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4.2 Rtght to Audit Rebates. Customer, at its sole expense, may audit a reasonable sample of records <br />duectly related to Customer's Rebates once in each twelve-month period (following sixty (60) days written notice to <br />Caremark). Such records shall be limited to infomration necessary for validating the accuracy of the Rebate amounts <br />distributed to Member County by Caremark. The parties agree that an independent third-patty auditor agreeable to <br />Customer and Csrernark shall conduct such audit, and that such firm will sign a Caremark confidrntiality agrement <br />ensuring that all details and terms of ali Manufacturer Rebate contracts with Caremark (except the total aggregate <br />amount due to Customer) will be treated as confidential to Caremark and will net be revealed is any mamner or form by <br />or to any person or rntity. Furthermore, such audit shall be conducted at Caretmrk's office where such records are <br />located, during normal business hours, without undue interference with business activities, and im accordance with <br />reasonable audit procedures. <br />5. CONFIDENTIALITY AND INTELLECTUAL PROPERTY. <br />5.1 ConRdemtlal and Proprietary Informadoa Ia cotmection with this Agreement, each party may <br />disclose to the other party certain proprietary or confidential technical and busi~as information, databases, trade <br />secrets, and innovatlona belonging ro the disclosing party ("Confidentlal Informadon'~, the value of which might be <br />lost if the proprietary nature or confidentiality of such Confidrntial Information is sat tnaiatained. For the purposes of <br />this Section, the contents of this Agreement surd of any exhibits, amendments, or addenda attached hereto are deemed <br />Confidrntial Information. Furthermore, any work, compilation, processes or invrndana developed by Caremark, <br />Member County or Cusromer, or their respective agents, employees or contractors, is deerced Confidential Information <br />of such party under this Agreement. Notwithstanding the foregoing, Confidential hiformation may be disclosed by <br />Member County in response to. a request made pursuant ro the Member County's applicable state Public Records Law, <br />insofar as disclosure is required by that Law. Member County shall provide Caremark with (i) notice of its intent ro <br />disclose Confidential btformation surd (ii) an opportttnity for Caremark ro object to such disclosure in accordance with <br />Law. <br />3.2 Noo-Discloaure of CorrIIdendal Informatlon. The parties will not (except to the extent expressly <br />sudtorized by this Agreement) disclose Confidential Information of any other ro anyone outside of Caremark, Member <br />County ar Cusromer, nor will they copy or reproduce any Confidential Information of another unless expressly <br />authorized ro do.so by such party in writing. Each parry will disclose Confidential Information of another only ro its <br />employees who have a need ro ]mow the Confidential Information in order to accomplish the purpose of this Agreement <br />and who (i) have been informed of the wnfidetttiel and proprietary nattre of the Confidential Information, and (it) have <br />agreed not to disclose it ro others. In order ro preserve and protect the confidential or proprietary nature of any <br />Confidential Information and ro prevent it from falling into the public domain ar into the possession of persons not <br />bound ro maintain its confidentiality, each party will hurdle the Confidential Information of any other patty with the <br />same degree of care that it applies with respect ro its own information that it considers as confidential and proprietary, <br />but in no event with less than reasonable care. <br />3.3 Exceptlona and Permitted Disclosure. The receiving party of Confide~al Information will not be <br />liable for any disclosure or use of Confidential Information which is publicly available or later becomes publicly <br />available other than through a breach of this Agreemrnt' or if the Confidential Information is shown by written <br />documentation to be known to the receiving party on the date of execution of this Agreement' having been received <br />from a source (other them a party to this Agreement) that had the right ro disclose the Confidential Information. <br />5.4 Subpoena. Confidential Infortmation may be disclosed pursuant ro a bona fide subpoena if the party <br />receiving the bona fide subpoena has given the other party prompt written notice of receipt of the subpoena so that the <br />other party can object or otherwise intervrne as it deems proper. <br />S.S Return or Destructlon of Infortrtadoa. Alt Confidential Information will remain the property of the <br />disclosing party, and the receiving party will return all written or tangible materials, and all copies thereof, upon request <br />of the disclosing party. if and ro the extent feasble, upon termination of this Agreememt, Caremark will destroy or will <br />return to Member County or Customer all PHI obtained pursuant ro this Agreement and shall retain ao copies thereof; <br />provided however, that if such return or destruction is not reasonably feasible, the provisioms of Section 4 of this <br />Agreement shall continue ro apply to such infomtation after the termination hereof. <br />5.6 Proprietary to Caremark. Member County and Customer acknowledge that the Formulary is <br />NACo k4-v3 dac (5/2//08) IRat:lalml Paae S of 14 <br />This docunent conuins proprietary information of Caremark, and may not 6e used for any putpou other than to evaluate entering into a relationship <br />with Caremark, nor may it be duplicated or diulosed to others far any purpose. ~ ,q <br />