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Final Execution Version
(i) During Transition, Supplier shall have the opportunity to review such data. If the Parties agree that such data does
not demonstrate a history of compliance with a particular Code 1 Service Level, they shall (A) first work in good
faith to establish a Service Level that both Parties agree is supported by the applicable performance data; and (B) if
they are unable to agree upon the Service Level, then they shall follow the baselining process set forth in Section 5.2
(c) to establish the Service Level.
(ii) The process above shall be applied on an application-by-application basis for the Application Availability,
Application Response Time, and On-Time Batch Processing Service Levels (i.e., Application Availability,
Application Response Time, and On-Time Batch Processing for some but not all In-Scope Applications may need to
be validated or baselined).
(b) “Code 2”
–
Code 2 has been assigned to Service Levels that the Parties agree should be established through the baselining
p
rocess set forth in Section 5.2(c).
(c) “Code 3”
–
Code 3 has been assigned to the certain Service Levels for which a target has been set that Health Net has not
consistentl
y
achieved
p
rior to the Effective Date. The followin
g
a
pp
lies to Code 3 Service Levels:
(i) Beginning on the Service Commencement Date, Supplier shall meet or exceed the levels of performance achieved
b
y
Health Net
p
rior to the Effective Date; and
(ii) Within 60 days of the Service Commencement Date, Supplier shall provide Health Net with a plan for improving the
Code 3 Service Levels to meet the target metrics set for such Service Levels. Upon approval from Health Net,
Su
pp
lier shall im
p
lement the
p
lan and be
g
in meetin
g
the Service Level on the date s
p
ecified in the
p
lan.
(d) “Code 4”
–
Code 4 has been assigned to Service Levels that the Parties agree do not require validation or baselining.
Service Provider shall meet or exceed Code 4 Service Levels be
g
innin
g
on the Service Commencement Date.
4.3 Failure to Perfor
m
(a) For each Service Level Failure, Supplier shall (i) investigate, assemble and preserve pertinent information with respect to,
and report on the causes of, the problem, including performing a root cause analysis of the problem; (ii) advise Health Net,
as and to the extent requested by Health Net, of the status of remedial efforts being undertaken with respect to such
problem; (iii) minimize the impact of and correct the problem and begin meeting the Service Level; and (iv) take
a
pp
ro
p
riate
p
reventive measures so that the
p
roblem does not recur.
(b) Supplier recognizes that a Critical Service Level Failure may have a material adverse impact on the business and
operations of Health Net and that the damage from such Critical Service Level Failure is not susceptible to precise
determination. Accordingly, in the event of a Critical Service Level Failure for reasons other than ***. This Section 4.3(b)
shall not limit Health Net’s rights with respect to the events upon which Health Net may rely as a basis for Health Net’s
termination of this A
g
reement for cause.
Schedule B
B -4
Health Net/Co
g
nizant Confidential