HomeMy WebLinkAboutContract 47931 i
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CONFIDENTIALITY AND NONDISCLOSURE AGREEMENT
THIS CONFIDENTIALITY AND NONDISCLOSURE AGREEMENT (this
"Agreement") is made and entered into as of 1 2016 ("Effective Date"),
between Texas Health Resources ("THR"), and Cility of ort Worth. For purposes of this
Agreement, Texas Health Resources and City of Fort Worth are each a "Party," and collectively
they are the "Parties." For good and valuable consideration, the receipt and adequacy of which
is hereby acknowledged, and for the mutual promises and agreements of the Parties herein
contained, the Parties agree, as follows:
1. THR and City of Fort Worth are engaged in discussions related to a Possible
Business Relationship ("Possible Business Relationship") and, in the course thereof, any Party
may disclose, orally or in writing, to the other Parties or to a Representative (as defined below)
of any Party certain confidential, proprietary and trade secret materials and information of the
disclosing Party, and each Party acknowledges that such information is important, material and
gravely affects the effective and successful conduct of the business and goodwill of the
disclosing Party. Such information may include, without limitation, financial information;
marketing, development, and demographic information; patient, customer and supplier lists and
related information; patient medical records and other patient clinical data; pricing information
and fee schedules; business plans, projections and strategies; contracting and managed care
strategies and information; past and present methods, procedures and techniques used in
conducting and enhancing operations; salary, compensation, and personnel information;
compilations of records, information and processes; and other materials, records and/or
information of a proprietary nature (collectively, "Confidential Information"). As used herein,
a "Representative" of a Party is any employee, officer, director or owner of that Party, or any
person, firm or entity engaged by or acting as an agent of that Party.
2. Each Party agrees, on behalf of itself and all of its Representatives, that from and
after the Effective Date: (A) it shall cause all of its Representatives to be bound by and to comply
with all of the terms and conditions of this Agreement; (B) all of such terms and conditions of
this Agreement applicable to it shall be deemed to also be applicable to each Representative as if
such Representative were a Party; (C) it will regard and preserve as confidential all of the
respective Confidential Information of the other Parties that may be obtained by it from any
source in connection with the discussion or evaluation of the Possible Business Relationship or
as a result of its interactions with or through the other Parties, or any of their respective
Representatives or business contacts; (D) except as otherwise expressly provided in this
Agreement, it shall not use, copy or disclose, or authorize or permit the use, copying or
disclosure of, any Confidential Information in whole or in part in any manner or to any person,
firm, enterprise, organization, corporation or entity (other than a Representative) for any purpose
unless the disclosing Party otherwise agrees and such third party has executed a written
confidentiality agreement in form and substance acceptable to the disclosing Party; (E) it will
disclose the other Parties' Confidential Information only to those Representatives have a
legitimate need to know such Confidential Information for the0VFVjMqfEd0Wing and
CITY SECRETARY
2381043.3 FT.WORTH, TX
evaluating the Possible Business Relationship; (F) it has no right to use, and shall not, by virtue
of the disclosing Party's making available to it the Confidential Information, use, any
Confidential Information, in any manner other than in accordance with this Agreement or
pursuant to specified requirements of the Parties' other business or contractual relationships, if
any; (G) it shall use and cause all its Representatives to use commercially reasonable efforts to
maintain all Confidential Information in the strictest confidence and to protect the confidentiality
of all Confidential Information, except as otherwise provided in this Agreement; and (H) it shall
not disclose to any person, firm, enterprise, organization, corporation or entity (other than a
Representative who has a legitimate need to know for the purpose of discussing and evaluating
the Possible Business Relationship) that any investigations, discussions, evaluations or
negotiations are taking place concerning the Possible Business Relationship among the Parties,
that any Confidential Information has been requested, disclosed or received by any of the Parties,
or any other matter concerning the Possible Business Relationship, including the status thereof.
3. Each Party's obligations pursuant to this Agreement shall not apply to any
Confidential Information of another Party which: (A) is or becomes publicly available or part of
the public domain through no fault of the receiving Party or its Representatives; (B) is
specifically authorized in writing by the disclosing Party to become publicly known; (C) is
rightfully received from a third party authorized by the disclosing Party to receive such
information without restriction and without breach of this Agreement; (D) was already known to
the receiving Party without restriction, prior to receipt from the disclosing Party; (E) is required
to be publicly disclosed in order to comply with a valid order of a court of competent jurisdiction
or a ruling from the Office of the Attorney General of Texas, provided the receiving Party gives
the disclosing Party reasonable notice of such required disclosure, cooperates in any attempt by
the disclosing Party to legally prevent or limit such disclosure, and complies with the terms of
any protective order which is entered with regard to such disclosure; or (F) is developed
independently by the receiving Party or its affiliates by personnel not having access to the
disclosing Party's Confidential Information.
4. A receiving Party and its Representatives shall use a disclosing Party's
Confidential Information only for the purpose of discussing and evaluating the Possible Business
Relationship or pursuant to specified requirements of the Parties' other business or contractual
relationships, if any, and for no other purpose. No license, either express or implied, has been or
will be created or granted to any receiving Party or any of its Representatives to use any
disclosing Party's Confidential Information for any purpose other than as set forth in the
preceding sentence, and each disclosing Party shall retain title to all of its Confidential
Information. Each disclosing Party is not and will not be making any representation, express or
implied, as to the accuracy or completeness of any Confidential Information furnished by or on
behalf of the disclosing Party, and neither the disclosing Party nor any of its Representatives or
affiliates has or will have any liability to the receiving Party or to any other person resulting from
any use of or reliance upon any Confidential Information furnished by or on behalf of the
disclosing Party. Only those representations and warranties expressly made in a definitive
agreement, when, as and if a definitive agreement is executed and subject to such limitations as
may be specified in such definitive agreement, will have any legal effect. Some of the
Confidential Information furnished pursuant to this Agreement may be subject to certain legal
privileges, and the furnishing of any such Confidential Information is not intended to and does
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not constitute a waiver of any legal privileges, including the attorney-client privilege and the
attorney work product doctrine.
5. Unless and until a definitive agreement has been executed and delivered, no
contract or agreement providing for a transaction among the Parties with respect to the Possible
Business Relationship shall be deemed to exist, and no Party shall be under any legal obligation
of any kind whatsoever with respect to any such transaction or the Possible Business
Relationship except for the matters specifically agreed to in this Agreement. Each Party reserves
the right, in its sole and absolute discretion, to reject any and all proposals regarding the Possible
Business Relationship and to terminate discussions concerning the Possible Business
Relationship with any other Party or Parties at any time, provided that any such termination of
discussions shall not affect the obligations imposed under this Agreement, including the
limitations set forth in Section 6 hereof. If the Parties do not proceed with a transaction with
respect to the Possible Business Relationship, a receiving Party shall return promptly to the
disclosing Party all originals and all copies, extracts or other reproductions in whole or in part of
the disclosing Party's Confidential Information in the possession or control of the receiving Party
or its Representatives, and the receiving Party shall, to the extent permissible by law, destroy or
cause to be destroyed all originals and copies or any memoranda, notes, analyses, compilations,
studies or other documents prepared by the receiving Party or for its use based on, containing or
otherwise reflecting any Confidential Information furnished by or on behalf of the disclosing
Party Notwithstanding any language in this Section 5 or elsewhere in this Agreement to the
contrary, a Party shall be entitled to retain everything that was prepared by such Party or such
Party's Representatives for such Party's use in evaluating the Possible Business Relationship and
which contains any Confidential Information that was provided to it by another Party, provided,
however, that the item(s) so retained shall continue to be subject to the terms and conditions of
this Agreement.
6. In consideration of the substantial time and resources that each Party hereto
expects to devote to evaluating the Possible Busi ess Relationship, each Party agrees, to the
extent permissible by law, that for a period of ` n 9D days (hereinafter,
the "Exclusivity Period") commencing as of the Effectiv Date, such Party shall work in good
faith exclusively with the other Parties in evaluating the feasibility of the Possible Business
Relationship and shall refrain from initiating or participating in any negotiations or discussions
with any person or persons not a Party to this Agreement regarding the establishment, ownership
or operation of any joint venture or other entity involved or planning to be involved may engage
in negotiations or discussions with other parties. The Exclusivity Period will automatically
renew for additional periods of thirty (30) days each, unless either Party provides written notice
to the other Party that the Exclusivity Period shall end at the conclusion of the then current
Exclusivity Period.
7. This Agreement constitutes the entire agreement among the Parties with respect to
the subject matter hereof and supersedes all previous communications, agreements, promises,
representations, understandings and negotiations, whether written or oral, among the Parties with
respect to the subject matter hereof. Neither this Agreement nor any obligations hereunder may
be assigned by any Party (whether by operation of law, merger, acquisition or otherwise) to any
third party whatsoever, and any such attempted assignment shall be void and of no force or
effect. The Parties agree that the damages to one Party as a result of a breach or alleged breach of
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this Agreement by another Party or Parties are irreparable and cannot be remedied by an action at
law for damages and that such Party shall have the right, in addition to its other rights and
remedies in such event, to injunctive and other equitable relief. Notwithstanding the foregoing,
neither party shall be liable if such Confidential Information was required to be publicly
disclosed in order to comply with a valid order of a court of competent jurisdiction or a ruling
from the Office of the Attorney General of Texas under the Texas Public Information Act. If any
part or provision of this Agreement is determined to be invalid or unenforceable, the remainder
of this Agreement shall be enforceable and shall in no way be invalidated. All waivers hereunder
and all modifications, amendments or alterations hereto must be made, and shall not be effective
unless, in writing and signed by all Parties. This Agreement shall be governed by and construed
in accordance with the laws of Texas without giving effect to its conflict of laws rules, and the
exclusive venue for any action or proceeding related to this Agreement shall be in a federal or
state court in Tarrant County, Texas. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which taken together shall
constitute one Agreement.
IN WITNESS WHEREOF, and intending to be legally bound hereby, each party
hereto warrants and represents that this Agreement has been duly authorized by all necessary
corporate action and that this Agreement has been duly executed by and constitutes a valid
and binding agreement of that party. All signed copies of this Agreement will be deemed
originals. Signed signature pages may be transmitted by facsimile or e-mail, and any such
signature shall have the same legal effect as an original signature.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
Effective Date.
TEXAS HEALTH RESOURCES CITY OF FORT WORTH
By: By:
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