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<br />Caremark). Such records shall be limited to information necessary for validating the accuracy of the Rebate amounts <br />distributed to Member County by Caremark. The parties agree that an independent third-party auditor agreeable to <br />Customer and Caremark shall conduct such audit, and that such firm will sign a Caremark confidentiality agreement <br />ensuring that all details and terms of all Manufacturer Rebate contracts with Caremark (except the total aggregate <br />amount due to Customer) will be treated as confidential to Caremark and will not be revealed in any manner or form by <br />or to any person or entity. Furthermore, such audit shall be conducted at Caremark's office where such records are <br />located, during normal business hours, without undue interference with business activities, and in accordance with <br />reasonable audit procedures. <br />5. CONFIDENTIALITY AND INTELLECTUAL PROPERTY. <br />5.1 Confidential and Proprietary Information. In connection with this Agreement, each party may <br />disclose to the other party certain proprietary or confidential technical and business information, databases, trade <br />secrets, and innovations belonging to the disclosing party ("Confidential Information"), the value of which might be <br />lost if the proprietary nature or confidentiality of such Confidential Information is not maintained. For the purposes of <br />this Section, the contents of this Agreement and of any exhibits, amendments, or addenda attached hereto are deemed <br />Confidential Information. Furthermore, any work, compilation, processes or inventions developed by Caremark, <br />Member County or Customer, or their respective agents, employees or contractors, is deemed Confidential Information <br />of such party under this Agreement. Notwithstanding the foregoing, Confidential Information may be disclosed by <br />Member County in response to a request made pursuant to 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 to <br />disclose Confidential Information and (ii) an opportunity for Caremark to object to such disclosure in accordance with <br />Law. Attached hereto as Exhibit D is a copy of this Agreement which redacts certain pricing information. <br />Notwithstanding the foregoing, the parties agree that as a matter of convenience, Exhibit D may be disclosed by <br />Member County as required by Member County's applicable Public Records Law without providing Caremark an <br />opportunity to object. Member County agrees to provide Caremark with reasonable notice of its disclosure of Exhibit <br />D. <br />5.2 Non-Disclosure of Confidential Information. The parties will not (except to the extent expressly <br />authorized by this Agreement) disclose Confidential Information of any other to anyone outside of Caremark, Member <br />County or Customer, nor will they copy or reproduce any Confidential Information of another unless expressly <br />authorized to do so by such party in writing. Each party will disclose Confidential Information of another only to its <br />employees who have a need to know the Confidential Information in order to accomplish the purpose of this Agreement <br />and who (i) have been informed of the confidential and proprietary nature of the Confidential Information, and (ii) have <br />agreed not to disclose it to others. In order to preserve and protect the confidential or proprietary nature of any <br />Confidential Information and to prevent it from falling into the public domain or into the possession of persons not <br />bound to maintain its confidentiality, each party will handle the Confidential Information of any other party with the <br />same degree of care that it applies with respect to its own information that it considers as confidential and proprietary, <br />but in no event with less than reasonable care. <br />53 Exceptions and Permitted Disclosures. The receiving party of Confidential 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 Agreement, or if the Confidential Information is shown by written <br />-documentation to be known to the receiving party on the date of execution of this Agreement, having been received <br />from a source (other than a party to this Agreement) that had the right to disclose the Confidential Information. <br />5.4 Subpoena. Confidential Information may be disclosed pursuant to a bona fide subpoena if the 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 intervene as it deems proper. <br />5.5 Return or Destruction of Information. All 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 to the extent feasible, upon termination of this Agreement, Caremark will destroy or will <br />return to Member County or Customer all PHI obtained pursuant to this Agreement and shall retain no copies thereof; <br />provided however, that if such return or destruction is not reasonably feasible, the provisions of Section 4 of this <br />Agreement shall continue to apply to such information after the termination hereof. <br />NACo k3-v2.doc (02/24/2006)1RzClaiml Pane 5 of29 <br />'t'his doc~mment contains proprietary information of Caremadc, and may not be used for any purpose other than to evaluate entering into a relationship <br />with Caremark, nor may it be duplicated or disclosed to others for airy Purpose. <br />