*] per
occurrence and [*] in the aggregate providing coverage for bodily injury, personal injury and
property damage for the mutual interest of both Customer and VERICENTER, with respect to all
operations. Any general liability policy provided by VeriCenter hereunder shall include,
but not be limited to, the following coverage: (i) premises and operations; (ii)
products/completed operations; (iii) contractual liability; (iv) personal injury and advertising
injury liability; (v) independent provider’s liability; (vi) severability of interest clause; and
(vii) broad form property damage. Any general liability policy provided by VeriCenter
shall apply as primary insurance, and any other insurance maintained by Customer or its Affiliates,
or any of their directors, officers, agents or employees, or any Customer self-funded program,
shall be excess only and not contributing with such coverage;

          (b) Professional Liability Insurance including Internet professional and security liability
coverage that contains limits, including umbrella coverage, of not less than [*] per claim, with an
aggregate limit of not less than [*] providing coverage for wrongful acts in the rendering of, or
failure to render, professional services with regards to electronic data losses or damage or
breaches of electronic data security, employee dishonesty and computer fraud coverage, and shall
include but not be limited to, VeriCenter’s obligations under HIPAA; as of the Effective
Date, the coverage will not contain specific, express exclusions for design errors, destruction of
data (other than casualty exclusions) or failure to design an adequate system arising out of
VeriCenter’s wrongful acts in the rendering of, or failure to render, professional
services to Customer and/or its Affiliates and VeriCenter will make commercially
reasonable efforts to provide that such specific, express exclusions will not be contained in the
professional liability insurance during the Term of this Agreement;

          (c) Workers’ Compensation Insurance with statutory limits to include Employer’s Liability
with a limit of not less than [*].

          (d) Property Insurance. VeriCenter shall provide insurance on all property owned
by VeriCenter and provided under this Agreement. Such policy shall provide “all risk”
perils, and shall be written on a basis of one hundred percent (100%) replacement value of the
property. Coverage shall include business personal property, electronic data processing, tenant
improvements, business interruption (including mechanical breakdown), business income and extra
expense, property of others in the care, custody, and control of the insured, and transit.

Any deductible or self-insured retention must be declared to Customer along with any changes
thereto and shall be the responsibility of VeriCenter. No insurance of VeriCenter
shall be co-insurance, contributing insurance or primary insurance with Customer’s insurance.
VeriCenter shall maintain such insurance in effect during the term of this MSA, except the
professional liability insurance which shall be maintained for a minimum of two (2) years following
termination or completion of VeriCenter’s performance of its obligations under this
Agreement. VeriCenter’s insurance companies shall be licensed to do business in the State
of Colorado (with the exception of the professional liability coverage) and will have an A.M. Best
Guide Rating of at least A:VII or better. Any insurance company of the VeriCenter with a
rating of less than A:VII will not be acceptable to the Customer. VeriCenter is solely
responsible for all deductibles and/or self insured retentions under their policies.

     7.2 Customer Minimum Levels. In order to provide customers with physical access to
facilities operated by VeriCenter and equipment owned by third parties, VeriCenter is required by
its insurers to ensure that each VeriCenter customer maintains adequate insurance coverage.
Customer agrees to keep in full force and effect during the term of this

	 	 	 
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MSA: (i) comprehensive general liability insurance in an amount not less than [*] per occurrence
for bodily injury and property damage and (ii) workers compensation insurance in an amount not less
than that required by applicable law. Customer agrees that it will ensure and be solely
responsible for ensuring that its agents (including contractors and subcontractors) maintain
insurance coverage at levels no less than those required by applicable law and customary in
Customer’s and its agents’ industries.

     7.3 Certificates of Insurance. Promptly following execution of this MSA, each of the parties
will (i) deliver to the other party certificates of insurance which evidence the minimum levels of
insurance set forth above; (ii) cause its insurance providers to name the other party as an
additional insured on the general liability policy and notify the other party in writing of the
effective date thereof, and (iii) cause its general liability and worker’s compensation policies to
contain a waiver of subrogation in favor of the other party.

Article 8 – Limitations of Liability

     8.1 Personal Injury. Each Representative and any other person visiting a
VeriCenter Data Center does so at its own risk. VeriCenter assumes no liability whatsoever for any
harm to such persons resulting from any cause other than the negligence or willful misconduct of
VeriCenter.

     8.2 Consequential Damages Waiver. Except for a breach of Section 4.1 (“Confidential
Information”), Section 4.2 (“Intellectual Property”) or Section 9.1 (“Indemnification”) of this
agreement, in no event will either party be liable or responsible to the other for any type of
exemplary, special, punitive, indirect or consequential damages, including, but not limited to,
lost revenue, lost profits, or interruption or loss of use of service or equipment, even if advised
of the possibility of such damages, whether arising under theory of contract, tort (including
negligence), strict liability or otherwise. Except for a breach of Section 4.1, Section 4.2 or
Section 9.1 of this agreement, or in the case of gross negligence, reckless, illegal or fraudulent
acts or omissions , [*] 

     8.3 Basis of the Bargain; Failure of Essential Purpose. The parties agree that the
limitations and exclusions of liability and disclaimers specified in this MSA represent the
parties’ agreement as to the allocation of risk between the parties in connection with VeriCenter’s
obligations under this MSA and that such limitations, exclusions and disclaimers will survive and
apply even if found to have failed of their essential purpose. The parties acknowledge that
VeriCenter has set its prices and entered into this MSA in reliance upon the limitations of
liability and the disclaimers of warranties and damages set forth in this MSA, and that the same
form an essential basis of the bargain between the parties.

Article 9 – Indemnification

     9.1 Indemnification. Each party will indemnify, defend and hold the other harmless from and
against any and all costs, liabilities, losses, and expenses (including, but not limited to,
reasonable attorneys’ fees) (collectively, “Losses”) resulting from any claim, suit, action, or
proceeding (each, an “Action”) brought by any third party against the other or its affiliates
alleging (i) the infringement or misappropriation of any intellectual property right relating to
the delivery or use of the Services (but excluding any infringement caused by the other party);
(ii) personal injury caused by the negligence or willful misconduct of the other party; (iii) any
violation of or failure to comply with the Acceptable Use Policy and (iv) violation of any
applicable statute or regulation regarding the confidentiality, privacy or security of information.
Customer will indemnify, defend and hold VeriCenter, its affiliates and customers harmless from
and against any and all Losses resulting from or arising out of any Action brought against
VeriCenter, its affiliates or customers alleging any damage or destruction to the VeriCenter Data
Centers, VeriCenter equipment or other customers’ equipment caused by the negligence or willful
misconduct of Customer, its Representatives or designees

     9.2 Notice. Each party’s indemnification obligations under this MSA shall be subject to (i)
receiving prompt written notice of the existence of any Action; (ii) being able to, at its option,
control the defense of such Action; (iii) permitting the indemnified party to participate in the
defense of any Action; and (iv) receiving reasonable cooperation of the indemnified party in the
defense thereof.

Article 10 – Termination

     10.1 Termination For Cause. Either party may terminate this MSA, effective as of the date
specified in written notice of termination provided to the other party, if: (i) the other party
breaches any material term or condition of this MSA and fails to cure such breach within thirty
(30) days after receipt of written notice of the same, except in the case of failure to pay fees,
which must be cured within thirty (30) days after receipt of written notice from VeriCenter, it
being acknowledged and agreed that any material breach of Section 4.1, 4.2 or Section 5.1 shall be
deemed a material breach of this MSA; (ii) the other party becomes the subject of a voluntary
petition in bankruptcy or any voluntary proceeding relating to insolvency, receivership,
liquidation, or composition for the benefit of creditors; or (iii) the other party becomes the
subject of an involuntary petition in bankruptcy or any involuntary proceeding relating to
insolvency, receivership, liquidation, or composition for the benefit of creditors, if such
petition or proceeding is not dismissed within sixty (60) days of filing. Notwithstanding the
foregoing, if VeriCenter elects to terminate this MSA for cause by reason of non-payment by
Customer, Customer may, by written notice to VeriCenter, elect to continue Services hereunder for
an additional period of up to 30 days, if Customer cures the payment default promptly after notice
of termination and stays current in its payment obligations.

     10.2 Termination on Expiration of all Services. Either party may terminate this MSA, effective as of the date specified in written notice of termination
provided to the other party, if all Services have been terminated in accordance with the procedures in Section 2.2(b) or if no Order Forms are in effect.

     10.3 No Liability for Termination. Except in the case of termination for cause pursuant to
Section10.1, neither party will be liable to the other for any termination or expiration of any
Service or this MSA in accordance with its terms.

     10.4 Effect of Termination. Upon the effective date of termination of this MSA:

          (a) VeriCenter will immediately cease providing the Services;

	 	 	 
	MASTER SERVICES AGREEMENT

	 	Page 5 of 10
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	 

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

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          (b) any and all payment obligations of Customer under this MSA for Services provided through
the date of termination will remain due in accordance with the above payment terms;

          (c) within ten (10) days of such termination, each party will return all Confidential
Information of the other party in its possession and will not make or retain any copies of such
Confidential Information except as required to comply with any applicable legal or accounting
record keeping requirement; and

          (d) Except in the case of termination for cause pursuant to Section 10.1, Customer will pay to
VeriCenter all expenses incurred by VeriCenter to return Customers’ Confidential Information,
including, but not limited to, labor costs and the cost of storage media.

     10.5 Termination Assistance. Notwithstanding the provisions of Section 10.4, upon the
termination of this MSA for any reason except termination by Customer for cause, and except as
extended by the invocation of the extension under Section 10.6, VeriCenter will provide to Customer
such termination assistance relating to the Services, at VeriCenter’s then current standard rates,
as may be reasonably requested in writing by Customer. VeriCenter’s obligation to provide
assistance pursuant to this Section 10.5 is limited to a period of thirty (30) days (the
“Assistance Period”). Customer will pay VeriCenter, on the first day of the Assistance Period and
as a condition to VeriCenter’s obligation to provide termination assistance to Customer during the
Assistance Period, an amount equal to VeriCenter’s reasonable estimate of the total amount payable
to VeriCenter for such termination assistance for the Assistance Period. In the event this MSA is
terminated by Customer for cause, or is terminated By VeriCenter pursuant in connection with a
lease termination described in Section 11.2, VeriCenter shall provide reasonable assistance to
Customer, with no charge to Customer, to assist Customer with an orderly transition to another
service provider.

     10.6 Continuation of Services. Notwithstanding the provisions of Section 10.4, Customer
shall have the option, exercisable upon termination, by delivery of written notice to VeriCenter,
to continue the Services and this MSA on a month-to-month basis after the termination date or the
expiration date, as applicable, for the then applicable fees set forth in the Order Forms.
Customer shall have the right to have this MSA continue on a monthly basis pursuant to this Section
10.6 for up to three months. If this MSA is terminated by VeriCenter, the Customer will pay
VeriCenter, on the first day of each month and as a condition to VeriCenter’s obligation to
continue to provide the Services to Customer during that month, an amount equal to VeriCenter’s
reasonable estimate of the total amount payable to VeriCenter for such Services for that month.

     10.7 Survival. The following provisions will survive any expiration or termination of this
MSA: Articles 3, 8, 9, 10 and 11 (excluding Section 11.2) and Sections 4.1, 4.2, and 5.4.

Article 11 – Miscellaneous Provisions

     11.1 Force Majeure. Except for the obligation to make payments, neither party will be liable
for any failure or delay in its performance under this MSA due to any cause beyond its reasonable
control, including, but not limited to, acts of war, acts of God, earthquake, flood, embargo, riot,
sabotage, labor shortage or dispute, governmental act or failure of the Internet (not resulting
from the actions or inactions of VeriCenter, including the inadequacy of infrastructure
architecture or physical security) (each a “Force Majeure Event”), provided that the delayed party:
(a) gives the other party prompt notice of such cause, and (b) uses its reasonable commercial
efforts to promptly correct such failure or delay in performance. If VeriCenter is unable to
provide Services for a period of seven (7) consecutive days as a result of a continuing Force
Majeure Event, Customer may cancel the Services and this MSA on written notice to VeriCenter.
Such termination will be effective on the date specified in the written notice, and Customer shall
have no liability to VeriCenter beyond unpaid charges up to the date of interruption of service.

     11.2 No Lease; Agreement Subordinate to Master Lease. This MSA is a services agreement and is
not intended to and will not constitute a lease of any real property. Customer acknowledges and
agrees that (i) it has been granted only a license to use the VeriCenter Data Centers in accordance
with this MSA; (ii) Customer has not been granted any real property interest in the VeriCenter Data
Centers; and (iii) Customer has no rights as a tenant or otherwise under any real property or
landlord/tenant laws, regulations, or ordinances; and (iv) this MSA, to the extent it involves the
use of space leased by VeriCenter, shall be subordinate to any lease between VeriCenter and its
landlords; and (v) the expiration or termination of any such lease shall terminate this MSA as to
such property subject to Customer retaining any rights or claims it may have against VeriCenter
arising from the expiration or termination of such lease.

     11.3 Marketing. Customer agrees that during the term of this MSA VeriCenter may publicly
refer to Customer, orally and in writing, as a Customer of VeriCenter. Any other reference to
Customer by VeriCenter requires the written consent of Customer.

     11.4 Government Regulations. Neither party will export, re-export, transfer, or make
available, whether directly or indirectly, any regulated item or information to anyone outside the
U.S. in connection with this MSA without first complying with all export control laws and
regulations which may be imposed by the U.S. Government and any country or organization of nations
within whose jurisdiction Customer operates or does business.

     11.5 Non-Solicitation. During the Term of this MSA and continuing through the first
anniversary of the termination of this MSA, each party agrees that it will not, and will ensure
that its affiliates do not, directly or indirectly, solicit or attempt to solicit for employment
any persons employed by the other party . The foregoing notwithstanding, neither party will be
deemed to have breached this Section 11.5 by (a) hiring personnel responding to generally placed
help-wanted advertisements or job postings or (b) hiring personnel of the other party that have
been terminated or notified of pending termination by the other party. In the event a party
violates this Section 11.5, the breaching party agrees to pay the other party the equivalent of six
(6) months wages of the individual hired to serve as liquidated damages and as a placement fee for
acquisition of staff.

     11.6 No Third Party Beneficiaries. VeriCenter and Customer agree that, except as otherwise
expressly provided in this MSA, there shall be no third party beneficiaries to this MSA, including
but not limited to the insurance providers for either party or the customers of Customer.

     11.7 Governing Law; Dispute Resolution. This MSA and the rights and obligations of the
parties created hereby will be governed by and construed in accordance with the internal laws of
the State of New York without regard to its conflict of law rules and specifically excluding from
application to this MSA that law known as the United Nations Convention on the International Sale
of Goods. The parties will endeavor to settle amicably by mutual discussions any disputes,
differences, or claims whatsoever related to this MSA. Failing such amicable settlement, any
controversy, claim, or dispute arising under or relating to this MSA, including the existence,
validity, interpretation,

	 	 	 
	MASTER SERVICES AGREEMENT

	 	Page 6 of 10
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	 

 

 

No. 0002204-QUO

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performance, termination or breach thereof, shall finally be settled by arbitration in accordance
with the Arbitration Rules (and if Customer is a non-U.S. entity, the International Arbitration
Rules) of the American Arbitration Association (“AAA”). There will be one (1) arbitrator (the
“Arbitration Tribunal”), who will be appointed by the AAA in accordance with its rules. The
language of the arbitration shall be English. The Arbitration Tribunal will not have the authority
to award punitive damages to either party. Each party shall bear its own expenses, but the parties
will share equally the expenses of the Arbitration Tribunal and the AAA. This MSA will be
enforceable, and any arbitration award will be final, and judgment thereon may be entered in any
court of competent jurisdiction. The arbitration will be held in New York, New York, USA.
Notwithstanding the foregoing, claims for preliminary injunctive relief and other pre-judgment
remedies may be brought in a state or federal court in the United States with jurisdiction over the
subject matter and parties.

     11.8 Severability. In the event any provision of this MSA is held by a tribunal of competent
jurisdiction to be contrary to the law, the remaining provisions of this MSA will remain in full
force and effect.

     11.9 Waiver. The waiver of any breach or default of this MSA, or the failure to exercise any
right provided for in this MSA, will not constitute a waiver of any subsequent breach, default or
right, and will not act to amend or negate the rights of the waiving or non-exercising party.

     11.10 Assignment. Customer may assign this MSA in whole as part of a corporate
reorganization, consolidation, merger, sale of all or substantially all of its assets, or
transaction or series of related transactions that results in the transfer of fifty percent (50%)
or more of the outstanding voting power of Customer. Customer may not otherwise assign its rights
or delegate its duties under this MSA either in whole or in part without the prior written consent
of VeriCenter, and any attempted assignment or delegation without such consent will be void.
VeriCenter may not assign this MSA in whole or part. VeriCenter may delegate or subcontract the
performance of certain Services to third parties, including VeriCenter’s wholly owned subsidiaries,
only with Customer’s prior written consent and provided VeriCenter controls the delivery of such
Services to Customer and remains responsible to Customer for the delivery of such Services. This
MSA will bind and inure to the benefit of each party’s successors and permitted assigns.

     11.11 Notice. Any notice or communication required or permitted to be given under this MSA
may be delivered by hand, deposited with an overnight courier, confirmed facsimile, or mailed by
registered or certified mail, return receipt requested, postage prepaid, in each case to the
address of the receiving party as listed on the Order Form or at such other address as may
hereafter be furnished in writing by either party to the other party. Such notice will be deemed
to have been given as of the date it is delivered, mailed, faxed or sent, whichever is earlier.

     11.12 Relationship of Parties. VeriCenter and Customer are independent contractors and this
MSA will not establish any relationship of partnership, joint venture, employment, franchise or
agency between VeriCenter and Customer. Neither VeriCenter nor Customer will have the power to
bind the other or incur obligations on the other’s behalf without the other’s prior written
consent, except as otherwise expressly provided in this MSA.

     11.13 Article and Section Headings; Pronouns; Plural and Singular. The article and section
headings in this MSA are for reference purposes only and shall not affect the meaning or
interpretation of this MSA. References in this MSA to a designated “Article” or “Section” refer to
an Article or Section of this MSA unless otherwise specifically indicated. All pronouns used in
this MSA shall be construed as including both genders and the neuter. All capitalized defined
terms used in this MSA are equally applicable to their singular and plural forms.

     11.14 Entire Agreement.. This MSA, including schedules and all documents incorporated into
this MSA by reference, constitute the entire agreement between the parties with respect to the
subject matter hereof, and supersede all of the prior agreements and undertakings, both written and
oral, among the parties, or any of them, with respect to the subject matter of this MSA, except for
the Business Associate Agreement executed by the parties concurrently with this MSA.

     11.15 Counterparts and Originals. This MSA may be executed in counterparts, which together
shall constitute a single agreement. Delivery by telephonic facsimile transmission of a signed
counterpart of this MSA shall be effective as delivery of a manually signed counterpart. Once
signed, any reproduction of this MSA made by reliable means (e.g., photocopy, facsimile) is
considered an original.

     11.16 Amendments. This MSA may be amended or changed only by a written document signed by
authorized representatives of VeriCenter and Customer in accordance with this Section 11.16.

     11.17 Omnibus Reconciliation Act of 1980 Compliance. Each party will comply with all
applicable provisions of Section 952 of Pub. L. 96-499 of the Omnibus Reconciliation Act of 1980,
and as such law may be amended or changed from time to time in the future, pertaining to
contractors of services to Medicare providers.

     11.18 Interpretation of Conflicting Terms. In the event of a conflict between or among the
terms in this MSA, the Service Level Agreements, the Order Forms, Statements of Work and any other
document made a part hereof, the documents shall control in the following order: this MSA, the
Order Form with the latest date, Statements of Work, the Service Level Agreements, and other
documents.

	 	 	 
	MASTER SERVICES AGREEMENT

	 	Page 7 of 10
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	 

 

 

No. 0002204-QUO

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Authorized representatives of Customer and VeriCenter have read the foregoing Master Services
Agreement and all documents incorporated into the Master Services Agreement and agree and accept
such terms effective as of the date first referenced above.

	 	 	 	 	 	 	 
	CUSTOMER: QUOVADX, INC.	 	VERICENTER, INC.
	 
	 	 	 	 	 	 
	Signature:

	 	/s/ Mark Rangell
	 	Signature:
	 	/s/ Michael Sullivan

	 
	 	 	 	 	 	 
	Print Name:

	 	Mark Rangell
	 	Print Name:
	 	Michael Sullivan

	 
	 	 	 	 	 	 
	Title:

	 	Executive Vice President
	 	Title:
	 	SVP Sales

	 
	 	 	 	 	 	 
	Date:

	 	9/30/2005
	 	Date:
	 	10/3/05

This Master Services Agreement incorporates the following documents:

	•	 	All Schedules
	 
	•	 	Order Forms [*]
	 
	•	 	Network SLA
	 
	•	 	Facility Availability SLA
	 
	•	 	Availability SLA
	 
	•	 	Performance SLA
	 
	•	 	VeriCenter Roles and Responsibilities [*]
	 
	•	 	Operational Roles and Responsibilities [*]
	 
	•	 	Acceptable Use Policy
	 
	•	 	Business Associate Addendum

	 	 	 
	MASTER SERVICES AGREEMENT

	 	Page 8 of 10
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	 

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

No. 0002204-QUO

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VeriCenter

Master Services Agreement Schedule 1.2—Definitions

     The following defined terms are equally applicable in their singular and plural forms:

          (a) “Customer Registration Form” means the list that contains the names and contact
information (e.g. pager, email and telephone numbers) of Customer and the individuals authorized by
Customer to enter the VeriCenter Data Centers, as delivered by Customer to VeriCenter and amended
in writing from time to time by Customer.

          (b) “Customer Technology” means Customer’s proprietary technology, including Customer’s
Internet operations design, content, software tools, hardware designs, algorithms, software (in
source and object forms), user interface designs, architecture, class libraries, objects and
documentation (both printed and electronic), know-how, trade secrets and any related intellectual
property rights throughout the world (whether owned by Customer or licensed to Customer from a
third party) and also including any derivatives, improvements, enhancements or extensions of
Customer Technology conceived, reduced to practice, or developed during the term of this MSA by
Customer or jointly by Customer and VeriCenter.

          (c) “Initial Term” means the minimum term for which VeriCenter will provide the Services to
Customer, as indicated on the Order Forms.

          (d) “Notice of Service Commencement” means the written notice delivered by VeriCenter to
Customer indicating the Service Commencement Date.

          (e) “Order Form” means any of the forms specifying the Services, and the term and prices of
such Services, to be provided by VeriCenter to Customer that are submitted by Customer and accepted
by VeriCenter.

          (f) “Professional Services” means any non-standard professional or consulting service provided
by VeriCenter to Customer as more fully described in a Statement of Work.

          (g) “Renewal Term” means any service term following the Initial Term, as specified in Section
2.2 of the MSA.

          (h) “Representatives” mean the individuals identified in writing on the Customer Registration
Form and authorized by Customer to enter the VeriCenter Data Centers.

          (i) “Acceptable Use Policy” means the VeriCenter general Acceptable Use Policy governing
Customer’s use of Services, including, but not limited to, online conduct, and the obligations of
Customer and its Representatives in the VeriCenter Data Centers.

          (j) “Services” means the specific services provided by VeriCenter as described on the Order
Forms.

          (k) “Service Commencement Date” means the date VeriCenter will begin providing the Services to
Customer, as indicated in a Notice of Service Commencement delivered by VeriCenter to Customer.

          (l) “Service Level Agreement” is the detailed definition of service levels that VeriCenter
will provide to Customer for a specific Service.

          (m) “Service Level Warranty” is described and defined in Section 5.2 of the MSA.

          (n) “Statement of Work” means the detailed descriptions of the Professional Services attached
to Order Forms.

          (o) “VeriCenter Data Center” means any of the facilities used by VeriCenter to provide the
Services.

          (p) “VeriCenter Technology” means VeriCenter’s proprietary technology, including VeriCenter
Services, software tools, hardware designs, algorithms, software (in source and object forms), user
interface designs, architecture, class libraries, objects and documentation (both printed and
electronic), network designs, know-how, trade secrets and any related intellectual property rights
throughout the world (whether owned by VeriCenter or licensed to VeriCenter from a third party) and
also including any derivatives, improvements, enhancements or extensions of VeriCenter Technology
conceived, reduced to practice, or developed during the term of this MSA by either party that are
not uniquely applicable to Customer or that have general applicability in the art.  

          (q) The terms “written” and “in writing” mean anything reduced to a tangible form by a
party, including a printed, photocopy, facsimile or hand written document but excluding email or
other electronic formats.

	 	 	 
	MASTER SERVICES AGREEMENT

	 	Page 9 of 10
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	 

 

 

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VeriCenter

Master Services Agreement Schedule 2.1—Standard Hourly Rates

[*]

	 	 	 
	MASTER SERVICES AGREEMENT

	 	Page 10 of 10
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	 

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

SLA # 0002204-QUO

EXECUTION FINAL 

Network SLA

This Service Level Agreement (the “SLA”) between VeriCenter, Inc. (“VeriCenter”) and
Quovadx, Inc (“Customer”) is entered into pursuant to Master Services Agreement No.
0002204-QUO (“MSA”) between VeriCenter and the Customer. Capitalized terms used in this
SLA and not otherwise defined below shall have the meanings given to them in the MSA.

A. Purpose and Scope

The purpose of this SLA is to define Managed Network service levels and operational specifications
that VeriCenter will provide to Customer. Specifics as to the Service(s) (the “Services”) to be
provided to the Customer are set forth in the Order Form, which is incorporated into and made a
part hereof. Section 2.0 of the VeriCenter Roles and Responsibilities document is incorporated
herein by reference.

B. Service Levels

B.1 Managed Network

VeriCenter Managed Network environments consist of LAN and WAN infrastructures. VeriCenter Managed
Network environments will be available on a 7 (day) x 24 (hour) x 52 (week) basis, except for
Scheduled Outages. VeriCenter Managed Network environments are designed with robust architectures
and production system disciplines to ensure maximum performance and availability. VeriCenter will
continuously employ network monitoring techniques to track performance levels of network components
and systems. Network latency will be measured by averaging sample measurements taken every five (5)
minutes during a calendar month between WAN nodes for Internet Availability. Availability will be
calculated monthly using total actual minutes available divided by total possible minutes
available. Availability calculations will exclude Scheduled Outages for maintenance and similar
scheduled downtime. Performance measurements will exclude Customer’s collocated network equipment
and Customer Premise Equipment (CPE). VeriCenter will, at VeriCenter expense, upgrade or improve
capacity and performance levels within VeriCenter Managed Network environments as VeriCenter,
through reasonable commercial judgment, determines improvements are warranted and necessary for
availability and performance attainment. All Managed Network modifications will follow the
established change management practices described in this SLA.

[*]

C. Remedy

C.1 Remedies

In the event that, as a direct result of VeriCenter’s actions or inactions, the Service levels
provided by VeriCenter fail to meet the specified performance levels stated above, [*]

C.2 Exceptions

VeriCenter will have no liability for any failure to provide Services (a) during any Scheduled
Outage, (b) resulting from a Force Majeure Event, or (c) caused, directly or indirectly, by the
acts or omissions of Customer or its employees, agents, contractors or representatives or by
Customer’s or its employees’, agents’, contractors’ or representatives’ equipment.

Without limiting the foregoing, VeriCenter is not responsible for acts or omissions of Customer or
its employees, agents, contractors or representatives that result in failure of, or disruption to,
the Services. Customer agrees that neither Customer nor its employees, agents, contractors or
representatives shall attempt in any way to circumvent or otherwise interfere with any security
precautions or measures of VeriCenter relating to the VeriCenter Data Centers or any other
VeriCenter equipment. Any such attempts may, among other things, cause disruption to the Services.
Any disruption to the Services resulting from a violation of these provisions shall not be an
Unscheduled Outage and Customer will have no right to any Service credit or other remedy under this
SLA or otherwise with respect to such disruption. Customer will be responsible for, and will
indemnify VeriCenter for, any damage or service interruptions caused by Customer or its employees,
agents, contractors or representatives in violation of these provisions, including, without
limitation, any damage to any VeriCenter provided equipment. Further, the Customer will pay
VeriCenter, at VeriCenter’s then current rates, for all remedial services resulting from the
Customer’s actions.

C.3 Termination for Chronic Problems

The conditions warranting termination of Services applicable to this SLA, as specified on the Order
Form, are as follows:

[*]

D. Service Level Change Request Procedures

Either party may request changes to this SLA at any time. Since a change could affect the fees,
schedules or other terms related to this SLA or the MSA, both the Customer and VeriCenter must
approve each change, and this SLA and/or the MSA must be appropriately amended before
implementation of any change. The change request procedure is as follows:

			 
	NETWORK SLA
	 	Page 1 of 2
	VERICENTER CONFIDENTIAL AND PROPRIETARY	 	 

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

SLA # 0002204-QUO

EXECUTION FINAL 

	a)	 	The project manager for the requesting party will submit a change request (“CR”) in writing.
It will describe the change and include whatever rationale and/or estimated effect the change
will have on the SLA and/or the MSA.

	b)	 	The other party’s project manager will review each CR. The project manager will weigh the
merits of the proposed change and approve it for investigation or reject it. If rejected, the
project manager will return the CR to the requesting party, together with the reason(s) for
rejection.

	c)	 	Approval of a CR for investigation by both parties constitutes authorization by the Customer
of any fee proposed by VeriCenter to investigate the CR for investigations taking less than 3
hours. Investigations longer than 3 hours must be estimated by VeriCenter and approved by
customers authorized representatives. During such investigation, the effect on the Monthly
Fee, Service Term or other terms of this SLA will be determined. Following completion of such
investigation, the requested change will then be approved or disapproved for implementation.

	d)	 	Approved changes will be incorporated into this SLA or the MSA through written modifications,
which shall be signed by duly authorized representatives of both parties

E. Change Management

The Customer will be provided at least twenty-one (21) days prior written notice of any changes to
be made by VeriCenter that affect the Services. However, if a shorter notification period is
required, changes will be made with the agreement of the Customer. VeriCenter will strive to
minimize outages that may be caused by a change; however, in the event that an outage is required,
VeriCenter will use best reasonable efforts to minimize the impact of the change and schedule the
outage based upon the Customer’s and VeriCenter’s requirements. If an outage is required, such
outage will be considered a Scheduled Outage. VeriCenter intends to work with the Customer on all
change management issues in order to ensure that the Services are not affected beyond the levels
set forth in this SLA. VeriCenter reserves the right, however, to proceed with any change if it is
determined, by VeriCenter, that the change will not cause harm to the Customer’s specific
environment and/or is otherwise necessary. Customer is required to provide prior notification to
VeriCenter of any changes to its configurations that interface with the provided Services. If
necessary, VeriCenter will provide a representative to work with the Customer to address any
issues that arise during the Customer’s configuration changes.

F. Event Notification

VeriCenter shall provide initial notice to a designated Customer’s representative by telephone,
e-mail, pager or comparable notification service within one (1) hour of VeriCenter becoming aware
of an event that has caused or may cause an Unscheduled Outage. In the event Customer first
becomes aware of such event, Customer shall promptly provide initial notice to VeriCenter via the
Toll-Free Customer Support Number (877) 209-4572. Status reports about the event will continue on
the hour until either the event has been resolved or both VeriCenter and the Customer have
determined a course of action that does not require continued notification.

G. Definitions

LAN (Local Area Network): Those network components and facilities that are installed
within VeriCenter Data Centers providing local connectivity to installed equipment, and that are
owned and managed by the VeriCenter Operations Group and made available to subscribers of
VeriCenter services.

Managed Network: The system of LAN and WAN environments utilized by VeriCenter Data
Centers.

Monthly Fee: The monthly fee for a Service as set forth in the Order Form for that
Service.

Scheduled Outages: The six-hour period of time between 0:00 (AM Mountain Time) each Sunday
until 6:00 (AM Mountain Time) that Sunday, during the Service Term, during which VeriCenter
temporarily interrupts any Services for upgrades, maintenance, or for any other agreed upon reason
or purpose, including an established framework for scheduling and managing such outages.

Service Term: The minimum term for which VeriCenter will provide the Service to Customer
as set forth in the Order Form for that Service.

Unscheduled Outages: Interruptions in Services outside of the agreed-upon Scheduled
Outage, for any reason, including arising from failures associated with Services provided by
VeriCenter or a Force Majeure Event. Unscheduled Outage shall not include any outage primarily
caused by Customer or its employees or agents.

VeriCenter Operations Group: The VeriCenter Operations Group, responsible for the daily
delivery and management of Services provided to the Customer.

WAN (Wide Area Network): Those network components and facilities that are installed at the
boundaries of VeriCenter Data Centers providing connectivity to external or remote networks and
equipment and made available to subscribers of VeriCenter services.

By the signatures of their duly authorized representatives below, VeriCenter and Customer,
intending to be legally bound, agree to all of the provisions of this SLA.

	 	 	 	 	 	 	 
	CUSTOMER: QUOVADX, INC.	 	VERICENTER, INC.
	 
	 	 	 	 	 	 
	Signature:

	 	/s/ Mark Rangell
	 	Signature:
	 	/s/ Michael Sullivan

	 
	 	 	 	 	 	 
	Print Name:

	 	Mark Rangell
	 	Print Name:
	 	Michael Sullivan

	 
	 	 	 	 	 	 
	Title:

	 	Executive Vice President
	 	Title:
	 	SVP Sales

	 
	 	 	 	 	 	 
	Date:

	 	9/30/2005
	 	Date:
	 	10/3/05

This Service Level Agreement incorporates the following documents

	•	 	Order Form [*]
	 
	•	 	VeriCenter Roles and Responsibilities, Section 2.0 [*]

	 	 	 
	NETWORK SLA

	 	Page 2 of 2
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	 

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

SLA #
0002204-QUO

EXECUTION FINAL

Facility Availability SLA

This Service Level Agreement (the “SLA”) between VeriCenter, Inc. (“VeriCenter”) and
Quovadx, Inc (“Customer”) is entered into pursuant to Master Services Agreement No.
0002204-QUO (“MSA”) between VeriCenter and the Customer. Capitalized terms used in this
SLA and not otherwise defined below shall have the meanings given to them in the MSA.

A. Purpose and Scope

The purpose of this SLA is to define Facility Availability service levels and operational
specifications that VeriCenter will provide to Customer. Specifics as to the Service(s) (the
“Services”) to be provided to the Customer are set forth in the Order Form, which is incorporated
into and made a part hereof. Section 1.0 of the VeriCenter Roles and Responsibilities document is
incorporated herein by reference.

B. Service Levels

B.1 Facility Availability

VeriCenter Data Centers will be available on a 7 (day) x 24 (hour) x 52 (week) basis, except for
Scheduled Outages. VeriCenter Data Centers are designed with environmental support system
redundancy and managed environmental system infrastructures that provide for un-interruptible power
and cooling for all components within such VeriCenter Data Center. VeriCenter will continuously
monitor capacity levels for power generation, cooling, and un-interruptible power supply systems at
VeriCenter Data Centers. VeriCenter will, at VeriCenter expense, upgrade or improve capacity
levels within VeriCenter Data Centers as necessary. Capacity upgrades will follow the established
change management practices described in this SLA. VeriCenter’s performance level for Facility
Availability is set as 99.99% available. Availability will be calculated monthly using total actual
minutes available divided by total possible minutes available. Availability calculations will
exclude Scheduled Outages for maintenance and similar scheduled downtime.

C. Remedy

C.1 Remedies

In the event that, as a direct result of VeriCenter’s actions or inactions, the Service Levels
provided by VeriCenter fail to meet the specified performance levels,

[*]

C.2 Exceptions

VeriCenter will have no liability for any failure to provide Services (a) during any Scheduled
Outage, (b) resulting from a Force Majeure Event, or (c) caused, directly or indirectly, by the
acts or omissions of Customer or its employees, agents, contractors or representatives or by
Customer’s or its agents’, contractors’ or representatives’ equipment.

Without limiting the foregoing, VeriCenter is not responsible for acts or omissions of Customer or
its employees, agents, contractors or representatives that result in failure of, or disruption to,
the Services. Customer agrees that neither Customer nor its employees, agents, contractors or
representatives shall attempt in any way to circumvent or otherwise interfere with any security
precautions or measures of VeriCenter relating to the VeriCenter Data Centers or any other
VeriCenter equipment. Any such attempts may, among other things, cause disruption to the Services.
Any disruption to the Services resulting from a violation of these provisions shall not be an
Unscheduled Outage and Customer will have no right to any Service credit or other remedy under this
SLA or otherwise with respect to such disruption. Customer will be responsible for, and will
indemnify VeriCenter for, any damage or service interruptions caused by Customer or its employees,
agents, contractors or representatives in violation of these provisions, including, without
limitation, any damage to any VeriCenter provided equipment. Further, the Customer will pay
VeriCenter, at VeriCenter’s then current rates, for all remedial services resulting from the
Customer’s actions.

C.3 Termination for Chronic Problems

The conditions warranting termination of Services applicable to this SLA, as specified on the Order
Form, are as follows:

[*]

D. Service Level Change Request Procedures

Either party may request changes to this SLA at any time. Since a change could affect the fees,
schedules or other terms related to this SLA or the MSA, both the Customer and VeriCenter must
approve each change, and this SLA and/or the MSA must be appropriately amended before
implementation of any change. The change request procedure is as follows:

	a)	 	The project manager for the requesting party will submit a change request (“CR”) in writing.
It will describe the change and include

			 
	FACILITY AVAILABILITY SLA
	 	Page 1 of 2
	VERICENTER CONFIDENTIAL AND PROPRIETARY	 	 

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

SLA #
0002204-QUO

EXECUTION FINAL

whatever rationale and/or estimated effect the change will have on the SLA and/or the MSA.

	b)	 	The other party’s project manager will review each CR. The project manager will weigh the
merits of the proposed change and approve it for investigation or reject it. If rejected, the
project manager will return the CR to the requesting party, together with the reason(s) for
rejection.

	c)	 	Approval of a CR for investigation by both parties constitutes authorization by the Customer
of any fee proposed by VeriCenter to investigate the CR. During such investigation, the
effect on the Monthly Fee, Service Term or other terms of this SLA will be determined.
Following completion of such investigation, the requested change will then be approved or
disapproved for implementation.

	d)	 	Approved changes will be incorporated into this SLA or the MSA through written modifications,
which shall be signed by duly authorized representatives of both parties.

E. Change Management

The Customer will be provided at least twenty-one (21) days prior written notice of any changes to
be made by VeriCenter that affect the Services. However, if a shorter notification period is
required, changes will be made with the agreement of the Customer. VeriCenter will strive to
minimize outages that may be caused by a change; however, in the event that an outage is required,
VeriCenter will use best reasonable efforts to minimize the impact of the change and schedule the
outage based upon the Customer’s and VeriCenter’s requirements. If an outage is required, such
outage will be considered a Scheduled Outage. VeriCenter intends to work with the Customer on all
change management issues in order to ensure that the Services are not affected beyond the levels
set forth in this SLA. VeriCenter reserves the right, however, to proceed with any change if it is
determined, by VeriCenter, that the change will not cause harm to the Customer’s specific
environment and/or is otherwise necessary. Customer is required to provide prior notification to
VeriCenter of any changes to its configurations that interface with the provided Services. If
necessary, VeriCenter will provide a representative to work with the Customer to address any issues
that arise during the Customer’s configuration changes.

F. Event Notification

VeriCenter shall provide initial notice to a designated Customer’s representative by telephone,
e-mail, pager or comparable notification service within one (1) hour of VeriCenter becoming aware
of an event that has caused or may cause an Unscheduled Outage. In the event Customer first
becomes aware of such event, Customer shall promptly provide initial notice to VeriCenter via the
Toll-Free Customer Support Number (877) 209-4572. Status reports about the event will continue on
the hour until either the event has been resolved or both VeriCenter and the Customer have
determined a course of action that does not require continued notification.

G. Definitions

Facility Availability: The availability of VeriCenter Data Centers.

Monthly Fee The monthly fee for a Service as set forth in the Order Form for that Service.

Scheduled Outages: The six-hour period of time between 0:00 (AM Mountain Time) each Sunday
until 6:00 (AM Mountain Time) that Sunday, during the Service Term, during which VeriCenter
temporarily interrupts any Services for upgrades, maintenance, or for any other agreed upon reason
or purpose, including an established framework for scheduling and managing such outages.

Service Term The minimum term for which VeriCenter will provide the Service to Customer as
set forth in the Order Form for that Service.

Unscheduled Outages: Any interruptions in Services outside of the agreed-upon Scheduled
Outage, for any reason, including arising from failures associated with Services provided by
VeriCenter or a Force Majeure Event. Unscheduled Outage shall not include any outage primarily
caused by Customer or its employees or agents.

By the signatures of their duly authorized representatives below, VeriCenter and Customer,
intending to be legally bound, agree to all of the provisions of this SLA.

	 	 	 	 	 	 	 
	CUSTOMER: QUOVADX, INC.	 	VERICENTER, INC.
	 
	 	 	 	 	 	 
	Signature:

	 	/s/ Mark Rangell
	 	Signature:
	 	/s/ Michael Sullivan

	 
	 	 	 	 	 	 
	Print Name:

	 	Mark Rangell
	 	Print Name:
	 	Michael Sullivan

	 
	 	 	 	 	 	 
	Title:

	 	Executive Vice President
	 	Title:
	 	SVP Sales

	 
	 	 	 	 	 	 
	Date:

	 	9/30/2005
	 	Date:
	 	10/3/05

This Service Level Agreement incorporates the following documents:

	•	 	Order Form [*]
	 
	•	 	VeriCenter Roles and Responsibilities [*]

	 	 	 
	FACILITY AVAILABILITY SLA

	 	Page 2 of 2
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	 

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

SLA 00002139-xxx

EXECUTION FINAL

Application Availability SLA

This Service Level Agreement (the “SLA”) between VeriCenter, Inc. (“VeriCenter”) and
(“Customer”) is entered into pursuant to Master Services Agreement (MSA) NO. 000. Capitalized
terms used in this SLA and not otherwise defined below shall have the meanings given to them in the
MSA.

A. Purpose and Scope

The purpose of this SLA is to: (1) provide an overview of VeriCenter’s operational services in
support of Application Availability, (2) define target Application Availability service levels, and
(3) define appropriate remedies. The VeriCenter Roles and Responsibilities document is
incorporated herein by reference.

B. Overview of Operational Services

B.1.5 Summary of Operational Services:

	 	 	 
	Rapid Secure
	Operating System
	Servers
	Storage
	Networking
	Facilities

This section summarizes VeriCenter’s operational services in support of Application
Availability. ACTUAL SERVICES TO BE PROVIDED ARE DETAILED IN THE ROLES AND RESPONSIBILITIES
(“R&R”) ADDENDUM AND ARE HEREAFTER REFERRED TO AS THE “Services.”

B.1 General Services

VeriCenter Managed Services environments will be available on a 7 (day) x 24 (hour) x 52 (week)
basis, except for Scheduled Outages. VeriCenter will administer changes, microcode upgrades and/or
other hardware/software improvements/upgrades on behalf of Customer in accordance with the Change
Management and Change Request procedures set forth herein.

B.1.1 Facilities Service

VeriCenter Data Centers are designed with environmental support system redundancy and managed
environmental system infrastructures that provide for un-interruptible power and cooling for all
components within such VeriCenter Data Center. VeriCenter will continuously monitor capacity levels
for power generation, cooling, and un-interruptible power supply systems at VeriCenter Data
Centers. VeriCenter will, at VeriCenter expense, upgrade or improve capacity levels within
VeriCenter Data Centers as necessary.

B.1.2 Network Services

VeriCenter Managed Network environments consist of LAN and WAN infrastructures. VeriCenter Managed
Network environments are designed with robust architectures and production system disciplines to
ensure maximum performance and availability. VeriCenter will provide monitoring services of the
network hardware at the VeriCenter Data Centers. These monitoring services include the monitoring
of routers, switches and other networking equipment required to deliver network services.

B.1.3 Storage Services

VeriCenter will provide monitoring services of the storage hardware at the VeriCenter Data Centers.
These monitoring services include periodic monitoring of disk performance, cache memory usage and
related performance metrics available through vendor tools. VeriCenter will advise the Customer
when appropriate of any issues with the performance of communications or storage hardware required
for the delivery of these services such as signal quality loss, error retransmissions, disk
failures, and power or microcode failures.

B.1.4 Managed Server Services

VeriCenter Managed Servers will be available on a 7 (day) x 24 (hour) x 52 (week) basis, except for
Scheduled Outages. VeriCenter Managed Server environments are designed with robust architectures
and production system disciplines to ensure maximum performance and availability. VeriCenter will
continuously employ production system disciplines and monitor capacity and performance levels for
Managed Server environments.

C. Services (Check the Applicable Operational Services Option)

C.1.1 þ Rapid Secure Services

VeriCenter Rapid Secure services provide firewall and intrusion detection protection while allowing
remote access to the Customer’s Environment over the Internet. The Rapid Secure option includes
operating system responsibility.

D. Application Availability and Remedies

D.1 Target Application Availability Level

VeriCenter’s Target Application Availability level is 99.5%

D.2 Remedies

In the event that, as a direct result of VeriCenter’s actions or inactions with respect to its
performance of the Services (as detailed in the R&R addendum), VeriCenter fails to meet the target
Application Availability level, [*]

Such service credit shall be deemed to be liquidated damages, and in no event will the total
Managed Service Credit exceed [*] This credit will be in the form of a credit memo or a cash
payment if this service has been discontinued / expired or if it has otherwise been terminated in
accordance with the provisions of the MSA.

D.2 Exceptions

VeriCenter will have no liability for any failure to provide Services (a) during any Scheduled
Outage, (b) resulting from a Force Majeure Event, or (c) caused, directly or indirectly, by the
acts or omissions of

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

EXECUTION FINAL

Customer or its employees, agents, contractors or representatives or by Customer’s or its
employees’, agents’, contractors’ or representatives’ equipment.

Without limiting the foregoing, VeriCenter is not responsible for acts or omissions of Customer’s
employees, agents, contractors or representatives that result in failure of, or disruption to, the
Services. Customer agrees that neither Customer nor its employees, agents, contractors or
representatives shall attempt in any way to circumvent or otherwise interfere with any security
precautions, procedural controls, Acceptable Use Policy, Change Request Management, Problem
Management or other measures of VeriCenter relating to the VeriCenter offered services. Any such
actions may, among other things, cause disruption to the Services. Any disruption to the Services
resulting from a violation of these provisions shall not be an Unscheduled Outage and Customer will
have no right to any Service credit or other remedy under this SLA or otherwise with respect to
such disruption. Customer will be responsible for, and will indemnify VeriCenter for, any damage
or service interruptions caused by Customer or its employees, agents, contractors or
representatives in violation of these provisions, including, without limitation, any damage to any
VeriCenter provided equipment or other affected customers. Further, the Customer will pay
VeriCenter, at VeriCenter’s then current rates, for all remedial services resulting from the
Customer’s actions.

D.3 Termination for Chronic Problems

The conditions warranting termination of Services applicable to this SLA, as specified on the Order
Form and Roles & Responsibilities documents are as follows:

[*]

E. Service Level Change Request Procedures

Either party may request changes to this SLA at any time. Since a change could affect the fees,
schedules or other terms related to this SLA or the MSA, both the Customer and VeriCenter must
approve each change, and this SLA and/or the MSA must be appropriately amended before
implementation of any change. The change request procedure is as follows:

	a)	 	The project manager for the requesting party will submit a change request (“CR”) in writing.
It will describe the change and include whatever rationale and/or estimated effect the change
will have on the SLA and/or the MSA.

	b)	 	The other party’s project manager will review each CR. The project manager will weigh the
merits of the proposed change and approve it for investigation or reject it. If rejected, the
project manager will return the CR to the requesting party, together with the reason(s) for
rejection.

	c)	 	Approval of a CR for investigation by both parties constitutes authorization by the Customer
of any fee proposed by VeriCenter to investigate the CR for investigations taking less than 3
hours. Investigations longer than 3 hours must be estimated by VeriCenter and approved by
customers authorized representatives. During such investigation, the effect on the Monthly
Fee, Service Term or other terms of this SLA will be determined. Following completion of such
investigation, the requested change will then be approved or disapproved for implementation.

	d)	 	Approved changes will be incorporated into this SLA or the MSA through written modifications,
which shall be signed by duly authorized representatives of both parties

F. Change Management

The Customer will be provided at least Twenty-one (21) days prior written notice of any changes to
be made by VeriCenter that affect the Services. However, if a shorter notification period is
required, changes will be made with the agreement of the Customer. VeriCenter will strive to
minimize outages that may be caused by a change; however, in the event that an outage is required,
VeriCenter will use best reasonable efforts to minimize the impact of the change and schedule the
outage based upon the Customer’s and VeriCenter requirements. If an outage is required, such
outage will be considered a Scheduled Outage. VeriCenter intends to work with the Customer on all
change management issues in order to ensure that the Services are not affected beyond the levels
set forth in this SLA. VeriCenter reserves the right, however, to proceed with any change if it is
determined, by VeriCenter, that the change will not cause harm to the Customer’s specific
environment and/or is otherwise necessary. Customer is required to provide prior notification to
VeriCenter of any changes to its configurations that interface with the provided Services. If
necessary, VeriCenter will provide a representative to work with the Customer to address any issues
that arise during the Customer’s configuration changes.

G. Event Notification

VeriCenter shall provide initial notice to a designated Customer’s representative by telephone,
e-mail, pager or comparable notification service within one (1) hour of VeriCenter becoming aware
of an event that has caused or may cause an Unscheduled Outage that effects service. In the event
Customer first becomes aware of such event, Customer shall promptly provide initial notice to
VeriCenter via the Toll-Free Customer Support Number (877) 209-4572. Status reports about the
event will continue on the hour until either the event has been resolved or both VeriCenter and the
Customer have determined a course of action that does not require continued notification.

H. Reporting

VeriCenter shall provide monthly reports to Customer covering the performance of the following:

Application Availability: Through VeriCenter’s Monitoring and Customer Service tools, any
outage is reported to determine the availability of your subscription. We take the total number of
unavailable minutes (if any), subtract them from the total minutes within the month, and finally
divide the total available minutes by the month’s total minutes to determine your subscription’s
availability. The report will cover Total Application Availability, VeriCenter Environment
Availability, and Customer Application Availability.

Bandwidth Utilization: Bandwidth samples are taken every 5 minutes, resulting in 288 daily
samples and totaling approximately 8640 samples per month. Those samples are then added / averaged
to derive total measured bandwidth, average, incoming, and outgoing utilization rates.

Customer Service Performance: By tracking all calls/emails that come in to the Support
Center, and the tickets that are generated from those calls – we are able to provide you with
information regarding the number of tickets opened, closed on first contact, closed, and still
open. In addition we provide you with a breakdown of the types of calls/emails received, and who
generated the requests.

	 	 	 
	APPLICATION AVAILABILITY SLA

	 	Page 2 of 3
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	 

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

EXECUTION FINAL

Incident Detail: Each month data is extracted from the Customer Support Centers Incident
reporting system to provide you the detail of each incident that was called or emailed to the
Customer Support Center. You will find all details of when the incident ticket was opened, closed,
and all activities that occurred between the opening and closing of the ticket.

I. Definitions

Application Availability: Calculated by dividing the total number of minutes in a month by
the number of minutes that the application was available. VeriCenter will track all incidents that
affect the Application Availability but is only responsible for the elements outlined in the R&R.
This is to say that problems with the application that result in an outage will be recorded for
tracking purposes but will not be used in the calculation of the Environment Availability uptime
percentage which is used to pay remedies.

Environment: The infrastructure components defined in the Order Form that run
Customer’s application(s).

LAN (Local Area Network): Those network components and facilities that are installed
within VeriCenter Data Centers providing local connectivity to installed equipment, and that are
owned and managed by the VeriCenter Operations Group and made available to subscribers of
VeriCenter services.

Managed Network: The management and support of the infrastructure used to provide the
Local Area Network (LAN) and Wide Area Network (WAN) services.

Managed Services: The service, provided by VeriCenter to the Customer that is required to
deliver the contracted service as outlined in the Order Form and Roles & Responsibilities
documents.

Monthly Fee: The monthly fee for a Service as set forth in the Order Form for that
Service.

Rapid Secure: The security model, designed by VeriCenter to allow customers the benefits
of firewall and intrusion detection services as well as enabling the customer remote access into
the systems. This product offering requires that VeriCenter allow remote access to the customers
systems therefore limits the level of SLA that VeriCenter is able to provide. The limited SLA is
dues to the fact that the customer has both access and control of the systems. This SLA includes
all base services components and hardware but does not include any application software that is
being used.

Scheduled Outages: The six-hour period of time between 0:00 (AM Mountain Time) each Sunday
until 6:00 (AM Mountain Time) that Sunday, during the Service Term, during which VeriCenter
temporarily interrupts any Services for upgrades, maintenance, or for any other agreed upon reason
or purpose, including an established framework for scheduling and managing such outages.Service
Term: The minimum term for which VeriCenter will provide the Service to Customer as set forth
in the Order Form for that Service.

Site Vault: The security model designed by VeriCenter to provide customers with the
benefits of firewall and intrusion detection services but restricts the customers’ access to
administer the systems. This product offering requires that the customer allow only VeriCenter to
have access to the systems. This limited access to the servers by the customer allows VeriCenter
to provide a more comprehensive SLA that includes the availability of the operating system.

Managed Service Credit: A credit, which the Customer can apply for if a service is
temporarily unavailable and the outage is outside of the stated SLA availability percentage.

Unscheduled Outages: Any interruptions in Services outside of the agreed-upon Scheduled
Outage, for any reason, including arising from failures associated with Services provided by
VeriCenter or a Force Majeure Event. Unscheduled Outage shall not include any outage primarily
caused by Customer or its employees or agents.

VeriCenter Operations Group: The VeriCenter Operations Group, responsible for the daily
delivery and management of Services provided to the Customer.

WAN (Wide Area Network): Those network components and facilities that are installed at the
boundaries of VeriCenter Data Centers providing connectivity to external or remote networks and
equipment and made available to subscribers of VeriCenter services.

By the signatures of their duly authorized representatives below, VeriCenter and Customer,
intending to be legally bound, agree to all of the provisions of this SLA.

	 	 	 	 	 	 	 
	CUSTOMER: QUOVADX, INC.	 	VERICENTER, INC.
	 
	 	 	 	 	 	 
	Signature:

	 	/s/ Mark Rangell
	 	Signature:
	 	/s/ Michael Sullivan

	 
	 	 	 	 	 	 
	Print Name:

	 	Mark Rangell
	 	Print Name:
	 	Michael Sullivan

	 
	 	 	 	 	 	 
	Title:

	 	Executive Vice President
	 	Title:
	 	SVP Sales

	 
	 	 	 	 	 	 
	Date:

	 	9/30/2005
	 	Date:
	 	10/3/05

This Service Level Agreement incorporates the following documents:

	 	•	 	Order Form [*]
	 
	 	•	 	VeriCenter Roles & Responsibilities [*]
	 
	 	•	 	Outage Flow Chart
	 
	 	•	 	Check Out Procedures (COP’s) – To Be Provided by Customer Upon Implementation

	 	 	 
	APPLICATION AVAILABILITY SLA

	 	Page 3 of 3
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	 

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

SLA #
0002204-QUO

EXECUTION FINAL

Operational Performance SLA

This Service Level Agreement (the “SLA”) between VeriCenter, Inc. (“VeriCenter”) and Quovadx,
Inc (“Customer”) is entered into pursuant to Master Services Agreement (MSA) No.0002204-QUO between
VeriCenter and the Customer. Capitalized terms used in this SLA and not otherwise defined below
shall have the meanings given to them in the MSA.

A. Purpose and Scope

The purpose of this SLA is to: (1) provide an overview of VeriCenter’s operational services that
support Customer’s application Environment, (2) define target performance service levels for those
services, and (3) define appropriate remedies. The VeriCenter Roles and Responsibilities document
is incorporated herein by reference.

B. Overview of Operational Services

This section summarizes VeriCenter’s operational services that support Customer application
Environment. The services described in this section and the Monitoring Section of the Roles and
Responsibilities (“R&R”) Addendum are hereafter referred to as the “Services.”

B.1 Monitoring Services

VeriCenter Monitoring systems are defined as hardware and software probes, sniffers, agents,
applications and utilities that are owned and managed by the VeriCenter Operations Group and
installed within VeriCenter Data Centers, that monitor, collect, process and report on information
associated with the characteristics of VeriCenter Data Center computer system environments.
VeriCenter Monitoring systems are designed to provide early warning notification and alerts, as
well as initiate pre-defined corrective actions or trouble avoidance procedures and processes, when
thresholds are reached or triggers are activated. VeriCenter Monitoring systems will be available
on a 7 (day) x 24 (hour) x 52 (week) basis, except for Scheduled Outages. VeriCenter will, at
VeriCenter’s expense, upgrade or improve capabilities of VeriCenter Monitoring system environments
as VeriCenter, through reasonable commercial judgment, determines improvements are warranted and
necessary to maintain Monitoring systems integrity and performance. All Monitoring systems
modifications will follow the established change management practices described in this SLA.
VeriCenter’s Monitoring services will be delivered in two (2) Tiers or categories of service, with
different performance objectives as follows:

B.1.1 Tier 1 Monitoring – Base level monitoring of major components and systems within the
subscribed services configuration including component and system condition assessment (up or down)
and basic network connectivity (responds or does not respond). Recognition of abnormal conditions
will be made within five (5) minutes and abnormal conditions will be reported to the Customer by
phone or e-mail within 60 minutes of the recognition. Recovery procedures will be initiated
immediately, were applicable. Status reports will be hourly until normal conditions are restored.

B.1.2 Tier 2 Monitoring – Intelligent monitoring of major components and systems within the
subscribed services configuration including component and system condition assessment (up or down)
and basic network connectivity (responds or does not respond), as well as supported operating
system, supported operating system services and supported data base conditions. Recognition of
abnormal conditions will be made within five (5) minutes and abnormal conditions will be

reported to the Customer by phone or e-mail within 60 minutes of the recognition.

Recovery procedures will be initiated immediately, where applicable. Status reports will be hourly
until normal conditions are restored. Historical event logging and trending reports will be
provided to Customers monthly.

B.2 Facility Services

VeriCenter shall provide initial notice to a designated Customer’s representative by telephone,
e-mail, pager or comparable notification service within one (1) hour of VeriCenter becoming aware
of an event that has caused or may cause an Unscheduled Outage. In the event Customer first
becomes aware of such event, Customer shall promptly provide initial notice to VeriCenter via the
Toll-Free Customer Support Number (877) 209-4572. Status reports about the event will continue on
the hour until either the event has been resolved or both VeriCenter and the Customer have
determined a course of action that does not require continued notification.

B.3 Backup Services

Backup services will be measured on an exception basis. The table below summarizes the standard
policy for handling common exceptions and events.

	 	 	 
	Exception/Event	 	VeriCenter Policy
	Backup Exceeds Window
(due to capacity growth or Backup
Client Server processing constraints)

	 	Default Action. VeriCenter will
reschedule job start time within
the policy window, and/or split
the job into multiple parallel
streams, to rectify problem.

Alternative: If above is not
successful, VeriCenter will
contact the Customer to arrange
for an acceptable policy
exception for the Backup Client
involved.
	 
	 	 
	File Open/Not backed up

	 	No action.

File will be picked up on the
next scheduled backup. Files
which are never closed will
never be backed up without the
purchase of additional services
when an alterative exists.
Reasonable efforts will be made
to backup open files or work
with Customer to find a
solution.
	 
	 	 
	Backup Client Not Accessible

	 	Notify Customer.

Backup will automatically pick
up the next day’s schedule
except if a Full Backup is
missed. The next day a Full
Backup will be completed subject
to Customer limitations.
	 
	 	 
	Tape or drive Failure

	 	Restart Job.

VeriCenter will reallocate a
different drive and restart the
job unless previous restrictions
are defined for that Backup
Client Server by the Customer.
	 
	 	 
	Unable to restore from tape

	 	Attempt Alternate Restore,
Contact Customer

VeriCenter will attempt to
restore the file from a
different/previous backup job.
The Customer will be notified of
the failure and will verify
which alternate file should be
used, if any. Notice will be
provided within the restore
initiation window defined for
the particular file.

VeriCenter warrants that it will routinely back-up all Customer data and systems and that it
will use reasonable and industry standard backup technology and procedures in performing all
routine back-ups for Customer. VeriCenter warrants that it will use industry standard technology
and procedures to verify all back-ups mirror accurately the files on each operational disk.

			 
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	Page 1

 

 

SLA #
0002204-QUO

EXECUTION FINAL

VeriCenter does not warrant the validity of the data that is being backed up.

B.4 Support Performance

Following are the baseline services offered by the VeriCenter Customer Service Center.

B.4.1 Easy Access to Support — Described below are several tools that have been put in place to
allow a Caller easy access to a Customer Support Representative (CSR).

B.4.1.i VeriCenter Customer Service Center Help Line - Callers need easy access to a
CSR. The VeriCenter Customer Service Center Help Line allows a Caller to access the
VeriCenter Customer Service Center team through an automated attendant. The number for the
VeriCenter Customer Service Center Help Line is: Toll Free Number: 877-209-4572

B.4.1.ii Voice Mailbox – If all CSR’s are busy, and a Caller has been holding for 30
seconds, the Caller is given an option to continue holding or to be routed to a voice
mailbox. This mailbox is checked every 15 minutes 24 hours per day, 7 days per week, and the
CSR’s will return calls promptly, as appropriate. 

B.4.1.iii E-Mail Mailbox – For customers desiring to contact VeriCenter Customer
Service Center through electronic mail, Service Requests will be accepted that are
prioritized as MED or LOW. This mailbox is checked regularly, 24 hours per day, 7 days per
week and calls returned within an hour as appropriate. It is recommended that Severity Level
1 and 2 requests not rely on this service due to slower response times.
customerservice@vericenter.com

B.4.1.iv Service Request Ownership/Resolution — Once a CSR receives a call and
entitlement has been established the representative is responsible for its resolution or its
escalation. Thus the representative is responsible for logging the call, providing the
customer with the corresponding Service Request Number, trouble-shooting the Service Request,
and escalating the call if necessary. The CSR will maintain the responsibility for
determining the resolution, communicating the resolution back to the Caller, and recording
the resolution in the VeriCenter Customer Service Center tracking database. If a CSR
receives a call that is not supported by the team, the representative is responsible for
helping the individual get to the right place for support.

B.4.1.v Knowledge Management  — As noted above, the CSR is responsible for logging
the Service Request. It is each team’s responsibility to keep a current and accurate base of
knowledge that will assist in future Service Request resolutions.

B.4.2 Service Elements

Below are the service elements between the Customer and the VeriCenter Customer Service Center.

B.4.2.i Hours of Operation – The VeriCenter Customer Service Center’s hours of
operation are:

Regular Business Hours:

Monday – Friday: 

7:00AM – 7:00PM CST

After Business Hours:

	 	 	 
	 

	 	Monday – Friday:
	 

	 	7:00PM – 7:00AM CST
	 

	 	Saturday – Sunday:
	 

	 	All Day

B.4.2.ii Priority Definitions — The prioritization of a Service request is very
important and is the foundation of VeriCenter escalation process. A call’s priority
determines how quickly a call is resolved and/or escalated. During the initial call, the CSR
will inquire into the nature and urgency of the Service Request in order to assign the
appropriate priority. Afterwards, the CSR and Caller will agree upon what priority the call
is to be given. Call priorities are:

	 	 	 	 	 	 	 
	Severity	 	 	 	First Level	 	Second Level
	Levels	 	Description of Severity	 	Escalation	 	Escalation
	1

	 	An outage of a defined
customer environment.
This is treated with
the highest level of
support and service.
	 	5 Min.
	 	1 Hr.
	 
	 	 	 	 	 	 
	2

	 	An outage that affects
functionality but does
not leave the customer
defined environment
non-functional. This
type of outage is
treated with a high
level of support and
service.
	 	1 Hr.
	 	4 Hrs.
	 
	 	 	 	 	 	 
	3

	 	A request by the
customer to perform a
task or operation,
which is important but
not critical to
ongoing operations
	 	3 Hrs.
	 	8 Hrs.
	 
	 	 	 	 	 	 
	4

	 	A request by the
customer to perform a
task or operation, of
convenience
	 	8 Hrs.
	 	48 Hrs.

B.4.3 Internal Escalation Procedures — When a CSR determines that a call needs to be
escalated; the call is marked as such in the tracking database. If a call is severity 1
priority, every attempt will be made to perform ‘live’ escalation via phone or direct
contact. For severity 2 — 4 priority calls, escalations are made through the call-tracking
system.

B.4.4 External Escalation Procedures – When it is necessary for a CSR to escalate a
Service Request to an escalation partner outside of VeriCenter, then the service level
priority expectations for problem resolution will vary. The CSR will inform the customer of
such proceedings and will keep the customer updated continually until the Service Request has
been resolved.

B.4.5
Caller’s Responsibilities — It is the Caller’s responsibility to provide as
much detail as possible on the Service Request. In addition, the Caller needs to be open to
the CSR’s suggestions as they work together toward problem resolution. In most instances,
the customer is part of the escalation process. The customer must commit resources to helping
resolve escalated Service Requests to meet the agreed-upon service levels. Finally, the
Caller is responsible for returning the representative’s phone call or e-mail message if
additional information or documentation is needed

			 
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	Page 2

 

 

SLA #
0002204-QUO

EXECUTION FINAL

B.4.6 Communication - Support is a team effort. It is imperative that continuous
communication and feedback exist between parties to provide quick resolution to Service
Requests.

B.5 Security Services:

B.5.1 Physical Access: Physical access to VeriCenter Data Centers is controlled by the VeriCenter
Operations Group and is restricted to authorized VeriCenter employees and those individuals
specifically approved and authorized by VeriCenter who are accompanied by VeriCenter’s personnel or
who have properly issued access badges. Access by the Customer will be limited to Representatives
of the Customer designated in the Customer Registration Form, which is hereby incorporated by
reference. If the Customer wishes to gain access to a VeriCenter Data Center, arrangements must be
made in advance with VeriCenter (typically a phone call on the day requested). At all times a
VeriCenter employee must escort Customer’s Representatives unless other arrangements have been made
and an access badge properly issued. All changes to the Customer’s Representatives designated in
the Customer Registration Form must be confirmed with VeriCenter in writing at least one (1) day
prior to access to the facility for any new Representative.

B.5.2 Electronic Access: Electronic access to VeriCenter’s data center environments will be secured
through the deployment and utilization of best of breed redundant firewall borders, network
intrusion monitors, Operating System security parameters, anti-virus software and security policy
administration. VeriCenter will continually monitor and track intrusion attempts, virus threats and
other security breaches, both internal and external, and take appropriate actions should
vulnerabilities be identified. Formal logging and reporting of all security breaches will be
performed.

B.5.3 Access to Customer’s Facilities: VeriCenter may require security clearance and access to the
Customer’s facility to install and maintain VeriCenter’s equipment. VeriCenter will comply with
all requirements deemed necessary by the Customer for VeriCenter’s personnel and contractors to
gain access to the Customer’s facility. VeriCenter will be responsible for all work performed by
VeriCenter’s personnel and contractors while on Customer’s premises.

B.6 Summary of Services:

	 	 	 	 	 	 	 
	 	 	Initial Problem	 	 	 	 
	 	 	Notification /	 	Initial Customer	 	 
	Service Type	 	Recognition	 	Contact	 	Status Updates
	Facility

	 	5 Min.
	 	1 Hr
	 	Hourly
	Monitoring

	 	5 Min.
	 	1 Hr
	 	Hourly
	Backup

	 	N/A
	 	Exception Based
	 	Exception Based
	Security

	 	Best Efforts
	 	Best Efforts
	 	Best Efforts
	Support

	 	N/A
	 	N/A
	 	N/A

C. Remedy

C.1 Responsiveness

[*]

C.2 Exceptions

VeriCenter will have no liability for any failure to provide Services (a) during any Scheduled
Outage, (b) resulting from a Force Majeure Event, or (c) caused, directly or indirectly, by the
acts or omissions of Customer or its employees, agents, contractors or representatives or by
Customer’s or its employees’, agents’, contractors’ or representatives’ equipment.

Without limiting the foregoing, VeriCenter is not responsible for acts or omissions of Customer’s
employees, agents, contractors or representatives that result in failure of, or disruption to, the
Services. Customer agrees that neither Customer nor its employees, agents, contractors or
representatives shall attempt in any way to circumvent or otherwise interfere with any security
precautions, procedural controls, Acceptable Use Policy, Change Request Management, Problem
Management or other measures of VeriCenter relating to the VeriCenter offered services. Any such
actions may, among other things, cause disruption to the Services. Any disruption to the Services
resulting from a violation of these provisions shall not be an Unscheduled Outage and Customer will
have no right to any Service credit or other remedy under this SLA or otherwise with respect to
such disruption. Customer will be responsible for, and will indemnify VeriCenter for, any damage
or service interruptions caused by Customer or its employees, agents, contractors or
representatives in violation of these provisions, including, without limitation, any damage to any
VeriCenter provided equipment or other affected customers. Further, the Customer will pay
VeriCenter, at VeriCenter’s then current rates, for all remedial services resulting from the
Customer’s actions.

C.3 Termination for Chronic Problems

The conditions warranting termination of Services applicable to this SLA, as specified on the Order
Form, are as follows:

[*]

D. Service Level Change Request Procedures

Either party may request changes to this SLA at any time. Since a change could affect the fees,
schedules or other terms related to this SLA or the MSA, both the Customer and VeriCenter must
approve each change, and this SLA and/or the MSA must be appropriately amended before
implementation of any change. The change request procedure is as follows:

	a)	 	The project manager for the requesting party will submit a change request (“CR”) in writing.
It will describe the change and include whatever rationale and/or estimated effect the change
will have on the SLA and/or the MSA.

	b)	 	The other party’s project manager will review each CR. The project manager will weigh the
merits of the proposed change and approve it for investigation or reject it. If rejected, the
project

			 
	VERICENTER CONFIDENTIAL AND PROPRIETARY
	 	Page 3

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

SLA #
0002204-QUO

EXECUTION FINAL

manager will return the CR to the requesting party, together with the reason(s) for rejection.

	c)	 	Approval of a CR for investigation by both parties constitutes authorization by the Customer
of any fee proposed by VeriCenter to investigate the CR for investigations taking less than 3
hours. Investigations longer than 3 hours must be estimated by VeriCenter and approved by
customers authorized representatives. During such investigation, the effect on the Monthly
Fee, Service Term or other terms of this SLA will be determined. Following completion of such
investigation, the requested change will then be approved or disapproved for implementation.

	d)	 	Approved changes will be incorporated into this SLA or the MSA through written modifications,
which shall be signed by duly authorized representatives of both parties

E. Change Management

The Customer will be provided at least twenty-one (21) days prior written notice of any changes to
be made by VeriCenter that affect the Services. However, if a shorter notification period is
required, changes will be made with the agreement of the Customer. VeriCenter will strive to
minimize outages that may be caused by a change; however, in the event that an outage is required,
VeriCenter will use best reasonable efforts to minimize the impact of the change and schedule the
outage based upon the Customer’s and VeriCenter’s requirements. If an outage is required, such
outage will be considered a Scheduled Outage. VeriCenter intends to work with the Customer on all
change management issues in order to ensure that the Services are not affected beyond the levels
set forth in this SLA. VeriCenter reserves the right, however, to proceed with any change if it is
determined, by VeriCenter, that the change will not cause harm to the Customer’s specific
environment and/or is otherwise necessary. Customer is required to provide prior notification to
VeriCenter of any changes to its configurations that interface with the provided Services. If
necessary, VeriCenter will provide a representative to work with the Customer to address any issues
that arise during the Customer’s configuration changes.

F. Event Notification

VeriCenter shall provide initial notice to a designated Customer’s representative by telephone,
e-mail, pager or comparable notification service within one (1) hour of VeriCenter becoming aware
of an event that has caused or may cause an Unscheduled Outage. In the event Customer first
becomes aware of such event, Customer shall promptly provide initial notice to VeriCenter via the
Toll-Free Customer Support Number (866) VCENTER. Status reports about the event will continue on
the hour until either the event has been resolved or both VeriCenter and the Customer have
determined a course of action that does not require continued notification.

G. Definitions

Environment: The infrastructure components as defined in the Order Form that run Customer’s
application(s).

Monitoring: The monitoring, collecting, processing and reporting of information associated
with the characteristics of VeriCenter Data Center computer system environments.

Monthly Fee: The monthly fee for a Service as set forth in the Order Form for that Service.

Scheduled Outages: The six-hour period of time between 0:00 (AM Mountain Time) each Sunday
until 6:00 (AM Mountain Time) that Sunday, during the Service Term, during which VeriCenter
temporarily interrupts any Services for upgrades, maintenance, or for any other agreed upon reason
or purpose, including an established framework for scheduling and managing such outages.

Service Term: The minimum term for which VeriCenter will provide the Service to Customer as
set forth in the Order Form for that Service.

Unscheduled Outages: Any interruptions in Services outside of the agreed-upon Scheduled
Outage, for any reason, including arising from failures associated with Services provided by
VeriCenter or a Force Majeure Event. Unscheduled Outage shall not include any outage primarily
caused by Customer or its employees or agents.

VeriCenter Operations Group: The VeriCenter Operations Group, responsible for the daily
delivery and management of Services provided to the Customer.

By the signatures of their duly authorized representatives below, VeriCenter and Customer,
intending to be legally bound, agree to all of the provisions of this SLA

	 	 	 	 	 	 	 
	CUSTOMER: QUOVADX, INC.	 	VERICENTER, INC.
	 
	 	 	 	 	 	 
	Signature:

	 	/s/ Mark Rangell
	 	Signature:
	 	/s/ Michael Sullivan

	 
	 	 	 	 	 	 
	Print Name:

	 	Mark Rangell
	 	Print Name:
	 	Michael Sullivan

	 
	 	 	 	 	 	 
	Title:

	 	Executive Vice President
	 	Title:
	 	SVP Sales

	 
	 	 	 	 	 	 
	Date:

	 	9/30/2005
	 	Date:
	 	10/3/05

This Service Level Agreement incorporates the following documents:

	•	 	Order Form [*]
	 
	•	 	VeriCenter Roles & Responsibilities [*]
	 
	•	 	Problem Management Flow Chart

	VERICENTER CONFIDENTIAL AND PROPRIETARY	 	Page 4

[*] We are seeking confidential treatment of these terms which have been omitted. The confidential portions have been filed separately with the Securities and Exchange Commission.

 

 

EXECUTION FINAL

QUOVADX BUSINESS ASSOCIATE AGREEMENT

     This Business Associate Agreement (“BA Agreement”) is entered into by and between Quovadx,
Inc. (“Quovadx”) and VeriCenter, Inc. (“Business Associate”) (each a “Party” and collectively the
“Parties”).

     WHEREAS, in the operation of its Cash Accelerator business, Quovadx is a Covered Entity;

     WHEREAS, Quovadx in connection with the operation of its Cash Accelerator business receives
services from Business Associate under the terms of that certain
Master Services Agreement between the
Parties dated September 30, 2005 (the “Underlying Agreement”);

     WHEREAS, in providing services to Quovadx, Business Associate may obtain access to PHI;

     WHEREAS, the Parties desire to meet their obligations under the Health Insurance Portability
and Accountability Act of 1996, the Privacy Rule (as defined below) and the Security Rule (as
defined below) (collectively, “HIPAA”);

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as
follows:

1. DEFINITIONS.

     1.1 Unless otherwise specified in this BA Agreement, all capitalized terms used in this BA
Agreement and not otherwise defined herein have the meaning set forth in the Underlying Agreement
or in 45 CFR parts 160 and 164, each as amended from time to time.

     1.2 “Electronic PHI” shall mean Electronic Protected Health Information, as defined in 45 CFR
§ 160.103.

     1.3 “PHI” shall mean Protected Health Information, as defined in 45 CFR § 160.103.

     1.4 “Privacy Rule” shall mean the privacy regulations at 45 CFR §§ 160 and 164 Subparts A and E.

     1.5 “Security Rule” shall mean the security regulations at 45 CFR §§ 160 and 164 Subparts A and C.

2. RESPONSIBILITIES OF BUSINESS ASSOCIATE.

     2.1 Business Associate agrees to:

          (a) use and/or disclose PHI only as permitted or required by this BA Agreement, the Underlying
Agreement, or as required by law;

          (b) use appropriate safeguards to prevent use or disclosure of PHI other than as permitted or
required by this BA Agreement or the Underlying Agreement;

          (c) (i) implement administrative, physical, and technical safeguards that reasonably and
appropriately protect the confidentiality, integrity, and availability of the Electronic PHI that
it creates, receives, maintains or transmits on behalf of Quovadx; and (ii) make its policies and
procedures, and documentation required by the Security Rule relating to such safeguards, available
to the Secretary of the Department of Health and Human Services (“HHS”) for purposes of determining
Quovadx’s compliance with the Security Rule;

 

 

EXECUTION FINAL

          (d) report to Quovadx any use or disclosure of PHI of which it becomes aware that is not
permitted by this BA Agreement or the Underlying Agreement;

          (e) report to Quovadx any Security Incident with respect to Electronic PHI of which it becomes
aware;

          (f) require all its subcontractors and agents that create, receive, use, disclose or have
access to PHI to agree, in writing, to the same restrictions and conditions on the use and/or
disclosure of PHI that apply to Business Associate;

          (g) ensure that all of its subcontractors and agents to whom it provides Electronic PHI agree
in writing to implement reasonable and appropriate safeguards to protect such Electronic PHI;

          (h) make available its internal practices, books, and records relating to the use and
disclosure of PHI to the HHS for purposes of determining Quovadx’s compliance with HIPAA;

          (i) document such disclosures of PHI and information related to such disclosures as would be
required by Quovadx to respond to a request for an accounting of disclosures of PHI about an
individual;

          (j) within 20 days of receiving a written request from Quovadx, make available information
necessary for Quovadx to make an accounting of disclosures of PHI about an individual; and

          (k) mitigate, to the extent practicable, any harmful effect that is known to Business
Associate of a use or disclosure of PHI by Business Associate in violation of this BA Agreement.

     2.2 If Business Associate retains PHI in its possession and such PHI constitutes a Designated
Record Set, Business Associate agrees as follows with regard to such PHI:

          (a) within 20 days of receiving a written request from Quovadx, to make available the PHI
necessary for Quovadx to respond to individuals’ requests for access to PHI about them; and

          (b) within 20 days of receiving a written request from Quovadx, incorporate any amendments or
corrections to the PHI in accordance with the Privacy Rule.

3. PERMITTED USES AND DISCLOSURES OF PHI.

     3.1 Unless otherwise limited herein, in addition to any other uses and/or disclosures
permitted or required by this BA Agreement or required by law, Business Associate may:

          (a) use the PHI in its possession for Business Associate’s proper management and
administration and to fulfill any legal responsibilities of Business Associate; and

          (b) disclose the PHI in its possession to a third party for the purpose of Business
Associate’s proper management and administration or to fulfill any legal responsibilities of
Business Associate; provided, however, that the disclosures are required by law or Business
Associate has received from the third party written assurances that (i) the information will be
held confidentially and used or further disclosed only as required by law or for the purpose for
which it was disclosed to the third party; and (ii) the third party will notify Business Associate
of any instances of which it becomes aware in which the confidentiality of the information has been
breached.

4. RESPONSIBILITIES OF QUOVADX.

     4.1 Quovadx agrees to inform Business Associate of any PHI that is subject to any arrangements
permitted or required of Quovadx under the Privacy Rule that may materially impact in any manner
the use and/or disclosure of PHI by Business Associate under this BA Agreement, including, but not
limited to, restrictions on the use and/or disclosure of PHI as provided for in 45 CFR § 164.522
and agreed to by Quovadx.

5. EFFECTIVE DATE. This BA Agreement shall be effective as of the effective date of the
Underlying Agreement (the “BA Effective Date”).

2

 

EXECUTION FINAL

6. TERM AND TERMINATION.

     6.1 Term. This BA Agreement shall commence as of the BA Effective Date and continue in
effect until terminated in accordance with the provisions of Section 6.2.

     6.2 Termination.

          (a) Upon Quovadx’s determination of a breach of a material term of this BA Agreement by
Business Associate, Quovadx shall either terminate the Underlying Agreement, this BA Agreement and
any other agreements requiring the disclosure of PHI by Quovadx to Business Associate; or provide
Business Associate written notice of that breach in sufficient detail to enable Business Associate
to understand the specific nature of that breach and afford Business Associate an opportunity to
cure the breach; provided, however, that if Business Associate fails to cure the breach within a
reasonable time specified by Quovadx, Quovadx may terminate this BA Agreement and the Underlying
Agreement to the extent that Business Associate’s continued performance under the Underlying
Agreement requires Business Associate to create or receive PHI. If Quovadx terminates this BA
Agreement, Business Associate shall have no continuing obligations under the Underlying Agreement.

          (b) This BA Agreement shall terminate immediately upon the termination of the Underlying
Agreement, or in the case of multiple Underlying Agreements, the last of such agreements.

     6.3 Effect of Termination or Expiration.

          (a) Except as provided in 6.3(b), upon termination of this BA Agreement for any reason,
Business Associate shall return or destroy all PHI received from Quovadx, or created or received by
Business Associate on behalf of Quovadx. This provision shall apply to PHI that is in the
possession of subcontractors or agents of Business Associate.

          (b) In the event that Business Associate determines that returning or destroying the PHI is
infeasible, Business Associate shall notify Quovadx of the conditions that make return or
destruction infeasible. In that event: (i) Business Associate shall extend the protections of this
BA Agreement to such PHI and limit further uses and disclosures of such PHI to those purposes that
make the return or destruction infeasible, for so long as Business Associate maintains such PHI;
and (ii) Quovadx shall comply with its obligations under Section 4.1(b) with respect to any PHI
retained by Business Associate after the termination or expiration of this BA Agreement. This
Section 6.3 shall survive any termination or expiration of this BA Agreement.

7. NOTICES. All notices pursuant to this BA Agreement must be given in accordance with the
requirements set forth in the Underlying Agreement(s).

8. CHANGE IN LAW; AMENDMENT. The Parties agree to negotiate to amend this BA Agreement as
necessary to comply with any amendment to any provision of HIPAA or its implementing regulations
set forth at 45 CFR parts 160 and 164, including, but not limited to, the Privacy Rule and the
Security Rule, which materially alters either Party’s or both Parties’ obligations under this BA
Agreement. This BA Agreement may not be amended, altered or modified except by written agreement
signed by Quovadx and Business Associate.

9. CONTRADICTORY TERMS; CONSTRUCTION OF TERMS. Any provision of the Underlying Agreement or
any other agreement between the Parties that is directly contradictory to one or more terms of this
BA Agreement (“Contradictory Term”) shall be superseded by the terms of this BA Agreement as of the
BA Effective Date only to the extent that it is reasonably impossible to comply with both the
Contradictory Term and the terms of this BA Agreement. The terms of this BA Agreement shall be
construed in light of any applicable interpretation or guidance on HIPAA, the Privacy Rule, and/or
the Security Rule issued by HHS, the Office for Civil Rights, or the Centers for Medicare and
Medicaid Services from time to time.

10. ASSIGNMENT. Neither this BA Agreement nor any right or obligation hereunder shall be
assigned or transferred by either Party without the prior written consent of the other (which
consent shall not be unreasonably withheld or delayed); provided, however, that each party shall
have the right, without such consent, to assign or transfer this BA Agreement or any right or
obligation hereunder to any of its affiliates or also to any other person that (a) acquires or
otherwise succeeds to all or substantially all of that Party’s business and assets or the business
and assets of said Party that relate to the Underlying Agreement, (b) assumes all of the Party’s
obligations hereunder or obligations hereunder that arise after such assignment or transfer, and
(c) agrees to perform or cause performance of all such obligations when due. No assignment or
transfer shall relieve a Party of any obligation hereunder. Any purported assignment or transfer
not permitted by this Section shall be void. All of the terms and provisions of this BA Agreement
shall be binding upon and inure to the benefit of the Parties and their respective successors and
permitted assigns and transferees.

3

 

EXECUTION FINAL

11. MISCELLANEOUS. Nothing in this BA Agreement shall confer upon any person other than the
Parties and

their respective successors or assigns, any rights, remedies, obligations, or liabilities
whatsoever. In the event that any provision of this BA Agreement violates any applicable statute,
ordinance or rule of law in any jurisdiction that governs this BA Agreement, such provision shall
be ineffective to the extent of such violation without invalidating any other provision of this BA
Agreement. No provision of this BA Agreement may be waived except by an agreement in writing signed
by the waiving Party. A waiver of any term or provision shall not be construed as a waiver of any
other term or provision. The persons signing below have the right and authority to execute this
Agreement for their respective entities and no further approvals are necessary to create a binding
agreement.

IN WITNESS WHEREOF, the Parties hereto have executed this BA Agreement as of the BA Effective Date.

	 	 	 	 	 	 	 
	QUOVADX, INC.	 	VERICENTER, INC.
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Linda Wackwitz	 	By:	 	/s/ Michael Sullivan
	 

	 
	 	 	 
	 

	 	(Authorized Signature)
	 	 	 	(Authorized Signature)
	 
	 	 	 	 	 	 
	 
	 	Linda Wackwitz	 	 	 	Michael Sullivan
	 	 	 
	 

	 	Printed Name
	 	 	 	Printed Name
	 
	 	 	 	 	 	 
	 
	 	EVP	 	 	 	SVP Sales
	 	 	 
	 

	 	Title
	 	 	 	Title

4exv10w1

 

EXHIBIT 10.1

RETIREMENT AND GENERAL RELEASE AGREEMENT

     This RETIREMENT AND GENERAL RELEASE AGREEMENT (this “Agreement”) is made and entered into as
of October 5, 2005 (the “Effective Date”), by and between Dex Media, Inc. (the “Company”) and
Robert M. Neumeister, Jr. (the “Executive”).

RECITALS:

     WHEREAS, Executive has served as the Executive Vice President and Chief Financial Officer of
the Company;

     WHEREAS, the Company and Executive are parties to that certain Amended and Restated Employment
Agreement dated as of January 2, 2003 (the “Employment Agreement”);

     WHEREAS, Executive desires to retire from employment with, and step down as the Executive Vice
President and Chief Financial Officer of, the Company;

     WHEREAS, the Company and Executive desire to provide for an orderly transition of Executive’s
duties and responsibilities; and

     WHEREAS, the Company and Executive desire to set forth the parties’ respective rights and
obligations upon Executive’s retirement;

     NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements
hereinafter set forth, the parties hereto hereby covenant and agree as follows:

ARTICLE 1

DEFINITIONS

     1.1 Defined Terms. As used herein, the following terms shall have the following
respective meanings:

     (a) “Auditors” has the meaning set forth in Section 3.5.

     (b) “Change of Control” means on or prior to June 30, 2006 (i) the consummation of the
transactions contemplated by that certain Agreement and Plan of Merger by and among the Company,
R.H. Donnelley Corporation and Forward Acquisition Corp.; (ii) the occurrence of any other
“Corporate Event,” as defined in the Plan, or “Change in Control,” as defined in the Option
Agreements; or (iii) the sale of all or substantially all the Company’s assets to a third party.

     (c) “Code” means the Internal Revenue Code of 1986, as amended.

     (d) “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1996.

     (e) “Gross-Up Payment” has the meaning set forth in Section 3.5.

 

 

     (f) “Option Agreements” has the meaning set forth in Section 3.4.

     (g) “Options” has the meaning set forth in Section 3.4.

     (h) “Parachute Tax” has the meaning set forth in Section 3.5.

     (i) “Payment” has the meaning set forth in Section 3.5.

     (j) “Plan” means the Company’s 2002 Stock Option Plan, as amended.

     (k) “Releasees” has the meaning ascribed thereto in Section 4.1.

     (l) “Retirement Date” means January 2, 2006.

     (m) “Transition Period” means the period from October 6, 2005 through January 2, 2006.

     (n) “Transition Services” has the meaning ascribed thereto in Section 2.3.

     (o) “Vesting Notification Date” has the meaning ascribed thereto in Section 3.4(c).

ARTICLE 2

RETIREMENT; TRANSITION SERVICES

     2.1 Retirement. Executive hereby: (i) voluntarily resigns as the Executive Vice
President and Chief Financial Officer of the Company, and any subsidiaries of the Company,
effective as of Effective Date and (ii) agrees to retire as an employee of the Company effective as
of the close of the Company’s business on the Retirement Date.

     2.2 Termination of Employment Agreement. Except as provided in Section 5.1 of this
Agreement, the Employment Agreement shall terminate as of the Effective Date.

     2.3 Transition Services. During the Transition Period, Executive will: (i) provide
reasonable assistance in connection with the transition of the Company’s new Chief Financial
Officer into such position and (ii) provide such additional assistance relating to the Company’s
financial affairs as the Company’s Chief Executive Officer may from time to time reasonably request
(the “Transition Services”). The Company will reimburse Executive for all reasonable expenses he
incurs in connection with his provision of the Transition Services, provided that any invoice for
reimbursable expenses shall be accompanied by an itemized account of such expenses, together with
copies of receipts relating thereto.

     2.4 Office Space. As of October 6, 2005, the Company will not provide Executive with
permanent office space. If reasonably necessary to render the Transition Services, the Company will
make temporary office space available to Executive for such purpose. In addition, during the
Transition Period, Executive’s e-mail and voice mail accounts and his phone extension at the
Company will be kept active.

 

 

ARTICLE 3

COMPENSATION

     3.1 Compensation During Transition Period. During the Transition Period, the Company
will continue to pay Executive his base salary ($27,083.33 per month). Such amount shall be paid in
accordance with the Company’s normal payroll practices.

     3.2 Lump-Sum Payment. On January 3, 2006, the Company will pay Executive an amount
equal to $984,375.00. The Company may, in its sole discretion, decide to pay such amount to
Executive prior to January 3, 2006.

     3.3 Benefits.

     (a) During the Transition Period: (i) Executive will be entitled to receive all benefits
customarily provided to executive employees of the Company (including, without limitation, medical,
dental, vision, life insurance and access to financial planning) and (ii) Executive will be
required to continue to make all personal contributions to such benefits at the rates in effect as
of the Effective Date (or, for the month of January 2006, in accordance with the election made by
Executive with respect to such month).

     (b) During the thirty-six (36) month period commencing February 1, 2006 and ending January 31,
2009, Executive will be entitled to receive continued health care (including medical, dental and
vision) and welfare coverage under the Company’s plans with respect thereto. Executive shall be
solely responsible for paying all premiums and other amounts payable with respect to such coverage
(including the Company portion). Upon the expiration of such thirty-six (36) month period,
Executive will be entitled, at his own cost, to purchase health care coverage pursuant to COBRA in
accordance with the COBRA rules which are then in effect.

     3.4 Stock Options. The Company has previously granted stock options to Executive
pursuant to the provisions of the Plan (the “Options”). Notwithstanding any contrary provisions in
the Employment Agreement or in the Non-Qualified Stock Option Agreements relating to the Options
(the “Option Agreements”), the parties agree as follows:

     (a) All Options that are vested and exercisable as of the date hereof and not exercised prior
to the Retirement Date will remain outstanding following the Retirement Date and shall terminate
and expire on June 30, 2006 if not exercised prior to such date.

     (b) Subject to Section 3.4(e), all time-vesting Options that are scheduled to vest on December
31, 2005 will vest on such date. All such Options will terminate and expire on June 30, 2006 if
not exercised prior to such date.

     (c) Subject to Section 3.4(e), all performance-vesting Options that are first eligible to
become vested based on the Company’s achievement of its 2005 EBITDA targets will vest to the same
extent as applicable to the Company’s other senior executive officers, as determined by the
Company’s Compensation Committee. Executive will be notified in writing of the extent of such
vesting promptly after the Company’s Compensation Committee makes its determination with respect to
such vesting (the date on which such notification is provided to Executive being referred to herein
as the “Vesting Notification Date”). All such Options will terminate and expire ninety (90) days
following the Vesting Notification Date if not exercised prior to such date.

 

 

     (d) Subject to Section 3.4(e), all Options (time-vesting and performance-vesting) that are
first eligible to become vested with respect to the year ending December 31, 2006 will vest and
become fully exercisable on the Retirement Date. All such Options will terminate and expire on
December 31, 2006 if not exercised prior to such date.

     (e) Notwithstanding Sections 3.4(b), (c), and (d), all of the Executive’s outstanding Options
will become fully vested and exercisable immediately prior to any Change of Control and, in
connection with such Change of Control, will be converted into fully vested options of the
acquiring entity that have substantially comparable economic value, on the same basis as applicable
to the Company’s other senior executive officers. All such Options shall terminate and expire on
December 31, 2006 (or such earlier date as may be required to comply with Section 409A of the Code
and the Department of Treasury regulations and other interpretive guidance issued thereunder) if
not exercised prior to such date. For the avoidance of doubt, any Options (time-vesting and
performance-vesting) that are first eligible to become vested with respect to the year ending
December 31, 2007 (the “2007 Options”) will vest and become exercisable if and only if a Change in
Control occurs on or prior to June 30, 2006; if no Change of Control has occurred by June 30, 2006,
the 2007 Options will terminate and expire on such date.

     3.5 Tax Gross-Up.

     (a) If it is determined by the nationally recognized United States public accounting firm used
by the Company immediately prior to any Change of Control (or such other nationally recognized
United States public accounting firm as may be agreed to in writing by the Company and the
Executive) (the “Auditors”) that any payment or benefit made or provided to the Executive in
connection with this Agreement or otherwise (including without limitation any Option or other
equity compensation award vesting) (collectively, a “Payment”), would be subject to the excise tax
imposed by Section 4999 of the Code (the “Parachute Tax”), then the Company shall pay to the
Executive, prior to the time the Parachute Tax is payable with respect to such Payment, an
additional payment (a “Gross-Up Payment”) in an amount such that, after payment by the Executive of
all taxes (including any Parachute Tax) imposed upon the Gross-Up Payment, the Executive retains an
amount of the Gross-Up Payment equal to the Parachute Tax imposed upon the Payment. The amount of
any Gross-Up Payment shall be determined by the Auditors, subject to adjustment, as necessary, as a
result of any Internal Revenue Service position. For purposes of making the calculations required
by this Agreement, the Auditors may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith interpretations concerning the application
of Sections 280G and 4999 of the Code, provided that the Auditors’ determinations must be made with
substantial authority (within the meaning of Section 6662 of the Code). To the extent that the
Company obtains a written opinion from the Auditors with respect to Parachute Tax issues, the
Company shall direct the Auditors to extend such opinion to the Executive (to the extent that such
extension is permitted by the Auditors).

     (b) The federal tax returns filed by the Executive (and any filing made by a consolidated tax
group which includes the Company) shall be prepared and filed on a basis consistent with the
determination of the Auditors with respect to the Parachute Tax payable by the Executive. The
Company shall use reasonable efforts to ensure that by April 1 of each year, the Auditors will
provide Executive with relevant information relating to their determination to enable Executive to
prepare and file his federal tax returns with respect to the prior year. The Executive shall make
proper payment of the amount of any Parachute Tax based on such determination, and at the request
of the Company, provide to the Company true and correct copies (with any amendments) of his federal
income tax return as filed with the Internal Revenue Service, and such other documents reasonably

 

 

requested by the Company, evidencing such payment, provided that any information unrelated to
the Parachute Tax may be deleted from the copies of the returns and documents delivered to the
Company. If, after the Company’s payment to the Executive of the Gross-Up Payment, the Auditors
determine in good faith that the amount of the Gross-Up Payment should be reduced or increased, or
a determination is made by the Internal Revenue Service that would make the prior Gross-Up Payment
amount not accurate, then within ten business days of such determination, the Executive shall pay
to the Company the amount of any such reduction, or the Company shall pay to the Executive the
amount of any such increase; provided, however, that in no event shall the Executive have any such
refund obligation if it is determined by the Company that to do so would be a violation of the
Sarbanes-Oxley Act of 2002, as it may be amended from time to time; and provided, further that if
the Executive has prior thereto paid such amounts to the Internal Revenue Service, such refund
shall be due only to the extent that a refund of such amount is received by the Executive; and
provided, further, that (i) the fees and expenses of the Auditors (and any other legal and
accounting fees) incurred for services rendered, in connection with the Auditor’s determination of
the Parachute Tax or any challenge by the Internal Revenue Service or other taxing authority
relating to such determination shall be paid by the Company and (ii) the Company shall indemnify
and hold the Executive harmless on an after-tax basis for any interest and penalties imposed upon
the Executive to the extent that such interest and penalties are related to the Auditors’
determination of the Parachute Tax or the Gross-Up Payment. Notwithstanding anything to the
contrary herein, the Executive’s rights under this Section 3.5 shall survive the termination of his
employment for any reason and the termination or expiration of this Agreement for any reason.

     3.6 Section 409A. The Company and the Executive intend that neither this Agreement
nor the Option Agreements shall violate the provisions of Section 409A of the Code and Department
of Treasury regulations and other interpretive guidance issued thereunder, and, to the extent
Section 409A of the Code is applicable, the provisions of this Agreement and the Option Agreements
shall be interpreted in accordance with this intention. Notwithstanding any provision of this
Agreement or the Option Agreements to the contrary, in the event that any amounts payable to the
Executive could reasonably be expected to be immediately taxable to the Executive under Section
409A of the Code and related department of Department of Treasury guidance, the Executive and the
Company shall cooperate in good faith and shall take such reasonable actions as may be necessary or
appropriate to comply with the requirements of Section 409A of the Code and related Department of
Treasury guidance and the intention of the parties as stated above.

     3.7 No Other Payments. Except as set forth in this Article 3, no compensation or
other amounts shall be payable by the Company to Executive in connection with his retirement or the
termination of his employment by the Company. The provision of the payments and benefits set forth
in this Article 3 shall discharge all obligations of the Company to Executive in connection with
his employment by the Company and in connection with the Claims released by Executive hereunder,
other than vested benefits to which Executive may be entitled under the Dex Media Pension Plan or
Savings Plan.

ARTICLE 4

RELEASE

     4.1 Release of Claims. In consideration of the covenants undertaken herein by the
Company, and except for those obligations created by or arising out of this Agreement, Executive,
on his own behalf and on behalf of his descendants, dependents, heirs, executors, administrators,
assigns and successors, does hereby covenant not to sue, acknowledges full and complete
satisfaction of and hereby releases, absolves and discharges the Company and its successors and
assigns, parents, subsidiaries, divisions and affiliated

 

 

corporations, past and present, as well as its and their affiliates, directors, officers,
shareholders, agents, attorneys, insurers and employees, past and present, and each of them
(hereinafter collectively referred to as the “Releasees”), with respect to and from any and all
claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, wages,
obligations, debts, expenses, attorneys’ fees, damages, judgments, orders and liabilities of
whatever kind or nature, in law, equity or otherwise, whether now known or unknown, suspected or
unsuspected, and whether or not concealed or hidden, which Executive now owns or holds or has at
any time heretofore owned or held as against such Releasees, or any of them, arising out of or in
any way connected with his employment relationship with the Company, or his retirement or
resignation as an employee or officer of the Company, or any other transaction, occurrence, act or
omission or any loss, damage or injury whatever, known or unknown, suspected or unsuspected,
resulting from any act or omission by or on the part of such Releasees, or any of them, committed
or omitted prior to the date of this Agreement, including specifically, but without limiting the
generality of the foregoing, any claim under: (i) Title VII of the Civil Rights Act of 1964, as
amended; (ii) the Civil Rights Act of 1991; (iii) the Age Discrimination in Employment Act of 1967,
as amended; (iv) 42 U.S.C. § 1981, § 1981a, § 1983, § 1985, or § 1988; (v) the Family and Medical
Leave Act of 1993; (vi) the Americans with Disabilities Act of 1990, as amended; (vii) the
Rehabilitation Act of 1973, as amended; (viii) the Fair Labor Standards Act of 1938, as amended;
(ix) the Employee Retirement Income Security Act of 1974, as amended; or (x) any other applicable
federal, state or local statute or ordinance. Notwithstanding the foregoing, the foregoing release
by Executive shall not extend to any rights Executive may have in the future to: (i)
indemnification under the Company’s certificate of incorporation or bylaws, law or agreement or
(ii) any coverage to which executive may be entitled under Company’s Director and Officer insurance
policies.

     4.2 Waiver of Unknown Claims. It is the intention of Executive in executing this
Agreement that the same shall be effective as a bar as to each and every claim, demand and cause of
action hereinabove specified, including unknown claims. In furtherance of this intention, Executive
hereby expressly waives any and all rights or benefits conferred by any federal, state or local
statute regarding release of unknown or unsuspected claims.

     4.3 No Transferred Claims. Executive represents and warrants that he has not
heretofore assigned or transferred to any third person any released matter or any part or portion
thereof. Executive agrees to defend, indemnify and hold harmless the Company from and against any
claim (including the payment of attorneys’ fees and costs actually incurred, whether or not
litigation is commenced) based on or in connection with or arising out of any such assignment or
transfer made, purported or claimed.

ARTICLE 5

ADDITIONAL COVENANTS

     5.1 Survival of Certain Provision of Employment Agreement. Sections 6, 7 and 8 of the
Employment Agreement shall survive Executive’s retirement and the termination of the Employment
Agreement; provided, however, that the term “Restricted Period” used in the Employment Agreement is
hereby amended to mean the period commencing on the Effective Date and ending on June 30, 2007.
Sections 6, 7 and 8 of the Employment Agreement, as so amended, are hereby incorporated herein by
reference as if fully set forth in this Agreement.

 

 

     5.2 Confidentiality. Executive hereby agrees as follows:

     (a) Except as otherwise specifically provided in this Agreement, Executive will not disclose
(in whole or in part) any of the terms or provisions of this Agreement or characterize any of the
terms and provisions of this Agreement, or disclose any of the negotiations leading to the making
of this Agreement to any other person or entity. Executive represents and warrants that he has
not made any disclosure of any of the terms or provisions of this Agreement or any of the
negotiations leading to the making of this Agreement to any other person or entity, other than his
spouse, attorneys, financial advisors, accountants or tax advisors.

     (b) Executive agrees that he will not solicit or provoke any inquiry concerning the terms and
provisions of this Agreement. In the event a request is made of either party by any person or
entity (including, but not limited to, any government agency or authority acting or purporting to
act under color of law), for the disclosure, in whole or in part, of the terms or provisions of
this Agreement, such party will: (i) provide written notice within twenty-four (24) hours of such
request to the other party (in the case of the Company, to its Senior Vice President — General
Counsel) and (ii) to the fullest extent permitted by law, make no such disclosure until the other
party has had a reasonable opportunity to contest the right of the requesting person or entity to
obtain such disclosure.

     (c) In response to any inquiry made of Executive with respect to his resignation from the
position of Executive Vice President and Chief Financial Officer of the Company, or the making of
this Agreement and/or its terms and provisions, it will not be a violation of this Agreement for
Executive to state that he has decided to retire but will assist Company during a transitional
period.

     5.3 Executive’s Cooperation. Executive hereby agrees to cooperate, upon reasonable
prior notice and at the Company’s expense, in connection with any investigation or lawsuit
involving the Company on matters with respect to which Executive has or had specific knowledge or
responsibility. Executive shall make himself available, at the Company’s expense, for any
litigation, including, without limitation, preparation for depositions and trial. Executive will
not receive compensation for time spent testifying in depositions or trial. Executive agrees not
to assist or provide information or assistance in any litigation against the Company, except as
required by applicable law or formal legal process after timely notice is provided to the Company
to allow it to take legal action with respect to such request for information or assistance.
Nothing in this Agreement shall restrict or preclude Executive from, or otherwise influence
Executive in, testifying fully and truthfully in legal or administrative proceedings against the
Company, as required by applicable law or formal legal process.

     5.4 Non-Admissibility. The parties agree that this Agreement shall not be admissible
in any proceeding as evidence of any improper conduct by the Company.

ARTICLE 6

MISCELLANEOUS

     6.1 Free and Voluntary Act; Revocation Period; No Other Representations.

     (a) Executive acknowledges that he: (i) has been advised by the Company to discuss this
Agreement with his attorney before signing this Agreement; (ii) has been afforded the opportunity
to consider this Agreement for at least twenty-one (21) days; (iii) has carefully read this
Agreement; (iv) understands each of the terms of this Agreement; and (v) was afforded a reasonable
period in which to consider the terms of this Agreement. Executive further represents and warrants
that he has knowingly and voluntarily signed this Agreement as his own free act, without coercion
or duress.

 

 

     (b) Executive acknowledges that he may revoke this Agreement by delivering to the Company
written notice of revocation within the seven (7) day period following the Effective Date.

     (c) Executive acknowledges that no promises or representations have been made to induce him to
sign this Agreement, other than those expressly set forth in this Agreement, and that Executive has
signed this Agreement as a free and voluntary act.

     6.2 Severability. If any provision of this Agreement is held to be illegal, invalid
or unenforceable under any present or future law, rule or regulation, such provision shall be fully
severable and this Agreement shall be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a part hereof. In such event, the remaining provisions
of this Agreement shall remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such
illegal, invalid or unenforceable provision, there shall be added automatically as a part of this
Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible.

     6.3 Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof, and supersedes all prior agreements,
negotiations, representations, warranties, offers and discussions, whether verbal or written, of
the parties. Notwithstanding the foregoing, Executive acknowledges and agrees that the Amended and
Restated Management Stockholders Agreement by and between Executive and the Company shall remain in
full force and effect in accordance with its terms.

     6.4 Amendment; Waivers. This Agreement may not be modified or amended except by a
written instrument duly signed by both the parties. No waiver of a breach of any term, provision or
condition of this Agreement shall constitute a waiver of any succeeding breach of the same or any
other term, provision or condition hereof. No such waiver shall be valid unless executed in writing
by the party making the waiver.

     6.5 Governing Law; Jurisdiction. This Agreement shall be governed by and construed in
accordance with the laws of the State of Colorado, without regard to the conflict of law principles
thereof.

     6.6 Resolution of Disputes by a Judge, Not a Jury. The parties desire to have any
disputes between them resolved by a duly appointed and/or elected judge, as opposed to a jury.
Accordingly, any claim arising under this Agreement, whether arising in contract, statute, tort,
fraud, misrepresentation, discrimination, common law or any other legal theory, whenever brought,
shall be brought in a state or federal court of competent jurisdiction, and will be tried before a
judge, but not a jury. If the case is filed in state court and is otherwise removable to federal
court, it may be removed. If Executive would otherwise be legally required to exhaust
administrative remedies to obtain legal relief, Executive must exhaust such administrative remedies
prior to pursuing a court action. BY SIGNING THIS AGREEMENT, EXECUTIVE AND THE COMPANY EACH
VOLUNTARILY, KNOWINGLY AND INTELLIGENTLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A JURY TRIAL.

 

 

     6.7 Notices.

     (a) All notices and other communications under this Agreement shall be in writing and
delivered in person or sent by overnight courier or registered or registered mail, postage prepaid,
or by facsimile transmission, and addressed as follows:

	 	 	 
	If to
the Company, to:

	 	If to Executive, to:

	Dex Media, Inc.

	 	Robert M. Neumeister, Jr.
	198 Inverness Drive West,

	 	2729 Silver Cloud Drive
	Englewood, Colorado 80112

	 	Park City, Utah 84060
	Attention: Executive Vice President, 

General Counsel
	 	 
	Fax: 303-784-1915

	 	Fax: 435-658-2481

     (b) Any party may from time to time change its address for the purpose of notices to that
party by a similar notice specifying a new address, but no such change shall be deemed to have been
given until it is actually received by the party sought to be charged with its contents.

     (c) All notices and other communications required or permitted under this Agreement which are
addressed as provided in this Section 6.7 shall be effective: (i) upon delivery if delivered
personally or by overnight courier, ten (10) Business Days after dispatch if delivered by
registered or certified mail; and (iii) on the date of transmittal if given by facsimile
transmission (provided such transmission is confirmed within 48 hours thereafter by a signed
original sent by one of the other methods provided in this subsection).

     6.8 Counterparts. This Agreement may be executed in counterparts, each of which when
executed shall be deemed an original and all of which together shall constitute one and the same
instrument.

[SIGNATURE PAGE FOLLOWS]

 

 

     The undersigned have read and understand the consequences of this Agreement and have signed it
voluntarily. The undersigned declare under penalty or perjury under the laws of the State of
Colorado that the foregoing is true and correct.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	DEX MEDIA, INC.

 	 
	 	By:  	/s/  SCOTT BONTEMPO
 	 
	 	 	Name:  	Scott Bontempo 	 
	 	 	Title:  	Senior Vice President, Human Resources 	 
	 

	 	 	 	 	 
	 	ROBERT M. NEUMEISTER, JR.

 	 
	 	/s/  ROBERT M. NEUMEISTER, JR.
 	 
	 	Robert M. Neumeister, Jr.

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